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Annual Report 2011

Annual Report 2011

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Suntec Real Estate Investment Trust Annual Repor t 2011

Setting the Stage

Suntec REIT has grown from strength to strength to become one of Singapore’s largest commercial REITs with a portfolio of premier real estate assets. We have set the stage for further growth and remain committed to deliver long-term value to our stakeholders.

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About Suntec REIT
Listed on 9 December 2004 on the Mainboard of the Singapore Exchange Securities Trading Limited (the “SGX-ST”), Suntec Real Estate Investment Trust (“Suntec REIT”) is the first composite REIT in Singapore owning income-producing real estate that is primarily used for retail and/or office purposes. As at 31 December 2011, Suntec REIT’s portfolio comprises office and retail properties in Suntec City, Park Mall, CHIJMES, a one-third interest in One Raffles Quay and a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall, all strategically located in the growth corridors of Marina Bay and the Civic and Cultural District within Singapore’s Central Business District. Suntec REIT also owns a 60.8 percent interest in Suntec Singapore International Convention & Exhibition Centre. Suntec REIT is managed by an external manager, ARA Trust Management (Suntec) Limited (the “Manager”). The Manager is focused on delivering regular and stable distributions to Suntec REIT’s unitholders, and to achieve long-term growth in the net asset value per unit of Suntec REIT, so as to provide unitholders with a competitive rate of return on their investment.

About ARA Trust Management (Suntec) Limited
The Manager is a wholly-owned subsidiary of ARA Asset Management Limited (“ARA”), a real estate fund management company listed on the Mainboard of the SGX-ST, and is an affiliate of the multinational conglomerate Cheung Kong Group. ARA currently manages real estate investment trusts (“REITs”) listed in Singapore, Hong Kong and Malaysia with a diversified portfolio spanning the office, retail and industrial/office sectors, as well as private real estate funds investing in real estate in Asia. ARA also provides real estate management services, including property management services, convention & exhibition services and corporate finance advisory services. As at 31 December 2011, ARA’s total assets under management was approximately S$20.2 billion. The Manager is responsible for the management and administration of Suntec REIT, as well as the implementation of Suntec REIT’s strategic long-term growth.

Contents
01 03 10 12 14 About Suntec REIT Mission Statement Year In Review Chairman’s Report Financial Highlights 15 16 20 24 30 Unit Performance Board Of Directors Management Team Manager’s Report Property Portfolio 50 52 54 64 Market Report Investor Communications Corporate Governance Financial Contents

.Delivering a resounding performance requires the coordinated symphony of a dedicated team of professionals with the skill set to deliver premium value to our stakeholders.

Our Mission Forging ahead to create. provide and deliver premium value to all stakeholders of Suntec REIT. .

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.Casting the Light on Value Our single minded focus allows us to strengthen and enhance the long term value of our asset portfolio.

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prudence and proactive fine-tuning of our sound capital management strategies enable us to build a strong credit standing and deliver a solid financing track record.Fine-tuning for Sound Execution Our discipline. .

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Delivering a Performance Our passion. . dedication and teamwork allow us to deliver a consistent and sustainable performance in the interests of our unitholders.

0% to 60.10 Suntec REIT Annual Report 2011 Year in Review S$ 7.75 million acquisition of a 51. August 2011 • New issue of S$150 million medium term notes under the S$500 million Multicurrency MTN Programme. • Secured S$120 million term loan facility. • Announced and completed the S$114. Distribution per unit (“DPU”) for the quarter amounted to 2.9 million for the period 1 October 2010 to 31 December 2010. This increases Suntec REIT’s effective stake in Suntec Singapore from 20.388 cents.7m ASSETS UNDER MANAGEMENT Distribution Income JANUARY 2011 • Achieved distribution income of S$44.0% indirect interest in Suntec Singapore International Convention & Exhibition Centre (“Suntec Singapore”).7b S$ 220.9 million for the period 1 January 2011 to 31 March 2011.0% interest in Harmony Partners Investments Limited which holds an 80.8%. APRIL 2011 • Unitholders approved all resolutions tabled at Suntec REIT’s annual general meeting held on 15 April 2011. DPU for the quarter amounted to 2. • Achieved distribution income of S$52.316 cents. .

at 23.533 cents. • Establishment of a new S$500 million Multicurrency Medium Term Note (“MTN”) Programme. • Announced the divestment of CHIJMES for S$177 million. .2 million for the period 1 April 2011 to 30 June 2011.11 99. October 2011 • Achieved distribution income of S$56.532 cents.5 % office comMitTed occupancy RETAIL comMitTed occupancy • Achieved distribution income of S$56.2 JULY 2011 % 97.2% above the valuation as of 15 October 2011. DPU for the quarter amounted to 2. • Suntec REIT conferred SIAS “Most Transparent Company” award 2011 (Runner-Up. • Announced the S$410 million multi-phased remaking of Suntec City. DPU for the quarter amounted to 2.4 million for the period 1 July 2011 to 30 September 2011. REITs Category).

12 Suntec REIT Annual Report 2011 Chairman’s Report Suntec REIT achieved a record high distribution income of S$220. .932 cents for FY 2011.7 million and a strong distribution per unit of 9.

Park Mall.5% for our retail properties in FY 2011. Suntec REIT has.10% due 2016 to refinance Suntec REIT’s existing FY 2011 loans. the continuing challenges of the retail sector and the on-going Euro crisis.3 Singapore cents of DPU through the peaks and troughs of the property market. CHIJMES. Last but not least. As at 31 December 2011. we entered into a S$120 million term loan facility to finance the acquisition of the additional stake in Suntec Singapore. would offer visitors a seamless experience in Suntec City. our strategy and focus on protecting and preserving our high occupancies enabled Suntec REIT to achieve a record distribution income of S$220. In addition.0 million. concept stores.0% of our office leases expiring in 2012 and the high committed occupancy of the REIT portfolio. IN APPRECIATION I would like to express my appreciation to the members of the Board for their invaluable contributions during the year.932 cents for FY 2011. political upheavals in the Middle East and the economic crisis in Europe. Suntec REIT achieved a record high distribution income of S$220. I am grateful to our unitholders. Our key priorities in 2012 are to continue our proactive leasing strategies and to ensure the smooth and successful execution of the AEI so as to continue to deliver premium value to our unitholders. Chiu KwoK hung.8%. will transform itself into a more exciting shopping and lifestyle destination with new retail offerings. a 20. incentives. ROBUST FINANCIAL AND OPERATING PERFORMANCE Against the backdrop of negative rental reversions in our office portfolio in FY 2011. Suntec City Mall with its size.8 billion and our gearing ratio was 37.1% return on investment to unitholders. tenants.2% for our office properties and 97. we have forward renewed more than 233. Unitholders received a distribution per unit (“DPU”) of 9. Suntec REIT received a Runner-up Award for the “Most Transparent Company Award 2011” under the REITs category in the SIAS Investors’ Choice Awards 2011. since our initial public offering in December 2004. Suntec City Mall and the award-winning Suntec Singapore will soon undergo an asset enhancement initiative (“AEI”). FY 2011 was a year of uncertainty. alfresco dining complete with comprehensive amenities. Suntec REIT established a new S$500 million multicurrency medium term note (“MTN”) programme in July 2011 and issued a S$150 million MTN at 3. By December 2011. With a balance of approximately 10. As at 31 December 2011. Suntec REIT gained strategic majority control of Suntec Singapore International Convention & Exhibition Centre (“Suntec Singapore”) through the acquisition of an additional 40. We are cognisant of the uncertainties ahead and have implemented pre-emptive measures to protect our income stream and minimise our risk exposure. Suntec Singapore has played a major role in advancing the MICE2 industry in Singapore and with the planned enhancements. 2 Meetings. an increase of 20. With the DPU of 9.2% higher than our Forecast1. 23. we achieved strong committed occupancies of 99.7 million for the year. Justin Chairman and Director 28 February 2012 . raising our effective interest from 20.7% higher year-on-year and 14. The sale proceeds will be deployed to partially fund the AEI and provide us the flexibility to mitigate any temporary dip in distribution per unit during the execution of the AEI. This is the sixth year that Suntec REIT has been recognised for our high standards of corporate transparency and disclosure. I am pleased to present the annual report of Suntec REIT for the financial year ended 31 December 2011 (“FY 2011”). PRUDENT AND PROACTIVE CAPITAL MANAGEMENT We continued our prudent capital management strategy during the year to improve our overall financing cost and strengthen our debt maturity profile. The 4 phased AEI is targeted to complete in 2015 and projected to deliver an attractive 10. business partners and stakeholders for your continued strong support. LOOKING AHEAD The economic outlook for Singapore is expected to be positive but muted for 2012 with the Ministry of Trade and Industry estimating GDP growth to be only 1%-3% on the back of uncertain global macroeconomic conditions. As part of our proactive asset management strategies in maximising returns from our portfolio. VALUE ENHANCEMENT AND PORTFOLIO OPTIMISATION In August 2011. the manager of Suntec REIT (the “Manager”). it will strengthen its foothold as Singapore’s premier MICE2 venue of choice. On behalf of the Board of ARA Trust Management (Suntec) Limited. Notwithstanding the global uncertainty. conventions and exhibitions.9% increase year-on-year.13 Dear Unitholders. Notes: 1 The forecast is based on the assumptions as set out in Suntec REIT’s circular to Unitholders dated 8 November 2010 (“Forecast”).3% with an average all-in financing cost of 2. we are well positioned to meet the challenges ahead.000 sq ft of office leases due to expire in 2012. prime location and connectivity to two MRT stations. exacerbated by natural disasters in Japan.9% over the previous year. delivered 65. One Raffles Quay achieved 100% occupancies.7 million for FY 2011.0% to 60. we divested CHIJMES for a price of S$177.932 cents which was 0. I would also like to thank the management team for their hard work and dedication in delivering another year of strong performance for Suntec REIT.81% for FY 2011. AWARD AND ACCOLADES During the year. Suntec REIT’s total debt portfolio was approximately S$2.8% equity stake. In particular.2% higher than valuation. Levels 1 and 2 of Suntec Singapore will also be converted to retail use and integrated with Suntec City Mall which when the planned AEI is completed.

80 38.652. Suntec REIT’s “Aggregate Leverage Ratio”.804.8m S$220.7 200 6 150 122.516.970.1m S$2.3% 31 Dec 2010 S$4.1m S$2.5m S$193.1m S$45.7m S$6.3 100 2 50 0 0 Dec 04 Sep 05 Sep 06 Sep 07 Dec 08 Dec 09 Dec 10 Dec 11 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 .1 99. Ltd.7m 9.3m S$7.8 4 3. The “Fully Diluted DPU” illustrates the pro-forma DPU assuming that all the deferred units had been issued on 9 December 2004.2 2.039.6 167. Ltd.1m S$4.3m S$182.452.2 2. Strong Growth And Performance Track Record Since Listing ASSETS UNDER MANAGEMENT S$ bil 10 INCOME AVAILABLE FOR DISTRIBUTION S$ mil 250 220.2 7.433.86¢ 9.087.241.4m S$3.4 4.1% and 40.6m S$2.667.8m S$2.554.0% interest in Suntec Singapore for the period 1 January 2011 to 18 August 2011.61¢ Notes: 1 Includes 20.00 per unit. the interest in Suntec Singapore has been reclassified out from Interest in jointly controlled entities and consolidated accordingly.984.170 units had been issued in six equal half-yearly instalments. The deferred units were issued at the Suntec REIT initial public offering price of S$1.4m S$105.8m S$1.93¢ 2010 S$249.0m S$2.3m S$193.6 5. it has been reclassified out from interest in jointly controlled entities and consolidated accordingly.4% Notes: 1 Arising from the acquisition of a one-third interest in One Raffles Quay through the purchase of the entire issued share capital of Comina Investment Limited in 2007 and the acquisition of a one-third interest in the Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall through the purchase of one-third of the issued share capital of BFC Development Pte.99 37.93¢ 9.14 Suntec REIT Annual Report 2011 Financial Highlights Consolidated Profit And Loss Statement For The Financial Year Gross Revenue Net Property Income Income Contribution from Jointly Controlled Entities1 Income Available For Distribution Distribution Per Unit (“DPU”) Fully Diluted DPU2 2011 S$270. CONSOLIDATED Balance Sheet as at Investment Properties Interest In Jointly Controlled Entities1 Total Assets Debt At Amortised Cost Total Liabilities Unitholders’ Funds Net Asset Value Per Unit Debt-to-Asset Ratio2 31 Dec 2011 S$5.1 87.7 182. with the first instalment issued on 9 June 2008 and the last instalment issued on 9 December 2010. Following the acquisition of additional 40.8% interest in Suntec Singapore.5 8 7. which refers to the ratio of the value of borrowings (inclusive of proportionate share of borrowings of jointly controlled entities) and deferred payments (if any) to the value of the Deposited Property in accordance with Appendix 6 on the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore was 39. in 2010. 2 The deferred units totaling 207.8% interest in Suntec Singapore through its wholly-owned subsidiary Suntec Harmony Pte.6m S$1. 2 Based on debt at amortised cost.7 189. in August 2011.4% as at 31 December 2011 and 31 December 2010 respectively. Following the acquisition of additional 40.002.5m 9.7m S$2.0 5.

33 2.47 cents.70 0.075.205 million units and 2. 2010 and 2011 respectively. FY 2010 and FY 2011 respectively.56 S$1.10 S$1.Millions) 1.116 1.37 S$0. 2009.426 2.002.075 S$1. 11.86 cents and 9.53 13.90 0.782 2007 S$1.66 2008 15. 2008.95 4.63 S$1.24% has also outperformed the Singapore Government 10-year bond yield at 1.93 cents.571 million units. UNIT PRICE AND VOLUME CHART FOR FY 2011 1.92 cents.71 S$2. 3 As at 31 December 2011.10 0.50 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Price Volume Traded Volume (Daily.00 per unit.244 2008 S$0. Suntec REIT is a constituent member of major global indices such as the FTSE NAREIT/EPRA Global Real Estate Index and the Global Property Research (GPR) 250 Index series.71 2009 8. FY 2009.391 1.70 25 Unit Price (S$) .40 cents.575 S$1.495 S$2.83 cents. 9.23 S$3.664 million units for the 12 months ended 31 December 2011. 9. 11.065 S$2. 2.70 cents.02 cents.308 1. The “Fully Diluted DPU” illustrates the pro-forma DPU assuming that all the deferred units had been issued on 9 December 2004.15 Unit Performance Unit Performance as at1 Last Done Unit Price Highest Unit Price Lowest Unit Price Market Capitalisation2 (mil) Traded Volume for the Financial Year (mil) Notes: 1 Unit performance statistics are for the financial years ended 31 December. Suntec REIT’s unit price stood at S$1.225 million units in issue as at 31 December 2007. 9. the overall traded volume was 1.24 9. It is also a constituent of the FTSE Straits Times Mid Cap Index and FTSE Straits Times Real Estate Index in Singapore.4 billion. 1. As one of Singapore’s most liquid listed REITs. 10.30 1.93 cents for FY 2007.542 2.24 1.67 8. with a market capitalisation of approximately S$2.618 2009 S$1.63%. 2 2011 S$1. Suntec REIT unitholders would have achieved an average annual return of 9. As at 31 December 2011. FY 2008.05 2007 4.50 S$1.71 S$1.84 2.149 Based on 1.40 2.63 2010 6. As at end FY 2011. and a Fully Diluted DPU of 7.35 S$1. Suntec REIT’s FY 2011 DPU yield of 9. The deferred units were issued at the Suntec REIT initial public offering price of S$1.57 6.487 million units. As at 31 December for the respective financial years.09 2.797 million units. 1. 2 The deferred units totaling 207.2) Singapore Government 10-Year Bond3 1 2011 9. Comparative Yield Statistics (%) for the Financial Year Traded Yield (based on DPU ) Traded Yield (based on Fully Diluted DPU1.69 S$0.50 20 15 10 5 0 1.55 S$2.61 cents and 9.664 2010 S$1.170 units had been issued in six equal half-yearly instalments. Calculations were based on a DPU of 8.68 Notes: 1 Based on the last done unit price (as stated in the table above) and the full year DPU based on the period from 1 January to 31 December. with the first instalment issued on 9 June 2008 and the last instalment issued on 9 December 2010.7% since listing.

. He is also the Chairman and Nonexecutive Director of ARA Asset Management Limited (“ARA”). from 1997 to 2002. Suntec Singapore International Convention & Exhibition Services Pte. each from the National University of Singapore. duallisted in Singapore and Hong Kong. ARA Asset Management (Prosperity) Limited. He is also the Vice President of the Hong Kong-Singapore Business Association. Chiu was with Sino Land Company Limited from 1994 to 1997 and Hang Lung Development Company. . Mr. as the manager of the ARA Asia Dragon Fund. He is also the Group Chief Executive Officer and an Executive Director of ARA. and the management council of Management Corporation Strata Title Plan No. Lim holds a Bachelor of Engineering (First Class Honours) in Mechanical Engineering. Ltd. the manager of Singaporelisted Cache Logistics Trust. Lim is an Independent Director and member of the audit committee of Singapore-listed Teckwah Industrial Corporation Limited. From 1996 to 1997. He has been the Group Chief Executive Officer and a Director of ARA since its establishment in 2002. Mr. Ltd. LIM HWEE CHIANG. the holding company of the Manager. from 1991 to 1995. a council member of the Singapore Chinese Chamber of Commerce & Industry and a member of the Valuation Review Board of the Ministry of Finance of Singapore. Chiu is an Executive Director of Cheung Kong (Holdings) Limited (“Cheung Kong”). Mr. Chiu has more than 30 years of international experience in real estate in Hong Kong and various countries and is one of the most respected professionals in the property industry in Asia. He was the General Manager of the Singapore Labour Foundation Management Services Pte. as well as a Diploma in Business Administration. the manager of Fortune REIT and the Chairman of ARA Asset Management (Prosperity) Limited. marketing and leasing management in Singapore. Lim is a Director of the Manager. Justin is the Chairman of the Manager. Ltd. and was with DBS Land Limited (now part of CapitaLand Limited) from 1981 to 1990. which is listed on the SGX-ST. a Fellow of The Hong Kong Institute of Directors. the Senior Vice President of the Asian Pacific Real Estate Association. ARA-CWT Trust Management (Cache) Limited. Mr.. He joined Cheung Kong in 1997 and has been an Executive Director since 2000. a wholly-owned subsidiary of Prudential (US) Real Estate Investors. Mr. the manager of Hong Kong-listed Prosperity REIT. he was an Executive Director of GRA (Singapore) Pte. the Chairman of ARA Asset Management (Fortune) Limited. Ltd. the manager of Fortune REIT. He is also the Chairman of APM Property Management Pte. Canada. Prior to joining Cheung Kong. Am ARA REIT Managers Sdn Bhd. He is also a Director of ARA Asset Management (Fortune) Limited. Both Sino Land Company Limited and Hang Lung Group Limited are listed on the Main Board of SEHK. Hong Kong and China. Chiu is a member of the 11th Shanghai Committee of the Chinese People’s Political Consultative Conference of the People’s Republic of China. Mr. heading the real estate sales. Mr. the manager of Prosperity REIT. a company listed on the Main Board of SEHK. the holding company of the Manager. 2197 (Suntec City). Chiu holds Bachelor degrees in Sociology and Economics from Trent University in Ontario. marketing and property management teams. Chiu is also a Director of ARA Fund Management (Asia Dragon) Limited. APN Property Group Limited listed in Australia and Hui Xian Asset Management Limited. Mr. Lim has more than 30 years of experience in real estate.16 Suntec REIT Annual Report 2011 Board of Directors CHIU KWOK HUNG. the manager of Hong Kong-listed Hui Xian REIT. JUSTIN Chairman and Director Mr. JOHN Director Mr. Ltd. he founded and was the Managing Director of The Land Managers (S) Pte. and Prosperity REIT is listed on the Main Board of SEHK. Limited (now known as Hang Lung Group Limited) from 1979 to 1994 responsible for the leasing and property management in both companies. a Master of Science in Industrial Engineering.. a Singapore-based property and consulting firm specialising in feasibility studies. the manager of Malaysialisted AmFIRST REIT. Prior to founding ARA. ARA is listed on Singapore Exchange Securities Trading Limited (the “SGX-ST”). In addition. Mr. a Fellow of Hong Kong Institute of Real Estate Administrators and a member of the Board of Governors of Hong Kong Baptist University Foundation. Fortune REIT is dual-listed on the SGX-ST and the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”). Chiu Kwok Hung.

. AVIC. He has been an Executive Director of Cheung Kong Infrastructure Holdings Limited (“CK Infrastructure”) since its incorporation in 1996 and Deputy Chairman since 2003.. Tan left the Administrative Service to join NTUC FairPrice in 1992 as its Assistant General Manager and was subsequently promoted to Chief Executive Officer in 1997.17 IP TAK CHUEN. Excel is listed on the Growth Enterprise Market (GEM) of SEHK. Tan obtained an Honours degree (First Class) in Mechanical Engineering from the University of Aston in Birmingham. Mr. CK Infrastructure. In 1988. Mr. responsible for overseeing all financial and treasury functions of Cheung Kong and its subsidiaries. Edmond is a Director of the Manager. Mr. Mr. AVIC International Holding (HK) Limited (“AVIC”). corporate finance. Mr. the holding company of the Manager. and the Senior Vice President and Chief Investment Officer of CK Life Sciences Int’l. Hui Xian REIT is listed on the Main Board of SEHK and Fortune REIT is dual-listed on the SGX-ST and the Main Board of SEHK. Mr. Real Nutriceutical and Shougang are listed on the Main Board of SEHK. Ip has been an Executive Director of Cheung Kong since 1993 and Deputy Managing Director since 2005. (Holdings) Inc. He is also a Non-executive Director of ARA. Ong Teng Cheong. At that time he was also appointed to the board of directors of NTUC FairPrice Co-operative Ltd. He also completed the Advance Management Program at Harvard University in 2000. Ip held a number of senior financial positions in major financial institutions and has extensive experience in the Hong Kong financial market covering diverse activities such as banking. particularly in the fields of corporate and project finance. Mr. ARA is listed on the SGX-ST. UK. TAN KIAN CHEW Independent Director Mr. Cheung Kong. capital markets. Ip holds a Bachelor of Arts degree in Economics and a Master of Science degree in Business Administration. Real Nutriceutical Group Limited (formerly known as Ruinian International Limited) (“Real Nutriceutical”) and Shougang Concord International Enterprises Company Limited (“Shougang”). Tan is an Independent Director and Chairman of the audit committee of the Manager. a Non-executive Director of the manager of Hui Xian REIT and a Director of the manager of Fortune REIT. CK Life Sciences and TOM. strategic acquisition and investment of both CK Infrastructure and CK Life Sciences. He oversees matters relating to corporate finance. Ip Tak Chuen. He is currently the Group Chief Executive Officer of NTUC FairPrice. Excel Technology International Holdings Limited (“Excel”). securities brokerage and portfolio investments. Ip is also a Non-executive Director of TOM Group Limited (“TOM”). he was posted to the Prime Minister’s Office where he served as the Principal Private Secretary to the then Deputy Prime Minister. He served in the Republic of Singapore’s Navy from 1976 to 1983 and held the position of head of naval operations from 1980 to 1983. He left the Navy to join the Singapore Government’s elite Administrative Service in 1983 and served in the Ministry of Trade and Industry. Prior to joining Cheung Kong. Tan was awarded a SAF (Overseas) Scholarship in 1972 and was a recipient of the Singapore Public Administration Medal (Silver) in 1991. (“CK Life Sciences”) since 2002. EDMOND Director Mr. Mr.

and Banque Francaise du Commerce Exterieur. is also an Independent Director and member of the audit committee of the manager of Fortune REIT. Lim is an Independent Director and member of the audit committee of the Manager. she has been the Senior Consultant (International Business) of Singapore Technologies Electronics Limited. . a member of the Appeal Advisory Panels of the Monetary Authority of Singapore and a member of the Taxpayer Feedback Panel of the Inland Revenue Authority of Singapore. He also has a Master of Business Administration degree from the University of Hull (1992). a Diploma in Business Law from the National University of Singapore (1989) and an ICSA qualification from the Institute of Chartered Secretaries and Administrators. Sng was the Managing Director of CapitaLand Hong Kong Ltd for investment in Hong Kong and the region including Japan and Taiwan. with a Bachelor of Arts degree from the Nanyang University of Singapore. and the manager of Fortune REIT. In Hong Kong from 1983 to 1997. Mr. having spent 17 years with the First National Bank of Chicago. Chen holds a Bachelor of Science degree in Industrial Engineering from Cornell University. especially in property investment and management. an Independent Non-executive Director and member of the audit committee of Hutchison Port Holdings Management Pte. Mr. Lim is also an Independent Director of Teckwah Industrial Corporation Ltd (“Teckwah”). business development. He is also the Vice-Chairman of the River Valley High School Advisory Committee. he has been managing his personal and family investments. Mrs. and subsequently co-founded a financial consulting firm in 1988. CHEN WEI CHING. Mrs.18 Suntec REIT Annual Report 2011 Board of Directors SNG SOW MEI (ALIAS POON SOW MEI) Independent Director Mrs. and a Master of Business Administration degree from the University of Pennsylvania. Chen is an Independent Director and member of the audit committee of the Manager. Bank of America. the Singapore Public Administration Medal (Silver). strategic and financial management. Special Projects (North East Asia) in 2000 and a Consultant in 2001. Sng was the Centre Director and then Regional Director of the Singapore Economic Development Board and Trade Development Board respectively. Lim is also a practising member of the Institute of Certified Public Accountants of Singapore. Lim graduated from the Nanyang University of Singapore with a Bachelor of Commerce (Accountancy) degree in May 1980. Lim serves as a member of the Casino Regulatory Authority of Singapore Board. an associate member of the Institute of Chartered Secretaries and Administrators and a fellow member of the Singapore Institute of Directors. In addition. LIM LEE MENG Independent Director Mr. Since 2001. Sng is an Independent Director and member of the audit committee of the Manager. VINCENT Independent Director Mr. Mrs. Chen has more than 20 years of experience in the banking and finance industry. He also serves as the Chairman of the audit committee of Teckwah and the manager of Fortune REIT. the manager of Prosperity REIT. Mr. where she was Director. Mr. who has been appointed as the Independent Non-executive Director and member of the audit committee of Cheung Kong Infrastructure Holdings Limited. He is currently a Senior Partner of RSM Chio Lim LLP. a member firm of RSM International. Sng. In 1996. Mrs. Limited and a Director of INFA Systems Ltd. Tye Soon Ltd. She was Singapore’s Trade Commissioner in Hong Kong from 1990 to 1997. Sng was conferred the title of PPA(P) – Pingat Pentadbiran Awam (Perak). He is currently also an Independent Director of Transpac Industrial Holdings Ltd and United Fiber System Ltd. Mrs. has wide experience in various fields of industrial investment. Prior to her appointments with Singapore Technologies Pte Ltd (now part of ST Engineering Limited). Since 1993. Mr. the Chairman of Yio Chu Kang Citizen Consultative Committee and the Chairman of the finance committee of Ang Mo Kio Town Council. Mr. Sng. a subsidiary of Singapore Technologies Electronics Limited.

Mr. Dominic Lai. He is a member of the Hospitality Services Committee of Caritas Hong Kong and a member of the Finance Committee of The Scout Association of Hong Kong. textile and clothing businesses. YEO SEE KIAT Chief Executive Officer and Director Mr. Ma is an Alternate Director to Mr. Mr. He is also a member of the President’s Circle of the University of British Columbia. He is currently the Managing Director of Hong Kong-listed Winsor Properties Holdings Limited. Corporate Strategy Unit and Chief Manager. He is also a Director of AMTD Financial Planning Limited. Ltd. Ma is currently Director. and Suntec Harmony Pte Ltd. Ma holds a Bachelor of Commerce degree in Finance and a Master of Arts degree in Global Business Management. Chow is a Non-executive Director of the Manager. China and Singapore. Mr. Gerald Alternate Director Mr. Canada (“UBC”) and a member of the Dean’s Advisory Board for the Faculty of Arts of UBC. which has international operations spanning countries in the US. Mr. Mr. Europe and Asia. Ip Tak Chuen. Mr. Chow received his Bachelor of Arts (Economics) degree from the University of British Columbia.19 CHOW WAI WAI.. He is also the Managing Director of Winsor Industrial Corporation Limited. as well as managing IT related ventures and services. investment and portfolio management. Edmond. He has held senior management positions over the last 20 years. Mr. JOHN Non-executive Director Mr. Parkway Holdings Limited. He is an Executive Director of Hong Kong-listed Wing Tai Properties Limited and is also a Non-executive Director of Hong Kong-listed Dah Sing Financial Holdings Limited. Yeo has more than 30 years of experience in the real estate industry. Ma Lai Chee. CK Communications Limited. Yeo See Kiat is the Chief Executive Officer and an Executive Director of the Manager. real estate development and marketing. Beijing Net-Infinity Technology Development Company Limited and mReferral Corporation (HK) Limited. The Wharf Group. . and is an Alternate Director to Mr. iBusiness Corporation Limited. Yeo holds a Bachelor of Accountancy from the University of Singapore and a Graduate Diploma in Management Studies from the Singapore Institute of Management. which has operations in Hong Kong. Yeo started his career in Turquand Young (now Ernst & Young) and was with the firm from 1976 to 1980. He also serves as a Non-executive Director of the manager of Prosperity REIT. Non-executive Director of Hutchison Telecommunications Hong Kong Holdings Limited. BFC Development Pte. a Director of the Manager and the manager of Fortune REIT. and he holds directorships in the various subsidiaries and associated companies of the Winsor companies. He is also a fellow of the Institute of Certified Public Accountants of Singapore. and CapitaLand Limited. He is also a Director of One Raffles Quay Pte Ltd. Chow has more than 30 years of experience in the property. managing and overseeing various projects with Hwa Hong Corporation Limited. He has served as Chairman of the Hong Kong Garment Manufacturers Association and as a member of the Textile Advisory Board of the Hong Kong Government. He has over 22 years of experience in banking. Corporate Business Development at Cheung Kong.

Investor Relations Billy Ang Assistant Manager. Finance Yeo See Kiat Chief Executive Officer Chan Chuey Leng Manager. Finance Janice Phoon Senior Manager. Special Projects Richard Tan Director. Asset Management Ng Ee San Senior Manager. Finance . Finance Serene Lui Manager. Asset Management Foo Sze Ming Assistant Manager Julia Koh Manager. Finance Yip Kam Thai Chief Operating Officer Melissa Chow Assistant Manager.20 Suntec REIT Annual Report 2011 ARA Trust Management (Suntec) Limited Management Team Thomas Wong Senior Manager. Asset Management Tan Cheng Cheng Assistant Manager. Asset Management Lim Kim Loon Manager. Asset Management Elaine Leong Senior Accountant.

including Executive Director of the manager of Fortune REIT. Yeo is responsible for the performance and direction of Suntec REIT. Ms. Tan also held the position of Country Operations Manager for American Express Bank Singapore. Within ARA. With single-minded focus. responsible for the finances of Suntec REIT and provides support in areas of secretariat compliance. Prior to joining the Manager. Finance Mr. Wong holds a Master Degree in Financial Management from the Macquarie University and a Bachelor Degree of Arts from the National University of Singapore. Mr. Mr. he has held various senior positions in the listed REITs and funds under management. finance. Tan has more than 30 years of financial management experience in the banking and IT industries. taxation and treasury. He leads his team of managers to achieve the key mission of creating. Ng Ee San Senior Manager.. strategizing. Tan holds a Bachelor of Accountancy Degree from the University of Singapore. Mr. He previously held position as Senior Business Development Executive at Sembawang Leisure Private Limited and Executive at Neptune Orient Line Limited. Ms. Singapore. Richard Tan Director. Mr.21 Yeo See Kiat Chief Executive Officer Mr. Ng is a member of the Finance team. the Manager of Ascott Residence Trust. He was the Finance Director of Schroders Singapore and was Head of Finance & Operations for an investment bank in Hong Kong. Wong is a member of the Asset Management team and assists the Chief Operating Officer in the monitoring of the performance of the assets within the existing portfolio. and in business development & acquisition of properties. treasury and capital management functions for Suntec REIT. Prior to joining the IT industry. implementing asset enhancement initiatives. and had held various positions with PSA Corporation Limited and Deloitte And Touche. His experience is highlighted in the section on the Board of Directors. Thomas Wong Senior Manager. Ng holds a Bachelor of Accountancy (Accounting) Degree from Nanyang Technological University. and Acting Chief Executive Officer of the manager of Prosperity REIT. Yip Kam Thai Chief Operating Officer Mr. he was a Business Development Manager with Keppel Land International Limited where he was involved in the acquisition of properties for redevelopment and investment. Mr. Yip assists the Chief Executive Officer on operational matters pertaining to Suntec REIT. Prior to his current appointment. Yip holds a Bachelor of Science (Honours) Degree in Estate Management from the National University of Singapore. adding and delivering premium value to all stakeholders of Suntec REIT. he leads and supports his team of experienced professionals with a passion and drive to deliver. He was previously the Regional Finance Director and Business Manager for South East Asia in Hewlett-Packard’s Sales & Marketing Division. Tan also held various senior positions in banking both in Singapore and Hong Kong for over 18 years. and is a Certified Public Accountant. Yip has been with the real estate industry since 1993. . Prior to joining the Manager. he was based in Hong Kong as the Director and Head of Asset Management. Ng has more than 13 years of experience in accounting and finance. and has been with ARA since 2004. commercial and hospitality properties. investor relations and asset enhancement initiatives. investment. Wong has more than 18 years of real estate experience in areas of property investment and asset management of residential. as well as the China and Hong Kong Representative for the ARA Asia Dragon Fund. Mr. Mr. She was also previously an Accountant at Wing Tai Holdings Limited and The Hour Glass Limited. she was the Finance Manager at Ascott Residence Trust Management Limited. Finance Ms. Asset Management Mr. including asset management. Mr. Tan heads the finance team and assists the Chief Executive Officer on all accounting.

operations. asset enhancement and financial performance. Phoon is a member of the Asset Management team. she was the Assistant Marketing Manager of Riverwalk Promenade Pte Ltd where she played a key role in marketing and leasing the TradeMart Singapore complex. Ms. Lui is a member of the Finance team. Singapore. marketing. She was also the Senior Quantity Executive at Tiong Seng Contractor Limited involved in the construction of Guilin View Condominium. Prior to joining the Manager. Ms. Chan has more than 15 years of experience in marketing and leasing of commercial. . Serene Lui Manager. Lui holds a Bachelor of Commerce (Accounting & Finance) Degree from University of Western Australia. Perth. Her responsibilities included the leasing. Phoon has more than 15 years of experience in marketing and leasing. Julia Koh Manager. Asset Management Ms. Ms. Chan is a member of the Asset Management team. Prior to joining the Manager. Western Australia and a Diploma in Building Management from Ngee Ann Polytechnic. and is a Certified Public Accountant. she was the Marketing and Leasing Manager at Cathay Cineleisure International Pte Ltd. Prior to joining the Manager. She was previously the Assistant Marketing Manager with Tuan Sing Holdings Limited and prior to that. responsible for monitoring the performance of the retail assets and overseeing the advertising and promotional activities and branding initiatives of the retail portfolio. Ms. Lim is a member of the Asset Management team. was the Assistant Marketing Manager with Riverwalk Promenade Pte Ltd. retail. Ms. Lim holds a Bachelor of Science (Honours) Degree in Estate Management from the National University of Singapore. responsible for monitoring the performance of the retail assets. Finance Ms. marketing and lease management of commercial and retail properties. assisting in managing the monthly accounts and preparation of financial statements and providing support in areas of secretariat compliance. she was with CapitaLand Retail Management Pte Ltd where she was responsible for the day-to-day management of a shopping mall. Ms. Ms. Lim has over 15 years of real estate experience in areas of property management and maintenance. with more than 15 years of working experience in Quantity Surveying and Project Management. taxation and treasury. Lim Kim Loon Manager. Phoon holds a Bachelor of Commerce Degree in Marketing and Management from Murdoch University. Special Projects Ms. responsible for overseeing and driving the performance of the office portfolio of Suntec REIT. Asset Management Ms. Lui has more than 9 years of experience in accounting and finance. She previously held positions as Manager of the Property Department at The Great Eastern Life Assurance Co Limited and Marketing Officer of SLF Management Services Pte Ltd. Chan Chuey Leng Manager. Ms. Asset Management Ms. Chan holds a Bachelor of Science (Honours) Degree in Estate Management from the National University of Singapore. Prior to joining the Manager. Prior to joining the Manager. Koh is a member of the Special Projects team who is involved in asset enhancement works.22 Suntec REIT Annual Report 2011 ARA Trust Management (Suntec) Limited Management Team Janice Phoon Senior Manager. reconstruction of Sembawang Shopping Centre as well as the upgrading of LOT One Shoppers’ Mall. she was the Senior Project Executive at CapitaLand Retail Limited involving in the redevelopment of Clarke Quay. industrial and residential properties. she was Audit Manager at PricewaterhouseCoopers LLC. Ms. and in strategising and implementing asset enhancement initiatives. Koh holds a Diploma in Building (Quantity Surveying) from the Singapore Polytechnic.

Leong holds a Bachelor of Business Management (Finance and Accounting) Degree from Singapore Management University and an ACCA Certificate (UK). he was a project development executive involved with residential developments within Singapore. Ms. Finance Ms. Ms. Prior to joining the Manager. Foo Sze Ming Assistant Manager Mr. . she was an investor relations associate at Oxley Group where she managed the communication channels between the private equity firm and the investment community. taxation and treasury. Tan has more than 20 years of commercial/industrial experience. Asset Management Mr. Elaine Leong Senior Accountant. Melissa Chow Assistant Manager. Ms. Ms. JDC Holdings (S) Pte Ltd and Singapore Shipping Corporation Pte Ltd. Foo is responsible for developing and maintaining financial and asset models to analyse the performance of Suntec REIT.23 Tan Cheng Cheng Assistant Manager. Tan also previously held finance positions in Euro-Asia Realty Pte Ltd. covering asset management and asset enhancement initiatives on Suntec Singapore International Convention and Exhibition Centre. he was Assistant Manager with ARA Managers (Harmony) Pte. Chow holds a Bachelor of Business Management (Finance and Corporate Communications) from Singapore Management University. she managed the investor relations function for several Singapore and China based companies listed on the Singapore Stock Exchange. Ang has over 6 years of experience in real estate. Chow oversees the investor relations activities of Suntec REIT.. taxation and treasury. potential investors. He provides support in the evaluation of potential investments and asset enhancement initiatives. Billy Ang Assistant Manager. Ms. Ang holds a Bachelor of Architecture from University of New South Wales. assisting in managing the monthly accounts and preparation of financial statements and providing support in areas of secretariat compliance. Leong is a member of the Finance team. These include facilitating the timely communication of quality information to unitholders. Mr. Ms. At Wing Tai. Prior to joining the Manager. she was the Accountant at Mapletree Investments Pte Ltd where she was responsible for the finance operations of its commercial property subsidiaries. Prior to joining the Manager. He started his career as an architectural consultant with Aedas. Ltd. She was also previously an Auditor with KPMG LLP. Mr. Before that he was Assistant Vice President at AEP Investment Management where he covered investment and asset management for a private equity real estate fund. Ltd. Finance Ms. Investor Relations Ms. Foo has over 5 years of experience in the investment industry. Chow has over 4 years of experience in the field of investor relations. she was the Accountant responsible for the finance operations of property-related subsidiaries of United Industrial Corporation Limited. Prior to joining the Manager. Ltd. He was also previously a Property Analyst with OCBC Investment Research and Research Analyst with NRA Capital Pte. assisting in managing the monthly accounts and preparation of financial statements and providing support in areas of secretariat compliance. Tan is a member of the Finance team. At Kaiiten Communications. Tan holds an ACCA Certificate (UK) and is a Certified Public Accountant. Leong has over 4 years of experience in accounting and finance. Ms. he was part of the Portfolio Management team at Temasek Holdings Pte. Mr. key stakeholders and providing the Manager with key market updates. Prior to joining the Manager. Foo holds a Bachelor of Business (Banking and Finance) from Nanyang Technological University and he is a CFA Charterholder.

The deferred units were issued at the Suntec REIT initial public offering price of S$1.24 Suntec REIT Annual Report 2011 Manager’s Report YEAR IN REVIEW Suntec REIT achieved record distribution income of S$220. Suntec City contributed S$210.932 cents for the financial year ended 31 December 2011 (“FY 2011”). Suntec Singapore is strategic to the Gross Revenue Contribution by Asset Net Property Income Contribution by Asset FY 2011 FY 2011 Suntec City Park Mall CHIJMES 87. In FY 2011.4% higher.3 million in FY 2011.7 billion.00 per unit. an increase of 8.1 million sq ft retail portfolio strategically-located in the heart of Singapore’s Central Business District.8% interest in Suntec Singapore for S$114. The net property income achieved in FY 2011 was S$193.9% and 6.7 million and a strong distribution per unit (“DPU”) of 9. Notes: 1 For the period 1 January 2011 to 18 August 2011.1% year-on-year. The income available for distribution achieved for FY 2011 was S$220.9% 8.4 million.7 million. FINANCIAL PERFORMANCE Suntec REIT achieved gross revenue of S$270. 3 The forecast is based on the assumptions as set out in Suntec REIT’s circular to Unitholders dated 8 November 2010 (“Forecast”). Suntec Singapore’s revenue contribution for the period 19 August to 31 December 2011 was S$27. with the first instalment issued on 9 June 2008 and the last instalment issued on 9 December 2010. which translated to an annual yield of 9.9% Suntec City Park Mall CHIJMES 87. raising Suntec REIT’s stake to 60.3% compared to the corresponding period in 2010 (“FY 2010”). 20.170 units had been issued in six equal half-yearly instalments.932 9.2 million.2% above valuation and initiated the S$410 million asset enhancement initiative (“AEI”) for the remaking of Suntec City Mall and Suntec Singapore.7 million from Suntec Singapore1.8%. Suntec REIT successfully acquired an additional 40.607 Note: 1 The deferred units totaling 207. Suntec REIT’s assets under management (“AUM”) has grown to approximately S$7. The income contribution from the jointly controlled entities for FY 2011 was S$105. This comprised the income contribution of S$31.4 million sq ft of prime office portfolio and 1. The DPU achieved for FY 2011 amounted to 9.2 million from the one-third interest in One Raffles Quay and S$73. underpinned by a strong 2.3 million and S$10. 2 Based on the market closing price of S$1.8 million. Compared to the Forecast3.7% . divested CHIJMES at 23.8% effective stake.5% and 14.8% 8. PROPERTY PORTFOLIO On 18 August 2011. Distribution per unit FY2011 FY2010 DPU Fully Diluted DPU1 9. a dip of 2. the revenue and net property income achieved in FY 2011 was 10. Suntec Singapore’s results was consolidated with the acquisition of the additional 40. and S$0.1 million in gross revenue in FY 2011 whilst Park Mall and CHIJMES contributed S$22.7 million. As at end FY 2011. Following this.2% above the Forecast3 mainly due to interest cost savings and higher income contribution from the MBFC Properties.8 million. In terms of revenue contribution by asset.2% compared to FY 2010.075 as at 31 December 2011.2% 3.859 9. The “Fully Diluted DPU” illustrates the pro-forma DPU assuming that all the deferred units had been issued on 9 December 2004. Suntec REIT acquired strategic majority control of Suntec Singapore International Convention & Exhibition Centre (“Suntec Singapore”). which was 3.5 million respectively.1% lower than in FY 2010.9 million from the one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall (the “MBFC Properties”).932 9.5% 3.2%2 for the year.9% higher year-on-year.4 million. whilst retail revenue achieved was S$127.932 cents.002. up 0. The distribution income and DPU were also at a significant 14. Office revenue in FY 2011 was S$115.

0 million. The net fair value derivative represented 0. 2 Based on the valuation by DTZ Debenham Tie Leung (SEA) Pte Ltd on 15 Oct 2011.7 billion as at 31 December 2011.1 million sq ft of retail and convention space was valued at approximately S$7. On 15 August 2011.6 1.25 REIT’s existing portfolio being an integral part of Suntec City and offers synergistic opportunities to further unlock the underlying value through the AEI.822 million.4 million sq ft of attributable office space and more than 1.1 bil loan facility S$100 mil loan facility S$150 mil medium term note S$120 mil term loan . CHIJMES was divested for S$177.023 1. Scheduled to commence in mid 2012. reflecting the value of Suntec REIT’s one-third interest in One Raffles Quay and the MBFC Properties. which is included in the Financial Statements as “Derivative Assets” and “Derivative Liabilities”.082 1. The net asset value of Suntec REIT stood at S$1. incentives. Property VALUATION (S$M) Suntec City3 Park Mall4 Chijmes2 Suntec Singapore3 One Raffles Quay5 MBFC Properties5 Total 31 Dec 2011 4. conventions and exhibitions.5 350 200 FY 2012 FY 2013 FY 2014 FY 2015 331. was S$0.987 per unit as at 31 December 2011.980 338 134 57. Suntec REIT’s exposure to derivatives is elaborated in the Financial Statements. CHIJMES was purchased in December 2005 for S$128 million. with Debt-to-Assets and Aggregate Leverage ratios of 37. Upon completion in mid-2015. Suntec REIT announced the remaking of Suntec City on 31 October 2011. transforming Suntec City into a premier MICE1.3 5. Suntec REIT secured a S$120 million term loan facility to finance the acquisition of the additional stake in Suntec Singapore.3% of the net assets of Suntec REIT as at 31 December 2011. This further improved Suntec REIT’s overall financing cost and strengthened our debt maturity profile.511 7.9 31 Dec 2010 3. The fair value derivative for FY 2011.336 370 143.2 1. 4 Based on the valuation by Knight Frank Pte Ltd.1% respectively as at 31 December 2011.3% and 39. Suntec REIT established a new S$500 million multicurrency medium term note (“MTN”) programme. The average all-in financing cost of Suntec REIT’s debt portfolio for FY 2011 was 2. As part of the proactive strategies to maximize returns from the portfolio.697. Suntec Singapore reflects the value of Suntec REIT’s 60.043.0 million respectively.81%. Notes: 1 Meetings.523 7. Suntec City will offer almost 1 million sq ft of retail lettable space. Assets Under Management S$ bil 9 8 7 6 5 4 3 2 1 0 Debt Maturity Profile (REIT Level) S$ mil 900 7. 3 Based on the valuation by Colliers International Consultancy & Valuation (Singapore) Pte Ltd. On 27 July 2011.2 2. Suntec REIT’s total AUM comprising of approximately 2.2 7.6 CAPITAL STRUCTURE Suntec REIT’s total consolidated debt stood at S$2.10%.7 243. Under this programme.0 5. shopping and lifestyle destination. The proceeds were used to fully refinance the REIT’s existing FY 2011 loans.5 120 350 150 100 FY 2016 Sep 05 Sep 06 Sep 07 Dec 08 Dec 09 Dec 10 Dec 11 S$200 mil term loan S$50 mil bi-lateral loan S$270 mil convertible bonds S$700 mil loan facility S$1.4 4. the multi-phased AEI comprised of a S$230 million capital expenditure in remaking Suntec City Mall and a further S$180 million on Suntec Singapore. Suntec REIT issued a S$150 million 5-year medium term notes bearing a fixed rate of 3. a 23.7 million2.3 million and S$14.6 3.2% premium over its last valuation of S$143.8% interest in the property. business. S$654 million higher than the preceding year. 5 Based on the valuation by Knight Frank Pte Ltd.7 800 700 600 500 400 300 200 100 0 50 270 773. The sale proceeds will be used to partially fund the AEI and to mitigate any temporary dip in DPU during the execution of the AEI.

Suntec REIT’s office and retail portfolio achieved an overall committed occupancy of 99. whilst Park Mall office maintained its full occupancy.Office .0% 96. For the jointly controlled entities.9% 100% 100% 99.1% 97.5% .5% respectively as at 31 December 2011. One Raffles Quay achieved full committed occupancy.2% 97.5% 98. whilst Park Mall and CHIJMES both achieved 100% committed occupancy.9% 100% 100% 97.8% 100% 97.8% 98.5% 98.7% 100% 100% 100% 100% 98.1% 100% 100% 100% 100% 97.Retail Chijmes One Raffles Quay MBFC Properties Office Portfolio Occupancy Retail Portfolio Occupancy 99. the committed occupancy of Suntec City office improved further to 99.Retail Park Mall: .6% as at 31 December 2011. The committed occupancy of Suntec City Mall stood at 96.2% and 97.7% as at 31 December 2011.2% 96.3% 99.4% 99.7% SEP 11 DEC 11 98.2% 97. whilst the committed occupancy for the MBFC Properties stood at 98.6% 99.4% 99. As at 31 December 2011.5% 100% 100% 100% 100% 98.6% 97.26 Suntec REIT Annual Report 2011 Manager’s Report STRONG OCCUPANCY FOR ASSET PORTFOLIO Suntec REIT’s asset portfolio performance continued to remain strong.5% 97.5% 100% 96.0% MAR 11 99.2% compared to 99. As such.Office . COMMITTED OCCUPANCY AS AT: DEC 10 Suntec City: .5% 97.1% in the year before.2% 98.0% JUN 11 99.

74 10. With the steady recovery of the Singapore office market and in tandem with the consistently strong committed occupancy of Suntec City Office during the year.511 16.79 psf per month respectively as at 31 December 2011.545 647. For the retail portfolio. The average committed passing rents for Suntec City Mall.11 psf per month and S$7. a total of 647. S$7.48 10. a total of 383. Park Mall and CHIJMES stood at S$10.79 10.756 commitTed average paSsing rents . park malL and chijmes S$ psf pm 12 10 10.48 7.79 8 7.suntec city malL.70 6 4 2 0 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 Suntec City Mall Park Mall Chijmes .554 65.27 10.640 RETAIL LEASING ACTIVITIES Renewal leases & lease extensions Replacement leases New leases Total TENANTS NLA (SQ FT) 139 81 18 238 238.756 sq ft of new. renewal and replacement leases were secured in FY 2011.47 7. The performance of the retail portfolio was relatively stable during the year.22 psf per month in the first quarter of 2011 and S$8.27 LEASING ACHIEVEMENTS IN FY 2011 For the office portfolio.45 7.10 10.70 psf per month and S$10. renewal and replacement leases at Suntec City Office Towers were secured at an average rent of between S$9.30 psf per month in the second half of 2009.63 10.73 10.16 10.101 80.09 10.72 psf per month in the fourth quarter of 2011 up from the trough of between S$7.584 218.101 383. OFFICE LEASING ACTIVITIES Renewal leases & lease extensions Replacement leases New leases Total TENANTS NLA (SQ FT) 59 80 7 146 412.640 sq ft of new. renewal and replacement leases were secured in FY 2011.09 psf per month.51 7.

0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 .0 6. OTHER INCOME S$ mil 8 7 6 5 4 3 2 1 0 7.3 million in FY 2011.5 7.28 Suntec REIT Annual Report 2011 Manager’s Report HIGHER REVENUE FROM OTHER INCOME INITIATIVES Suntec REIT’s revenue from other income initiatives. namely atrium rentals for events and exhibitions. media sales and pushcart rentals achieved approximately S$7.2 6.3 3.0 6.2 7.

29 ENTERTAINMENT AND EVENTS AT SUNTEC CITY MALL Suntec City Mall is well established as a convenient one-stop destination for shopping. The meet-and-greet sessions with the Sylvanian Family and Sharity Elephant in conjunction with Children’s Day were also a hit with the kids. Tweety Bird and Sylvester as well as the meet-and-greet sessions with Tasmanian Devil were hugely popular with the children. . The monthly themed promotions. During the Christmas festive season. including art and craft workshops such as balloon sculpturing. Other notable events include the launch of the hugely anticipated new “bartainer” Tiger Truck and the meet-and-greet sessions with Formula 1 drivers with their race cars leading up to the 2011 Formula 1 Singtel Singapore Grand Prix night race in September. Australia. As one of Singapore’s largest shopping mall with events and offerings for everyone. Suntec Dance champions Elecoldxhot emerged Runner-up in the international open division. the Looney Tunes Christmas Musical event featuring Bugs Bunny. Suntec City Mall played host to a myriad of events including Fashion Week’s Fashion in Play where notably. There were also many activities targeted at families and children. in conjunction with key events such as Chinese New Year. National Day. Amidst stiff competition among an international pool of the best hip hop dance crews. Mid Autumn. Raffles Merchandising Institute and Temasek Polytechnic collaborated with tenants in a fashion styling competition that showcased their creativity and craft. lanternmaking. Food Festival. “Elecoldxhot” represented Singapore in the eighth annual World Supremacy Battlegrounds 2011 Dance Competition in Sydney. students from local fashion schools such as Lasalle College of the Arts. piggy bank painting as well as cooking workshops dedicated to kids. Nanyang Academy of Fine Arts. dining and entertainment served by two circle line MRT stations. Great Singapore Sale. Children’s Day and Christmas were very well-received by shoppers. The grand finals of the annual Suntec Dance Competition was held on 10 September 2011 and the champions of the open group category.

30 Suntec REIT Annual Report 2011 Property Portfolio PORTFOLIO propertIES . .statistics1 As at 31 December 2011 Net Lettable Area (sq ft) – Office – Retail Number of Tenants (actual) – Office – Retail Valuation (S$ million) Committed Occupancy (%) – Office – Retail 3.8% interest in Suntec Singapore.5 Notes: 1 Includes CHIJMES which was divested on 20 January 2012.697. 3 Includes the valuation of Suntec REIT’s 60.2 97. the valuation of Suntec REIT’s onethird interest in One Raffles Quay and the valuation of Suntec REIT’s one-third interest in the MBFC Properties.415.191 1.506.1392 824 307 517 7.330 2.8% interest in the retail net lettable area in Suntec Singapore.93 99.091. 2 Includes 60.

Services and Consultancy Beauty / Health Clinics / Laboratories Consultancy / Services Institutions / Schools Travel / Leisure 2.4% 0. OFFICE PORTFOLIO Business Sector Analysis (By Gross Rental Income 1) As at 31 December 2011 RETAIL PORTFOLIO Business Sector Analysis (By Gross Rental Income1) As at 31 December 2011 Legal Real Estate and Property Services Trading Manufacturing Shipping and Freight Forwarding Others Government and Government-Linked Offices Banking. 52.8% of Suntec REIT’s total gross revenue for the month of December 2011 and occupied an area representing 35. the properties derive a steady stream of income from a well-diversified pool of strong office and retail tenants. Insurance and Financial Services Technology. a one-third interest in One Raffles Quay and a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall (the “MBFC Properties”). and Technology.0% 4.1% 4.5% respectively as at 31 December 2011. Spanning a total net lettable area (“NLA”) of about 3.3% 0. Park Mall.31 HIGH QUALITY COMMERCIAL ASSETS STRATEGICALLY LOCATED IN SINGAPORE’S PRIME DISTRICT Suntec REIT’s portfolio comprises prime commercial properties in Suntec City.9% 8.5% 4. VibranT Tenant MIX Suntec REIT’s office portfolio leases are well diversified across 14 business sectors.0% 47.8% 3. Note: 1 Includes one-third interest in One Raffles Quay.0% of Suntec REIT’s total office portfolio NLA.7% 16.9% of Suntec REIT’s total gross revenue for the month of December 2011 and occupied an area representing 43. The top 10 tenants of the office portfolio contributed 26.7% 15. Insurance and Financial Services.9% 4.3% Note: 1 Includes one-third interest in One Raffles Quay and one-third interest in Marina Bay Financial Centre Towers 1 and 2.4% 5. all located within Singapore’s growth precincts.8% interest in Suntec Singapore.8% 0. namely Marina Bay and the Civic and Cultural District.4% 8. The top 10 tenants of the retail portfolio contributed 7. one-third interest in the Marina Bay Link Mall and 60.9% of the total gross retail revenue for the month of December 2011 was attributable to the major business sectors of Food and Beverage.9% 5. The committed occupancy of Suntec REIT’s office and retail portfolio stood at 99. 64. CHIJMES. Services and Consultancy.5% 1.5% 2.9% 1.2% 1.4% of Suntec REIT’s total retail portfolio NLA.2% and 97. . For the retail portfolio.2% 5. and Fashion.0% 31.1% of the total gross office revenue for the month of December 2011 was attributable to the major business sectors of Banking.5 million sq ft.1% 0.4% Electronics / Technology Fashion Food and Beverage Gifts and Speciality / Books / Hobbies / Toys Homeware and Home Furnishings Hypermarket Jewellery and Watches Leisure and Entertainment / Sports and Fitness Beauty and Healthcare Others Services / Educational 2.1% 21.

5 0.5 0. Insurance and Financial Services Banking.3 26.TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 December 2011 Tenant Business Sector NLA % of % of Total (sq ft) Office Monthly NLA Gross Rental Income Standard Chartered Bank Barclays Capital Services Ltd UBS AG BHP Billiton Marketing (Asia) Pte Ltd The Royal Bank of Scotland Oracle Corporation Singapore Pte Ltd Deutsche Bank Nomura Singapore Ltd Ernst & Young Macquarie Capital Securities (Singapore) Pte.6 4.884 63.7 2. one-third interest in the Marina Bay Link Mall and 60.249 56.5 0.216 27.0 3.0 4.8 Total Note: 1 Includes one-third interest in One Raffles Quay. Insurance and Financial Services Banking. Ltd.3 1. Insurance and Financial Services Trading Banking.6 2.849 25. Furniture & Furnishings Pte Ltd X-tra Designs Pte Ltd Hypermarket Services / Educational Food and Beverage Fashion Fashion Food and Beverage Fashion Leisure and Entertainment / Sports and Fitness Homeware and Home Furnishings Homeware and Home Furnishings 137.6 0.1 3.8 1.4 2.404 66.4 6.872 29.584 22.5 0.4 7. Limited Banking.389 84.4 2.763 12.252 150. Insurance and Financial Services Technology. RETAIL PORTFOLIO .5 10.935 13.705 24.053 76.TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 31 December 2011 Tenant Business Sector NLA % of % of Total (sq ft) Retail Monthly NLA Gross Rental Income Carrefour Singapore Pte Ltd Rock Productions Pte Ltd Lei Garden Restaurant Pte Ltd RSH (Singapore) Pte Ltd FJ Benjamin Lifestyle Pte Ltd Suntec Food & Leisure Pte Ltd Jay Gee Enterprises (Pte.109 1.0 1.0 6.9 1.9 4.5 1.9 Total Note: 1 Includes one-third interest in One Raffles Quay and one-third interest in Marina Bay Financial Centre Towers 1 and 2. Services and Consultancy Banking.3 0.7 3.6 1.2 2.377 15.859 46. Insurance and Financial Services Banking.1 43. Insurance and Financial Services Banking.298 373.708 20.6 1.072 233.1 1.751 7.7 0.9 1.5 2. Insurance and Financial Services Banking.9 2.7 0.) Ltd True Fitness Pte.0 1.0 2.035 93.3 2.32 Suntec REIT Annual Report 2011 Property Portfolio OFFICE PORTFOLIO .1 4.3 1. Insurance and Financial Services 171.000. .1 35.008 17.8% interest in Suntec Singapore.

FY 2013 and FY 2014 respectively. 2 Adjusted for leases that will be affected by Phase 1 of the AEI in Suntec City Mall. whilst 46.1 8.5%.8 20 15 17.095 sq ft of office space was renewed and signed.6 21.7% is due to expire in FY 2015 and beyond.8% of the total office NLA are due to expire in FY 2012. As at 31 December 2011. including a pre-commitment of approximately 233.6 17.1%.0% is due to expire in FY 2015 and beyond.8% interest in Suntec Singapore. approximately 631. % of Total Monthly Gross Retail Rental Income % of Total Retail NLA Notes: Includes one-third interest in One Raffles Quay.4 32. as at 31 December 2011.2 10. 22.5 20.1% of the total retail NLA1 are due to expire in FY 2012. 32.4 28.2 As at 31 December 2011 % 45 40.7 26.2 FY2012 FY2013 FY2014 2.6% and 19.8 10 5 0 1.000 sq ft of office leases expiring in FY 2012.3 22. Note: 1 Adjusted for leases that will be affected by Phase 1 of the AEI in Suntec City Mall.9 19.4 0. whilst 6.33 Lease Expiry Profile In FY 2011. OffICE PORTFOLIO Lease Expiry Profile As at 31 December 2011 % 45 40 35 30 25 20 15 10 5 0 1 RETAIL PORTFOLIO Lease Expiry Profile1.9 3.1 9.6 FY2012 FY2013 FY2014 FY2015 FY2016 & Beyond FY2015 FY2016 & Beyond % of Total Monthly Gross Office Rental Income % of Total Office NLA Note: Includes one-third interest in One Raffles Quay and one-third interest in Marina Bay Financial Centre Towers 1 and 2.1 35. 28.7% and 17. one-third interest in the Marina Bay Link Mall and 60. For the retail portfolio. FY 2013 and FY 2014 respectively. 10.5 10. 1 1 .9 40 35 30 25 33.

6.6) Notes: 1 Includes 60. and the investment of S$139.8 million for a 60.383 million3 4.3 million.4 million from Suntec Singapore.5 million5.0732 2. 5 Comprises gross rental income of S$201.5881 563 3.216 834.038 million) 237.579 million4 (31 December 2010: 4.8% interest in Suntec Singapore.34 Suntec REIT Annual Report 2011 Property Portfolio Suntec City SUNTEC CIty .2 sq ft of strata office space amounting to S$136.6 (2010: 216. 5.property statistics As at 31 December 2011 Location Title Total Net Lettable Area (sq ft) – Office – Retail Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Gross Revenue (S$) Net Property Income (S$) Committed Occupancy (%) 3.7 million) 169.804 1.129. .8 million6 (2010: 169.295.21 (31 December 2010: 98.3 million) 98. Singapore Leasehold 99 years from 1989 2. 3 Includes the purchase price of 73.8% interest in Suntec Singapore.8 million from Suntec City and S$27.8% interest in the retail NLA in Suntec Singapore. 8 and 9 Temasek Boulevard. 6 Gross revenue and net property income from Suntec Singapore had been consolidated since 19 August 2011 following the acquisition of the increased stake. 2 Owned and managed by the Management Corporation Strata Title Plan No.3 million and other income of S$8.561. 4 Includes 60. 2197 (MCST). 7.

and in 2011 increased its interest in Suntec Singapore International Convention and Exhibition Centre to 60. Suntec City houses a total of 3. business. shopping and lifestyle destination. Developed by a consortium of successful business leaders from Hong Kong with a vision of making the complex “The Business Capital of Asia”. Easily accessible by car and public transport networks. which sits in the heart of Suntec City. The Manager’s objective for Suntec City is to enhance the properties held and reposition Suntec City into a premier MICE.8% from 20% previously.35 Suntec City is an iconic integrated commercial development located in the Marina Bay Precinct within Singapore’s Central Business District. The world-famous Fountain of Wealth. and is directly linked to the Esplanade Station and Promenade Station on the new Circle MRT line. and one of Singapore’s largest shopping mall. all of which are interlinked by street level plazas and underground walkways. . a world-class convention and exhibition centre.073 carparks over two basement levels. Suntec REIT owns 57% of Suntec City Office and 100% of Suntec City Mall. Suntec City is a landmark development which comprises five Grade A office towers. embodies an abundance of life and an endless variety of bustling activity.

7% 31.8 13.0% 10 5 0 FY2012 FY2013 FY2014 FY2015 FY2016 & Beyond % of Monthly Gross Office Rental Income % of Office NLA .3% 1.0% 21.1 34.2% 8.1% 18.0% 2.36 Suntec REIT Annual Report 2011 Property Portfolio Suntec City SUNTEC CITY OFFICE Business Sector Analysis (By Gross Rental Income) As at 31 December 2011 SUNTEC CITY OFFICE Lease Expiry Profile As at 31 December 2011 % 40 35 30 25 20 15 39.4 Legal Real Estate and Property Services Trading Manufacturing Shipping and Freight Forwarding Others Government and Government-Linked Offices Banking.1% 3.7 36.4% 2.1 13.2% 10. Insurance and Financial Services Technology.2 33. Services and Consultancy Consultancy / Services 2.1 15.8 13.

Suntec City Offices draw a good stream of diverse multinational firms ranging from sectors such as Banking. Services and Consultancy. The top 10 office tenants of Suntec City Office contributed 17. Insurance and Financial Services sector and the Trading sectors respectively. whilst Tower Five is an 18-storey building with large floor plates of up to 28.8% of Suntec City’s office NLA is due to expire in FY 2012. as at 31 December 2011. followed by 26. and all strata units in Towers Four and Five. With quality buildings fronting the Marina Bay skyline and complemented by a wealth of amenities from the integrated shopping mall. 31. 13.000 sq ft. Trading.2% of the total gross office revenue was attributable to the Technology.7% and 18. Services and Consultancy sector. Technology. Lease Expiry Profile Based on the committed leases as at 31 December 2011.37 Suntec City Office Suntec REIT owns a NLA of approximately 1. Shipping and Freight Forwarding. comprising strata units in Towers One.3 million sq ft in Suntec City Office Towers.0% of Suntec City’s office NLA for the month of December 2011 was attributable to the Technology.6% of Suntec City’s total gross revenue for the month of December 2011 and occupied an area representing 33. 29.8%.6% from the Banking. Insurance and Financial Services. Towers One to Four are 45-storey buildings of column-free floor space. whilst 15.0% and 17.8% of the Suntec City office NLA owned by Suntec REIT. followed by 21. Services and Consultancy sector. Diverse Tenant MIX For the month of December 2011.2% and 33. Insurance and Financial Services sector and the Trading sector respectively. In terms of NLA. Two and Three.3% from the Banking. FY 2013 and FY 2014 respectively. 36.4% is due to expire in FY 2015 and beyond. .

Comprising approximately 822.6% 4.0 FY2012 FY2013 FY2014 2.8 Electronics / Technology Fashion Food and Beverage Gifts and Speciality / Books / Hobbies / Toys Homeware and Home Furnishings Hypermarket Jewellery and Watches Leisure and Entertainment / Sports and Fitness Beauty and Healthcare Others Services / Educational 2. dining and entertainment options to appeal to the different market segments. Hypnosis.4 29. the Fountain Terrace and the Entertainment Centre. seminars and conferences.8% 27. Pachelbel.5 27. Tasty Treatz.38 Suntec REIT Annual Report 2011 Property Portfolio Suntec City SUNTEC CITY MALL Suntec City Mall is one of Singapore’s largest malls and a leading shopping destination. e-life@Suntec.1 FY2016 & Beyond FY2015 % of Monthly Gross Retail Rental Income % of Retail NLA Note: 1 Adjusted for leases that will be affected by Phase 1 of the AEI in Suntec City Mall.6% 1.6 24. Payless Shoesource and Rockport. Suntec City Mall is segmented into four thematic mall zones namely Galleria.2 1.000 sq ft of net lettable retail space across three levels and a basement. Cotton Amour. as well as the vast network of local and international delegates who convene at Suntec Singapore International Convention & Exhibition Centre for exhibitions.6% 25. with more than 370 retail establishments offering a unique one-stop shopping.8% 9.8 0.8 16. It caters to the needs of the working population from the five office towers within Suntec City and office buildings in the vicinity. fashion stores such as Benjamin Barker. Olive Vine and Paradise Inn.6% 5. recreation and entertainment experience for many.7% 4. Glitter Glam. the daily flow of tourists and locals.5 3. and lifestyle and concept stores such as SUNTEC CITY RETAIL Business Sector Analysis (By Gross Rental Income) As at 31 December 2011 SUNTEC CITY RETAIL Lease Expiry Profile1 As at 31 December 2011 % 40 35 30 25 20 15 10 5 0 31. Elisa Litz. MPG and Galleria. The exciting new tenants introduced into Suntec City Mall during the year included restaurants such as Marutama Ramen. there are five specialty zones. which target various customer profiles and provide greater appeal to shoppers through a wider range of brands and enhanced shopping ambience. dining. .2% 14.8% 4.2% 7. namely Happy Kidz. each offering a variety of shopping.1% 6. the Tropics. In addition.

Bottles & Bottles. 53.5% and 16. In terms of NLA. representing 40.2% of Suntec City’s total retail NLA is due to expire in FY 2012. and the remaining from other varied sectors such as the services / educational. 29. . The top 10 retail tenants of Suntec City Mall contributed 12.3% is due to expire in FY 2015 and beyond. VibranT Tenant MIX For the month of December 2011. Lease Expiry Profile Based on the committed leases as at 31 December 2011. Flight Centre. as at 31 December 2011.2% of Suntec City Mall’s NLA was attributable to the Food and Beverage sector.6% of the mall’s total NLA.1% from the Hypermarket sector and Leisure and Entertainment/Sports and Fitness sector respectively. leisure and entertainment and electronics sectors.39 Alienware.2% of the total gross retail revenue was attributable to the Fashion and Food and Beverage sectors. 27. Enavose. Kiitos The Lifestyle Shop.5% of Suntec City’s total gross revenue for the month of December 2011. Slumberland.8% and 14. amongst others. hypermarket. whilst 6. followed by 17. 19. FY 2013 and FY 2014 respectively.6%.

Suntec REIT secured strategic majority control of Suntec Singapore through the acquisition of an additional 40.000 events within its premier convention facility. including key notable events such as the World Trade Organization Ministerial Meetings in 1996. offering direct access to 5. With more than one million sq ft of versatile floor space over six levels. regional and local accolades and awards since its inception. 1. 300 restaurants within close proximity to Singapore’s entertainment and cultural attractions. Since 1995. . this award-winning facility can cater to events from 10 to 20. convention and exhibition venue. in recognition of its high standards of service excellence.000 persons. “AIPC Innovation Award” at the AIPC Innovation Award 2011 and “Best Convention and Exhibition Centre” & “Best MICE Sales Team” awards at the CEI Asia Industry Awards 2011. dedication and passion. On 18 August 2011. It served as one of the largest sporting venues for the inaugural Youth Olympic Games in 2010.200 hotel rooms. “Best International Venue” award at the Exhibition News Awards 2011.000 retail outlets. Suntec Singapore has hosted more than 18. Suntec Singapore has received numerous international.40 Suntec REIT Annual Report 2011 Property Portfolio Suntec Singapore International Convention & Exhibition Centre Suntec Singapore International Convention and Exhibition Centre (“Suntec Singapore”) is a world-class meeting. In 2011.8%. the Annual Meetings of the Board of Governors of the International Monetary Fund and World Bank Group in 2006 and the APEC Leaders Week in 2009.8% equity stake.0% to 60. raising the effective stake from 20. it has garnered 11 major industry awards including the “Asia’s Leading Meetings and Conference Centre” award at the World Travel Awards 2011.

41 .

1 million1 370 million1 (31 December 2010: 338 million) 22.42 Suntec REIT Annual Report 2011 Property Portfolio Park Mall PARK MALL .959 (existing Park Mall area) 126.3 million2 (2010: 22.property statistics As at 31 December 2011 Location Title Total Net Lettable Area (sq ft) .5 million.454 118 346 245.043 143.0 (31 December 2010: 100.4 million (2010: 16.Office .316.Retail Permissible Gross Lettable Area from acquired land (sq ft) Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Gross Revenue (S$) Net Property Income (S$) Committed Occupancy (%) 9 Penang Road.7 million) 100.2 sq m of land along Penang Road amounting to S$15.5 million) 16.916 65.1 million. . Singapore 238459 Leasehold 99 years from 1969 269.0) Notes: 1 Includes the purchase price of 1. 2 Comprises gross rental income of S$20.7 million and other income of S$1.

As part of the future asset enhancement plan for Park Mall. the two strips of land will create an additional floor area of about 65. Furniture Club Holdings Pte Ltd and OB Singapore Operations Pte Ltd. a key transit hub for many commuters shuttling between the North-South line and the NorthEast line. It is located next to Dhoby Ghaut MRT interchange station. lifestyle and home furnishing mall situated within the Orchard Road shopping belt. the Manager acquired from the Singapore Government two strips of land along Penang Road in July 2007 and in March 2008 amounting to approximately 14. and the new Circle MRT Line. and increase the total permissible gross floor area for Park Mall to approximately 450. The Manager’s objective for Park Mall is to continue to optimise the current business returns and to position Park Mall for the future.454 sq ft for the property.43 Park Mall is an integrated office. Nu Skin Enterprise Singapore Pte Ltd.000 sq ft. The purchase prices of the two strips of land are based on the development charges rates issued by the Singapore Government. whilst major tenants at Park Mall’s retail area include Furniture & Furnishings Pte Ltd.1 million. Park Mall comprises a 15-storey office cum retail complex and has been conceptualised and launched as a premier furniture and lifestyle shopping mall. Major tenants at Park Mall’s offices include SSTC Education Centre. X-tra Designs Pte Ltd. Altron Education Group and Star Cruise Pte Ltd. NUS Extension. Together. .167 sq ft for amalgamation with Park Mall. at a total acquisition cost of S$15.

5 million2 (2010: 10.6 million. 2 Comprises gross rental income of S$9.794 31 97 128 million 143.5) Notes: 1 As of 15 October 2011. .9 million and other income of S$0.0 (31 December 2010: 99. Singapore 187996 Leasehold 99 years from 1991 79.1 million) 100.7 million1 (31 December 2010: 134 million) 10.2 million (2010: 7.3 million) 7.property statistics As at 31 December 2011 Location Title Net Lettable Area (sq ft) Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Gross Revenue (S$) Net Property Income (S$) Committed Occupancy (%) 30 Victoria Street.44 Suntec REIT Annual Report 2011 Property Portfolio Chijmes CHIJMes .

as well as live screenings of the English Premier League and UEFA Champions League soccer matches by tenants. CHIJMES offers a variety of culinary delights. the annual New Year Countdown party. CHIJMES also played host to patrons of Singapore’s Formula One Grand Prix night race held in late September with a range of promotional activities and entertainment. Maracana Group Pte Ltd and Prime Cuisine Pte Ltd.45 CHIJMES is an award-winning gazetted national monument recognised by UNESCO as an Asia Pacific Culture Heritage Conservation development with two historic buildings. Major tenants at CHIJMES include Lei Garden Restaurant Pte Ltd. Watabe Singapore Pte Ltd. Suntec REIT announced the divestment of CHIJMES for S$177 million and the transaction was completed on 20 January 2012. as well as a unique venue for selective performances and special events. A premier dining and entertainment establishment in the heart of Singapore’s Civic and Cultural District. On 27 October 2011. Caldwell House and the CHIJMES Hall. The key events held at CHIJMES include the third annual AsiaOne Adventure Race. .

360 445. 2 Comprises other income.property statistics As at 31 December 2011 Location Title Total Net Lettable Area (sq ft) Net Lettable Area (sq ft) Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Net Property Income (S$) Committed Occupancy (%) One Raffles Quay.082 million1 (31 December 2010: 1.023 million) 29. dividend income and interest income from the jointly controlled entity net of all taxes.1201 29 713 941.6 million2 (2010: 38. .5 million1 1.0) Notes: 1 Reflects one-third interest.46 Suntec REIT Annual Report 2011 Property Portfolio One Raffles Quay One rafFles quay .7 million) 100.335. Singapore 048583 Leasehold 99 years from 2001 1.0 (31 December 2010: 100.

One Raffles Quay is well-positioned to capitalise on the future growth of the Marina Bay area. Deutsche Bank Aktiengesellschaft. Lease Expiry Profile Based on the committed leases as at 31 December 2011.5% is due to expire in FY 2016 and beyond. a special purpose company holding one-third of the issued share capital of One Raffles Quay Pte Ltd. In equal partnership with reputable property companies Hongkong Land and K-REIT Asia. Ernst & Young Services Pte.3% 0.1 FY 2014 13. . 92.. The major office tenants include Barclays PLC.2 FY 2013 6.1% 1. an underground link to the Raffles Place MRT station with excellent connectivity and accessibility along the North-South and East-West MRT lines.3% 0.4 FY 2015 FY 2016 & Beyond % of Monthly Gross Rental Income % of NLA 1 Note: Reflects one-third interest.1% 30 20 10 0 0. STRONG TENANT MIX For the month of December 2011. The Manager’s objective for One Raffles Quay is to generate sustainable growth from its interest in the property for Suntec REIT unitholders.5 Legal Real Estate and Property Services Others Banking.2 5.4% 0.9 0.47 One Raffles Quay is a prime landmark commercial development located in Singapore’s Central Business District comprising a 50-storey office tower (the “North Tower”). Insurance and Financial Services Clinics / Laboratories Food and Beverage Services / Educational Note: 1 Reflects one-third interest. the developer and owner of the property.5% of One Raffles Quay’s total NLA is due to expire during the period from FY 2012 to FY 2015. Credit Suisse (Singapore) Limited. a 29-storey office tower (the “South Tower”). Insurance and Financial Services sector. its state-of-the-art building services and management systems cater to the needs of global financial tenants. given its proximity to Marina Bay. Suntec REIT holds a one-third interest in One Raffles Quay through the acquisition of the entire issued share capital of Comina Investment Limited.8% 1.5 8.5 72. a sheltered plaza serving as a drop-off point and a hub car park with 713 car park lots. Societe Generale. 27. Designed by internationally renowned architectural firm Kohn Pedersen Fox Associates of New York.3% of the total gross revenue was attributable to the Banking. whilst 72. ONE RAFFLES QUAY Business Sector Analysis (By Gross Rental Income ) 1 ONE RAFFLES QUAY Lease Expiry Profile1 As at 31 December 2011 % 100 90 80 70 60 50 40 As at 31 December 2011 71. Ltd.9 13.0% 92. A prestigious iconic prime grade ‘A’ office development with long term growth potential. One Raffles Quay has a large and diversified tenant base comprising 24 office tenants and five retail tenants. 4. The Royal Bank of Scotland and UBS AG.8 FY 2012 7.

Singapore 018981 Leasehold 99 years from 2005 1. dividend income and interest income from the jointly controlled entity net of all taxes.495.523 million1 (31 December 2010: 1.3 million) 98. 2 Comprises other income.959 581.81 million 1.3 million2 (9 to 31 December 2010: 2.511 million) 70. .744.48 Suntec REIT Annual Report 2011 Property Portfolio MBFC Properties MBFC Properties .property statistics As at 31 December 2011 Location Title Total Net Lettable Area (sq ft) Net Lettable Area (sq ft) Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Net Property Income (S$) Committed Occupancy (%) 8 Marina Boulevard.5) Notes: 1 Reflects one-third interest.6 (31 December 2010: 96.6531 83 695 1.

The MBFC Properties comprises the office and retail properties under Phase 1 but does not include the Marina Bay Residences. Ltd.6 92. Lease Expiry Profile Based on the committed leases as at 31 December 2011.1% Fashion Food and Beverage Gifts & Speciality / Books / Hobbies / Toys Jewellery and Watches Beauty / Health Services / Educational Others 0. In equal partnership with reputable property companies Hongkong Land and K-REIT Asia. Singapore Flyer.2 3. Macquarie Capital Securities. Phase 1 of the development comprises a 33-storey office tower (“Tower 1”). Services and Consultancy Electronics / Technology Note: Reflects one-third interest. and 695 car park lots. and is directly connected to the future Downtown MRT Station when it is operational around 2013. The MBFC Properties has a premier tenant base.3% 0.9% 0.4% 2. 2. Bank Pictet. ICAP. with major office tenants including American Express International. international and boutique hotels.8 FY 2014 1. Insurance and Financial Services Technology. mbfc properties Business Sector Analysis (By Gross Rental Income1) As at 31 December 2011 mbfc properties Lease Expiry Profile1 As at 31 December 2011 % 100 90 80 70 60 50 40 30 92. There is an underground link from Marina Bay Link Mall to the Raffles Place MRT Station.2% 0.4% 1. Gardens by the Bay.49 The Marina Bay Financial Centre is a prime landmark commercial development strategically located in the heart of Marina Bay. Insurance and Financial Services sector.2 1. a 50-storey office tower (“Tower 2”). Designed by the internationally renowned architectural firm Kohn Pedersen Fox Associates of New York. Marina Bay Residences. whilst 92.6% 0.6% 19. BHP Billiton.508 sq ft of NLA for retail use including the ground levels of Tower 1 and Tower 2 and the Ground Plaza.9% is due to expire in FY 2016 and beyond. Nomura Singapore.5% 3.1% 2. residential apartments and waterside food and beverage outlets are all within close proximity.9 Legal Real Estate and Property Services Trading Banking.4% 20 10 0 4. Murex Southeast Asia Pte Ltd. Prudential Asset Management and Standard Chartered Bank. Esplanade Theatres. 1 . Suntec REIT holds a one-third interest in the MBFC Properties through the acquisition of one-third of the issued share capital of BFC Development Pte. The Manager’s objective for the MBFC Properties is to generate sustainable growth from its interest in the property for Suntec REIT unitholders.1% of the total gross revenue was attributable to the Banking. 66. The Marina Bay Sands Integrated Resort. 5. the Marina Bay Link Mall which consists of approximately 94.4% 66. Barclays Capital.1% 0.9 FY 2015 FY 2016 & Beyond % of Monthly Gross Rental Income % of NLA Note: 1 Reflects one-third interest.7% of the total NLA of the MBFC Properties is due to expire during the period from FY 2012 to FY 2015.0 FY 2012 FY 2013 2.0 0. STRONG Tenant MIX For the month of December 2011.

the expected correction is likely to be more gradual. generous rents incentives from landlords and dropping office rents seem to indicate early signs of market softening. Whilst the total office new supply in the last three years (2009 to 2011) amounted to about 6.9%. which is a stark difference to the 10-year average annual new supply prior 2009 (from 1998 to 2008) of 1. OCCUPANCY RATES ‘000 sq ft 1.9% quarter-onquarter from $13.50 Suntec REIT Annual Report 2011 Market Report The Singapore Office Property Market Overview Persistent weakness in the United States and Europe dampened outputs across most industries in Singapore. Nonetheless. Expectations for Grade A+ office buildings in Raffles Place have moderated as monthly gross office rents dipped 3.01 million sq ft. Outlook The emergence of shadow space.7 million sq ft to be completed in 2012. Against a backdrop of potential worsening Euro and US market conditions. unlike the 2008/2009 global financial crisis. amounting to some 1. Though the island-wide occupancy rate inched up marginally by 0. Muted growth between 1%-3% is expected for the next two years as both the public and private sectors have indicated lower businesses expectations.4% in 4Q 2011 to 88. Some had reportedly sub-let their excess office space to streamline EFFECTIVE GROSS OFFICE RENTS $ per sq ft per month 20 18 16 14 12 10 8 6 4 2 0 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 their operation costs. OFFICE NEW SUPPLY. is still absorbing the additional new supply that was released in the past three years. Island-wide Occupancy Rate (%) Office Space New Demand (sq ft) Source: URA.06 million sq ft. Any quick recovery or optimism in these economies is likely to encourage greater business expansion and improve current office market condition. New supply completed offers more options for tenants thus shifting the office market in their favour.400 1. Landlords may face greater competition from the additional supply released since 2009. Since 2009. resulting in a moderated Gross Domestic Product (“GDP”) growth in 2011. NEW DEMAND. Notwithstanding. new demand has been lagging. the office market.7%. This shift in the office dynamics towards office tenants’ favour is made more prominent by waning office demand resulting from softening economic conditions. Whilst demand from smaller office space users kept up. such correction is still largely pending the resolution of the Euro debt issue and the recovery of US economy. Knight Frank Research . coupled with more supply. However.7 million sq ft.50 per sq ft in previous quarter to about $13. Unlike previous years.000 800 600 400 200 0 -200 -400 -600 4Q 07 2Q 08 4Q 08 2Q 09 4Q 09 2Q 10 4Q 10 2Q 11 4Q 11 % 94 93 92 91 90 89 88 87 86 85 84 Raffles Place Grade A Orchard Road Grade A Suburban Areas Shenton Way/Robinson Road/Tanjong Pagar Grade A Suntec/Marina/City Hall Grade A Raffles Place Grade A+ (New basket of office rents created in 4Q 2010) Source: Knight Frank Research Office Space New Supply (sq ft) Total. The year of 2012 looks challenging for the office sector. with only a total of 3. GDP growth in 2012 may be moderated following challenges from the lack-luster macroeconomic growth and global uncertainties.00 per sq ft in 4Q 2011. Though the emergence of such shadow office space is not as rampant as 2008/2009. The brooding market sentiments are expected to have a negative trickledown effect on the office sector. especially in the Downtown Core Area. net profits and fewer hires in 2012.200 1. such phenomena is likely to intensify the current challenges faced by landlords. Traditional Grade A office spaces in Raffles Place were also affected as average monthly gross office rents fell from $10. the annual new office supply average to about 2.25 per sq ft. the GDP growth for the whole year of 2011 is still in line with market expectation at 4. office rents may soften up to 15% year-on-year (“y-o-y”). where office supply was relatively limited. However.1 million sq ft.50 to $10. many bigger office space users adopted a “wait and see” stance. the current office market is swinging in favour of tenants as new office supply is completed and available. The softening market condition may be further exacerbated by declining office demand in view of the global uncertainty.

2%) areas. City Hall and Bugis areas registered a fall of 2.7%.0%) will be located outside the Central Region. refers to prime specialty shop space on ground level with good frontage and of up to 1. Over the next 2 years. Within Central Region.000 sq ft of net lettable area from the refurbished 268 Orchard and the redeveloped Orchard Gateway (formerly Hotel Phoenix/Specialists’ Shopping Centre and Orchard Emerald) is expected to be completed in 2013.3% in 2012. approximately 2.4% y-o-y. However. the global economy is clouded by economic uncertainty. Island-wide prime retail rents increased approximately 2. Suntec City. the RSI for Department Stores.5% against the previous year to reach a record high at 94. the largest mall in this area. City Hall. Bugis * Orchard (Central) Shop Space New Supply (sq ft) Total. Notably. the performance of malls in these areas will largely depend on demand conditions. The asset enhancement initiative is projected to complete in 2015. To remain relevant and to compete better with upcoming newer malls.4% over the year following new market entrants looking to set up its first store in prime retail spaces. signifying declining discretionary spending. approximately 240. Watches and Jewellery. 1 Singapore Department of Statistics. Nevertheless. i. Press Release. The Singapore government has forecasted that the economy may grow at modest rates of between 1% .9% and 0. Barring a significant shock to the economy.51 The Singapore RETAIL Property Market Overview Amid healthy economic growth and record high employment rates in 2011.9% y-o-y respectively. domestic retail expenditure and tourism receipts.8%) and Central Region (23. prime rentals in the Marina Centre. PRIME RETAIL MONTHLY GROSS RENTS $ per sq ft per month 55 50 45 40 35 30 25 20 15 4Q 07 2Q 08 4Q 08 2Q 09 4Q 09 2Q 10 4Q 10 2Q 11 4Q 11 RETAIL NEW SUPPLY. Average island-wide retail occupancy rates in 2011 improved 0. rising by 1. Change in the occupancy rates y-o-y outside the Central Region accounted for most of the increase. Outlook Moving forward. The Retail Sales Index is seasonally adjusted and at constant prices. thus representing retail sales volume. of which the majority (57. Retail Sales Index. OCCUPANCY RATES ‘000 sq ft 800 600 94 400 200 % 95 93 0 92 -200 -400 4Q 07 2Q 08 4Q 08 2Q 09 4Q 09 2Q 10 4Q 10 2Q 11 4Q 11 Marine Centre. scheduled to commence in 2012. This exercise aims to improve the shopping experience of the mall with a view to optimise returns. Source: Knight Frank Research Source: URA. While prime retail spaces in Fringe area performed well. while the remainder will be in City Fringe (19. occupancy rates at Downtown Core and Rest of Central Area had improved by 3. Knight Frank Research . well-positioned malls which are well-managed will better weather any downturn.5 million sq ft of new lettable retail area will be completed. Recent consumer confidence surveys have also demonstrated increased pessimism over the third quarter of 2011. while Central Region saw a marginal increase of 0.9% over the course of the year.500 sq ft. On the contrary. Supply conditions along Orchard Road remained relatively stable compared to the last two years. the retail property market may face a slowdown in rent escalation as retailers expect smaller takings and face rising operational costs. occupancy rates at the Orchard and City Fringe areas had declined by 0. new upcoming retail developments slated for completion in the next few years sets the stage for a more competitive landscape.3% expected in 2012. announced its S$410 million makeover. New lifestyle hubs will be added to the heartlands and at new growth areas where the Government is focusing on in the future.0%. and Recreational Goods have declined from the start of the year. the retail sector may see tougher times in the coming year. the Retail Sales Index (“RSI”) excluding Motor Vehicles grew 3.3% and 0. we expect rentals island-wide to stay relatively flat over the year. In addition. Island-wide Occupancy Rate (%) Shop Space New Demand (sq ft) Rents are based on pre-defined portfolio of properties.2%.5% y-o-y. With no major upcoming supply in Central Area in the next few years. In tandem with the subdued economic forecast and plausible cutting back of spending by consumers. With slower economic growth of 1% . NEW DEMAND. high retail spending and strong tourist arrivals and expenditure this year.e.

Our participation in various key regional equity and property conferences has also enabled us to remain accessible to investors and the opportunity to provide key strategic and performance updates on Suntec REIT. maintaining an active channel of communication for investors. and in working towards fostering good long-term relationships with its stakeholders. please contact the Manager. In recognition of its good corporate transparency practices. The second annual general meeting of Suntec REIT unitholders in April 2011 was well-attended by retail investors. This is the sixth year that Suntec REIT has received the award for corporate transparency.suntecreit. announcements. It achieves this through good corporate transparency practices. with research coverage by analysts from 22 local and foreign brokerage firms to date. analysts and other stakeholders to access accurate and timely information on Suntec REIT. The senior management team of the Manager has held regular meetings and conference calls with institutional investors throughout the year. ARA Trust Management (Suntec) Limited via the following: Telephone: Fax: Email: Website: +65 6835 9232 +65 6835 9672 enquiry@suntecreit. The Suntec REIT website is regularly updated with current financial and corporate information on Suntec REIT. Suntec REIT was conferred a Runner-up Award for the “Most Transparent Company Award 2011” under the REITs category in the SIAS Investors’ Choice Awards 2011.com www. UNITHOLDER ENQUIRIES For more information on Suntec REIT and its operations.com to download these reports. There is extensive coverage on Suntec REIT.suntecreit. The Manager conducts regular post-results analyst and media briefings every six months subsequent to the release of the first-half and fullyear financial results. including press releases.com PROPOSED 2012/2013 CALENDAR APRIL 2012 • Annual General Meeting • Announcement of the first quarter results MAY 2012 • Books closure date to determine the first quarter distribution entitlement • The first quarter distribution JULY 2012 • Announcement of the second quarter and half-year results AUGUST 2012 • Books closure date to determine the second quarter distribution entitlement • The second quarter distribution OCTOBER 2012 • Announcement of the third quarter results NOVEMBER 2012 • Books closure date to determine the third quarter distribution entitlement • The third quarter distribution FEBRUARY 2013 • Books closure date to determine the fourth quarter distribution entitlement • The fourth quarter distribution JANUARY 2013 • Announcement of the fourth quarter and full year results . Users can access the website at www.52 Suntec REIT Annual Report 2011 Investor Communications The Manager is committed towards upholding the utmost standards of accountability to Suntec REIT’s unitholders. It was an opportune time for senior management of the Manager to actively engage retail investors in their enquiries and discussions about Suntec REIT. corporate earnings results and other key information. providing a global reach to shareholders and potential investors worldwide.

Corporate Governance 54 Corporate Governance Financial Contents 64 65 66 67 68 69 Report of the Trustee Statement by the Manager Independent Auditors’ Report Statements of Financial Position Statements of Total Return Distribution Statements 71 72 75 76 Statements of Movements in Unitholders’ Funds Portfolio Statements Consolidated Statement of Cash Flows Notes to the Financial Statements 115 117 118 121 123 Statistics of Unitholdings Additional Information Notice of Annual General Meeting Corporate Directory Proxy Form .

They encompass proactive measures for avoiding situations of conflict and potential conflict of interest. supervising the property managers which provide property management. and 5. REITs category) at the Investors’ Choice Awards 2011 organised by the Securities Investors Association of Singapore (“SIAS”). a Fourth Supplemental Deed dated 11 October 2007. upon the occurrence of certain events. a Third Supplemental Deed dated 30 July 2007. the Listing Manual of the Singapore Exchange Securities Trading Limited (the “SGX-ST”). the tax ruling dated 15 June 2004 issued by the Inland Revenue Authority of Singapore and all relevant contracts. including the Property Funds Appendix. with due care and diligence. the Code on Collective Investment Schemes (“CIS Code”) issued by Monetary Authority of Singapore (“MAS”). as trustee of Suntec REIT (the “Trustee”). a Fifth Supplemental Deed dated 29 September 2008. capital expenditure. including the Unitholders by a resolution passed by a simple majority of Unitholders. on the acquisition. including prioritising the interests of Unitholders over the Manager’s. 4. written commentary on key issues and underlying assumptions on inflation. 2. Suntec REIT. The Manager’s main responsibility is to manage Suntec REIT’s assets and liabilities in the best interest of Unitholders. and that the Manager’s obligations under the Trust Deed (as defined below) are properly and efficiently carried out. The purpose of these reports is to monitor and explain the performance of Suntec REIT’s assets. which it manages. explanations of major variances to previous forecasts. and has specified and explained areas of non-compliance. preparing property reports on a regular basis. The Manager appoints experienced and well-qualified management to handle its day-to-day operations. THE MANAGER OF SUNTEC REIT The Manager has general powers of management over the assets of Suntec REIT. 3.54 Suntec REIT Annual Report 2011 Corporate Governance ARA Trust Management (Suntec) Limited. The Manager is appointed in accordance with the terms of the Trust Deed dated 1 November 2004 as amended by a First Supplemental Deed dated 25 January 2006. as the manager of Suntec REIT (the “Manager”). present and voting at a meeting of Unitholders. a Second Supplemental Deed dated 20 April 2006. The Manager also recognises that an effective corporate governance culture is critical to its performance and consequently. marketing and marketing co-ordination services in relation to Suntec REIT’s properties pursuant to the respective property management agreements. ACHIEVEMENT The Manager won the Most Transparent Company Award 2011 (Runner-up. annual turnover. and in the best interest of Suntec REIT unitholders (“Unitholders”). The following segments describe the Manager’s main corporate governance policies and practices. the success of Suntec REIT. lease management. is externally managed by the Manager and accordingly. attending to all regular communications with Unitholders. . In particular. divestment and enhancement of assets of Suntec REIT in accordance with its stated investment strategy. it has no personnel of its own. the “Trust Deed”). Other main functions and responsibilities of the Manager include: 1. The primary role of the Manager is to set the strategic direction of Suntec REIT and make recommendations to HSBC Institutional Trust Services (Singapore) Limited. duly convened and held in accordance with the provisions of the Trust Deed. the Trust Deed (as amended). which may contain forecasts on net income. using its best endeavours to ensure that the business of Suntec REIT is carried out and conducted in a proper and efficient manner and to conduct all transactions with or for Suntec REIT at arm’s length and on normal commercial terms. occupancy costs and any other relevant assumptions. the Manager has an obligation to act honestly. constituted as a trust. a Sixth Supplemental Deed dated 14 April 2010 and a First Amending and Restating Trust Deed dated 7 September 2010 (collectively. ensuring that applicable laws and regulations are complied with. sales and valuations. This affirms the Manager’s commitment to a high standard of corporate governance and accountability to Unitholders. ensuring compliance with the applicable provisions of the Securities and Futures Act and all other relevant legislation. The Manager confirms that it has adhered to the principles and guidelines as set out in the Code of Corporate Governance 2005 (the “Code”) where applicable. The Trust Deed outlines certain circumstances under which the Manager can be removed by notice in writing given by the Trustee in favour of a corporation appointed by the Trustee. has adopted an overall corporate governance framework designed to meet best practice principles.

The composition of the Board is determined using the following principles: 1. at specially convened sessions or via circulation of Board papers. the annual budget. four of whom are independent. business operations and risks. the Board should comprise Directors with a broad range of commercial experience including expertise in fund management and the property industry. No individual or small group of individuals should be allowed to dominate the Board’s decision making. The Board is also responsible for the strategic business direction and risk management of Suntec REIT. financial performance and the nomination and appointment of directors. including any significant acquisitions and disposals. Where necessary. in particular. The Board has adopted a set of internal controls which it believes is adequate in safeguarding Unitholders’ interest and Suntec REIT’s assets.55 Corporate Governance THE BOARD’S CONDUCT OF AFFAIRS Principle 1 Every company should be headed by an effective Board to lead and control the company. Board meetings are held once every quarter (or more often if necessary) to discuss and review the strategies and policies of Suntec REIT. which is able to exercise objective judgement on corporate affairs independently. the Manager strives to ensure that the Board as a whole has the requisite background. Apart from matters that specifically require approval from the Board. Where the changes have an important impact on Suntec REIT and its disclosure obligations. Newly appointed Directors are given letters explaining the terms of their appointment as well as their duties and obligations. The composition of the Board is reviewed regularly to ensure that the Board has the appropriate mix of expertise and experience. The Board is collectively responsible for the success of the company. The Board has established a framework for management of the Manager and Suntec REIT. the Board approves transactions exceeding established threshold limits and delegates authority for transactions below those limits to Board Committees. approval limits for capital expenditure and operating of bank accounts. Chiu Kwok Hung. The Board works with Management to achieve this and the Management remains accountable to the Board. The Board of Directors of the Manager (the “Board”) is entrusted with responsibility for the overall management of the Manager. Relevant updates. half year and full year results. The Board presently comprises nine members. the financial performance of Suntec REIT and to approve the release of quarterly. Four Board meetings were held during the financial year ended 31 December 2011 (“FY 2011”). news releases issued by the SGX-ST and the Accounting and Corporate Regulatory Authority (“ACRA”) will also be circulated to the Board for information. experience and knowledge in business. Justin. Changes to regulations. BOARD COMPOSITION AND GUIDANCE Principle 2 There should be a strong and independent element on the Board. additional meetings would be held to address significant transactions or issues requiring the Board’s attention. including establishing goals for managing and monitoring the achievement of these goals. In particular. the Chairman of the Board should be a Non-executive Director. Appropriate delegation of authority has been provided to management of the Manager (“Management”) to facilitate operational efficiency with oversight by the Board and this includes. as well as financial and treasury management administration and acts upon any comments from the auditors of Suntec REIT. The Chairman of the Board is Mr. The Articles of Association of the Manager permits Directors’ participation in meetings by way of tele-conference or video conference. policies and accounting standards are monitored closely. from Management. including a system of internal controls and risk management processes. The Board also reviews the assessment of key risks to the assets of Suntec REIT. An orientation is arranged for these Directors to be briefed on the business activities of Suntec REIT and its strategic directions and policies. among other things. 2. All Board members participate in matters relating to corporate governance. The Board is responsible for the overall corporate governance of the Manager. and 3. the Directors are briefed either during a Board meeting. at least one-third of the Board should comprise Independent Directors. finance and management . The Board meets regularly to review the Manager’s key activities.

taking into consideration the nature and scope of Suntec REIT’s operations. the Non-executive and Independent Directors bring independent judgement to bear on business activities and transactions involving conflicts of interest and other complexities. Seow is the Senior Director. financing and re-financing arrangements and transactions involving derivative instruments for hedging purposes. is adequate and that the current Board size is appropriate. the Board Committees shall report back to the Board with their decision and/or recommendations and the ultimate responsibility on all matters lies with the Board. in reviewing and approving Management’s proposal on hedging strategies. BOARD COMMITTEE The Board is supported by various Board Committees. The Board has delegated specific responsibilities to these Board Committees and their composition and terms of reference are described in this Report. John Mr.56 Suntec REIT Annual Report 2011 Corporate Governance skills critical to Suntec REIT’s businesses. Chow Wai Wai. A healthy exchange of ideas and views between the Board and Management through regular meetings and updates enhances the management of Suntec REIT. and 2. Designated Committee Constituted by the Board on 26 October 2010. Profiles of the Directors and other relevant information are set out on Pages 16 to 19 of this Annual Report. The Designated Committee comprises the following members : • • • • Mr. The Independent Directors have no relationship with the Manager. When reviewing Management proposals or decisions. its related companies or their officers that could interfere. provide a healthy and professional relationship between the Board and Management. At least one-third of the Board comprises Independent Directors. namely the audit committee and designated committee to assist the Board in discharging its responsibilities and enhance its corporate governance framework. Collectively and individually. The Independent Directors exercise objective judgement on Suntec REIT’s affairs and are independent from Management. or be reasonably perceived to interfere. the Directors act in good faith and exercise due diligence and care in the course of deliberations and consider objectively at all times the interests of Suntec REIT and its Unitholders. It also enables the Board to interact and work with Management to help shape the strategic process. . the designated committee (“Designated Committee”) was formed to assist the Board: 1. The Board is of the view that its current composition of persons. Their views and opinions provide alternative perspectives to Suntec REIT’s business and enable the Board to make informed and balanced decisions. who as a group provide the necessary core competencies. Cheryl Chairman Member Member Member* *Ms. The Board accepts that while these Board Committees have the authority to examine particular issues in their specific areas respectively. Vincent Ms. in reviewing Management’s proposal on the structure of financing and refinancing strategies for recommendation to the Board for approval. Tan Kian Chew Mr. The Designated Committee would also undertake other reviews and projects as may be requested by the Board. Non-executive Directors contribute to the Board process by monitoring and reviewing Management’s performance against goals and objectives. Chen Wei Ching. Group Finance of ARA Asset Management Limited. Seow Bee Lian. together with a clear separation of roles between Chairman and Chief Executive Officer (“CEO”). This. with the exercise of their independent judgement.

Tan Kian Chew Mrs. the Manager does not consider it necessary for the Board to establish a nominating committee. In reviewing and recommending the appointment of new Directors. Ma Lai Chee. Lim Lee Meng Mr. Ip Tak Chuen. The Board also reviews the candidate’s ability to contribute to the proper guidance of the Manager in its management of Suntec REIT. Chiu Kwok Hung. There should be a formal assessment of the effectiveness of the Board as a whole and the contribution by each director to the effectiveness of the Board. business operations and enterprise issues. Edmond (Alternate Director – Mr. such that no one individual represents a considerable concentration of power. . BOARD MEMBERSHIP AND PERFORMANCE Principle 4 Principle 5 There should be a formal and transparent process for the appointment of new directors to the Board. John Mr. As the Manager is not itself a listed entity. and the principles outlined earlier in this statement. Gerald) Mr. reviewing the structure. The CEO has full executive responsibilities over the business direction and operational decisions of managing Suntec REIT in accordance with the objectives establishd by the Board. Yeo See Kiat respectively. The Board performs functions that a nominating committee would perform. John Mr. The roles of Chairman and CEO are separate and held by Mr. tabling nominations to the Board. Sng Sow-Mei (alias Poon Sow Mei) Mr. Justin and Mr. Lim Hwee Chiang. Chen Wei Ching. Vincent Mr. The Manager believes that contributions from each Director go beyond his/her attendance at Board and its Board Committee meetings and are reflected in the long term success of Suntec REIT. Chiu Kwok Hung. Chow Wai Wai. CHAIRMAN AND CHIEF EXECUTIVE OFFICER Principle 3 There should be a clear division of responsibilities at the top of the company – the working of the Board and the executive responsibility of the company’s business – which will ensure a balance of power and authority. The Chairman leads the Board and ensures that its members work together with Management in a constructive manner to address strategies. Yeo See Kiat Participation Chairman Member Member Attendance/ Number of Meetings 4/4 4/4 4/4 Audit Committee Meetings Participation NA NA NA Attendance/ Number of Meetings NA NA NA Member Member Member Member Member Member and CEO 4/4 4/4 4/4 4/4 4/4 4/4 Chairman Member Member Member NA CEO 5/5 5/5 5/5 5/5 NA NA There were no Designated Committee meetings held in FY2011. namely. size and composition of the Board and reviewing the independence of Board members. The separation of responsibilities between the Chairman and the CEO facilitates effective oversight and a clear segregation of duties.57 Corporate Governance MEETING ATTENDANCE The matrix of Board members’ participation in the various Board and its Board Committee meetings and attendance thereat for FY 2011 are as follows: Board Meetings Board Members Mr. Justin Mr. the Board takes into consideration the current Board size and mix.

Reviews of Board performance as appropriate are informal. The Manager believes that Board performance would be better reflected and evidenced by proper guidance. Company Secretary. Lim Lee Meng and Mr. The Company Secretary works with the Chairman to ensure that information flows within the Board and its Board Committee and between senior management and the Non-executive Directors. The Company Secretary attends all Board meetings and assists the Board in ensuring that Board procedures and all other rules and regulations applicable to the Manager are complied with. The Company Secretary will assist with professional development and training for Directors when required to do so. The Manager has in place procedures to enable Directors. adequate and timely information prior to Board meetings and on an on-going basis. Mr. The Board is of the view that such multiple board representations do not hinder the Directors from carrying out their duties in the Manager and Suntec REIT. and performance. internal and external auditors at all times. Ultimately. Board members should be provided with complete. All Directors have separate and independent access to Management. retain and motivate the directors needed to run the company successfully but companies should avoid paying more than is necessary for this purpose. and the procedure for setting remuneration in the company’s annual report.58 Suntec REIT Annual Report 2011 Corporate Governance The independence of Directors is reviewed upon appointment and thereafter the Board reviews the independence of Board members annually with reference to the guidelines set out in the Code. Each company should provide clear disclosure of its remuneration policy. Board papers are generally circulated at least three days in advance of each meeting and include background explanatory information for the Directors to prepare for the meeting and make informed decisions. ACCESSS TO INFORMATION Principle 6 In order to fulfil their responsibilities. level and mix of remuneration. The Board has determined that Mr. The appointment of such independent professional advisors is subject to approval by the Board. but may be driven by the needs of Suntec REIT and its business. and copies of relevant disclosure documents. Chen Wei Ching. REMUNERATION MATTERS Principle 7 Principle 8 There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual directors. diligent oversight and able leadership and support that the Board members lend to Management to steer Suntec REIT’s performance under favourable or challenging market conditions. A significant proportion of executive directors’ remuneration should be structured so as to link rewards to corporate and individual performance. Renewal or replacement of Board members do not necessarily reflect their contributions to-date. Tan Kian Chew. The CEO keeps Board members abreast of key developments affecting Suntec REIT as well as material transactions so that the Board is kept fully aware of the affairs of Suntec REIT. budgets. the interests of Suntec REIT will be safeguarded and reflected by maximisation of Unitholder’s value. Mrs. Board meetings for each year are scheduled in advance to facilitate Directors’ individual arrangements and commitments. whether as a group or individually. No director should be involved in deciding his own remuneration. Principle 9 . in furtherance of their duties. Vincent are considered to be Independent Directors. Sng Sow-Mei. the Board ensures that sufficient time and attention are given by the Directors to the affairs of the Manager and Suntec REIT. Explanatory background information relating to matters brought before the Board includes quarterly results announcement. to obtain independent professional advice as and when necessary. Management provides complete. Although the Directors hold multiple board representations in other companies. at the Manager’s expense. The appointment and the removal of the Company Secretary shall be reviewed by the Board. adequate and timely information to the Board on Suntec REIT’s affairs and issues that require the Board’s decision. The level of remuneration should be appropriate to attract. It should provide disclosure in relation to its remuneration policies to enable investors to understand the link between remuneration paid to directors and key executives.

Five Audit Committee meetings were held for FY 2011. and not by Suntec REIT. Lim Lee Meng Mr. 2. Vincent Chairman Member Member Member The Audit Committee members have professional expertise and experience in financial and business management fields. The Board is of the view that members of the Audit Committee are appropriately qualified. at least once annually. The Board seeks to keep Unitholders updated on Suntec REIT’s financial performance. In presenting the financial reports. 3. the Listing Manual of the SGX-ST and the Property Funds Appendix. reviewing external and internal audit reports to ensure that where deficiencies in internal controls have been identified. In keeping with best practices in corporate governance. appropriate and prompt remedial action is taken by Management. the Board aims to provide a balanced and understandable presentation of Suntec REIT’s financial performance. Chen Wei Ching. position and prospects through quarterly and annual financial reports as well as timely announcements on developments in its businesses. with the necessary accounting and financial management expertise and experience to discharge their responsibilities. AUDIT COMMITTEE Principle 11 The Board should establish an Audit Committee with written terms of reference which clearly set out its authority and duties. position and prospects. reviewing and approving the financial statements and auditors’ report.59 Corporate Governance All Directors and employees of the Manager are remunerated by the Manager from the fees it received from Suntec REIT. Management provides the Board with a continual flow of relevant information on the performance on a timely basis in order that the Board may effectively discharge its duties. The Audit Committee has adopted a written terms of reference endorsed by the Board that defines its scope of authorities and responsibilities including: 1. position and prospects. The Audit Committee is responsible for the nomination of external and internal auditors for re-appointment and for reviewing the adequacy of existing audits in respect of cost. The Board has established an audit committee (“Audit Committee”) to assist in the discharge of its responsibilities. and . while the full year results are released to Unitholders within 60 days of the financial year end. Quarterly results are released to Unitholders within 45 days of the reporting period. the Board has established that a majority of members of the Audit Committee (including the Chairman) shall be Independent Directors. ACCOUNTABILITY Principle 10 The Board should present a balanced and understandable assessment of the company’s performance. The role of the Audit Committee is to monitor and evaluate the effectiveness of the Manager’s internal controls. namely: • • • • Mr. scope and performance. Tan Kian Chew Mrs. The Audit Committee also reviews the quality and reliability of information prepared for inclusion in financial reports and any formal announcements relating to Suntec REIT’s financial performance. The Audit Committee meets with the external auditors and the internal auditors. The internal and external auditors had confirmed that they had full access to and had received the full co-operation and support of Management. The Audit Committee comprises four Independent Directors. the Audit Committee had met with the internal and external auditors without the presence of Management. without the presence of Management. Sng Sow-Mei (alias Poon Sow Mei) Mr. In FY 2011. monitoring procedures in place to ensure compliance with applicable legislation.

The company should establish an internal audit function that is independent of the activities it audits. The audit and non-audit fees paid/payable to the external auditors for FY 2011 amount to S$309.60 Suntec REIT Annual Report 2011 Corporate Governance 4. and the provisions of the Property Funds Appendix relating to transactions between the Trustee and an “interested party’’ (both such types of transactions constituting “Related Party Transactions”). Any material non-compliance or lapses in internal controls together with corrective measures are reported to the Audit Committee. It is entitled to full access to and co-operation by Management and has full discretion to invite any Director or Executive Officer of the Manager to attend its meetings. The internal audit function of the Manager is out-sourced to BDO Consultants Pte Ltd. Whistle-Blowing Policy The Board has put in place a Whistle-Blowing programme for Suntec REIT whereby staff may in confidence. has complied with the requirements of Rule 712 and 716 of the Listing Manual of the SGX-ST in respect of the suitability of the auditing firms of Suntec REIT and its associated companies.000 and S$57. with the concurrence of the Board. The Manager has established and maintains a robust system of internal controls and risk management framework to safeguard Suntec REIT’s assets and Unitholders’ interests and to provide reasonable assurance against misstatement of loss. INTERNAL CONTROLS AND AUDIT Principle 12 Principle 13 The Board should ensure that the Management maintains a sound system of internal controls to safeguard the Unitholders’ investments and the company’s assets. The Audit Committee is satisfied that the internal auditor has met the standards set by internationally recognized professional bodies including the International Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors. on behalf of Suntec REIT. The Audit Committee is of the view that the internal auditor has adequate resources to perform its functions and has maintained its independence from the activities that it audits. Internal auditors conduct audits to evaluate the effectiveness of the material internal control systems in Suntec REIT which include financial.000 respectively. The Audit Committee also reviews and approves the annual internal audit plan as well as the internal audit reports and effectiveness of the actions taken by Management on recommendations made by the internal auditor in this respect. There were no reports of whistle-blowing received in FY 2011. The internal auditor reports directly to the Audit Committee on audit matters. The Audit Committee has also conducted a review of all non-audit services provided by the external auditors and is satisfied that the nature and extent of such services will not prejudice the independence and objectivity of the external auditors. The objective of the Whistle-Blowing programme is to ensure that arrangements are in place for independent investigation of such concerns and allow appropriate follow-up actions to be taken. compliance and information technology controls. has recommended the re-appointment of KPMG LLP as the external auditors of Suntec REIT at the forthcoming annual general meeting. including ensuring compliance with the provisions of the Listing Manual of the SGX-ST relating to transactions between the Trustee and an “interested person’’. a member firm of BDO International Limited. The Audit Committee. raise their concerns to the Audit Committee about possible improprieties in matters of financial reporting or such other matters in a responsible and effective manner. The Board. The Audit Committee has full access to resources to enable it to discharge its functions fully. maintenance of reliable and proper accounting records and compliance with relevant legislation. monitoring procedures established to regulate Related Party Transactions (as defined below). The Audit Committee is authorised to investigate any matters within its terms of reference. operational. .

but prohibits them from dealing in such Units: 1. DEALINGS IN SUNTEC REIT UNITS The Board has adopted an internal compliance code of conduct to provide guidance to its Directors. during the period commencing one month before the public announcement of Suntec REIT’s annual. Unitholders are invited at such meetings to put forth any questions they may have on the motions to be debated and decided upon. operational and compliance risks in its current business environment. During these briefings. The Manager has also undertaken that it will not deal in Units during the period commencing one month before the public announcement of Suntec REIT’s annual. The Manager also conducts regular briefings for analysts and media representatives. Companies should encourage greater Unitholder participation at AGMs and allow Unitholders the opportunity to communicate their views on various matters affecting the company. pursuant to Rule 1207(10) of the Listing Manual of the SGX-ST. together with Management’s quarterly and annual undertaking confirming their responsibilities for and effectiveness of the internal controls. which will generally coincide with the release of Suntec REIT’s half year and full year results.61 Corporate Governance In addition to the work performed by the internal auditors. Unitholders are informed of meetings through notices accompanied by annual reports or circulars sent to them.com. The Manager upholds a strong culture of continuous disclosure and transparent communication with Unitholders and the investing community. If any unitholder is unable to attend. semi-annual and quarterly results and (where applicable) any property valuations. Based on the framework established and audits conducted. and 2. In general. The Listing Manual of the SGX-ST requires that a listed entity discloses to the market matters that would likely have a material effect on the price of the entity’s securities. Management will review Suntec REIT’s most recent performance as well as discuss the business outlook for Suntec REIT. the Manager has given an undertaking to the MAS that it will announce to the SGX-ST the particulars of its unitholdings in Suntec REIT and any changes thereto within two business days after the change. the external auditors also perform tests of certain controls that are relevant to the preparation of Suntec REIT’s financial statements. at any time whilst in possession of price-sensitive information. by way of release on Suntec REIT’s website at www. with the concurrence of the Audit Committee. he/she is allowed to appoint up to two proxies to vote on his/her behalf at the meeting through proxy forms sent in advance. The Manager’s disclosure policy requires timely and full disclosure of all material information relating to Suntec REIT by way of public releases or announcements through the SGX-ST via SGXNET at first instance and subsequently. is of the opinion that the internal controls in place are adequate in addressing Suntec REIT’s material financial. briefing materials are also simultaneously released through the SGX-ST via SGXNET and also made publicly available at Suntec REIT’s website on a non-selective basis. COMMUNICATION WITH UNITHOLDERS Principle 14 Principle 15 Companies should engage in regular. key officers and employees in respect of dealings in Suntec REIT’s units (“Units”). the Board. the Manager’s policy encourages Directors and employees of the Manager to hold Units.suntecreit. In line with the Manager’s objective of transparent communication. Members of the Board of Directors together with the Audit Committee and the auditors will be in attendance at these meetings to address questions from Unitholders. effective and fair communication with unitholders. and ending on the date of announcement of the relevant results or property valuations. and ending on the date of announcement of the said information. In addition. semi-annual and quarterly results and (where applicable) any property valuations. The external auditors report any significant deficiencies of such internal controls to the Audit Committee. . Directors and employees of the Manager are discouraged from dealing in Units on short-term considerations.

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Suntec REIT Annual Report 2011

Corporate Governance

RISK ASSESSMENT AND MANAGEMENT OF BUSINESS RISK
Effective risk management is a fundamental part of Suntec REIT’s business strategy. Recognising and managing risk is central to the business and to protecting Unitholders’ interests and value. Suntec REIT operates within overall guidelines and specific parameters set by the Board. Each transaction is comprehensively analysed to understand the risks involved and appropriate controls and measures are put in place before the Manager proceeds to execute these transactions. Key risks, process owners, risk factors, mitigating actions and risk indicators are continually identified, accessed and monitored by Management as part of Suntec REIT’s enterprise risk management framework and is documented in the risk profile maintained by the Manager and reviewed by the Board. The Board meets quarterly or as often as necessary to review the financial performance of Suntec REIT as well as the related strategic, operational, hazard and financial risks faced by Suntec REIT. In assessing business risks, the Board also considers the economic environment and property industry risks.

DEALING WITH CONFLICTS OF INTEREST
The Manager has instituted the following procedures to deal with potential conflict of interest issues which the Manager may encounter in managing Suntec REIT: 1. the Manager will be a dedicated manager to Suntec REIT and will not manage any other REIT which invests in the same type of properties as Suntec REIT; 2. all executive officers will be employed by the Manager; 3. all resolutions in writing of the Directors of the Manager in relation to matters concerning Suntec REIT must be approved by all the Directors; 4. at least one-third of the Board shall comprise Independent Directors; 5. in respect of matters in which a Director of the Manager or his associates have an interest, direct or indirect, the interested Director will abstain from voting. In such matters, the quorum must comprise a majority of Directors of the Manager and must exclude such interested Directors; 6. under the Trust Deed, (i) the Manager and its associates are prohibited from voting at or being part of a quorum for any meeting of Unitholders convened to approve any matter in which the Manager or any of its associates has a material interest and (ii) for so long as ARA Trust Management (Suntec) Limited is the Manager of Suntec REIT and Cheung Kong (Holdings) Limited and/or Mr. Lim Hwee Chiang, John are controlling shareholders (as defined in the Listing Manual of the SGX-ST) of ARA Trust Management (Suntec) Limited, Cheung Kong (Holdings) Limited and its associates, or Mr. Lim Hwee Chiang, John and his associates, are prohibited from being part of a quorum or voting at any meeting of Unitholders convened to consider a matter in respect for which Cheung Kong (Holdings) Limited or its associates or, as the case may be, Mr. Lim Hwee Chiang, John or his associates, has a material interest; and 7. it is also provided in the Trust Deed that if the Manager is required to decide whether or not to take any action against any person in relation to any breach of any agreement entered into by the Trustee with a related party of the Manager, the Manager shall be obliged to consult with a reputable law firm (acceptable to the Trustee) which shall provide legal advice on the matter. If the said law firm is of the opinion that the Trustee has a prima facie case against the party allegedly in breach under such agreement, the Manager shall be obliged to take appropriate action in relation to such agreement. The Directors of the Manager have a duty to ensure that the Manager so complies. Notwithstanding the foregoing, the Manager shall inform the Trustee as soon as it becomes aware of any breach of any agreement entered into by the Trustee with a related party of the Manager, and the Trustee may take such action as it deems necessary to protect the rights of Unitholders and/or which is in the interests of Unitholders. Any decision by the Manager not to take action against a related party of the Manager shall not constitute a waiver of the Trustee’s right to take such action as it deems fit against such related party.

DEALING WITH RELATED PARTY TRANSACTIONS
Review Procedures for Related Party Transactions In general, the Manager has established internal control procedures to ensure that all Related Party Transactions will be undertaken on an arm’s length basis and under normal commercial terms and will not be prejudicial to the interests of Suntec REIT and Unitholders. As a general rule, the Manager must demonstrate to the Audit Committee that such transactions satisfy the foregoing criteria, which may entail obtaining (where practicable) quotations from independent parties not related to the Manager, or obtaining one or more valuations from independent professional valuers (in accordance with the Property Funds Appendix).

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Corporate Governance

In addition, the following procedures will be undertaken: 1. transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding S$100,000 in value but below 3.0% of the value of Suntec REIT’s latest audited net tangible assets will be subject to review by the Audit Committee at regular intervals; 2. transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding 3.0% but below 5.0% of the value of Suntec REIT’s latest audited net tangible assets will be subject to the review and prior approval of the Audit Committee. Such approval shall only be given if the transactions are on normal commercial terms and are consistent with similar types of transactions made by the Trustee with third parties which are unrelated to the Manager. The Manager will, in compliance with Rule 905 of the Listing Manual of the SGX-ST, announce any related party transaction if such transaction, either individually or when aggregated with other related party transactions entered into with the same related party during the same financial year, is 3.0% or more of Suntec REIT’s latest audited net tangible assets; and

3. transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding 5.0% of the value of Suntec REIT’s latest audited net tangible assets will be reviewed and approved prior to such transactions being entered into, on the basis described in the preceding paragraph, by the Audit Committee which may, as it deems fit, request advice on the transaction from independent sources or advisers, including the obtaining of valuations from independent professional valuers. Further, under the Listing Manual of the SGX-ST and the Property Funds Appendix, such transactions would have to be approved by the Unitholders at a meeting of Unitholders. Where matters concerning Suntec REIT relate to transactions entered into or to be entered into by the Trustee with a related party of the Manager or Suntec REIT, the Trustee is required to consider the terms of such transactions to satisfy itself that such transactions are conducted on arm’s length basis and on normal commercial terms, are not prejudicial to the interest of Suntec REIT and the Unitholders, and are in accordance with all applicable requirements of the Property Funds Appendix and/or the Listing Manual of the SGX-ST relating to the transaction in question. Further, the Trustee has the ultimate discretion under the Trust Deed to decide whether or not to enter into a transaction involving a related party of the Manager or Suntec REIT. If the Trustee is to sign any contract with a related party of the Manager or Suntec REIT, the Trustee will review the contract to ensure that it complies with the requirements relating to interested party transactions in the Property Funds Appendix (as may be amended from time to time) and the provisions of the Listing Manual of the SGX-ST relating to interested person transactions (as may be amended from time to time) as well as such other guidelines as may from time to time be prescribed by the MAS and the SGX-ST to apply to real estate investment trusts. For so long as Cheung Kong (Holdings) Limited and/or Mr. Lim Hwee Chiang, John are controlling shareholders (as defined in the Listing Manual of the SGX-ST) of the Manager and the Manager is the manager of Suntec REIT, all transactions between Suntec REIT and the said controlling shareholders and/or their associates shall be considered as interested person transactions and the provisions of the Listing Manual of the SGX-ST relating to interested person transactions as well as such other guidelines as may from time to time be prescribed by the SGX-ST shall apply to such transactions.

Role of the Audit Committee for Related Party Transactions and Internal Control Procedures All Related Party Transactions will be subject to regular periodic reviews by the Audit Committee. The Manager’s internal control procedures are intended to ensure that Related Party Transactions are conducted on an arm’s length basis and under normal commercial terms and are not prejudicial to Unitholders. The Manager maintains a register to record all Related Party Transactions (and the bases, including any quotations from unrelated parties and independent valuations obtained to support such bases, on which they are entered into), which are entered into by Suntec REIT. The Manager will incorporate into its internal audit plan a review of all Related Party Transactions entered into by Suntec REIT. The Audit Committee shall review the internal audit reports to ascertain that the guidelines and procedures established to monitor Related Party Transactions have been complied with. In addition, the Trustee will also have the right to review such audit reports to ascertain that the Property Funds Appendix has been complied with. The Audit Committee will periodically review all Related Party Transactions to ensure compliance with the Manager’s internal control procedures and with the relevant provisions of the Listing Manual of the SGX-ST and the Property Funds Appendix. The review will include the examination of the nature of the transaction and its supporting documents or such other data deemed necessary by the Audit Committee. If a member of the Audit Committee has an interest in a transaction, he is required to abstain from participating in the review and approval process in relation to that transaction. The Manager will disclose in Suntec REIT’s annual report the aggregate value of Related Party Transactions conducted during the relevant financial year.

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Suntec REIT Annual Report 2011

Report of the Trustee

HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”) is under a duty to take into custody and hold the assets of Suntec Real Estate Investment Trust (the “Trust”) and its subsidiaries (the “Group”) in trust for the holders (“Unitholders”) of units in the Trust (the “Units”). In accordance with the Securities and Futures Act, Chapter 289, of Singapore, its subsidiary legislation, and the Code on Collective Investment Schemes, the Trustee shall monitor the activities of ARA Trust Management (Suntec) Limited (the “Manager”) for compliance with the limitations imposed on the investment and borrowing powers as set out in the trust deed dated 1 November 2004 (as amended) (the “Trust Deed”) between the Manager and the Trustee in each annual accounting period and report thereon to Unitholders in an annual report. To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Trust during the period covered by these financial statements, set out on pages 67 to 114 in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed.

For and on behalf of the Trustee, HSBC Institutional Trust Services (Singapore) Limited

Antony Wade Lewis Director

Singapore 7 March 2012

the accompanying financial statements set out on pages 67 to 114. there are reasonable grounds to believe that the Trust will be able to meet its financial obligations as and when they materialise. the total return. distributable income. Statements of Movements in Unitholders’ Funds. distributable income and movements in Unitholders’ funds of the Trust for the financial year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore and the provisions of the Trust Deed. Statements of Total Return. For and on behalf of the Manager. movements in Unitholders’ funds and cash flows of the Group and the total return.65 Statement by the Manager In the opinion of the directors of ARA Trust Management (Suntec) Limited. Distribution Statements. At the date of this statement. in all material respects. comprising the Statements of Financial Position. ARA Trust Management (Suntec) Limited Lim Hwee Chiang. Consolidated Statement of Cash Flows and Notes to the Financial Statements are drawn up so as to present fairly. the financial position of Suntec Real Estate Investment Trust (the “Trust”) and its subsidiaries (the “Group”) as at 31 December 2011. John Director Yeo See Kiat Director and Chief Executive Officer Singapore 7 March 2012 . Portfolio Statements.

In making those risk assessments. The procedures selected depend on the auditor’s judgement. distributable income. Distribution Statement. distributable income and movements in Unitholders’ funds of the Trust for the year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore. Auditors’ responsibility Our responsibility is to express an opinion on these financial statements based on our audit. Distribution Statement and Statement of Movements in Unitholders’ Funds of the Trust for the year then ended. Statement of Movements in Unitholders’ Funds and Consolidated Statement of Cash Flows of the Group and the Statement of Total Return. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. and the Statement of Total Return. the auditor considers internal control relevant to the Trust’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. We conducted our audit in accordance with Singapore Standards on Auditing. KPMG LLP Public Accountants and Certified Public Accountants Singapore 7 March 2012 . Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Opinion In our opinion. which comprise the Statements of Financial Position and Portfolio Statements of the Group and the Trust as at 31 December 2011. and a summary of significant accounting policies and other explanatory information. in all material respects. Distribution Statement and Statement of Movements in Unitholders’ Funds of the Trust present fairly. Manager’s responsibility for the financial statements The Manager of the Trust is responsible for the preparation and fair presentation of these financial statements in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore. as well as evaluating the overall presentation of the financial statements. the consolidated financial statements of the Group and the Statement of Total Return. as set out on pages 67 to 114. whether due to fraud or error. and for such internal control as the Manager of the Trust determines is necessary to enable the preparation of financial statements that are free from material misstatements.66 Suntec REIT Annual Report 2011 Independent Auditors’ Report Unitholders of Suntec Real Estate Investment Trust (Constituted under a Trust Deed in the Republic of Singapore) Report on the financial statements We have audited the accompanying financial statements of Suntec Real Estate Investment Trust (the “Trust”) and its subsidiaries (the “Group”). but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager of the Trust. movements in Unitholders’ funds and cash flows of the Group. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. including the assessment of the risks of material misstatement of the financial statements. whether due to fraud or error. the financial position of the Group and of the Trust as at 31 December 2011 and the total return. and the total return.

452 2.562.514 2.929 – 19.239 216 – 2.531 10 4.029 2.744 2.970.999 13.622.700 – 4.726 10 4.668 7.847 2.664.744 1.804 4.080 60.402 262.468 7.934 – 4.087.790 The accompanying notes form an integral part of these financial statements.928 2.103 8.258 6.110 305.098.752 762 – – 6.546 79.516.103 8.506 416 6.954.756 22.822.029 1.974 2.000 100.442 3.474.128 1.150.680 – 416 6.67 Statements of Financial Position As at 31 December 2011 Note Non-current assets Plant and equipment 4 Investment properties 5 Intangible asset 6 Interest in jointly controlled entities 7 Investments in subsidiaries 8 Derivatives assets 9 Current assets Derivatives assets 9 Investment property held for sale 5 Inventories Trade and other receivables 10 Cash and cash equivalents 11 Total assets Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 7.585 41.634 2.514 2.520 1.058 265 143.928 2.059 38.756 22.452 2.000 60.957 228.568 – 3.777 43.587 51. .128 1.685 52.063 265 143.807 104.059 38.585 41.909 59.116 – 18.493 59.667.628 5.984.477.604.254.353 2.205.520 1.452.000 100.654 5.110 286.934 404.010 Current liabilities Interest-bearing borrowings 12 Trade and other payables 13 Derivative liabilities 9 Current portion of security deposits Provision for taxation Non-current liabilities Interest-bearing borrowings 12 Non-current portion of security deposits Derivative liabilities 9 Deferred tax liabilities Total liabilities Net assets Represented by: Unitholders’ funds Non-controlling interests Units in issue (’000) Net asset value per Unit (S$) 16 17 199.063 4.546.150.224.633 199.926 3.296.032 478.842 4.954.433.075 3 4.987 3.546.791 535.652.592.597 4.984.039.188.568 4.417 649.967 80.568 2.934 2.663 2.135 762 – – 6.032 478.706.821 112.667.188.984.923 5.999 13.452.967 63.633 2.119.239 216 – 2.974 – 2.442 3.940 6.663 404.311 – – 7.494 11.954.474.296.750 2.899 – 6.535.891.224.205.429 2.296.103 43.700 2.633 – 3.

282 (76.395) 225.415 363.392 530.401 7.152 22.410 30.014 Trust 2010 $’000 260.389) 193.506 (75.431) (63.682 (2.284) (51.595 2010 $’000 249.895) (27.673 – 22.744 (2. .029) 363.029) 385.685 Diluted 26.715 525.715 387.504 20.121 (5.566 248.428 (57.337 23.836 385.642 (5.135) (269) (1.932) (539) (868) (252) (1.479 (56.135) (309) (1.715 2011 $’000 282.033 46.107) 525.778) (39.913) 394.383 47.653 Attributable to: Unitholders of the Trust 631.722 141.522 22.078 The accompanying notes form an integral part of these financial statements.090 22.016) 109.963 (79.431) (66.715 525.285) (35.402 (79.410 – 13.328 (5.078) (2.911 (56.339) (529) (1.320) 250.525) (1.020) 131.715 365.595 385.014 Non-controlling interests 2.653 19.285) (36.653 – 363.029) (20.193 640.014 Earnings per Unit (cents) 25 Basic 28.932) (539) (868) (252) (1.057 (74.895) (27.299) (39.608 (6.915 19.653 23.463 7.389) 204.566 248.013) 634.208) 141.174 18.913) 396.356) (52.759 – – 634.899) 193.68 Suntec REIT Annual Report 2011 Statements of Total Return Year ended 31 December 2011 Note Gross revenue 18 Property expenses 19 Net property income Other income 20 Share of profit of jointly controlled entities 7 Finance income 21 Finance costs 21 Net finance costs Amortisation of intangible asset 6 Asset management fees 22 Professional fees Trustee’s fees Audit fees Other charges 23 Net income Net change in fair value of financial derivatives Net change in fair value of investment properties Total return for the year before tax Income tax expense 24 Total return for the year after tax Group 2011 $’000 270.937 15.468) (20.

728) (45.830) (13.432 (2.69 Distribution Statements Year ended 31 December 2011 Amount available for distribution to Unitholders at the beginning of the year Net income Net tax adjustments (Note A) Taxable income Add: Tax exempt dividend income (Note B) Less: Income tax expense (Note C) Amount available for distribution to Unitholders Distributions to Unitholders: Distribution of 2.102) (52.499 47.366) (34.881) (11.029) 230.063) (46.513 cents per Unit for period from 1/1/2010 to 31/3/2010 Distribution of 1.180 (41.105 232.063) (46.642 84.102) (52.799 141.165 270.763 11.728) (45.799 The accompanying notes form an integral part of these financial statements.611 220.689 131.463 41.867) (56.328 (64.029) 230.367) 44.502 cents per Unit for period from 1/7/2010 to 30/9/2010 Distribution of 1.928 cents per Unit for period from 1/4/2009 to 8/6/2010 Distribution of 0.319) 55.881) (11.091) 231.499 47.867) (56.166 – – – – – – – (31.318 cents per Unit for period from 22/12/2009 to 31/12/2009 Distribution of 2.533 cents per Unit for period from 1/7/2011 to 30/9/2011 Income available for distribution to Unitholders at end of the year Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 44.723 cents per Unit for period from 1/10/2010 to 8/12/2010 Distribution of 0. .319) 55.173) (56.401 75.036 39.570 (5.195 – (2.366) (34.347) (210.107) 265.689 109.180 (41.799 – – – – – – – (31.367) 44.221) − − − − − (185.388 cents per Unit for period from 1/1/2011 to 31/3/2011 Distribution of 2.606 – (5.347) (210.568 cents per Unit for period from 1/10/2009 to 21/12/2009 Distribution of 0.173) (56.532 cents per Unit for period from 1/4/2011 to 30/6/2011 Distribution of 2.403 cents per Unit for period from 9/12/2009 to 21/12/2009 Distribution of 0.166 44.830) (13.969) (139) (5.600 cents per Unit for period from 9/6/2010 to 30/6/2010 Distribution of 2.107) 265.593 cents per Unit for period from 9/12/2010 to 31/12/2010 Distribution of 2.221) − − − − − (185.799 250.969) (139) (5.

Ltd.271 – 489 – 1.285 14.937) 868 1.561) 254 (30.271 (1.580 22.345 (2. and BFC Development Pte.895 29. the vendors of the one-third interest in One Raffles Quay Pte.611 39. . respectively. Ltd.135 961 84.163 75.580 22. and BFC Development Pte.449) 489 (146.345 – 254 – 868 1.105 This relates to the dividend income received from Comina Investment Limited.167 41.70 Suntec REIT Annual Report 2011 Distribution Statements Year ended 31 December 2011 Note A Net tax adjustments comprise: - Amortisation of intangible asset - Amortisation of transaction costs - Asset management fees paid/payable in Units - Interest income - Professional fees - Net profit from subsidiaries and/or jointly-controlled entities - Trustee’s fees - Other items Net tax adjustments Note B Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 39.135 961 (64.091) 20.024 28.895 29. Ltd. Ltd.165 20.. Suntec Harmony Pte.285 14.024 28.807) 1. The accompanying notes form an integral part of these financial statements. Note C This relates to income tax on the income support received by the Group and the Trust under the Deed of Income Support entered with Cavell Limited and Choicewide Group Limited.

328 (9.367) 271.367) 271.319) (182.296.810 6.648) 4.504 (600) (210.71 Statements of Movements in Unitholders’ Funds Year ended 31 December 2011 Balance at the beginning of the year Operations Total return for the year after tax attributable to Unitholders of the Trust Net increase in Unitholders’ funds resulting from operations Unitholders’ transactions Creation of Units: - asset management fees paid in Units - acquisition fee paid in Units - private placement of Units Units to be issued: - asset management fees payable in Units Unit issue expenses Distributions to Unitholders Net (decrease)/increase in Unitholders’ funds resulting from Unitholders’ transactions Unitholders’ funds at end of the year Group 2011 $’000 3.958 428.836 631.648) 4.715 525.836 385.319.958 428.061 3.810 6.934 16.319) (182. .633 20.014 363.568 Trust 2010 $’000 3.328 (9.715 385.984.014 525.685) (185.633 2010 $’000 3.984.653 363.854 631.954.017 14.857 2011 $’000 3.504 (600) (210.017 14.767 – – 7.653 20.568 The accompanying notes form an integral part of these financial statements.685) (185.433.954.061 3.327.821 16.767 – – 7.

700 – Interest in jointly controlled entities (Note 7) 2.9 3.5 –* 134. at valuation 5.7 – 51.000 Boulevard Suntec City Leasehold 99 years 77 years 5 . The accompanying notes form an integral part of these financial statements.680 7.1 2.455.984.000 2.680 Other assets and liabilities (net) (2.842) – Unitholders’ funds 4.000 CHIJMES Leasehold 99 years 79 years 30 Victoria Commercial 100.9) 100.5 (2.087.3 Suntec City Mall Leasehold 99 years 77 years 3 Temasek Commercial 96.72 Group Remaining Description Tenure of Term of Term of Existing Committed Carrying of Property Land Lease Lease Location Use Occupancy Rate Value 2011 2010 2011 2010 % % $’000 $’000 As at 31 December 2011 Percentage of Unitholders’ Funds 2011 2010 % % Investment properties in Singapore 38.5 3.000 Office Towers Boulevard Park Mall Leasehold 99 years 57 years 9 Penang Road Commercial 100.080 4.039.098.7) 102.2 (62.984.525.2 162.9 (62. .2 99.428) (2.663 3.000 338.0 ^ denotes Suntec Singapore International Convention and Exhibition Centre.725.9 38.1 165.9 Temasek Commercial 99.491.433.3 Suntec REIT Annual Report 2011 Portfolio Statements 58.311 2.611.821 3.091 6.633 8.452.000 Street Suntec Singapore^ Leasehold 99 years 77 years 1 Raffles Commercial n/m – 392.3 – 8.000 Investment property held for sale* 143.6 8.5) 100.0 – 100.0 99.2 47.507.329.546.0 – 111.9 61. n/m denotes not meaningful.782.0 370.080 – Boulevard Investment properties.7 97.8 114.000 1.9 1.633 Non-controlling interests (112.0 100.047) Net assets 4.

677.725.1 8.000 1.934 3.000 2. 73 .2 99.6 37.700 − 6.417 1.0 99.2) 100.525.568 The accompanying notes form an integral part of these financial statements.000 CHIJMES Leasehold 99 years 79 years 30 Victoria Commercial 100.016 6.000 Boulevard Suntec City Leasehold 99 years 77 years 5 .296. at valuation 4.506 Investment property held for sale* 143.4 (63.706.791 Investments in subsidiaries (Note 8) 649.954.507.0 100.5 − 163.5 –* 134.729) Unitholders’ funds 4.611.000 4.6 Portfolio Statements 60.0 Suntec City Mall Leasehold 99 years 77 years 3 Temasek Commercial 96.1 38.000 Interest in jointly controlled entities (Note 7) 1.474.5 34.3 13.7 97.9 1.9 Temasek Commercial 99.6 – 109.2 (62.8 62.297 Other assets and liabilities (net) (2.474.1 3.4) 100.082) (2.455.899 535.0 8.3 112.000 Street Investment properties.452.3 162.1 2.462.000 Office Towers Boulevard Park Mall Leasehold 99 years 57 years 9 Penang Road Commercial 100.000 338.6 3.0 370.Trust Remaining Description Tenure of Term of Term of Existing Committed Carrying of Property Land Lease Lease Location Use Occupancy Rate Value 2011 2010 2011 2010 % % $’000 $’000 As at 31 December 2011 Percentage of Unitholders’ Funds 2011 2010 % % Investment properties in Singapore 40.3 15.974.

The independent valuers have appropriate professional qualifications and recent experience in the location and category of the properties being valued. . Park Mall comprises a 15-storey with basement shopping cum office building.000 (2010: CBRE) cash flow analysis (2010: Capitalisation of income approach and discounted cash flow analysis) CHIJMES DTZ Capitalisation of income approach 143.000 1.000 (2010: Knight Frank) cash flow analysis Suntec City Office Towers Colliers Investment method and discounted 2.000).000 square feet of retail space. CB Richard Ellis (Pte) Ltd (“CBRE”). The accompanying notes form an integral part of these financial statements. Contingent rents recognised upon receipt in the Statement of Total Return of both the Group and the Trust amounted to $1. 7 strata lots in Suntec City Office Tower Two.000 2.000 (2010: Knight Frank) cash flow analysis Suntec Singapore Colliers Investment method and discounted 392. Subsequent renewals are negotiated with the lessee. Investment properties comprise commercial properties that are leased to external customers.455.000.525.700 134.000. Colliers International Consultancy & Valuation (Singapore) Pte Ltd (“Colliers”) and DTZ Debenham Tie Leung (SEA) Pte Ltd (“DTZ”). the leases contain an initial noncancellable period of three years.725. Generally.000 338.000 (2010: $1.080 – (2010: N/A) cash flow analysis Park Mall Knight Frank Investment method and discounted 370.309. two basement levels and a chapel. The carrying amounts of the investment properties as at 31 December 2011 and 31 December 2010 were based on independent valuations undertaken by Knight Frank Pte Ltd (“Knight Frank”).611.000 (2010: Knight Frank) and discounted cash flow analysis (2010: Investment method and discounted cash flow analysis) The Group and the Trust entered into a property sale agreement with PRE 8 Investments Pte Ltd on 27 October 2011 for the sale of CHIJMES at a price of $177. CHIJMES comprises four retail blocks. Valuation Description Valuer Valuation method 2011 2010 of Property $’000 $’000 Suntec City Mall Colliers Investment method and discounted 1. The property has been reclassified as investment property held for sale accordingly. Suntec Singapore comprises more than one million square feet of versatile floor space over six levels as well as approximately 32. The property sale is scheduled to be completed in January 2012. 76 strata lots in Suntec City Office Tower Three and all the strata lots in Suntec City Office Towers Four and Five.74 Suntec REIT Annual Report 2011 Portfolio Statements As at 31 December 2011 Note: Suntec City Office Towers comprise 15 strata lots in Suntec City Office Tower One.033.

75

Consolidated Statement of Cash Flows
Year ended 31 December 2011

Note Cash flows from operating activities Net income Adjustments for: Allowance for doubtful receivables Amortisation of intangible asset Asset management fees paid/payable in Units Depreciation of plant and equipment Loss on disposal of plant and equipment Negative goodwill on acquisition Net finance costs Share of profit of jointly controlled entities Operating income before working capital changes Changes in working capital: Trade and other receivables Trade and other payables Cash generated from operating activities Income tax paid Net cash from operating activities Cash flows from investing activities Acquisition of interest in a jointly controlled entity Acquisition of subsidiary, net of cash acquired 26 Adjustment to investment in jointly controlled entities Capital expenditure on investment properties Deposit received on investment property held for sale Dividend income received Interest received Loan (to)/repaid by jointly controlled entities Purchase of intangible asset Purchase of plant and equipment Net cash used in investing activities Cash flows from financing activities Distributions to Unitholders Dividends paid to non-controlling interests Interest paid Proceeds from interest-bearing loans Proceeds from issue of units, net of expenses Proceeds from medium term notes Redemptions of convertible bonds Repayment of interest-bearing loans Unit issue costs paid Net cash (used in)/from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 11 Significant Non-Cash Transactions

2011 $’000 250,328 384 39,285 28,271 1,118 80 (1,049) 51,778 (141,653) 228,542 412 (10,319) 218,635 (2,029) 216,606 – (92,562) 3,198 (3,275) 26,550 40,090 22,462 (1,874) – (167) (5,578) (210,319) (1,176) (58,750) 235,000 – 150,000 (774) (272,500) (600) (159,119) 51,909 52,493 104,402

Group

2010 $’000

131,463 430 20,895 22,345 38 4 – 63,468 (30,937) 207,706 466 4,401 212,573 (6,207) 206,366 (1,414,713) – 790 (1,285) – 11,610 15,656 300,000 (84,800) (7) (1,172,749) (185,367) – (76,110) 1,805,000 419,125 – – (975,000) – 987,648 21,265 31,228 52,493

The Group and the Trust had issued or will be issuing a total of 22,076,035 (2010: 15,725,881) Units to the Manager, amounting to approximately $28,271,000 (2010: $22,345,000) at unit prices ranging from $1.0834 to $1.4965 (2010: $1.3295 to $1.5039) as satisfaction of asset management fees payable in Units in respect of the year ended 31 December 2011. In the previous year, 10,266,300 Units were issued to the Manager, amounting to approximately $14,958,000 at $1.457 per unit as satisfaction of the acquisition fee paid on the acquisition of the one-third interest in BFC Development Pte. Ltd..
The accompanying notes form an integral part of these financial statements.

76

Suntec REIT Annual Report 2011

Notes to the Financial Statements

These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Manager and the Trustee on 7 March 2012.

1

General
Suntec Real Estate Investment Trust (the “Trust”) is a Singapore-domiciled unit trust constituted pursuant to the trust deed dated 1 November 2004 (as amended) (the “Trust Deed”) between ARA Trust Management (Suntec) Limited (the “Manager”) and HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore. The Trustee is under a duty to take into custody and hold the assets of the Trust in trust for the holders (“Unitholders”) of Units in the Trust (the “Units”). The Trust was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 9 December 2004 and was included in the Central Provident Fund (“CPF”) Investment Scheme on 9 December 2004. The principal activity of the Trust and its subsidiaries is to invest in income producing real estate and real estate related assets, which are used or substantially used for commercial purposes, with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth. The financial statements of the Trust as at and for the year ended 31 December 2011 comprise the Trust and its subsidiaries (together referred to as the “Group” and individually as “Group entities”) and the Group’s interest in jointly controlled entities. The Trust has entered into several service agreements in relation to management of the Trust and its property operations. The fee structures of these services are as follows:

(i)

Property management fees APM Property Management Pte Ltd (“APM”), the property manager of Suntec City Mall and Suntec City Office Towers, is entitled to receive 3.0% per annum of gross revenue for provision of lease management services, marketing and marketing co-ordination services and property management services. In addition, where the aggregate of all (1) licence fees; (2) media sales; and (3) other advertising and promotion income derived from the property for each financial year exceeds $5,520,000, APM is entitled to receive a commission of 10.0% of the said licence fees, media sales and other advertising and promotion income which exceeds $5,520,000 for each financial year. APAC Investment Management Pte Ltd, the property manager of Park Mall and CHIJMES, is entitled to receive 3.0% per annum of gross revenue for provision of lease management, property management, marketing and marketing co-ordination services. Suntec Singapore International Convention and Exhibition Services Pte Ltd, the property manager of Suntec Singapore, is entitled to received 3.0% per annum of gross revenue for provision of convention and exhibition management, lease management, property management, marketing and marketing co-ordination services. The property management fees are payable monthly in arrears.

(ii)

Asset management fees Pursuant to the Trust Deed, asset management fees comprise the following: (a) a base fee not exceeding 0.3% per annum of the value of the Deposited Property (being all the assets of the Trust (including all its Authorised Investments) as defined in the Trust Deed) of the Trust or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders; and an annual performance fee equal to a rate of 4.5% per annum of the Net Property Income (as defined in the Trust Deed) of the Trust and any Special Purpose Vehicles (as defined in the Trust Deed) for each financial year, or such lower percentage as may be determined by the Manager in its absolute discretion or such higher percentage as may be approved by an Extraordinary Resolution at a meeting of Unitholders.

(b)

77

Notes to the Financial Statements

1

General (continued)
(ii) Asset management fees (continued) Based on the current agreement between the Manager and the Trustee, the base fee is agreed to be 0.3% per annum of the value of the Deposited Property. For a period of seven years commencing from the listing of the Units on the SGX-ST, 80.0% of the asset management fees payable to the Manager will be paid in the form of Units issued at the volume weighted average traded price for a unit for all trades on the SGX-ST on the ordinary course of trading on the SGX-ST for the last ten Business Days (as defined in the Trust Deed) of the relevant period in which the management fees accrue, and 20.0% of the management fees will be paid in the form of cash. Thereafter, the asset management fees shall be in the form of Units and/or cash as the Manager may elect. The portion of the asset management fees payable in the form of Units will be made on a quarterly basis, in arrears. The portion of the asset management fees payable in cash will be made on a monthly basis, in arrears. The Manager is also entitled to receive an acquisition fee at the rate of 1.0% of the acquisition price and a divestment fee of 0.5% of the sale price on all future acquisition or disposal of properties.

(iii) Trustee’s fee Pursuant to the Trust Deed, the Trustee’s fee shall not exceed 0.25% per annum of the value of the Deposited Property (subject to a minimum sum of $9,000 per month) or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders. The Trustee’s fee is payable out of the Deposited Property of the Trust on a monthly basis, in arrears. The Trustee is also entitled to reimbursement of all reasonable out-of-pocket expenses incurred in the performance of its duties under the Trust Deed.

2

Basis of preparation
2.1 Statement of compliance The financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice (“RAP”) 7 Reporting Framework for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore, and the applicable requirements of the Code on Collective Investment Schemes (the “CIS Code”) issued by the Monetary Authority of Singapore (“MAS”) and the provisions of the Trust Deed. RAP 7 requires the accounting policies to generally comply with the recognition and measurement principles of Singapore Financial Reporting Standards (“FRS”).

2.2 Basis of measurement These financial statements are prepared on the historical cost basis except for certain financial assets and liabilities which are measured at fair value.

2.3 Functional and presentation currency The financial statements are presented in Singapore dollars which is the Trust’s functional currency. All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated.

2.4 Use of estimates and judgements The preparation of financial statements in conformity with RAP 7 requires the Manager to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

FRS 24 (2010) improved the definition of a related party in order to eliminate inconsistencies and ensure symmetrical identification of relationships between two parties. There is no financial effect on the results and financial position of the Group for the current and previous financial years. Costs related to the acquisition. between the Group and its related parties. the Group takes into consideration potential voting rights that are currently exercisable.78 Suntec REIT Annual Report 2011 Notes to the Financial Statements 2 Basis of preparation (continued) Estimates and underlying assumptions are reviewed on an ongoing basis. . The consideration transferred does not include amounts related to the settlement of pre-existing relationships. 3.5 Changes in accounting policies Identification of related party relationships and related party disclosures From 1 January 2011. In assessing control. other than those associated with the issue of debt or equity securities. 3 Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements and have been applied consistently by Group entities. The adoption of FRS 24 (2010) does not result in additional parties being identified as related to the Group. which is the date on which control is transferred to the Group. The adoption of FRS 24 (2010) affects only the disclosures made in the financial statements. If the contingent consideration is classified as equity. including commitments. subsequent changes to the fair value of the contingent consideration are recognised in Statement of Total Return. Otherwise. including commitments. Accordingly. the adoption of FRS 24 (2010) has no impact on earnings per share. with these related parties for the current and comparative years have been disclosed accordingly in note 31 to the financial statements. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements and information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: • • Note 5 Note 15 – – Valuation of investment properties Valuation of financial instruments 2. that the Group incurs in connection with a business combination are expensed as incurred. Such amounts are generally recognised in Statement of Total Return. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Transactions and outstanding balances.1 Basis of consolidation Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date. Any contingent consideration payable is recognised at fair value at the acquisition date. it is not remeasured and settlement is accounted for within equity. the Group has applied the revised FRS 24 Related Party Disclosures (2010) to identify parties that are related to the Group and to determine the disclosures to be made on transactions and outstanding balances. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance. The cost of the investments includes transaction costs. at the acquisition date. All other non-controlling interests are measured at acquisition-date fair value or. from the date that joint control commences until the date that joint control ceases. Any difference between the adjustment to non-controlling interests and the fair value of consideration paid is recognised directly in equity and presented as part of equity attributable to Unitholders of the Trust. If the Group retains any interest in the previous subsidiary. then such interest is measured at fair value at the date that control is lost. when applicable. Subsequently. Subsidiaries Subsidiaries are entities controlled by the Group. on the basis specified in another standard. Loss of control Upon the loss of control. or at the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. Investments in jointly controlled entities are accounted for using the equity method and are recognised initially at cost. The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the jointly controlled entities after adjustments to align the accounting policies with those of the Group. When the Group’s share of losses exceeds its interest in the jointly controlled entities. it is accounted for as an equity-accounted investee or as an available-for-sale financial asset depending on the level of influence retained. Any surplus or deficit arising on the loss of control is recognised in Statement of Total Return.79 Notes to the Financial Statements 3 Significant accounting policies (continued) 3. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group. . established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. the Group elects on a transaction-by-transaction basis whether to measure them at fair value. Acquisition of non-controlling interests Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore the carrying amounts of assets and liabilities are not changed and goodwill is not recognised as a result of such transactions.1 Basis of consolidation (continued) Business combinations (continued) For non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the acquiree’s net assets in the event of liquidation. is reduced to zero and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the jointly controlled entities. including any long-term investments. The adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. any non-controlling interests and the other components of equity related to the subsidiary. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. the Group derecognises the assets and liabilities of the subsidiary. the carrying amount of that interest. Jointly controlled entities Jointly controlled entities are entities whose activities the Group has joint control.

and are recognised in the Statement of Total Return.3 Investment properties Investment properties are properties held either to earn rental income or capital appreciation or for both. When an investment property is disposed of. Fair value changes are recognised in the Statement of Total Return.2 Plant and equipment Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. 3. For taxation purposes.1 Basis of consolidation (continued) Transactions eliminated on consolidation Intra-group balances and transactions and any unrealised income or expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. and where the Manager proposes to issue new Units for subscription or to redeem existing Units unless the investment properties have been valued not more than 6 months ago. which requires the investment properties to be valued by independent registered valuers in the following events: • • in such manner and frequency required under the Property Funds Appendix of the CIS Code issued by the MAS. Unrealised losses are eliminated in the same way as unrealised gains. Depreciation is recognised in Statement of Total Return on a straight-line basis so as to write off items of plant and equipment over their estimated useful lives as follows: Equipment Furniture and fittings Motor vehicles - - - 3 .80 Suntec REIT Annual Report 2011 Notes to the Financial Statements 3 Significant accounting policies (continued) 3. the resulting gain or loss is recognised in the Statement of Total Return as the difference between net disposal proceeds and the carrying amount of the property. Accounting for subsidiaries and jointly controlled entities Investments in subsidiaries and jointly controlled entities are stated in the Trust’s Statement of Financial Position at cost less accumulated impairment losses. Investment properties are measured at cost on initial recognition and subsequently at fair value. 3. Fair value is determined in accordance with the Trust Deed. Gains or losses arising from the retirement or disposal of plant and equipment are determined as the difference between the estimated net disposal proceeds and the carrying amount of the asset. Unrealised gains arising from transactions with the jointly controlled entities are eliminated against the investment to the extent of the Group’s interest in the jointly controlled entities. but only to the extent that there is no evidence of impairment. . the Group and the Trust may claim capital allowances on assets that qualify as plant and machinery under the Income Tax Act.5 years 5 years 10 years Depreciation methods. useful lives and residual values are reviewed at each reporting period and adjusted if appropriate.

Such assets are recognised initially at fair value plus any directly attributable transaction costs. Intangible asset is tested for impairment as described in Note 3. Net realisable value is the estimated selling price in the ordinary course of business. Cost of operating supplies is determined on a first-in.5 Inventories Inventories are measured at the lower of cost and net realisable value.7. All other financial assets (including assets designated at fair value through the Statement of Total Return) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. the intangible asset is measured at cost less any accumulated amortisation and accumulated impairment losses. Following initial recognition. general stocks and operating supplies. first-out basis and comprises all costs of purchase and other costs incurred in bringing the supplies to their present location and condition. less the estimated costs of completion and selling expenses. 3.6 Financial instruments Non-derivative financial assets The Group initially recognises loans and receivables and deposits on the date that they are originated. less any impairment losses. and only when. costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.4 Intangible asset Intangible asset acquired by the Group and the Trust is measured initially at cost. Cost of food and beverages and general stocks is calculated using the weighted average cost formula and comprises all costs of purchase. Operating supplies is the amount of stocks held above the minimum level required to be maintained for the operations. loans and receivables are measured at amortised cost using the effective interest method. . Inventories consist of food and beverages. the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 3.81 Notes to the Financial Statements 3 Significant accounting policies (continued) 3. Financial assets and liabilities are offset and the net amount presented in the Statement of Financial Position when. The intangible asset is amortised in the Statement of Total Return on a systematic basis over its estimated useful life. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. The Group has the following non-derivative financial assets: loans and receivables. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire. or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Subsequent to initial recognition. Cash and cash equivalents comprise cash balances and bank deposits. Loans and receivables comprise trade and other receivables and cash and cash equivalents.

security deposits and trade and other payables. derivatives are measured at fair value. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset. . Objective evidence that financial assets are impaired can include default or delinquency by a debtor. Other financial liabilities comprise interest bearing borrowings. Convertible bonds The convertible bonds comprise a liability for the interest and principal amount and a derivative liability. the convertible bonds are measured at amortised cost using the effective interest method. The carrying amount of the convertible bonds at initial recognition is the difference between the gross proceeds from the convertible bonds issue and the fair value of the derivative liability. Subsequent to initial recognition.82 Suntec REIT Annual Report 2011 Notes to the Financial Statements 3 Significant accounting policies (continued) 3. The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. The derivative liability is recognised at fair value at inception. Other non-trading derivatives When a derivative financial instrument is not designated in a hedge relationship that qualifies for hedge accounting. Separable embedded derivatives Changes in the fair value of separated embedded derivatives are recognised immediately in Statement of Total Return. restructuring of an amount due to the Group on terms that the Group would not consider otherwise. Subsequent to initial recognition. indications that a debtor or issuer will enter bankruptcy or economic conditions that correlate with defaults. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. attributable transaction costs are recognised in the Statement of Total Return when incurred. changes therein are accounted for as described below. Derivative financial instruments are recognised initially at fair value.7 Impairment Non-derivative financial assets A financial asset not carried at fair value through total return is assessed at the end of each reporting period to determine whether there is objective evidence that it is impaired. Subsequent to initial recognition.6 Financial instruments (continued) Non-derivative financial liabilities The Group initially recognises all other financial liabilities (including liabilities designated at fair value through the Statement of Total Return) on the trade date at which the Group becomes a party to the contractual provisions of the instrument. all changes in its fair value are recognised immediately in Statement of Total Return. these financial liabilities are measured at amortised cost using the effective interest method. and that the loss event has a negative effect on the estimated future cash flows of that asset that can be estimated reliably. The derivative liability is measured at fair value through the Statement of Total Return. The Group classifies non-derivative financial liabilities into other financial liabilities category. 3. Derivative financial instruments The Group holds derivative financial instruments to hedge its interest rate risk exposure. Any directly attributable transaction costs are allocated to the convertible bonds and derivative liability in proportion to their initial carrying amounts.

and then to remaining assets and liabilities on pro rata basis. In assessing value in use. When a subsequent event causes the amount of impairment loss to decrease. which continue to be measured in accordance with the Group’s accounting policies. Thereafter. financial assets and investment property. are generally measured at the lower of their carrying amount and fair value less costs to sell. are remeasured in accordance with the Group’s accounting policies. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified.83 Notes to the Financial Statements 3 Significant accounting policies (continued) 3. and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. or disposal groups comprising assets and liabilities. Any impairment loss on a disposal group is first allocated to goodwill. All individually significant loans and receivables are assessed for specific impairment. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in Statement of Total Return. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. or disposal group. that are expected to be recovered primarily through sale rather than through continuing use. or components of a disposal group.8 Non-current assets held for sale Non-current assets. net of depreciation or amortisation. are reviewed at each reporting date to determine whether there is any indication of impairment. Impairment losses are recognised in profit or loss. Immediately before classification as held for sale. the timing of recoveries and the amount of loss incurred. Gains are not recognised in excess of any cumulative impairment loss. the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Losses are recognised in Statement of Total Return and reflected in an allowance account against loans and receivables. If any such indication exists. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit (CGU) exceeds its estimated recoverable amount. Non-financial assets The carrying amounts of the Group’s non-financial assets.7 Impairment (continued) Loans and receivables The Group considers evidence of impairment for loans and receivables at both a specific asset and collective level. other than investment properties. . except that no loss is allocated to inventories. the Group uses historical trends of the probability of default. the decrease in impairment loss is reversed through the Statement of Total Return. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs).9 Issue expenses Issue expenses relate to expenses incurred in connection with the issue of Units. if no impairment loss had been recognised. the assets. then the asset’s recoverable amount is estimated. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. In assessing collective impairment. are classified as held for sale. 3. discounted at the asset’s original effective interest rate. adjusted for Manager’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. Loans and receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics. Interest on the impaired asset continues to be recognised. Impairment losses recognised in prior periods in respect of other assets are assessed at each reporting date for any indications that the loss has decreased or no longer exists. 3. the assets. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined. Such expenses are deducted directly against Unitholders’ funds.

84 Suntec REIT Annual Report 2011 Notes to the Financial Statements 3 Significant accounting policies (continued) 3. Lease incentives granted are recognised as an integral part of the total rental to be received. using the effective interest method. Current tax is the expected tax payable on the taxable income for the year. property tax. property management fees (using the applicable formula stipulated in Note 1(i)).10 Revenue recognition Rental income from operating leases Rental income receivable under operating leases is recognised in the Statement of Total Return on a straight-line basis over the term of the lease. Current tax and deferred tax is recognised in the Statement of Total Return except to the extent that it relates to items directly related to Unitholders’ funds. 3. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit.11 Expenses Property expenses Property expenses consist of advertising and promotion expenses. are recognised as income in the accounting period on a receipt basis. that are recognised in the Statement of Total Return. Dividend income Dividend income is recognised on the date that the right to receive payment is established. Contingent rentals. using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. in which case it is recognised in Unitholders’ funds. except where an alternative basis is more representative of the pattern of benefits to be derived from the leased assets. All borrowing costs are recognised in the Statement of Total Return using the effective interest method. 3. No contingent rentals are recognised if there are uncertainties due to the possible return of amounts received. Finance costs comprise interest expense on borrowings and amortisation of transaction costs incurred on borrowings that are recognised in the Statement of Total Return. Interest income is recognised as it accrues. Asset management fees Asset management fees are recognised on an accrual basis using the applicable formula stipulated in Note 1(ii). which include gross turnover rental. maintenance charges and other property outgoings in relation to investment properties where such expenses are the responsibility of the Group.12 Finance income and finance costs Finance income comprises interest income on funds invested. providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Property expenses are recognised on an accrual basis. . Trustee’s fee Trustee’s fee is recognised on an accrual basis using the applicable formula stipulated in Note 1(iii). 3.13 Tax Tax expense comprises current and deferred tax. and for differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. Deferred tax is recognised using the balance sheet method.

e. such adjustments are taken up as an adjustment to the taxable income for the next distribution following the agreement with the IRAS. for the effects of all dilutive potential units. a registered trade union. Where the gains are trading gains. A deferred tax asset is recognised to the extent that it is probable that future taxable profits. The Inland Revenue Authority of Singapore (“IRAS”) has issued a tax ruling on the taxation of the Trust for income earned and expenditure incurred after its listing on the SGX-ST. the Trustee will not be taxed on the portion of taxable income of the Trust that is distributed to Unitholders. a statutory board. or (ii) on different tax entities.85 Notes to the Financial Statements 3 Significant accounting policies (continued) 3. which comprise convertible bonds. the Trustee will be assessed for tax. A Singapore branch of a foreign company which has been presented a letter of approval from the Comptroller of Income Tax granting waiver from tax deducted at source in respect of distributions from the Trust. Where the gains are capital gains. the Trustee and the Manager will not deduct tax from distributions made out of the Trust’s taxable income to the extent that the beneficial Unitholder is: • • • • • An individual (excluding a partnership in Singapore). .g.13 Tax (continued) Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse. a club or a trade and industry association). will be available. a registered cooperative society. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. The above tax transparency ruling does not apply to gains from sale of properties. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets. Although the Trust is not taxed on its taxable income distributed. Subject to meeting the terms and conditions of the tax ruling which includes a distribution of at least 90% of the taxable income of the Trust. In the event that there are subsequent adjustments to the taxable income when the actual taxable income of the Trust is finally agreed with the IRAS. Diluted earnings per share is determined by adjusting the total return for the year after tax attributable to Unitholders of the Trust and the weighted average number of units outstanding. which has not been taxed in the hands of the Trustee) to certain Unitholders. Any portion of the taxable income that is not distributed to Unitholders will be taxed on the Trustee. and they relate to income taxes levied by the same tax authority (i) on the same taxable entity.14 Earnings per share The Group presents basic and diluted earnings per share data for its ordinary shares. A body of persons registered or constituted in Singapore (e. the Trustee will not be assessed for tax and may distribute the capital gains without tax being deducted at source. a registered charity. based on the laws that have been enacted or substantively enacted by the reporting date. or An agent bank acting as a nominee for individuals who have purchased Units within the Central Provident Fund Investment Scheme (“CPFIS”) and the distributions received from the Trust are returned to CPFIS. 3. A tax resident Singapore-incorporated company. Basic earnings per share is calculated by dividing the total return for the year after tax attributable to Unitholders of the Trust by the weighted average number of units outstanding during the year. but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. against which the temporary differences can be utilised. a town council. However. a management corporation. the Trustee and the Manager are required to deduct income tax from distributions of such taxable income of the Trust (i.

556 45 10 7.86 Suntec REIT Annual Report 2011 Notes to the Financial Statements 3 Significant accounting policies (continued) 3. amendments to standards and interpretations are effective for annual periods beginning after 1 January 2011.680 229 14 Total $’000 489 7 (7) 489 8. including revenues and expenses that relate to transactions with any of the Group’s other components. 4 Plant and equipment Furniture Motor Note and fittings Equipment vehicles $’000 $’000 $’000 Group Cost At 1 January 2010 – 489 – Additions – 7 – Disposal – (7) – At 31 December 2010 – 489 – Acquisition through business combinations 26 8.joint operations and joint ventures. revenues and expenses and (2) a joint venturer to recognise an investment and to account for that investment using the equity method in accordance with FRS 28 Investments in Associates and Joint Ventures. None of these are expected to have a significant effect on the financial statements of the Group and the Trust.923 . and have not been applied in preparing these financial statements. The new standard classifies joint arrangements into two types . except for FRS 111 Joint Arrangements and the amendments to FRS 28 Investments in Associates and Joint Ventures which will become mandatory for the Group and the Trust’s financial statements for 2013.16 New standards and interpretations not yet adopted A number of new standards. who is the Group’s chief operating decision maker. to make decisions about resources to be allocated to the segment and assess the segment’s performance. Since the change in accounting policy only impacts presentation aspects.479 444 38 (3) 479 1. there is no impact on earnings per unit.015 98 5 Disposal (39) (2) – At 31 December 2011 976 575 5 Carrying amount At 1 January 2010 – 45 – At 31 December 2010 – 10 – At 31 December 2011 7. The Group does not plan to adopt these amendments early.702 223 19 Additions 73 94 – Disposal (119) (2) – At 31 December 2011 8. and requires (1) a joint operator to recognise and measure the assets and liabilities (and recognise the related revenues and expenses) in relation to its interest in the arrangement in accordance with relevant FRSs applicable to the particular assets.656 804 19 Accumulated depreciation At 1 January 2010 – 444 – Charge for the year – 38 – Disposal – (3) – At 31 December 2010 – 479 – Charge for the year 1. and for which discrete financial information is available. The adoption of the new standard and amendments would require the Group to assess its rights and obligations arising from its joint venture arrangements so as to determine the type of joint arrangement in which it is involved. liabilities.118 (41) 1. using the equity method. All operating segments’ operating results are reviewed regularly by the Group’s CEO.15 Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses. 3.944 167 (121) 9. The adoption of the new standard and amendments would only affect the presentation of the joint ventures in the financial statements.

000 Acquisition through business combinations 26 390.285 4.880.193 248. Suntec City Mall.000 The investment properties.000 4.706.202.200.000 4.000).715 394.308 1.285 3. being the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after property marketing wherein the parties had acted knowledgeably.308 4.080 4.455.452.452.000 4.392 248.587 4.202. with a total carrying value of $1.285 Changes in fair value of investment properties 396.000 4.203.845.203. Following the approval of the Board and Trustee on 27 October 2011 for the sale of CHIJMES.275 1.383. have been mortgaged as security for credit facilities granted to the Group (Note 12). The fair value is based on market value.773.452. prudently and without compulsion. with a total carrying value of $2.312 – – – Capital expenditure capitalised 3.700) – At 31 December 5.87 Notes to the Financial Statements 4 Plant and equipment (continued) Trust Cost At 1 January 2010 Additions Disposal At 31 December 2010 Additions Disposal At 31 December 2011 Accumulated depreciation At 1 January 2010 Charge for the year Disposal At 31 December 2010 Charge for the year Disposal At 31 December 2011 Carrying amount At 1 January 2010 At 31 December 2010 At 31 December 2011 Equipment $’000 489 7 (7) 489 – (2) 487 444 38 (3) 479 7 (2) 484 45 10 3 5 Investment properties Group Trust Note 2011 2010 2011 2010 $’000 $’000 $’000 $’000 At 1 January 4. the carrying value has been reclassified as investment property held for sale in the Statement of Financial Position.715 Investment property reclassified to held for sale (143.285 4. part of Suntec City Office Tower 3 and Suntec Singapore.000 (2010: Suntec City Mall and part of Suntec City Office Tower 3.452.000 4. .700) – (143.098. Investment properties are stated at fair value based on valuations performed by independent professional valuers.

285 20.298 Amortisation Balance at 1 January 76.0% to 3. The Manager is of the view that the valuation methods and estimates are reflective of the market condition at the date of the valuation.374 Amortisation for the year 39. this amount has been reclassified to investment in subsidiaries after the Trust acquired a 51. market-corroborated capitalisation yield.791 The loans to jointly controlled entities are unsecured.443 Loans to jointly controlled entities 606.348.3%) per annum above the three-month Singapore Dollar Swap Offer Rate and settlement is neither planned nor likely to occur in the foreseeable future. and BFC Development Pte.089 1.88 Suntec REIT Annual Report 2011 Notes to the Financial Statements 5 Investment properties (continued) In determining the fair value.412.000).0% interest in Harmony Partners Investment Limited on 18 August 2011 (Note 26).087.000 (2010: $677. Ltd.000.195 870.0% per annum and is repayable on 30 September 2014.800 Balance at 31 December 176. respectively. the vendors of the one-third interest in One Raffles Quay Pte.311 2.680 1.348 606. Included in the loans is an amount of $606. At Group level.3% (2010: 3.0% to 3.000 (2010: $604.895 Balance at 31 December 115. the remaining amount of $23. the valuers have used valuation methods which involve certain estimates.298 176. The key assumptions used to determine the fair value of the investment properties include estimated net cash flows expected to be received on renting out the properties. terminal yield and discount rate.332 868. The valuation methods used are in the Portfolio Statements.039. Included in investment in jointly controlled entities of the Group are non-audit fees paid to auditors of the Trust capitalised of $677.474. Ltd.474. . During the year.000) which bears interest between 3.481.000 as at 31 December 2010. a part of the Group’s and the Trust’s net investment in the entities it is stated at cost less accumulated impairment loss.417 1. 6 Intangible asset Group and Trust 2011 2010 $’000 $’000 Cost Balance at 1 January 176. in substance.298 91. bears interest at 10.744 Intangible asset represents the unamortised income support receivable by the Group and the Trust under the Deeds of Income Support entered into with Cavell Limited and Choicewide Group Limited.554 76.269 Carrying amounts At 1 January 2010 36.222 627.222 604.348 2.222.029 At 31 December 2011 60.124 At 31 December 2010 100.269 55. 7 Interest in jointly controlled entities Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 Investment in jointly controlled entities 1.498 Addition during the year – 84. As the amount is.

(2) Acquisition of one-third interest in BFC Development Pte. BFC Development Pte. owns Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall. (1) Singapore BFC Development Pte. The following table summarises the proportion of the amounts of net assets recognised as of the acquisition date and the fair value of the total consideration transferred: Identifiable assets acquired and liabilities assumed Investment property Loans Total identifiable net assets One-third interest Fair value of total consideration transferred at acquisition date Purchase consideration for share of net assets acquired Shareholders’ loan assumed Acquisition fee and other related expenses Total consideration transferred Represented by: Share of identifiable net assets acquired Intangible asset 2010 $’000 4. Ltd. the Group completed the acquisition of a one-third interest in BFC Development Pte. On 9 December 2010.704 955. Ltd.800 955.33 33. Not required to be audited under the laws of the country in which it is incorporated.. Ltd.33 20. (1) Effective equity held by the Group 2011 2010 % % 33.329 870.111 (1. The Manager’s Board of Directors and Audit Committee are satisfied that the appointment will not compromise the standard and effectiveness of the audit. (1) Singapore Harmony Investors Group Limited (2) British Virgin Islands One Raffles Quay Pte.289.00 Audited by Ernst & Young LLP.677.243 870.243 . Ltd.261) 18. Ltd.33 – 33.33 33.782) 2.443 84.495.800 (559. Ltd.443 2010 $’000 1.89 Notes to the Financial Statements 7 Interest in jointly controlled entities (continued) Details of the jointly controlled entities are as follows: Name of jointly Country of controlled entities incorporation One Raffles Quay Pte.611. owns the property One Raffles Quay.

770 22.0 Held by Harmony Partners Investment Ltd.90 Suntec REIT Annual Report 2011 Notes to the Financial Statements 7 Interest in jointly controlled entities (continued) The summarised financial information of the Group’s interest in the jointly controlled entities.895 518.0 Held through subsidiaries Held by Suntec Harmony Pte.506 Effective equity held by the Group 2011 2010 % % Held by the Trust Comina Investment Limited British Virgin Islands 100. Harmony Investors Group Limited (1) (3) British Virgin Islands 60.213) 107.478 956.8 Held by Harmony Investors Group Limited Harmony Investors Holding Limited (1) (3) British Virgin Islands 60.722 141.062 928.562 14. Harmony Partners Investments Limited (1) (3) British Virgin Islands 51.144 (73.0 Suntec Harmony Pte.864.924 30. adjusted for the percentage of ownership held by the Group.964 2.899 Trust 2010 $’000 Equity investment at cost Details of the subsidiaries are as follows: Country of Name of subsidiaries incorporation 535. (2) Singapore 100.383.0 100.0 – – – . Ltd. Ltd. is as follows: 2011 $’000 Group 2010 $’000 Assets and liabilities Non-current assets Current assets Total assets Current liabilities Non-current liabilities Total liabilities Results Revenue Expenses Net change in fair value of investment properties Net profit for the year 1.653 39.8 100.752 971.681 1.619 906.409.230 107.937 8 Investments in subsidiaries 2011 $’000 649.195) 23.890.208 (32.875 2.598 518.

.178 Derivative liabilities - Interest rate swaps at fair value through Statement of Total Return 12.0% share capital of Harmony Partners Investments Limited (Note 26).000 (2010: $675.8 – Harmony Convention Holding Pte Ltd owns the property Suntec Singapore. Harmony Investors Holding Limited and Harmony Convention Holding Pte Ltd.725%) per annum. which holds 80.974 216 13. Audited by KPMG LLP Singapore.275. (2) (3) 9 Financial derivatives Group and Trust 2011 2010 $’000 $’000 Derivative assets - Interest rate swaps at fair value through Statement of Total Return 265 1.000.000.0% interest in Harmony Investors Group Limited. Not required to be audited under the laws of the country in which it is incorporated.972 The Group uses interest rate swaps to manage its exposure to interest rate movements on its floating rate interest-bearing term loans and short term borrowings by swapping the interest expense on a proportion of these term loans and short term borrowings from floating rates to fixed rates and vice versa.09278% to 1.91 Notes to the Financial Statements 8 Investments in subsidiaries (continued) Country of Name of subsidiaries incorporation Held by Harmony Investors Holding Limited Harmony Convention Holding Pte Ltd (1) (2) Singapore Effective equity held by the Group 2011 2010 % % 60.27009% to 3.974 8.756 Non-current 13.098 8.972 Current – 8.459 13.974 8.82% (2010: 0. (1) On 18 August 2011. Interest rate swaps with a total notional amount of $1.178 Current 265 762 Non-current – 416 265 1.000) have been entered into at the reporting date to provide fixed and floating rate funding for terms of 2 to 3 years (2010: 3 to 5 years) at an average interest rate of -0.876 513 - Embedded derivatives relating to convertible bonds 1. the Group completed the acquisition of 51.

887.965 Impairment losses (2.0724% for both the Group and the Trust) per annum respectively.475 2.414 Deposits 451 – – – Amounts due from: - jointly controlled entities 1.352) (2. interest-free and repayable on demand.569 5.734 Prepayments and other receivables 4.551) Net receivables 5.656 853 11.586 3.320 Loans and receivables 7.088 104.965 3.252 20.833 2.493 79.405 40. 11 Cash and cash equivalents Group Trust 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Cash at bank and in hand 64. part of Suntec City Office Tower 3 and Suntec Singapore amounting to $28.0931% and 0.92 Suntec REIT Annual Report 2011 Notes to the Financial Statements 10 Trade and other receivables Group Trust 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Trade receivables 8.685 4.704.419 – – - subsidiaries – – 1.587 The trade receivables in respect of Suntec City Mall.807 6.957 51.890 5.415 3. The exposure of the Group and the Trust to credit risk and impairment losses related to trade receivables is disclosed in Note 15.0715% and 0. The amounts due from the jointly controlled entities and the subsidiaries are non-trade in nature. Interest rates reprice at intervals of one month.551) (2.000) are charged or assigned by way of security for credit facilities granted to the Group (Note 12).114 4.532 2.582) (2.827 4. part of Suntec City Office Tower 3 and Suntec Singapore amounting to $7.000 (2010: Suntec City Mall and part of Suntec City Office Tower 3 amounting to $4. .909 The weighted average effective interest rate relating to cash and cash equivalents at the reporting date for the Group and the Trust is 0.088 39.821 Fixed deposits with a financial institution 39.238 852 1. Cash and cash equivalents in respect of Suntec City Mall.000) are charged or assigned by way of security for credit facilities granted to the Group (Note 12).402 52.414 1.1185% (2010: 0. unsecured.000 (2010: Suntec City Mall and part of Suntec City Office Tower 3 amounting to $3.705 31. The exposure of the Group and the Trust to interest rate risk related to financial assets are disclosed in Note 15.546 6.731.705 31.086.697 21.

000) unsecured term loan from various institutional banks.000 (2010: $2.52 2012 to 2.059 2.967 404.250 276.25 2013 269.175.554.000) unsecured term loan from Sunshine Assets Limited.54 2012 to 2.804.453.280.078.582.070 2.804.250 2.000 (2010: $1.920 270.000 246.324 2. Terms and debt repayment schedule Terms and conditions of outstanding interest-bearing borrowings are as follows: Weighted average nominal Year of interest Rate maturity % Face value $’000 2011 Carrying amount $’000 Face value $’000 2010 Carrying amount $’000 Group Floating rate term loans 1.493.882 2.609.000 2. $276.429.282.282.000 246.554.000) secured term loan facilities from various institutional banks.677.744 2.500 2.779 788.000 272.647.554.059 2.105.115 276.779.644 Trust Floating rate term loans 1.744 2.609.500 2.000) at the Group comprise the following: - - - - $Nil (2010: $157.554.000 (2010: $272.882 1.150 2.103 2.609.647 791.647 - unsecured 1.500 207.604.115 2.000 2. $1.453 788.500 2.582.824 2.25 2013 269.336.000 (2010: $788.677.005 Convertible bonds 3.524 2016 Fixed rate term loans 4.750 2.154.105.34 2016 250.302.804.554.150.150.777 2.554.500 204.644 2.804.920 272.744 2.250 276.585 Non-current 2.529 Convertible bonds - unsecured 14 276.400.371 1.371 1.821. .554.000) convertible bonds due 2013.650 2.078.967 404.920 270.34 2016 250.694.524 2016 Fixed rate term loans 4. and $917.000 2.644.644 The exposure of the Group and the Trust to liquidity and interest rate risks related to interest-bearing borrowings are disclosed in Note 15.644 Interest-bearing borrowings at the reporting date of $2.500 207.529 2.585 199.070.115.500 204.920 272.070 2.644 2.527.93 Notes to the Financial Statements 12 Interest-bearing borrowings Note Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 Term loans - secured 917.371.493.005 Convertible bonds 3.115 2.477.644 Current 199.677.070 2.920.000 272.115 2.

000) respectively.5 million (2010: $800 million) term loan facilities with a panel of banks. $716.069 16. The facilities are secured on the following: - - - - - - A first legal mortgage on Suntec City Mall.000 and $445.283 16.772 12. which may be entered into by the Group in relation to the term loan facilities.328.103 63. A first fixed charge over the central rental collection account in relation to the Properties (Notes 10 and 11). and An assignment of any interest swap facilities.772 80. the Manager and a related party of the Manager of $306.000.000. collateral.393 Accrued income 14. The current portion of the interest-bearing borrowings comprise term loan of $200. agreements.000 and $508.724 1. as required by the financial institutions granting the facilities (Note 5). Included in the amounts due to related parties for the Group is an amount due to the Trustee. title and interest in the tenancy documents and the proceeds in connection with the Properties. $716.435 8. the Trust has in place a $Nil (2010: $157.731 11. the Group has in place secured facilities of $927.0 million (2010: $132.000 (2010: $169. Included in the amounts due to related parties for the Trust is an amount due to the Trustee.5 million) which is due in 2012.328.677 7. title and interest in the insurance policies in relation to the Properties.677 Interest payable 12.5 million) term loan facility with Sunshine Assets Limited (“Sunshine”).000. $1.140 6.000.121 8. An assignment of the Group’s rights.000 and $1.116 41. $1.94 Suntec REIT Annual Report 2011 Notes to the Financial Statements 12 Interest-bearing borrowings (continued) Terms and debt repayment schedule (continued) (a) Term loan facility with Sunshine Assets Limited As at 31 December 2011.000 (2010: $169.237 3.550 Accrued operating expenses 11. (b) Secured term loan facilities with various institutional banks As at 31 December 2011.000 and $508. Transactions with related parties are priced on an arm’s length basis.914 11. a special purpose company.042 3.550 - 26.121 Amounts due to related parties (trade) 2.090. 13 Trade and other payables Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 Trade and other payables 13.929 41.431 8. . An assignment of the Group’s rights.393 2. A fixed and floating charge over the assets of the Group in relation to the Properties. the Manager and related parties of the Manager of $306.103 The amounts due to related parties are unsecured and interest-free. part of Suntec City Office Tower 3 and Suntec Singapore (the “Properties”).000) respectively.079 1.140 Deposit received on Investment Property held for sale 26.

on 13 March 2013 or.833 52. in the case of an incomplete month.178 5. on a semi-annual basis calculated on the basis of a 360-day year consisting of 12 months of 30 days each and. in whole or in part.115 266. at the option of the bondholder of 20 March 2011 at a put price of 103.0 million principal amounts of convertible bonds (the “Bonds”) due 2013 which carry a coupon interest at 3.000 of convertible bonds at an exercise price of 103.718 (2010: $1. The early redemption amount represents a gross yield to maturity of 4. the Trust redeemed $750.934 Units (2010: 156. representing 7. The Bonds are convertible by bondholders into Units at the conversion price of $1. on the final redemption date.569 104.812 Amortisation of transaction costs 860 865 Redemption of convertible bonds (774) – Interest accretion 4.25% per annum. complete.402 112.438 Carrying amount of debt component at 31 December 276. if redeemed prior to 13 March 2013.25% (2010: 5.723) at any time on or after 30 April 2008 up to 3.95 Notes to the Financial Statements 14 Convertible bonds – debt component Group and Trust 2011 2010 $’000 $’000 Carrying amount of debt component at 1 January 272.00 p. The maximum exposure to credit risk at the reporting date was: Group Trust Carrying amount Carrying amount Note 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Derivative assets at fair value through Statement of Total Return 9 Loans and receivables 10 Cash and cash equivalents 11 265 7. The redemption price upon maturity is equal to 105.236 1. As at 31 December 2011.703. Based on the conversion price.m.1%) of the total number of Units of the Trust in issue as at 31 December 2011.25% per annum. together with any accrued but unpaid interest accrued to the date of redemption.164% on the principal amount. To exercise such right.821 . the Bonds are convertible into approximately 156.178 5.25%) per annum. The Trust has the option to pay cash in lieu of issuing new Units on conversion of any Bonds. As at 31 December 2011.115 In 2008.890 79. at the option of the Trust on or at any time not less than 7 business days prior to 20 March 2013 (subject to the satisfaction of certain conditions) having given not less than 30 nor more than 60 days’ notice to the bondholders. the effective interest rate for the Bonds – debt component is approximately 5.909 58.164% together with any accrued but unpaid interest up to that date.424 Units).493 59. The Bonds may be redeemed.719 4.m. then up to 3. Unless previously redeemed by the bondholders on 20 March 2011 or by the Trust at any time on or after 20 March 2011 and not less than 7 business days prior to 20 March 2013.734 51. within a period of three months prior to 20 March 2011.957 83. the Trust issued $270.722.112 1.5063% of the principal amount. The Bonds may also be redeemed. in whole but not in part. 15 Financial instruments Credit risk Exposure to credit risk The carrying amount of financial assets represents the maximum credit exposure. the holder of the relevant bond must. the number of days elapsed.920 272. the final redemption date of the Bonds is 20 March 2013. on a date no later than 7 business days prior to the date fixed for redemption thereof. sign and deposit the notice of redemption with the payment agent.0% (2010: 7.00 p.504 265 2.

551) Trust 2011 $’000 2.705 461 297 2.093.705 461 297 2.000 (2010: $1.475 2.582) Trust Not past due 1.965 – – (49) (2.551) 1.057 – – – 5.502 4.093.982 – 430 (861) 2.96 Suntec REIT Annual Report 2011 Notes to the Financial Statements 15 Financial instruments (continued) Credit risk (continued) Exposure to credit risk (continued) The maximum exposure to credit risk for trade receivables at the reporting date by type of tenants is: Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 Office 45 214 45 214 Retail 1.414 The Group’s tenants are engaged in a wide spectrum of business activities across many industry segments.502) (2.352) The movement in the allowance for impairment in respect of trade receivables during the year was as follows: Group 2011 $’000 2.502 4.827 (2.551 1.532 2. Impairment losses The ageing of trade receivables at the reporting date is: Gross 2011 $’000 Impairment losses Gross 2011 2010 $’000 $’000 Impairment losses 2010 $’000 At 1 January Acquisition through business combinations Impairment loss recognised Allowance utilised during the year At 31 December Group Not past due 3.582) 8.114 (2.352) 3.551 20 384 (373) 2.982 – 430 (861) 2.669 (2.360 (2.582 2010 $’000 2. The Group’s most significant tenant accounts for $1.551 .011 – Past due 31 – 60 days 408 – Past due 61 – 90 days 48 – More than 90 days 2.697 – Past due 31 – 60 days 1.551 – 174 (373) 2.000) of the trade receivables carrying amount as at the reporting date.200 1.430 2.200 Convention 4.965 – – (49) (2.414 1.566 – Past due 61 – 90 days 182 – More than 90 days 2.502) (2.352 2010 $’000 2.430 2.

420) Derivative financial liabilities Financial liabilities at fair value through Statement of Total Return - Interest rate swaps 12.421) (2.920 (294.427) - Convertible bonds 276. and the Group has sufficient security deposits as collateral.841) (2. the Manager believes that. the Group and the Trust do not have any collective impairment on its trade receivables (2010: nil).793.759) (9. At 31 December 2011.745) (8.167.999) 2.627) (19.580) (8.880) (288.020) (355. More than 5 years $’000 – – – – – – – – .934.131. The allowance account in respect of trade receivables is used to record impairment losses unless the Group and the Trust are satisfied that no recovery of the amounts owing are possible.557 (3.280.179) 2.860) (66.406.970) - Trade and other payables* 66.860 (66.876 (17.307) (10.785.628) (43.722) (239. no additional impairment allowance is necessary in respect of trade receivables as these receivables mainly arose from tenants that have a good track record with the Group.149.947.500 (299.261) (345.024) - Fixed rate term loans 246.433 (3.650 (2.775) (285. including estimated interest payments and excluding the impact of netting agreements: Cash flows Carrying Contractual Within Within amount cash flows 1 year 1 to 5 years $’000 $’000 $’000 $’000 Group 2011 Non-derivative financial liabilities Financial liabilities measured at amortised cost: - Floating rate term loans 2.627 (63.698) (2. apart from the above.860) – - Security deposits 63.599) * Exclude accrued income.97 Notes to the Financial Statements 15 Financial instruments (continued) Credit risk (continued) Impairment losses (continued) Based on historic default rates. Liquidity risk The following are the contractual maturities of financial liabilities. at that point the amounts are considered irrecoverable and are written off against the financial asset directly.

426) (24.431) (99.230 (2.949) - Convertible bonds 272.880) (288.639.452) (38.761 (2.838) (7.436) 2.061) * Exclude accrued income.106 (3.833) (55.035.662.858.179) 2.565) - Trade and other payables* 24.653) (18.623) (2.225.427) - Convertible bonds 276.274 (2.833) – - Security deposits 62.672) (2.660.095) Group and Trust 2010 Non-derivative financial liabilities Financial liabilities measured at amortised cost: - Floating rate term loans 2.108) (1.952) (2.524 (2.654) (43.075) – (103.230) (2.872) - Fixed rate term loans 204.759) (9.750) (237.775) (295.970) - Trade and other payables* 55.920 (294.340) (8.809.580) (8.003.625) Derivative financial liabilities Financial liabilities at fair value through Statement of Total Return - Interest rate swaps 513 (4. More than 5 years $’000 – – – – – – – – – (103.653.653 (62.426) – - Security deposits 60.156) (2.640.288) (331.324 (2.295) (2.154.657.691) (22.520) - Fixed rate term loans 246.115 (304.078.323) (97.372) (2.833 (55.876 (17.775) (285.028) (34.005 (243.190.796.691 (60.999) 2.985.075) – – – (103.272.426 (24.075) .862.745) (8.98 Suntec REIT Annual Report 2011 Notes to the Financial Statements 15 Financial instruments (continued) Credit risk (continued) Liquidity risk (continued) Cash flows Carrying Contractual Within Within amount cash flows 1 year 1 to 5 years $’000 $’000 $’000 $’000 Trust 2011 Non-derivative financial liabilities Financial liabilities measured at amortised cost: - Floating rate term loans 2.047) (340.814) (132.916) Derivative financial liabilities Financial liabilities at fair value through Statement of Total Return - Interest rate swaps 12.307) (10.500 (299.239) 2.

315 (2.341) 6. . There is no impact on Unitholders’ funds. This analysis assumes that all other variables remain constant.016) 6. a change of 30 basis points (“bp”) (2010: 30 bp) in interest rate at the reporting date would increase/(decrease) total return (before any tax effects) by the amounts shown below.184) 2.053 The Group does not account for any fixed rate financial assets and liabilities at fair value through the Statement of Total Return. a change in interest rates at the reporting date would not affect the Statement of Total Return.341 Statement of Total Return 30 bp 30 bp increase decrease $’000 $’000 (6.908 (4.184 (2.184 (2. nor does the Group designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model.184) 2.724) 6.908) 4.99 Notes to the Financial Statements 15 Financial instruments (continued) Interest rate risk Cash flow sensitivity analysis for variable rate instruments For the interest rate swaps and the other variable rate financial liabilities.525) 4.299 (4.525 (4. Group 2011 Interest-bearing borrowings (floating rate) Interest rate swaps Trust 2011 Interest-bearing borrowings (floating rate) Interest rate swaps Group and Trust 2010 Interest-bearing borrowings (floating rate) Interest rate swaps Fair value sensitivity analysis for fixed rate instruments Statement of Total Return 30 bp 30 bp increase decrease $’000 $’000 (6.262) 4.315) 2. Therefore.724 (6.

100

15 Financial instruments (continued)

Classification and fair value of financial instruments

The fair values of financial assets and liabilities, together with the carrying amounts shown in the Statement of Financial Position, are as follows:

Suntec REIT Annual Report 2011

Notes to the Financial Statements

Designated at Loans and fair value receivables Note $’000 $’000 Fair value $’000

Other financial liabilities $’000

Total carrying amount $’000

Group 2011 Financial derivatives 9 265 – – 265 265 Loans and receivables 10 – 7,569 – 7,569 7,569 Cash and cash equivalents 11 – 104,402 – 104,402 104,402 265 111,971 – 112,236 112,236 Financial derivatives 9 (13,974) – – (13,974) (13,974) Interest-bearing borrowings 12 – – (2,527,150) (2,527,150) (2,533,035) Trade and other payables 13 – – (80,929) (80,929) (80,929) Security deposits – – (63,627) (63,627) (62,785) Convertible bonds 14 – – (276,920) (276,920) (280,268) (13,974) – (2,948,626) (2,962,600) (2,970,991)

2010 Financial derivatives 9 1,178 – – 1,178 Loans and receivables 10 – 5,833 – 5,833 Cash and cash equivalents 11 – 52,493 – 52,493 1,178 58,326 – 59,504 Financial derivatives 9 (8,972) – – (8,972) Interest-bearing borrowings 12 – – (2,282,529) (2,282,529) Trade and other payables 13 – – (41,103) (41,103) Security deposits – – (60,691) (60,691) Convertible bonds 14 – – (272,115) (272,115) (8,972) – (2,656,438) (2,665,410)

1,178 5,833 52,493 59,504 (8,972) (2,296,621) (41,103) (59,975) (283,141) (2,689,812)

15 Financial instruments (continued)

Classification and fair value of financial instruments (continued)

Notes to the Financial Statements

Designated at Loans and fair value receivables Note $’000 $’000 Fair value $’000

Other financial liabilities $’000

Total carrying amount $’000

Trust 2011 Financial derivatives 9 265 – – 265 265 Loans and receivables 10 – 2,890 – 2,890 2,890 Cash and cash equivalents 11 – 79,957 – 79,957 79,957 265 82,847 – 83,112 83,112 Financial derivatives 9 (13,974) – – (13,974) (13,974) Interest-bearing borrowings 12 – – (2,400,824) (2,400,824) (2,406,709) Trade and other payables 13 – – (63,116) (63,116) (63,116) Security deposits – – (62,653) (62,653) (61,811) Convertible bonds 14 – – (276,920) (276,920) (280,268) (13,974) – (2,803,513) (2,817,487) (2,825,878) 2010 1,178 5,734 51,909 58,821 (8,972) (2,296,621) (41,103) (59,975) (283,141) (2,689,812)

Financial derivatives 9 1,178 – – 1,178 Loans and receivables 10 – 5,734 – 5,734 Cash and cash equivalents 11 – 51,909 – 51,909 1,178 57,643 – 58,821 Financial derivatives 9 (8,972) – – (8,972) Interest-bearing borrowings 12 – – (2,282,529) (2,282,529) Trade and other payables 13 – – (41,103) (41,103) Security deposits – – (60,691) (60,691) Convertible bonds 14 – – (272,115) (272,115) (8,972) – (2,656,438) (2,665,410)

101

102

Suntec REIT Annual Report 2011

Notes to the Financial Statements

15 Financial instruments (continued)
Fair values Estimation of fair values Fair values of the financial instruments of the Group and the Trust have been determined for measurement and/or disclosure purposes based on the following methods: Derivatives The fair value of interest rate swaps is based on broker quotes at the reporting date. These quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each swap and using market interest rates for similar instruments at the measurement date. The fair value of the embedded derivative component of the convertible bonds is the difference between the fair value of the convertible bonds based on broker quotes at the reporting date and the fair value of the liability component of the convertible bonds, determined using the discounted cash flow technique. Non-derivative financial liabilities The fair values of the non-current portion of security deposits, fixed interest-bearing borrowings, borrowings which reprice after three months, which are determined for disclosure purposes, are estimated using the discounted cash flow technique. Future cash flows are based on management’s best estimates and the discount rate is based on a market-related rate for a similar instrument at the reporting date. Other financial assets and liabilities The carrying amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash equivalents, trade and other payables and interest-bearing borrowings which reprice within six months) are assumed to approximate their fair values because of the short period to maturity or repricing. Interest rates used in determining fair values The Group used the following interest rates to discount estimated cash flows: Non-current portion of security deposits Fixed rate borrowings Convertible bonds Fair value hierarchy Group and Trust 2011 2010 % % 1.951 3.87 – 4.50 4.01 1.907 1.237 – 4.50 3.34

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and inputs for the asset or liability that are not based on observable market data (unobservable inputs).

• Level 2: • Level 3:

459) (8.178 (513) (8.098) (12.459) 7.098) (14.459) During the financial year ended 31 December 2011.459) (513) (8.974) (13.178 – Derivative liabilities - interest rate swaps (513) – - embedded derivatives relating to convertible bonds – (8.361 (1.098) 2010 Derivative assets - interest rate swaps 1.533 (8.361 6.794) (8. there were no transfers between Level 1 and Level 2.459) 665 (8.992) 6.098) (12.709) 1.876) (1.459) 7.611) (1.972) (7.103 Notes to the Financial Statements 15 Financial instruments (continued) Fair value hierarchy (continued) Group and Trust 2011 Derivative assets - interest rate swaps 265 – Derivative liabilities - interest rate swaps (12.876) (1.533 .876) – - embedded derivatives relating to convertible bonds – (1.098) (13. The Level 3 financial instruments measured at fair value are as follows: Group and Trust Embedded derivatives relating to convertible bonds As at 1 January Changes in fair value recognised in Statement of Total Return As at 31 December Total gain for the year included in Statement of Total Return for financial instruments held at the reporting date 2011 $’000 2010 $’000 Level 2 $’000 Level 3 $’000 Total $’000 265 (12.

128 1.4965 (2010: $1. The valuation requires management to estimate the expected cash flows over the life of the convertible bonds to investors.1891 to $1.797.5039) per Unit.317) Units at unit prices ranging from $1.209.0% favourable or unfavourable with all other variables held constant.205.533 The fair value of the embedded derivative relating to convertible bonds has been determined using the discounted cash flows approach.490 (2010: 15.347.000 At 31 December 2.361 6.3072 to $1.520 2.205.000)) respectively. amounting to $27.561. the fair value of the embedded derivative relating to the convertible bonds would decrease/(increase) by $815.000 (2010: $21.446 2.000) in satisfaction of asset management fees payable in Units. The analysis is performed on the same basis for 2010.370 During the year. 16 Units in issue Units in issue: At 1 January 2.266 - deferred consideration on investment properties acquired – 69.128 Units to be issued: - asset management fees payable in Units 6.001 - private placement of new Units – 313.391. the Group and the Trust had issued a total of 19. If the assumptions applied by management were 5.451. Group and Trust 2011 2010 ’000 ’000 .300 Issue of Units: - asset management fees paid in Units 19.242 Total issued and issuable Units at 31 December 2.533 Total gain for the year included in Statement of Total Return for financial instruments held at 31 December 7.000) and ($812.224.000 (2010: $13. which are not evidenced by observable market data.392 15.231.361 6.457.000) (2010: ($13.926 4.104 Suntec REIT Annual Report 2011 Notes to the Financial Statements 15 Financial instruments (continued) Fair value hierarchy (continued) Gain for the year included in the Statement of Total Return is presented in net change in fair value of financial derivatives as follows: Group and Trust 2011 2010 $’000 $’000 Total gain for the year included in Statement of Total Return 7.561 - acquisition fee paid in Units – 10.094.

821 ’000 Total issued and issuable Units at 31 December 3.633 ’000 4. • The Unitholders cannot give any directions to the Manager or the Trustee (whether at a meeting of Unitholders or otherwise) if it would require the Trustee or the Manager to do or omit doing anything which may result in: • • the Trust ceasing to comply with the Listing Manual issued by SGX-ST or the Property Funds Appendix. a Unitholder has no equitable or proprietary interest in the underlying assets of the Trust and is not entitled to the transfer to it of any assets (or part thereof) or of any estate or interest in any asset (or part thereof) of the Trust.984.231.296. The provisions of the Trust Deed provide that no Unitholders will be personally liable to indemnify the Trustee or any creditor of the Trustee in the event that liabilities of the Trust exceed its assets. A Unitholder’s liability is limited to the amount paid or payable for any Units.370 2. The rights and interests of Unitholders are contained in the Trust Deed and include the right to: • • receive income and other distributions attributable to the Units held. whichever is the lesser) at any time convene a meeting of Unitholders in accordance with the provisions of the Trust Deed.231.432 249 260. and attend all Unitholders’ meetings.282 2010 $’000 249.911 Gross rental income Dividend income from subsidiaries Others .934 ’000 3. However.446 2. The Trustee or the Manager may (and the Manager shall at the request in writing of not less than 50 Unitholders or one-tenth in number of the Unitholders.638 39.479 2011 $’000 242.568 ’000 16 2. participate in the termination of the Trust by receiving a share of all net cash proceeds derived from the realisation of the assets of the Trust and available for purposes of such distribution less any liabilities.105 Notes to the Financial Statements 16 Units in issue (continued) Each Unit in the Trust represents an undivided interest in the Trust.209.209.446 2.954.062 – 220 270. or the exercise of any discretion expressly conferred on the Trustee or the Manager by the Trust Deed or the determination of any matter for which the agreement of either or both the Trustee and the Manager is required under the Trust Deed.370 18 Gross revenue Group 2011 $’000 270. in accordance with their proportionate interests in the Trust.570 220 282.428 Trust 2010 $’000 249.230 11. 17 Net asset value per Unit Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 Note Net asset value per Unit is based on: Net assets attributable to Unitholders 4.230 – 249 249.433.

052 5.963 42 895 21. Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 Income support received from: - Cavell Limited 13.673 20.078 2.410 13.277 4.049 46.572 5.169 2.899 56.978 17.120 22.410 − 22.208 2.286 7.410 21 Finance income and finance costs Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 Interest income: - bank deposits 42 33 - interest rate swaps 895 1.277 Property tax 19.673 − 46.673 22.958 11.374 Allowance for doubtful receivables 384 430 174 430 Depreciation of plant and equipment 1. One Raffles Quay Pte.361 2.172 2. 20 Other income Other income relates to the income support received/receivable by the Group and the Trust under the Deeds of Income Support entered with Cavell Limited and Choicewide Group Limited.770 16.049 22.983 32.534 16.506 15.557 2. Ltd.378 2. holds Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.389 Property expenses represent the direct operating expenses arising from rental of investment properties and sale of food and beverages.569 13. and BFC Development Pte. respectively.958 - loan to jointly controlled entities 22.336 17. holds One Raffles Quay and BFC Development Pte.972 Finance income 23.042 5.389 57.690 46.049 − Other income 47. Ltd. Ltd.395 56. the vendors of the one-third interest in One Raffles Quay Pte.277 7.169 Contributions to maintenance funds 17.534 16.402 .118 38 7 38 Maintenance expenses 3.534 Property management fees (including reimbursables) 16. Ltd.139 4.0% interest in Harmony Partners Investments Limited.106 Suntec REIT Annual Report 2011 Notes to the Financial Statements 19 Property expenses Group Trust 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Advertising and promotion expenses 5.722 22.057 33 1.374 4.617 Utilities 4.378 Others 9. and negative goodwill arising on acquisition of 51.572 76.411 13.983 20.182 7.617 19.410 Negative goodwill on acquisition 1.361 - Choicewide Group Limited 32.690 2.

029 5.566 – 135.080) (8.727) (2.376 Non-tax deductible items 19.076.092 Income tax using the Singapore tax rate of 17% 17.913) – 109.401 7.775) (11.029) 22 Asset management fees Included in the asset management fees of the Group and the Trust is an aggregate of 22.189) (29. that have been or will be issued to the Manager in satisfaction of the asset management fees payable in Units.029 .013 2.725.843) (36.232) 2.107 2.937) Net income before share of result of jointly controlled entities and after net change in fair value of financial derivatives 102.581) (1.477) (14.642 (5.356) (52.029 Reconciliation of effective tax rate Net income 250.000 (2010: $22. amounting to $28.775) - interest rate swaps (11.280) (8.967 19.470 18.254) (29.775) (8.477) (4.431) Recognised in the Statement of Total Return (51.107 Notes to the Financial Statements 21 Finance income and finance costs (continued) Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 Interest expense: - bank loans (40.13) (29.026) 5.345.901 Non-taxable income (1.074 16.107 116.913) 7.024) (74.580) (79.796) (29.284) (79.013 2.729 23.299) (36.016) Tax exempt income – – Tax transparency (Note 3.000).280) - the convertible bonds (8.778) (63.580) Finance costs (75.103) (28.232) 6.463 Add: Net change in fair value of financial derivatives (5.615 (1.029 141.468) (40.296 13.884 13.431) (66.775) (4.653) (30.796) Amortisation of transaction costs (14.035 (2010: 15.302) (4.061 (1.328 131.881) Units.026) (28.271. 23 Other charges Included in other charges are the following items: Non-audit fees paid to auditors of the Trust Group and Trust 2011 2010 $’000 $’000 57 44 24 Income tax expense Group 2011 $’000 2010 $’000 2011 $’000 Trust 2010 $’000 Tax expense Current year 6.762 108.566 Less: Share of profit of jointly controlled entities (141.

610 - to be issued as payment of asset management fees payable in Units 19 12 19 12 2.988 363.216.896.680 1.325 2. .722.373.622 2. the total return for the year after tax and weighted average number of Units in issue are adjusted to take into account the dilutive effect arising from the dilutive Bonds.723 156.934 (2010: 156.622 In calculating diluted earnings per Unit.680 1.545 393.653 Total return for the year after tax Number of Units Group 2011 ’000 2010 ’000 2011 ’000 Trust 2010 ’000 Weighted average number of Units: - outstanding during the year 2.715 2011 $’000 525.896. Group Trust 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Total return for the year after tax Profit impact of conversion of the dilutive potential Units Adjusted total return for the year after tax 631.216.680 1.014 Trust 2010 $’000 363.661 1.610 2.723 156.216.703 156.703.014 6. the Group and the Trust had Bonds which were convertible into approximately 156.053.661 1.896.622 2.403 2.198 Number of Units Group 2011 ’000 2010 ’000 2011 ’000 Trust 2010 ’000 Weighted average number of Units used in calculation of basic earnings per Unit 2.653 7.703 Weighted average number of Units used in calculation of diluted earnings per Unit 2.715 7.810 385.216.053.325 As at 31 December 2011.373.216. with the potential Units weighted for the year outstanding.974 531.260 525.403 2.680 1.836 2010 $’000 385.896.896.836 6.622 Weighted average number of Units to be issued assuming conversion of the Bonds 156.545 371.896.424) Units.216.108 Suntec REIT Annual Report 2011 Notes to the Financial Statements 25 Earnings per Unit Basic earnings per Unit is based on: Group 2011 $’000 631.974 638.

000 and profit of $5.058 The following fair values have been determined on a provisional basis: • Fair value of investment property. which holds 80.000 to the Group’s results.0% to 60. the Group’s interest in Suntec Singapore increase from 20. . As a result.0% of the issued ordinary share capital of Harmony Partners Investments Limited.109 Notes to the Financial Statements 26 Acquisition of subsidiary Acquisitions in the year ended 31 December 2011 On 18 August 2011.861 22. the Manager has assumed that the fair value adjustments. The Manager believes that the increase in the Group’s interest in Suntec Singapore will be a strategic addition to the Group’s existing portfolio.114.161) (1. If the acquisition had occured on 1 January 2011. providing opportunities to integrate and enlarge the Group’s existing interest in the entire Suntec City development and to unlock the underlying value of the assets.287. that arose on the date of acquisition would have been the same if the acquisition had occurred on 1 January 2011.764) 227. a subsidiary of the Group acquired of 51. The following table summaries the major classes of consideration transferred.000. The Manager believes that the acquisition will benefit the Unitholders in the long term as the acquisition fits the Manager’s principal investment strategy for the Group to invest in quality income-producing assets.000. plant and equipment 4 Trade and other receivables Cash and cash equivalents Trade and other payables Interest bearing borrowings Deferred tax liabilities Non-controlling interests Total identifiable net assets 2011 $’000 114.424. the Manager estimates that consolidated revenue would have been $309.750 2011 $’000 390.447) (56. From 19 August 2011 to 31 December 2011. and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: Consideration transferred Cash Identifiable assets acquired and liabilities assumed Note Investment property 5 Property.312 8. Harmony Investors Holding Limited and Harmony Convention Holding Pte Ltd.944 11. Suntec Singapore contributed revenue of $27. In determining these amount.000 and consolidated Statement of Total Return attributable to Unitholders for the year would have been $665.8%.0% interest in Harmony Investors Group Limited. determined provisionally.188 (21.875) (126.

nature of services and type of customer. Other operations segment. office or other space) is the factor used to determine the reportable segments.000 relating to professional fees and have been included in professional fees in the Group’s Statements of Total Return. . Segment net property income represents the income earned by each segment after allocating property operating expenses. The nature of the leases (lease of retail.049) The negative goodwill has been recognised in other income in the Statement of Total Return (Note 20) and is expected to be non-deductible for tax purposes. Segment revenue comprises mainly of income generated from its tenants.259 Fair value of identifiable net assets (227. changes in fair value of investment properties and income tax expense. 27 Operating segments For the purpose of making resource allocation decisions and assessing segment performance. the Group’s chief operating decision maker reviews internal/management reports of its retail and office business segments. the retail and office segments of each property are aggregated accordingly to form the retail and office reportable segments.750 Non-controlling interests. This is the measure reported to the chief operating decision maker for the purpose of assessing segment performance. Unallocated items comprise mainly other income. which relates to leasing of advertising space and car park. Acquisition-related costs The Group incurred acquisition-related costs of approximately $1. As the retail and office segments of each property are similar in economic characteristics. does not meet any of the quantitative thresholds for determining reportable segments for both 2011 and 2010.319.110 Suntec REIT Annual Report 2011 Notes to the Financial Statements 26 Acquisition of subsidiary (continued) Negative goodwill Negative goodwill was recognised as a result of the acquisition as follows: 2011 $’000 Total consideration transferred 114. This forms the basis of identifying the operating segments of the Group under FRS 108 Operating Segments.058) Negative goodwill (1. trust-related income and expenses. based on their proportionate interest in the recognised amounts of the asset and liabilities of the acquiree 111. that are present ownership interests and entitle the holders to a proportionate share of the acquiree’s net assets on liquidation.

895) (27.090 2011 $’000 Group 2010 $’000 Total return Reportable segment net property income 180.347 (27.715 30.193 Share of profit of jointly controlled entities 141.722 - Net finance costs (51.090 22.378 9.679) 7.360 193.334 Property expenses (22.653 Consolidated total return for the year before tax 640.493) 94. Segment information in respect of the Group’s geographical segments is not presented as the Group’s activities for the year ended 31 December 2011 and 31 December 2010 related wholly to properties located in Singapore.360 249.982) Reportable segment net property income 94.383 122.842 Property expenses (24.566 248.282 (76.529) 12.608 188.932) (2.093 (24.479 (56.476 37.564 193.871 (28.285) - Asset management fees (36.389) 193.410 (63.289) - Net change in fair value of financial derivatives (5.468) (20. Information about reportable segments Office $’000 Retail $’000 Others $’000 Total $’000 2011 Gross revenue 114.078) - Other trust expenses (5.937 387.914) 4.899) 193.274 (4.499) Reportable segment net property income 90.111 Notes to the Financial Statements 27 Operating segments (continued) Information regarding the Group’s reportable segments is presented in the tables below.744 .343 2010 Gross revenue 117.564 270.352 Reconciliation of reportable segment net property income 118.778) - Amortisation of intangible assets (39.730 4.871) 90.819 Other net property income 12.383 Unallocated amounts: - Other income 47.913) - Net change in fair value of investment properties 396.

20 – The annualised ratios are computed in accordance with the guidelines of the Investment Management Association of Singapore.460 Trust 2010 $’000 208.652 (b) The Group and the Trust lease out their investment properties. the Trustee and the Manager have provided a tax indemnity for certain types of tax losses. The expenses used in the computation relate to expenses of the Group and the Trust.356 Within 1 year After 1 year but within 5 years 29 Contingent liability Pursuant to the tax transparency ruling from IRAS.356 2011 $’000 207.66 1. Each yearly indemnity has a validity period of the earlier of seven years from the relevant year of assessment and three years from the termination of the Trust.000) or 1.97 - excluding performance component of asset management fees 1.741 414.20 1. including unrecovered late payment penalties that may be suffered by IRAS should IRAS fail to recover from Unitholders tax due or payable on distributions made to them without deduction of tax.798 1. interest expense and income tax expense. 30 Financial ratios Group 2011 % 2010 % 2011 % Trust 2010 % Expenses to weighted average net assets1 - including performance component of asset management fees 2.52 1.155 2010 $’000 208.52 1. subject to the indemnity amount agreed with IRAS. excluding property expenses. Non-cancellable operating lease rentals receivable are as follows: Group 2011 $’000 209.112 Suntec REIT Annual Report 2011 Notes to the Financial Statements 28 Commitments Group and Trust 2011 2010 $’000 $’000 (a) Capital commitments Capital expenditure contracted but not provided for 2.209 444.147 236. The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Group and the Trust expressed as a percentage of daily average net asset value.414 206.000 (2010: $500.741 416.0%) of the taxable income of the Trust for the year ended 31 December 2011. 2 .00 1.719 206. is limited to the higher of $500. The amount of indemnity.147 236.359 Loan facilities to jointly controlled entities 560.0% (2010: 1. as agreed with IRAS.209 444.778 562.63 Portfolio turnover rate 2 – – – 1 1.

303 6. and reviews the adequacy of the risk management framework in relation to the risks faced by the Group.553 1. Risk management framework Risk management is integral to the whole business of the Group.500 corporations of the Manager 32 Financial risk management The Group has exposure to credit risk. This note presents information about the Group’s exposure to each of the above risks. The Audit Committee undertakes both regular and ad hoc reviews of risk management controls and procedures. Cash and fixed deposits are placed with financial institutions which are regulated. .113 Notes to the Financial Statements 31 Significant related party transactions For the purposes of these financial statements. or where the Group and the party are subject to a common significant influence. the Group’s objectives. or vice versa. the results of which are reported to the Board. The Group has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risk.058 3.548 1. During the financial year.071 Agency commission paid/payable to a related corporation of the Manager 3. The Group establishes an allowance for impairment.500 6. Related parties may be individuals or other entities.958 1.058 3. policies and processes for measuring and managing risk.298 3. other than the transactions disclosed elsewhere in the financial statements.148 14.958 Asset manager fees paid/payable to a related corporation of the Manager 740 – – – Financial advisory fee paid to a related corporation of the Manager – 1. Credit risk Credit risk is the potential financial loss resulting from the failure of a tenant or a counterparty to settle its financial and contractual obligations to the Group as and when they fall due. Further quantitative disclosures are included throughout these financial statements.148 14. The Board is assisted in its oversight role by the Audit Committee. The Manager monitors the Group’s risk management process to ensure that an appropriate balance between risk and control is achieved.071 – 1. Credit evaluations are performed by the Manager before lease agreements are entered into with tenants. and the Group’s management of capital.553 1. The Manager has established credit limits for tenants and monitors their balances on an on-going basis. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. liquidity risk and market risk. parties are considered to be related to the Group if the Group has the ability to directly or indirectly control the party or exercise significant influence over the party in making financial and operating decisions.199 6. Transactions involving derivative financial instruments are allowed only with counterparties that are credit worthy. that represents its estimate of incurred losses in respect of trade and other receivables. The Board of Directors of the Manager oversees how management of the Manager monitors compliance with the Group’s risk management policies and procedures. based on a specific loss component that relates to individually significant exposures. there were the following related party transactions: Group Trust 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Acquisition fees paid to the Manager 1.298 Rental income received/receivable from related corporations of the Manager 1.548 Property management fees payable (including reimbursable) to related 15.

As at 31 December 2011. Market risk Market risk is the risk that changes in market prices.178. giving rise to an estimated gain of $29. which will affect the Group’s total return or the value of its holdings of financial instruments. The Group assesses its capital management approach as a key part of the Group’s overall strategy. The Group is subject to the aggregate leverage limit as defined in the Property Funds Appendix.000 (2010: $1. The Group’s gearing stood at 37. The Manager monitors and maintains a level of cash and cash equivalents deemed adequate to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows.0%) only if a credit rating of the property fund from Fitch Inc.000) and liabilities of $12.4%) as at 31 December 2011. Interest rate risk The Group’s exposure to changes in interest rates relates primarily to interest-bearing financial liabilities. The property fund should continue to maintain and disclose a credit rating so long as its aggregate leverage exceeds 35.3% (2010: 38.0% and there were no changes in the Group’s approach to capital management during the financial year. Interest rate risk is managed by the Manager on an on-going basis with the primary objective of limiting the extent to which net interest expense could be affected by adverse movements in interest rates.611. the divestment of an investment property “CHIJMES” was completed for a cash consideration of $177 million.0% of the fund’s deposited property (up to a maximum of 60. 33 Subsequent events Subsequent to 31 December 2011. while optimising the return on risk. The aggregate leverage of a property fund may exceed 35. The Group has complied with the Aggregate Leverage limit of 60. the Manager monitors and observes the CIS Code issued by the MAS concerning limits on total borrowings. the Group has entered into interest rate swaps with a total notional amount of $1. the Group’s corporate family rating and unsecured debt rating is Baa2 and Baa3 respectively..114 Suntec REIT Annual Report 2011 Notes to the Financial Statements 32 Financial risk management (continued) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. such as interest rates. which include a divestment fee of $0.275 million (2010: $675 million) whereby the Group has agreed with counterparties to exchange. The Group monitors its gearing ratio and maintains it within the approved limits.876. The Property Funds Appendix stipulates that the total borrowings and deferred payments (together the “Aggregate Leverage”) of a property fund should not exceed 35.000 (2010: $513.0% of the fund’s deposited property. In addition. In the previous year. at specified intervals.9 million paid to the Manager.000). Capital management The Board of Directors of the Manager reviews the Group’s capital management policy regularly so as to optimise Unitholders’ return through a mix of available capital sources. the difference between floating rate and fixed rate interest amounts calculated by reference to the agreed notional principal amounts of the secured and unsecured term loans. The objective of market risk management is to manage and control market risk exposures within acceptable parameters. Moody’s or Standard and Poor’s is obtained and disclosed to the public.0% of the fund’s deposited property. comprising assets of $265.000 (2010: net asset of $665. and this is continuously reviewed by the Manager.8 million.000) (Note 9). . The fair value of the above swaps at 31 December 2011 is a net liability of $12.

446. 16.48 0.00 3.42 81. There were no treasury units held. 6.25 3. 2.053 % 26.1.198.12 11.63 TOTAL: . 10.47 0.115 Statistics of Unitholdings Issued and Fully Paid-Up Units As at 28 February 2012 There are 2.761.446.374.893 17.69 7.13 76.97 84.878.811.000 10.413 % 0.129 26.851 5.89 2. 15. 13.999 1.988 142.000.190 69.000 10.38 6. 18.821.083 11.717. Name 1.538.45 0.365 50. 3.48 0.315.51 0.231.84 1. 20. Distribution of Unitholdings As at 28 February 2012 Size of Unitholdings 1 .677.578 9.796. There is only one class of units in Suntec REIT.001 and above TOTAL : No.704 2.00 Twenty Largest Unitholders As at 28 February 2012 No. 17.657.657. of Units 594.894.91 100.00 No.10. 9. 4. of Units 8.269.304 10.85 2.138.820 305.80 0. 5.413 Units (voting rights: one vote per Unit) outstanding as at 28 February 2012.000.555 1.233 139.307 167.192 43 22.366.300 63. 19. of Unitholders 28 16.484 86.295 24.63 13.543.44 0.356.000 1.18 1.420.11 0.18 1.085 48.114 % 0.073.604 51.840. 7.31 2.352 41. 12.19 100.50 6. 11. 8.595 1.352.000 .300 9.062.231.001 . Citibank Nominees Singapore Pte Ltd HSBC (Singapore) Nominees Pte Ltd United Overseas Bank Nominees Pte Ltd DBS Nominees Pte Ltd Suntec City Development Pte Ltd DBSN Services Pte Ltd DBS Vickers Securities (S) Pte Ltd Chinowa Group Limited Bank of Singapore Nominees Pte Ltd Raffles Nominees (Pte) Ltd DB Nominees (S) Pte Ltd Winsor Properties (Overseas) Limited ARA Trust Management (Suntec) Limited BNP Paribas Nominees Singapore Pte Ltd Lee Shau Kee PCK Corporation CIMB Securities (Singapore) Pte Ltd Frank Wen-King Tsao Merrill Lynch (Singapore) Pte Ltd Chow Chung Kai No.964 267. 14.20 23.724.428.338 10.25 2.

Vincent Chow Wai Wai.8% of the Units are held in the public hands. Lim Hwee Chiang. .729 325.61% direct interest in ARA Asset Management Limited (“ARA”) and 36.484 – Note: 1 Units included 1.419.221. approximately 90. Lim Hwee Chiang.933. ARA Investors II Limited (“ARA Investors II”).8781 0 0 0 250.000 61. Lim Hwee Chiang. John Yeo See Kiat 0 250.878 units held by the Manager and its fellow subsidiary. Lim Hwee Chiang.000 2. Free Float Based on the information made available to the Manager as at 28 February 2012. a listed issuer must ensure that at least 10% of its listed securities are at all times held by public. John) and JL Philanthropy Ltd.420.933. John is the settlor of JL Charitable Settlement. John is deemed to be interested in 61. 2 Deemed interested in 250. Under Rule 723 of the Listing Manual of the SGX-ST.116 Suntec REIT Annual Report 2011 Statistics of Unitholdings Substantial Unitholders As at 28 February 2012 Number of Units Direct Interest Deemed Interest 1 Suntec City Development Pte Ltd1 139. Both the Manager and ARA Investors II are wholly-owned subsidiaries of ARA.000 200.000 units held by spouse.038 units held in trust for estate of deceased shareholder.000 2 Notes: 1 By virtue of Mr.59% deemed interest in ARA through JL Investment Group Limited (100% owned by Mr. Mr. Manager’s Directors’ Unitholdings As at 21 January 2012 As shown in the Register of Directors’ Unitholdings Number of Units Direct Interest Deemed Interest 1 2 3 4 5 Lim Hwee Chiang. John Tan Kian Chew Chen Wei Ching. John’s 0. The beneficiary of JL Philanthropy Ltd is JL Charitable Settlement and Mr.

983 1.224.148 465 3.553 15.078 1. .199 1. an aggregate of 2.058 Choicewide Group Limited Income Support 32.000) $’000 ARA Trust Management (Suntec) Limited and its associates Asset management fees Rental income Property management fees and reimbursables Acquisition fees Retail consultancy and project management Leasing commission HSBC Institutional Trust Services (Singapore) Limited Trustee fees Cavell Limited Income Support 13.519. On 20 January 2012.690 Subscription of Suntec REIT Units As at 31 December 2011.926.480 Units to the Manager as asset management fees for the period from 1 October 2011 to 31 December 2011. Suntec REIT issued 6.135 36.117 Additional Information Related Party Transactions The transactions entered with related parties during the financial period and which fall within the Listing Manual of the SGX-ST and the Property Funds Appendix are: Aggregate Value of All Related Party Transactions During the Financial Year Under Review (Excluding Transactions Less Than $100.933 Units were in issue.

Suntec International Convention & Exhibition Centre. with or without any modifications: 3. Suntec City. Singapore 039593 on Thursday. if any) at the time this Resolution is passed.118 Suntec REIT Annual Report 2011 Notice of Annual General Meeting NOTICE IS HEREBY GIVEN that the Annual General Meeting (“AGM”) of the holders of units of Suntec Real Estate Investment Trust (“Suntec REIT”. . and the holders of units of Suntec REIT. including but not limited to the creation and issue of (as well as adjustments to) securities. and (b) issue Units in pursuance of any Instrument made or granted by the Manager while this Resolution was in force (notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time such Units are issued). warrants. (Resolution 1) 2. as manager of Suntec REIT (the “Manager”) and the Audited Financial Statements of Suntec REIT for the financial year ended 31 December 2011 and the Auditors’ Report thereon. if any) (as calculated in accordance with sub-paragraph (B) below). 19 April 2012 at 10. “Unitholders”) will be held at Level 2. To re-appoint KPMG LLP as the Auditors of Suntec REIT to hold office until the conclusion of the next AGM of Suntec REIT and to authorise the Manager to fix their remuneration. consolidation or subdivision of Units. pass the following ordinary resolution. of which the aggregate number of Units to be issued other than on a pro rata basis to Unitholders (including Units to be issued in pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed twenty percent (20%) of the total number of issued Units (excluding treasury Units. Rooms 208 to 209. after adjusting for: (i) any new Units arising from the conversion or exercise of any Instruments which are outstanding as at the time this Resolution is passed. and (ii) any subsequent bonus issue.30 am to transact the following business: AS ORDINARY BUSINESS 1. “Instruments”) that might or would require Units to be issued. bonus or otherwise. at any time and upon such terms and conditions and for such purposes and to such persons as the Manager may. debentures or other instruments convertible into Units. 1 Raffles Boulevard. as trustee of Suntec REIT (the “Trustee”). (Resolution 2) AS SPECIAL BUSINESS To consider and if thought fit. agreements or options (collectively. GENERAL MANDATE FOR THE ISSUE OF NEW UNITS AND/OR CONVERTIBLE SECURITIES That authority be and is hereby given to the Manager to (a) (i) issue new units in Suntec REIT (“Units”) whether by way of rights. in its absolute discretion deem fit. the Statement by ARA Trust Management (Suntec) Limited. the total number of issued Units (excluding treasury Units. if any) (as calculated in accordance with subparagraph (B) below). provided that: (A) the aggregate number of Units to be issued pursuant to this Resolution (including Units to be issued in pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed fifty percent (50%) of the total number of issued Units (excluding treasury Units. To receive and adopt the Report of HSBC Institutional Trust Services (Singapore) Limited. if any) shall be based on the total number of issued Units (excluding treasury Units. (B) subject to such manner of calculation as may be prescribed by Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the purpose of determining the aggregate number of Units that may be issued under sub-paragraph (A) above. and/or (ii) make or grant offers.

(D) unless revoked or varied by the Unitholders in a general meeting. . the authority conferred by this Resolution shall continue in force until (i) the conclusion of the next AGM of Suntec REIT or (ii) the date by which the next AGM of Suntec REIT is required by applicable regulations to be held. By Order of the Board ARA Trust Management (Suntec) Limited as manager of Suntec REIT Yvonne Choo Busarakham Kohsikaporn Company Secretaries Singapore 27 March 2012 Notes 1. 50 Raffles Place #32-01. 3. Where a Unitholder appoints more than one proxy. A Unitholder entitled to attend and vote at the AGM is entitled to appoint not more than two proxies to attend and vote in his/her stead. the Manager shall comply with the provisions of the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the trust deed constituting Suntec REIT (as amended) (the “Trust Deed”) for the time being in force (unless otherwise exempted or waived by the Monetary Authority of Singapore). not later than 17 April 2012 at 10. Singapore Land Tower. and (F) the Manager and the Trustee be and are hereby severally authorised to complete and do all such acts and things (including executing all such documents as may be required) as the Manager or.30 a. The proxy form must be lodged at the Unit Registrar’s office at Boardroom Corporate & Advisory Services Pte. bonus or other capitalisation issues or any other events. the appointments shall be invalid unless he/she specifies the proportion of his/her holding (expressed as a percentage of the whole) to be represented by each proxy. [See Explanatory Note] (Resolution 3) 4. the Trustee may consider expedient or necessary or in the interest of Suntec REIT to give effect to the authority conferred by this Resolution. OTHER BUSINESS To transact such other business as may be transacted at an AGM.m. A proxy need not be a Unitholder. (E) where the terms of the issue of the Instruments provide for adjustment to the number of Instruments or Units into which the Instruments may be converted in the event of rights. as the case may be. 2. being 48 hours before the time fixed for the AGM.. Ltd. whichever is earlier.119 Notice of Annual General Meeting (C) in exercising the authority conferred by this Resolution. the Manager is authorised to issue additional Instruments or Units pursuant to such adjustment notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time the Instruments or Units are issued. Singapore 048623.

. after adjusting for new Units arising from the conversion or exercise of any Instruments which are outstanding at the time this Resolution is passed and any subsequent bonus issue. Fund raising by issuance of new Units may be required in instances of property acquisitions or debt repayments. the Manager will then obtain the approval of Unitholders accordingly. For determining the aggregate number of Units that may be issued. up to a number not exceeding 50% of which up to 20% may be issued other than on a pro rata basis to Unitholders (in each case. to issue Units. to make or grant Instruments and to issue Units pursuant to such Instruments. whichever is the earliest. if the approval of Unitholders is required under the Listing Manual of the SGX-ST and the Trust Deed or any applicable laws and regulations in such instances. if passed. consolidation or subdivision of Units. will empower the Manager from the date of the AGM until (i) the conclusion of the next AGM of Suntec REIT or (ii) the date by which the next AGM of Suntec REIT is required by the applicable regulations to be held. if any). or (iii) the date on which such authority is revoked or varied by the Unitholders in a general meeting. excluding treasury Units. In any event.120 Suntec REIT Annual Report 2011 Notice of Annual General Meeting Explanatory Note to Resolution to be passed: (i) Ordinary Resolution 3 above. whichever is earlier. the percentage of issued Units will be calculated based on the issued Units at the time Ordinary Resolution 3 above is passed.

Justin Chairman and Director (Appointment since 1 October 2004) Lim Hwee Chiang. Edmond Director (Appointment since 28 October 2004) Tan Kian Chew Independent Director (Appointment since 28 October 2004) Sng Sow-Mei (alias Poon Sow Mei) Independent Director (Appointment since 28 October 2004) Lim Lee Meng Independent Director (Appointment since 28 October 2004) DESIGNATED COMMITTEE Chow Wai Wai. Edmond (Appointment since 24 April 2008) AUDIT COMMITTEE Tan Kian Chew Chairman Sng Sow-Mei (alias Poon Sow Mei) Member Lim Lee Meng Member Chen Wei Ching. John Director (Appointment since 30 August 2004) Ip Tak Chuen. John Chairman Tan Kian Chew Member Chen Wei Ching. Vincent Member MANAGER ARA Trust Management (Suntec) Limited 6 Temasek Boulevard #16-02 Suntec Tower Four Singapore 038986 Telephone: +65 6835 9232 Facsimile: +65 6835 9672 DIRECTORS OF THE MANAGER Chiu Kwok Hung. Cheryl Member . Gerald Alternate Director to Ip Tak Chuen. John Non-executive Director (Appointment since 1 July 2007) Yeo See Kiat Chief Executive Officer and Director (Appointment since 25 January 2006) Ma Lai Chee. Vincent Independent Director (Appointment since 1 October 2010) Chow Wai Wai.121 Corporate Directory TRUSTEE Registered Address HSBC Institutional Trust Services (Singapore) Limited 21 Collyer Quay #14-01 HSBC Building Singapore 049320 Telephone: +65 6534 1900 Facsimile: +65 6533 1700 Trustee HSBC Institutional Trust Services (Singapore) Limited 21 Collyer Quay #03-01 HSBC Building Singapore 049320 Telephone: +65 6658 0458 Facsimile: +65 6534 5526 Chen Wei Ching. Vincent Member Seow Bee Lian.

50 Raffles Place #32-01 Singapore Land Tower Singapore 048623 Telephone: +65 6536 5355 Facsimile: +65 6536 1360 WEBSITES www.com .suntecreit.SI UNIT REGISTRAR Boardroom Corporate & Advisory Services Pte.ara-asia.122 Suntec REIT Annual Report 2011 Corporate Directory COMPANY SECRETARIES OF THE MANAGER Yvonne Choo Busarakham Kohsikaporn AUDITOR OF THE TRUST KPMG LLP 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 Telephone: +65 6213 3388 Facsimile: +65 6225 2230 (Partner-in-charge: Karen Lee) (Appointed since Financial Year 2011) LEGAL ADVISER Allen & Gledhill LLP One Marina Boulevard #28-00 Singapore 018989 Telephone: +65 6890 7188 Facsimile: +65 6327 3800 STOCK EXCHANGE QUOTATION BBG: SUN SP Equity RIC: SUNT.com www. Ltd.

please indicate the number of votes as appropriate. To authorise the Manager to issue Units and to make or grant convertible instruments. they must submit their voting instructions to the CPF Approved Nominees within the time frame specified to enable the CPF Approved Nominees to vote on their behalf. 2. AS SPECIAL BUSINESS 3. To receive and adopt the Report of the Trustee. 19 April 2012 at 10. To transact any other business which may be transacted at an AGM. Rooms 208 to 209. 4. of Votes Against** NRIC/ Passport No. *I/We direct *my/ our *proxy/proxies to vote for or against the resolutions to be proposed at the AGM as indicated hereunder. Proportion of Unitholdings No. SUNTEC REAL ESTATE INVESTMENT TRUST (Constituted in the Republic of Singapore pursuant to a trust deed dated 1 November 2004 (as amended)) 2. on Thursday. Resolutions relating to: AS ORDINARY BUSINESS 1. Suntec City. Suntec International Convention & Exhibition Centre.) (Address) being a unitholder/unitholders of Suntec Real Estate Investment Trust (“Suntec REIT”). of Units % * Delete where inapplicable ** If you wish to exercise all your votes “For” or “Against”. Proportion of Unitholdings No. Common Seal of Corporate Unitholder  . and at any adjournment thereof. this Annual Report is forwarded to them at the request of the CPF Approved Nominees and is sent solely FOR INFORMATION ONLY. For investors who have used their CPF monies to buy Suntec REIT’s units. Dated this day of 2012 Total number of Units held Signature of Unitholder(s)/and.30 a. CPF investors who wish to attend the Annual General Meeting as observers have to submit their requests through their CPF Approved Nominees within the time frame specified. please tick () within the box provided.m. This Proxy Form is not valid for use by CPF investors and shall be ineffective for all intents and purposes if used or purported to be used by them. 1 Raffles Boulevard. If no specific direction as to voting is given. the Chairman of the Annual General Meeting (“AGM”) as *my/our *proxy/proxies to attend and vote for *me/us on *my/our behalf at the AGM of the Suntec REIT to be held at Level 2. Singapore 039593. No. 3. No. the Statement by the Manager and the Audited Financial Statements of Suntec REIT for the year ended 31 December 2011. PROXY FORM ANNUAL GENERAL MEETING I/We of (Name) (NRIC/Passport No. PLEASE READ NOTES TO THE PROXY FORM. the *proxy/proxies will vote or abstain from voting at *his/their discretion. of Units % NRIC/ Passport No. If they also wish to vote. Alternatively. of Votes For** No.IMPORTANT: 1. OTHER BUSINESS 4. hereby appoint: Name Address and/or (delete as appropriate) Name Address or both of whom failing. To re-appoint KPMG LLP as Auditors of Suntec REIT and authorise the Manager to fix the Auditors’ remuneration. as they will on any other matter arising at the AGM.

At any meeting. . Completion and return of the Proxy Form shall not preclude a Unitholder from attending and voting at the AGM. being 48 hours before the time set for the AGM. A person entitled to more than one vote need not use all his/her votes or cast them the same way. 50 Raffles Place #32-01. Singapore Land Tower Singapore 048623 2nd fold here IMPORTANT: PLEASE READ THE NOTES TO PROXY FORM BELOW Notes To Proxy Form 1. he/she should insert that number of Units. Singapore 048623. On a poll.m.. Where the Proxy Form is signed on behalf of the appointor by an attorney or a duly authorised officer. the power of attorney or other authority (if any) under which it is signed. this Proxy Form (as defined in note 5 below) will be deemed to relate to all the Units held by the Unitholder. If the Unitholder has Units registered in his/her name in the Register of Unitholders of Suntec REIT. he/she should insert that number of Units. or a notarially certified copy of such power or authority must (failing previous registration with the Manager) be lodged with the Proxy Form. a declaration by the Chairman that such a resolution has been carried or carried unanimously or by a particular majority or lost shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution. 5. In addition. 50 Raffles Place #32-01. as certified by CDP to the Manager. failing which the Proxy Form may be treated as invalid. The Proxy Form must be executed under the hand of the appointor or of his/her attorney duly authorised in writing. Ltd. 10. the appointments shall be invalid unless he/she specifies the proportion of his/her holding (expressed as a percentage of the whole) to be represented by each proxy. There shall be no division of votes between a Unitholder who is present in person and voting at the AGM and his/her proxy(ies). a resolution put to the vote of the meeting shall be decided on a show of hands unless a poll is (before or on the declaration of the result of the show of hands) demanded by the Chairman or by five or more Unitholders present in person or by proxy. not later than 17 April 2012 at 10. All Unitholders will be bound by the outcome of the AGM regardless of whether they have attended or voted at the AGM. Singapore Land Tower..3rd fold this flap for sealing Affix Postage Stamp ARA Trust Management (Suntec) Limited (as manager of Suntec Real Estate Investment Trust) c/o Unit Registrar Boardroom Corporate & Advisory Services Pte. 3. in the case of Units entered in the Depository Register. Unless a poll is so demanded. Where a Unitholder appoints more than one proxy. 6. Where the Proxy Form is executed by a corporation. 1st fold here 9. A Unitholder should insert the total number of Units held. 4. 2. A unitholder of Suntec REIT (“Unitholder”) entitled to attend and vote at the Annual General Meeting (“AGM”) is entitled to appoint one or two proxies to attend and vote in his/her stead. the Manager may reject a Proxy Form if the Unitholder. it must be executed under its common seal or under the hand of its attorney or a duly authorised officer. If the Unitholder has Units entered against his/her name in the Depository Register maintained by The Central Depository (Pte) Limited (“CDP”). 11. If the Unitholder has Units entered against his/her name in the said Depository Register and registered in his/her name in the Register of Unitholders. A proxy need not be a Unitholder. Ltd. 7. 8. 12. he/she should insert the aggregate number of Units. being the appointor. The instrument appointing a proxy or proxies (the “Proxy Form”) must be deposited at the Unit Registrar’s office at Boardroom Corporate & Advisory Services Pte. If no number is inserted.. The Manager shall be entitled to reject a Proxy Form which is incomplete. is not shown to have Units entered against his/her name in the Depository Register as at 48 hours before the time appointed for holding the AGM. improperly completed or illegible or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified on the Proxy Form.30 a. every Unitholder who is present in person or by proxy shall have one vote for every Unit of which he/she is the Unitholder. or by one or more Unitholders present in person or by proxy holding or representing not less than one-tenth in value of the Units represented at the meeting.

com .suntecreit.ARA Trust Management (Suntec) Limited 6 Temasek Boulevard #16-02 Suntec Tower Four Singapore 038986 Tel: (65) 6835 9232 Fax: (65) 6835 9672 www.

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