ANNUALREPORT
2023

WHERE IDEAS
TAKE SHAPEAt CapitaLand Ascott Trust, we remain focusedon creating long-term sustainable value for our
stakeholders. We bring diverse ideas and leverage
our global real estate investment management
expertise across our multifaceted portfolio ofserviced residences, hotels, rental housing andstudent accommodation properties – supported bya strong team on the ground.
The convergence and interconnection of distinct
shapes on the cover page captures this essence.
It also showcases our dynamic ONE CapitaLand
Ecosystem, as we forge ahead together with ashared purpose of making a positive impact.

CONTENTS
Overview
2

About CapitaLand Ascott
Trust

4

FY 2023 Key Highlights

6

Trust Structure &Organisation Stucture

7

5-Year Financial Summary

8

Q&A in Conversation
with Chairman & CEO

Leadership12

Our Boards of Directors

18 The Managers

Portfolio & Performance
20 Our Global Presence
22 Reconstituting Our Portfolio
26 Portfolio Overview
30 Operations Review
62 Financial Review
69 Portfolio Listing76 Investor Relations
Sustainability & Governance
79 Sustainability Management
87 Risk Management
93 Corporate Governance
136 Statement Of Policies andPractices
Financial Statements andOther Information
143 Financial Statements
344 Additional Information

ABOUT CAPITALAND ASCOTT TRUSTCapitaLand Ascott Trust (CLAS) is the largest lodging
trust in Asia Pacific with an asset value of S$8.7 billion
as at 31 December 2023. Having listed on the Singapore
Exchange Securities Trading Limited (SGX-ST) since
March 2006, CLAS’ objective is to invest primarily inincome-producing real estate and real estate-related
assets which are used or predominantly used asserviced residences, rental housing properties, student
accommodation and other hospitality assets in any
country in the world. CLAS is a constituent of the FTSEEPRA Nareit Global Real Estate Index Series (Global
Developed Index).
CLAS’ international portfolio comprises 106 properties
with over 19,000 units in 45 cities across 16 countries in
Asia Pacific, Europe and the United States of America
as at 31 December 2023.
CLAS’ properties are mostly operated under the Ascott,Somerset, Quest and Citadines brands. They are mainly
located in key gateway cities such as Barcelona, Berlin,
Brussels, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur,
London, Manila, Melbourne, Munich, New York, Paris,
Perth, Seoul, Singapore, Sydney and Tokyo.

OUR VISION

CLAS continued to receive recognition in 2023 for its
commitment to upholding high standards of corporate
governance, investor engagement and sustainability.
CLAS retained its top spot in the REITs and Business
Trusts category of the Singapore Governance andTransparency Index 2023 for the third year running. CLAS
was also named “Global Sector Leader (Listed – Hotel)”in the 2023 GRESB Real Estate Assessment for thethird consecutive year, in recognition of its outstanding
leadership in sustainability. CLAS is a constituent of
the iEdge-UOB APAC Yield Focus Green REIT Index
and the iEdge-OCBC Singapore Low Carbon Select
50 Capped Index.
CLAS is a stapled group comprising CapitaLand Ascott
Real Estate Investment Trust (CapitaLand Ascott REIT)
and CapitaLand Ascott Business Trust (CapitaLand
Ascott BT). CLAS is managed by CapitaLand Ascott TrustManagement Limited (as manager of CapitaLand AscottREIT) and CapitaLand Ascott Business Trust Management
Pte. Ltd. (as trustee-manager of CapitaLand Ascott BT).
The manager and trustee-manager are wholly-owned
subsidiaries of Singapore-listed CapitaLand Investment
Limited, a leading global real estate investment manager
with a strong Asia foothold.

To be the premier hospitality trust withquality assets in key global cities

OUR MISSION

To deliver stable and sustainable
returns to Stapled Securityholders

2

CAPITALAND ASCOTT TRUSTOverview

Total Assets

S$8.7B
106

Properties

Leadership>19,000
Units

Countries

16

45

CitiesPortfolio & Performance

Sustainability & Governance

Financial Statements andOther Information

3

ANNUAL REPORT 2023

FY 2023
KEY HIGHLIGHTSCONTINUED GROWTH IN DISTRIBUTIONS

16% YoY increase to
6.57 cents
Distribution per Stapled Security

23% YoY increase to
S$148
Revenue per Available Unit

ACTIVE PORTFOLIO RECONSTITUTION
AND ASSET ENHANCEMENT
CompletedAccretive
acquisition of

S$530.8M

in lodging properties

4

Divesting

S$260.1M

in mature properties

CAPITALAND ASCOTT TRUST

developmentof Standard at
Columbia,with strong occupancyof >90% upon opening

Embarked on

5 assetenhancement
initiatives,with 3 morecommencing in
2024

Overview

Standard at Columbia, South Carolina, USA

Leadership
Portfolio & Performance

PRUDENT CAPITAL MANAGEMENT,HEALTHY FINANCIAL POSITION>S$400M of debt refinanced,
including the issuance of
S$220M in medium-term notes
Successfully raised S$303.1M
in equity despite challenging
market conditions

2%

Credit rating
upgraded to

81%

BBB

increase(Stable Outlook)in portfolio
valuation

Debt effectively
on fixed rates

37.9%

2.4% p.a.

4.0 times

Healthy gearing

Low average
cost of debt

Sustainability & Governance

Received strong
support from investors
and capital partners

Robustinterest cover

LEADERSHIP IN SUSTAINABILITY
Global Sector Leader (Listed – Hotel)
Ranked 1ST

2023 Singapore Governance and Transparency
Index (REITs and Business Trusts)
1

Published firstexternally assured1 sustainability reportin accordance with ISAE 3000

Limited assurance over a selection of key ESG indicators and indicators from the GRI standards, as well as CLAS’ progress against
the sustainability performance targets of its sustainability-linked bonds
ANNUAL REPORT 2023

5

Financial Statements andOther Information

2023 GRESB Real Estate Assessment

Inclusion into

iEdge-UOB APAC Yield Focus
Green REIT Index

TRUST STRUCTURE
CapitaLand Ascott Trust (CLAS) is a stapled group comprising CapitaLand Ascott Real Estate Investment Trust(CapitaLand Ascott REIT), a real estate investment trust, and CapitaLand Ascott Business Trust (CapitaLand
Ascott BT), a business trust, with the following structure:

Stapled Securityholders
Holdingsof Stapled
Securities

TRUSTEEDBS Trustee
LimitedMANAGER
CapitaLand
Ascott TrustManagement
LimitedDistributions

Acts on behalfof holders of
the CapitaLand
Ascott REIT
units

TrusteefeesManagement
servicesManagement
fees

CAPITALAND
ASCOTTREAL
ESTATEINVESTMENT
TRUST(CAPITALAND
ASCOTT REIT)

CAPITALAND
ASCOTT
BUSINESSTRUST(CAPITALAND
ASCOTT BT)

Stapling
deed

Acts on behalfof holders of
the CapitaLand
Ascott BT units
and provides
management
services

Trustee fees andmanagement
fees

TRUSTEEMANAGER
CapitaLand
AscottBusiness TrustManagement
Pte. Ltd.

Net profit /dividends

Ownership ofassets / shares

PORTFOLIO OF PROPERTIESORGANISATION STRUCTURE
BOARDS OF DIRECTORS• Audit and Risk Committee1• Executive Committee• Nominating andRemuneration Committee
Chief Executive Officer

Investment

1

6

Asset
Management

Finance

Investor
Relations

The Audit Committee was renamed the Audit and Risk Committee with effect from 1 January 2024.

CAPITALAND ASCOTT TRUST

Sustainability

Overview
Overview

5-YEARFINANCIAL SUMMARY
2021

2020

2019

Gross Revenue (S$ million)

744.5

621.2

394.4

369.9

514.9

Gross Profit (S$ million)

338.2

282.8

173.3

149.6

252.6

Total Distribution (S$ million)

237.0

189.8

137.3

94.2

165.6

Distribution per Stapled Security (DPS) (cents)

6.57

5.67

4.32

3.03

7.61

Distribution Yield1 (%)

6.64

5.40

4.19

2.81

5.72

Balance Sheet as at 31 December

2023

2022

2021

2020

2019

Total Assets (S$ million)

8,730.8

8,023.7

7,733.2

7,163.8

7,422.8

Stapled Securityholders' Funds (S$ million)

4,356.4

3,965.4

3,890.9

3,567.3

3,860.6

Total Borrowings (S$ million)

3,048.4

2,874.6

2,728.9

2,462.5

2,349.0

Financial Ratios as at 31 December

2023

2022

2021

2020

2019

Net Asset Value (NAV) per Stapled Security (S$)

1.16

1.15

1.19

1.15

1.25

Aggregate Leverage (%)

37.9

38.0

37.1

36.3

33.6

Interest Cover Ratio2 (times)

4.0

4.4

3.7

2.73

5.83

Adjusted Interest Cover Ratio4 (times)

3.4

3.6

2.8

2.0

3.9

Management Expense Ratio5 (%)

1.2

1.1

1.0

1.0

0.8

Financial Derivatives as a Percentage of NAV 6 (%)

1.9

2.2

0.7

0.7

0.3

2023

2022

2021

2020

2019

Market Capitalisation1 (S$ million)

3,725.7

3,617.9

3,374.8

3,356.7

4,100.5

Number of Stapled Securities in Issue (million)

3,763.3

3,445.6

3,276.5

3,108.0

3,083.1

Other information as at 31 December

1
2
3

5
6

ANNUAL REPORT 2023

7

Other Statements
Informationand
Financial
Other Information

4

Based on the closing price on the last trading day of each respective year. 2023: S$0.99, 2022: S$1.05, 2021: S$1.03, 2020: S$1.08
and 2019: S$1.33.
Refers to EBITDA (earnings before interest expense, income tax expense, depreciation and amortisation) before change in fairvalue of financial derivatives, change in fair value of investment properties, investment properties under development and assets
held for sale, revaluation surplus/(deficit) on land and buildings, and foreign exchange differences over interest expense.
Restated to exclude the interest expense on lease liabilities following the release of the circular dated 28 December 2021 fromMonetary Authority of Singapore to exclude the interest expense on lease liabilities in the computation.
Refers to EBITDA before change in fair value of financial derivatives, change in fair value of investment properties, investment
properties under development and assets held for sale, revaluation surplus/(deficit) on land and buildings, and foreign exchange
differences over interest expense and distributions on hybrid securities as defined in the Code on Collective Investment Schemes.
Perpetual securities are the only hybrid securities that CLAS holds.
Refers to expenses (excluding direct expenses, foreign exchange differences, net interest expense, change in fair value of financial
derivatives, change in fair value of investment properties, investment properties under development and assets held for sale,revaluation surplus/(deficit) on land and buildings, investment properties written off and income tax expense) over net asset value.
Financial derivatives refer to the cross currency interest rate swaps, currency forwards and interest rate swaps which CLAS hasentered into.

Our Financials
Sustainability & Governance2022

Our Frameworks
Portfolio & Performance2023

Our Business
Leadership

For the Financial Year

Q&A IN CONVERSATION WITH
CHAIRMAN & CEO

MR TAN BENG HAI, BOB

MS TEO JOO LING, SERENA

Chairman

Chief Executive Officer

As a responsible steward, we are committed to delivering sustainable
returns and creating value for our Stapled Securityholders in a disciplinedmanner. CLAS delivered a strong performance in FY 2023, increasing
Distribution per Stapled Security by 16%.
Over the past three years, we have divested properties at a premium tobook value and the proceeds have been successfully reinvested
into higher-yielding assets, improving the returns andresilience of CLAS’ portfolio.
8

CAPITALAND ASCOTT TRUSTThe 11 longer-stay properties (rental housing
and student accommodation properties) weacquired in FY 2022 contributed to our stable
income streams in FY 2023.

What were the tailwinds and headwinds?

A

Chairman: CLAS delivered a strong
performance in FY 2023, increasing Distribution
per Stapled Security (DPS) by 16% year-on-year(YoY) to 6.57 Singapore cents. This is the third
consecutive year we have increased DPS since
FY 2020 despite the pandemic. Excluding one-off
items1, our adjusted DPS was 14% higher YoY.
The rise was due to our strong operating
performance and acquisitions of quality
assets that have contributed to our income.
Our balanced portfolio of stable and growth
income streams enables CLAS to capture
growth opportunities while remaining resilient
amidst uncertainties.

In the fourth quarter of 2023 (4Q 2023),
CLAS’ portfolio Revenue per Available Unit
(RevPAU) was at 103% of pre-pandemic levels.
The average occupancy of our portfolio was
77%, and average daily rates were more than
10% above pre-pandemic levels.

The return of outbound travel from China
was slower than expected, however, as flightcapacities and sentiment towards international
travel had not fully recovered.

123Securityholders?

A

Chairman: Through our active portfolio
reconstitution strategy, we constantly monitor
the growth potential of our properties and seek
opportunities to enhance the quality of ourportfolio to deliver sustainable returns to Stapled
Securityholders. CLAS divests properties whichhave reached the optimal stage of their life cycle
and recycles the proceeds into value-adding
opportunities through accretive acquisitions,asset enhancement initiatives (AEIs) or new
development projects.
Over the past three years, we have divested
properties at a premium to book value,
unlocking gains for Stapled Securityholders,
and the proceeds from the divestments havebeen successfully reinvested into higheryielding assets, improving the returns andresilience of CLAS’ portfolio.
From July 2023 to February 2024, we enteredinto agreements to divest 10 properties for
S$408.1 million, at an average exit yield of
3.8%2. The exit yield compares favourably to
the EBITDA yield of 6.2%3 of the acquisitions
we entered into in FY 2023.

Comprising realised exchange gain in FY 2022 and FY 2023.
Exit yield of the France and Australia properties is computed based on FY 2022 Earnings before Interest, Taxes, Depreciation
and Amortisation (EBITDA), and the exit yield of the Singapore property is computed based on FY 2023 EBITDA. The exit yieldfor the Japan portfolio is not meaningful as the properties were largely closed in 2022.
The EBITDA yield of 6.2% is on a FY 2022 pro forma basis and based on agreed property value of the properties excluding
the milestone payment and before AEIs, if any. Including the milestone payment, the EBITDA yield is 5.1%.
ANNUAL REPORT 2023

9

Financial Statements andOther Information

As we rode the tailwinds of the hospitality sector,
CLAS’ diversified and well-balanced portfolio
offered resilience amidst macroeconomic
and geopolitical uncertainties and inflationarypressures.

does portfolio reconstitution enable
Q How
CLAS to create greater value for Stapled

Sustainability & Governance

CLAS’ key markets, Australia, Japan, Singapore,
United Kingdom and the United States ofAmerica continued to exceed pre-pandemic
same-store levels. Japan posted the strongest
YoY growth in RevPAU, fuelled by the reopeningof its international borders in late-2022.
The RevPAU of our properties in Vietnam andChina continued to improve through FY 2023
to over 85% of pre-pandemic levels in 4Q 2023.

The improvement in our operating performanceand outlook also resulted in an increase of about
2% in CLAS’ portfolio valuation, notwithstanding
higher capitalisation and discount rates acrossmost markets.

Portfolio & Performance

Our serviced residences and hotels continued
to benefit from the recovery of the hospitality
sector as global flight capacities increased
and demand for travel picked up. The increase
in tourism as well as business activities andmeetings, incentives, conventions andexhibitions (MICE), particularly in gateway cities,
were key demand drivers for our properties.

With the stronger operating performance andcontributions from new properties, CLAS’
growth in revenue was more than sufficient
to mitigate the rise in operating and financing
costs in FY 2023.

Leadership

Our serviced residences and longer-stayproperties, which predominantly serve longstay guests, have leaner operating structuresand lower manning requirements. In addition,
we work with our operators on cost containment
measures to manage our operating expenses.
Our prudent capital management has alsoenabled CLAS to mitigate the impact of higher
interest rates and foreign currency movements.

Overview

did CapitaLand Ascott Trust perform
Q How
in the financial year 2023 (FY 2023)?

Q&A IN CONVERSATION WITH
CHAIRMAN & CEO
We are guided by our medium-term asset
allocation target, which is to have 25-30% of our
total portfolio value in longer-stay properties,
and the remaining 70-75% in hospitality assets,
for a balanced mix of stable and growth income
streams.
CEO: In FY 2023, we divested four matureserviced residences in regional France fora total of EUR44.4 million (S$64.7 million) at
63% above book value. The proceeds fromthe divestment have been used for our AEIs in
Europe, and to partially finance the acquisitionin Dublin.
Apart from the properties in France, we alsoannounced the divestment of three properties
in Osaka, Japan, for a total of JPY10.7 billion(S$99.8 million) at 15% above book value andtwo mature hotels in the outskirts of Sydney,
Australia, for a total of AUD109.0 million(S$95.6 million) at 5% above book value.

Following the renovation and stabilisation of theproperty, the EBITDA yield of The Cavendish
London is expected to increase to 6.5%, andits valuation is expected to be GBP316.0 million
in 20274. This is an increase of GBP97.0 million
from the valuation of GBP219.0 million as at
31 December 2023.
The Temple Bar Hotel is in the Temple Bar
district of Dublin, which is a high-traffic area
near iconic attractions. Ascott Kuningan Jakarta
is in the capital city’s central business district,close to embassies and commercial offices.
can investors look forward to in
Q WhatFY 2024?

A

The global economy is expected to grow 3.1%
in 2024, maintaining the same pace of growth
as in 20235. The resilience of the world’s major
economies in conjunction with a fall in inflation
has decreased the likelihood of a hard landing5.

In February 2024, we announced the divestment
of Citadines Mount Sophia Property Singapore,a serviced residence in Singapore, for
S$148.0 million, close to S$1.0 million a key, and
19% above the property’s book value.

International visitor arrivals, which were at 88%
of pre-pandemic levels in 2023, are projected
to make a full recovery in 20246. China’s
international air travel market is also expected
to extend its recovery, with weekly flights
projected to resume to 80% of pre-pandemic
levels by the end of the year7.

The divestments in Japan, Australia andSingapore, which have, or are expected to becompleted in 2024, offer us the flexibility toredeploy the proceeds into more optimal uses
such as investing into higher-yielding assets
and funding our AEIs. The divestments alsoenable us to strengthen our balance sheet
and potentially lower gearing by close to
2 percentage points.

The anticipated increase in flight capacities
and visitor arrivals bode well for CLAS. RevPAU
growth, which may moderate after the strong
rebound in FY 2023, is expected to be primarily
driven by increased occupancies as average
daily rates stabilise. To mitigate rising operating
and financing costs, we remain disciplined inour cost and capital management.

On acquisitions, the three properties in
London, Dublin and Jakarta were acquired
at a combined agreed property value of
S$530.8 million. The EBITDA yield of 6.2%
translates into DPS accretion of 1.8%.
The properties are well-located and primed tocapture travel demand.

CEO: In FY 2023, we renewed the master leases
for seven of our properties in France. Under
the new rent structure, the fixed rent provides
resilience while the variable rent enables us tocapture the demand from increased travel. Fiveof the seven properties are in Paris, and are
expected to enjoy an uplift from the Paris 2024
Summer Olympics. The total rent for the sevenFrench master leases in FY 2024 is projected
to be approximately 28% higher under the
renewed master leases8.

The Cavendish London is situated in the
exclusive Mayfair high-end shopping districtof central London, and presents an excellent
value-add opportunity for CLAS. The property
will be renovated and rebranded under The
Crest Collection brand, a luxury collection
brand managed by Ascott, and AEI costs will
be co-shared with the operator.
4
5
6

10

Based on the valuation by HVS London.
Source: International Monetary Fund (2024)
Source: World Tourism Organization (2024)
CAPITALAND ASCOTT TRUST

Chairman: We remain cautiously optimistic
about the outlook for CLAS and will continue
to be proactive in our portfolio management.

7
8

Source: Civil Aviation Administration of China (2024)
Based on HVS’ lease benchmarking report.

The rebranding and refurbishment of Riverside
Hotel Robertson Quay to The Robertson House
by The Crest Collection, a luxury hotel, hasbeen completed in 1Q 2024. The remaining
AEI projects are expected to be completed
between 2024 and 2026.

We will continue to build a sustainable portfolio,
in alignment with CapitaLand Investment’s
2030 Sustainability Master Plan.

We are grateful for the strong support ofour investors and capital partners despite
the challenging market environment. This
has enabled us to strengthen our financial
position and push forth with our value creation
initiatives. In 2024, we will continue to focus on
executing our pipeline of AEIs, while evaluating
opportunities for portfolio reconstitution toenhance the quality and yield of our portfolio.

A

CEO: CLAS remains committed to meeting oursustainability goals. Sustainability is at the heartof what we do and it is factored into the different
stages of the real estate cycle, such as when
we acquire, develop or refurbish properties.
We also work with like-minded operators who
manage our properties in a sustainable manner.
CLAS is also able to leverage our sustainability
achievements to explore sustainable financing
options, enabling us to further mitigate our costof borrowing.

As part of the Boards' renewal, I would like towelcome Mr Lui Chong Chee and Mr Max Loh
who have joined the Boards in February 2024
and November 2023 respectively. I would also
like to express our appreciation to Mr Melvyn
Ong, who stepped down from the Boards inJanuary 2024, for his invaluable contributions.
I will be retiring from the Boards with effectfrom 22 April 2024 and would like to thank ourStapled Securityholders, guests and business
partners for their support over the past nine
years. It has been a privilege working alongside
an outstanding management team and very
committed and supportive directors in bringing
CLAS to what it is today. Going forward, I haveevery confidence that under Chong Chee, the
new chairman of the Boards, CLAS will continue
to do well for our Stapled Securityholders andachieve even greater heights.

ANNUAL REPORT 2023

11

Financial Statements andOther Information

As at 31 December 2023, about 49% of CLAS’gross floor area is green certified and CLAS
has over S$550 million in sustainable financing.
As testament to our commitment towards
sustainability, CLAS has been recognised

In 2023, CLAS was ranked first in the Singapore
Governance and Transparency Index for the
REITs and Business Trusts category for the third
consecutive year.

Sustainability & Governancedoes CLAS pursue growth
Q How
responsibly?

We have achieved steady growth in our DPS
over the past three years and built a stronger
and more resilient portfolio. CLAS is the largest
lodging trust in Asia Pacific with a diversified
portfolio across more than 45 cities and
16 countries. CLAS’ portfolio today marries
growth with stability – hospitality assets
which are well-positioned to capture growth
opportunities in an upturn, balanced by longerstay properties which provide stable income
streams and are counter cyclical. In addition,
CLAS is in a robust financial position andcontinues to receive strong support from ourSponsor.

Portfolio & Performance

We will continue to exercise prudence in ourcapital management. CLAS has an investment
grade credit rating of BBB with a stable outlook
by Fitch Ratings. As at 31 December 2023, ouraverage cost of debt was 2.4% per annum andit is expected to increase in FY 2024 as someof our debt is refinanced. However, the increase
will be mitigated, with about 81% of CLAS’debt effectively on fixed rates. Our gearing andinterest cover are healthy at 37.9% and 4.0 times
respectively. Our exposure to foreign exchange
movements is mitigated by our geographicallydiversified portfolio and hedging strategies.

Chairman: As a responsible steward, we arecommitted to delivering sustainable returns andcreating value for our Stapled Securityholders
in a disciplined manner.

Leadershipby GRESB as the “Global Sector Leader(Listed – Hotel)” for the third year in a row
and included as a constituent of the iEdgeUOB APAC Yield Focus Green REIT Index
in 2023.

Overview

To drive further organic growth, we haveannounced AEI plans for eight of our properties.
The properties are in prime locations of key
gateway cities such as London, Singapore,
Sydney and Paris.

OUR BOARDSOF DIRECTORS

Tan Beng Hai, Bob

Teo Joo Ling, Serena

Sim Juat Quee Michael Gabriel

Chia Kim Huat

Deborah Lee Siew Yin

Max Loh Khum Whai

Lui Chong CheeGoh Soon Keat Kevin

Beh Siew Kim

Chairman
Non-Executive Independent Director

Non-Executive Independent Director

Non-Executive Independent Director

12

CAPITALAND ASCOTT TRUST

Chief Executive Officer
Executive Non-Independent Director

Non-Executive Independent Director

Non-Executive Non-Independent
Director

Non-Executive Independent Director

Non-Executive Independent Director

Non-Executive Non-Independent
Director

Overview

TAN BENG HAI, BOB, 72

TEO JOO LING, SERENA, 50• Fellow, Institute of Chartered Accountants in Englandand Wales, UK• Master in Business Administration, INSEAD

Chairman
Non-Executive Independent Director

Date of first appointment as a Director

Chief Executive Officer
Executive Non-Independent Director• Bachelor of Electrical and Electronic Engineering(Honours), National University of Singapore

24 April 2015

Date of first appointment as a Director

1 September 2016

Length of service as a Director(as at 31 December 2023)

Date of appointment as Chairman

8 years 8 months

Board committee served on• Nominating and Remuneration Committee(Chairman)
Present directorships in other listed companies• Singapore Post Limited• SBS Transit Ltd• CapitaLand Ascott Trust Management Limited
and CapitaLand Ascott Business TrustManagement Pte. Ltd. (Chairman)• Jurong Engineering Limited (Chairman)• Sentosa Development Corporation(Chairman)
Past directorships in other listed companies held
over the preceding three years• Sembcorp Marine Ltd

Background and working experienceAwards• Executive Committee (Member)Present principal commitments• CapitaLand Ascott Trust Management Limited
and CapitaLand Ascott Business TrustManagement Pte. Ltd. (Chief Executive Officer
and Executive Non-Independent Director)
Background and working experience• CapitaLand Ascott Trust Management Limited
and CapitaLand Ascott Business TrustManagement Pte. Ltd.
• Chief Executive Officer (2022 to present)• Deputy Chief Executive Officer (2021 to 2022)• Ascendas Funds Management (S) Limited• Head, Portfolio Management (2019 to 2021)• Head, Singapore Portfolio & AssetManagement (2018 to 2019)• Ascendas Services Pte Ltd• Head, Operations and Services (2015 to 2018)• Ascendas Land (S) Pte Ltd• Head, Group Strategy Management (2013 to2015)• Vice President, Group Strategy Management(2008 to 2011)• Ascendas India Development Fund Management
Pte Ltd• Vice President, Fund Management (2011 to2013)• EDB Investments Pte Ltd• Senior Investment Manager (2008)• EDB• Programme Director (2007)• Head, Semiconductors (1998 to 2006)• Chartered Semiconductors Manufacturing• Reliability Engineer (1996 to 1997)

ANNUAL REPORT 2023

13

Financial Statements andOther Information• NTUC May Day Award – Distinguished Service
Star Award 2022 (highest award)• NTUC May Day Distinguished Service Award in
2018• The Meritorious Service Medal (Pingat Jasa
Gemilang) – National Day Award in 2017
• NTUC May Day Meritorious Service Award in2013• Public Service Star Award (Bintang Bakti
Masyarakat - BBM) – National Day Award in2010• NTUC May Day Friend of Labour Award in 2000

Board committee served on

Sustainability & Governance• Managing Director, Novar International
Pte Ltd (2000 to 2005)• Managing Director, Caradon Asia-Pacific Pte
Ltd (1990 to 2000)• General Manager, MK Electric (Singapore) Pte
Limited (1980 to 1990)• Overseas Operations Accountant, MK
Electric Ltd (England) (1977 to 1980)• Articled Clerk, Bowker Orford & Co (England)(1972 to 1977)

1 year 6 months

Portfolio & Performance

Present principal commitments (other thandirectorships in other listed companies)

Leadership

Length of service as a Director(as at 31 December 2023)

1 July 2022

OUR BOARDSOF DIRECTORSSIM JUAT QUEE MICHAEL GABRIEL, 68

CHIA KIM HUAT, 57• Fellow, Association of Chartered Certified Accountants, UK• Bachelor of Law (Honours), National University ofSingapore

Non-Executive Independent Director• Fellow, Institute of Singapore Chartered Accountants

Non-Executive Independent Director• Fellow, Certified Public Accountant, Australia• Advocate & Solicitor, Supreme Court of Singapore• Master of Business Administration, University of South
Australia, Australia

Date of first appointment as a Director• Certified Fraud Examiner, Association of Certified Fraud
Examiners
Date of first appointment as a Director

15 April 2020

Length of service as a Director(as at 31 December 2023)

3 years 8 months

1 September 2016

Length of service as a Director(as at 31 December 2023)

7 years 4 months

Board committee served on• Audit and Risk Committee (Member)Present directorships in other listed companies• SATS Ltd
Board committee served on• Audit and Risk Committee (Chairman)
Present principal commitments• Accounting Standard for Statutory Boards(Member, Advisory Committee)• Catholic Welfare Services (Member, Board ofGovernors)• Jurong Town Corporation (Board Member)• Platanetree Capital Pte. Ltd. (Executive
Director)• Roman Catholic Archdiocese of Singapore(Chairman, Archdiocesan Audit Committee)
Background and working experience• Advisory and Assurance Partner, Ernst &Young (1995 to 2015)

Present principal commitments (other thandirectorships in other listed companies)• Partner, Rajah & Tann Singapore LLP
Other major appointments• Business China's Go East Committee(Co-Chairman)• Business China’s FutureChina’s Committee(Co-Chairman)• Chinese Development Assistance Council(Director)• Dunman High School (Treasurer, School
Advisory Committee)• Singapore Centre for Chinese Language(Director)• Singapore Chinese Chamber of Commerce(Director and Company Secretary, Financial
Board)• Singapore Chinese Chamber of Commerce
Foundation (Director and Company Secretary)• Singapore Chinese Chamber of Commerce &Industry (Chairman, Commerce & Industry)• Sun Yat Sen Nanyang Memorial Hall Co Ltd(Company Secretary)
Background and working experience• Partner (Regional Head, Corporate &Transactional Practice), Rajah & Tann
Singapore LLP (present)Awards14

CAPITALAND ASCOTT TRUST• Eminent Practitioner in Capital Markets by
Chambers Global• Foreign Expert in China in Capital Markets by
Chambers Asia Pacific• Elite Practitioner in Capital Markets,
Corporate and M&A – Asialaw• Leading Individual in Capital Markets: Equity
and Debt – The Legal 500• Highly Regarded in Capital Markets –IFLR1000• Ranked in Best Lawyers for Capital Markets,
Corporate and Mergers & Acquisitions• Global Leader in M&A, Capital Markets – Debt
& Equity, Corporate Governance, Hospitality –Who’s Who Legal• National Leader in Southeast Asia – M&A,
Capital Markets, Corporate Governance –Who’s Who Legal

Overview

DEBORAH LEE SIEW YIN, 66

MAX LOH KHUM WHAI, 62• Bachelor of Accountancy (Honours), National Universityof Singapore• Bachelor of Accountancy (Honours), National Universityof Singapore• Degree of Master of Science (Applied Finance), National
University of Singapore• Fellow Chartered Accountant, Institute of Singapore
Chartered Accountants (ISCA)• Chartered Financial Analyst® and Member, CFA Institute• Fellow Certified Public Accountant, CPA Australia

Non-Executive Independent Director• Fellow Member, Singapore Institute of Directors

17 June 2020

Date of first appointment as a Director

3 years 6 months

Length of service as a Director(as at 31 December 2023)

Length of service as a Director(as at 31 December 2023)

Leadership

Date of first appointment as a Director

Non-Executive Independent Director

23 November 2023

1 monthBoard committees served on• Audit and Risk Committee (Member)• Nominating and Remuneration Committee(Member)• Metro Holdings Limited

Present principal commitments (other thandirectorships in other listed companies)• Singapore University of Technology and
Design (Member, Board of Trustees)• Singapore University of Technology and
Design (Chairperson, Finance Committee)• Audit and Risk Committee (Member)
Major appointments• Competition & Consumer Commission ofSingapore (Chairman)• SPH Media Holdings Limited (Director)

Portfolio & Performance

Present directorships in other listed companies

Board committee served on

Background and working experience• Managing Partner (Asean & Singapore), Ernst& Young LLP, Singapore (2011 to 2022)
Awards• Public Service Medal, 2022

Background and working experience

Sustainability & Governance• Director, WTL Capital Pte Ltd (1994 topresent)• Executive Vice-President, Corporate
Development of Singapore Press Holdings
Ltd (2007 to 2015)• Consultant, specialising in corporate
development work and mergers andacquisitions (2002 to 2006)• Senior Vice-President, Business
Development, Wuthelam Group (1991 to 2001)• Business Development Manager, HewlettPackard Singapore (Pte) Ltd (1979 to 1991)• Auditor, Price Waterhouse (1979)

15

Financial Statements andOther Information

ANNUAL REPORT 2023

OUR BOARDSOF DIRECTORSLUI CHONG CHEE, 63

GOH SOON KEAT KEVIN, 48• Bachelor of Science in Business Administration,
New York University, United States• Bachelor of Mechanical Engineering (Honours),
National University of Singapore• Master of Business Administration, New York University,
United States• Chartered Financial Analyst® and Member,
CFA InstituteNon-Executive Independent Director• Advanced Management Program, Harvard Business School

Non-Executive Non-Independent Director

Date of first appointment as a Director

Date of first appointment as a Director*

15 April 2020

*Mr Lui Chong Chee was first appointed as a Director of Ascott
Residence Trust Management Limited from June 2008 to May 2010.

3 years 8 months

1 February 2024

Past directorships in other listed companies held
over the preceding three years

Board committees served on• CapitaLand Malaysia REIT Management Sdn.
Bhd. (manager of CapitaLand Malaysia Trust)• Executive Committee (Chairman)• Nominating and Remuneration Committee(Member)

Background and working experience

Present directorships in other listed companies• Managing Director and Chief Executive
Officer, Far East Orchard Limited, Singapore(2014 to 2019)• Group Chief Financial Officer, Raffles Medical
Group Limited, Singapore (2011 to 2014)• Chief Executive Officer, CapitaLand Financial
Limited (2008 to 2010)• Chief Executive Officer, CapitaLand
Residential Limited (2005 to 2008)• Group Chief Financial Officer, CapitaLand
Limited (2001 to 2005)• Managing Director & Senior Vice President,
Capital Markets Group, Citicorp Investment
Bank (Singapore) Limited (1998 to 2001)
Awards• Best Chief Executive Officer (mid-cap),
Singapore Corporate Awards (2019)• Asia Best Chief Financial Officer, Institutional
Investor Magazine (2005)• Asia Best Chief Financial Officer, Institutional
Investor Magazine (2004)

16

Length of service as a Director(as at 31 December 2023)

CAPITALAND ASCOTT TRUST• CapitaLand India Trust Management Pte. Ltd.
(Trustee-Manager of CapitaLand India Trust)• Jollibee Foods Corporation
Present principal commitments (other thandirectorships in other listed companies)• Chief Executive Officer, Lodging, CapitaLand
Investment Limited• Chief Executive Officer, The Ascott Limited
Background and working experience• The Ascott Limited• Chief Operating Officer (2016 to 2017)• Ascott Property Management (Shanghai)Co., Ltd• Managing Director, North Asia & Ascott
China Fund (2015 to 2016)• Managing Director, North Asia (2013 to 2015)• Regional General Manager, East & South
China (2012 to 2013)• Ascott International Management (2001)
Pte Ltd• Head, Corporate Services (2009 to 2012)• Assistant Vice President, Business Analysis(China) (2007 to 2009)• Accenture Pte Ltd• Manager (2006 to 2007)• Consultant (2003 to 2006)• Analyst (2001 to 2003)

Overview

BEH SIEW KIM, 53

Non-Executive Non-Independent Director• Bachelor of Business (Accounting), University of
Tasmania, Australia• Member, Institute of Singapore Chartered Accountants
Date of first appointment as a Director

Leadership

From 1 July 2022
(Non-Executive Non-Independent Director)
From 1 May 2017 to 30 June 2022
(Chief Executive Officer and Executive NonIndependent Director)
Length of service as a Director(as at 31 December 2023)

6 years 8 months

Board committee served on• Executive Committee (Member)
Portfolio & Performance

Present principal commitments• Chief Financial and Sustainability Officer andManaging Director, Japan and Korea, Lodging,
CapitaLand Investment Limited• Director, Audit & Risk Committee and HR& Remuneration Committee, Focus On the
Family Singapore Limited
Background and working experience

Sustainability & Governance• Chief Executive Officer and Executive NonIndependent Director, CapitaLand Ascott
Trust Management Limited (2017 to 2022)
and CapitaLand Ascott Business TrustManagement Pte. Ltd. (2019 to 2022)• Deputy Chief Executive Officer, CapitaLand
Ascott Trust Management Limited (2017)• Head, Corporate Planning & Compliance /Financial Controller, CapitaLand China (2008to 2017)• Vice President, Finance, CapitaLand
Residential Limited (2007 to 2008)• Vice President, Group Finance, SembCorp
Industries Limited (2003 to 2007)• Assurance Manager, Ernst & Young (2002 to
2003)• Assurance Manager, Arthur Andersen (1999 to
2002)

17

Financial Statements andOther Information

ANNUAL REPORT 2023

THE MANAGERSTEO JOO LING, SERENA

KANG SIEW FONG

Ms Teo was appointed as an Executive Director on
the Boards of the Managers on 1 July 2022 and serves
as a member of the Executive Committee. As Chief
Executive Officer, she is responsible for leading theoverall strategic planning and implementation of thebusiness, investment and operational strategies for
CLAS. Ms Teo works with the Boards of Directors andthe management team to establish CLAS' businessstrategies and plans, and to ensure the execution ofsuch strategies. She has oversight of the investment,
asset management, finance, investor relations andsustainability functions, and ensures that they are
managed effectively.

Ms Kang heads the finance team of the Managers andoversees all matters relating to financial management
and reporting, accounting, risk management, treasury
and capital management. The finance team works with
the investment and asset management team to review,
evaluate and execute acquisitions, divestments andannual business plans, with the focus on optimising
portfolio value and ensuring implementation inaccordance with CLAS’ investment strategies.

Chief Executive Officer
Executive Non-Independent Director

Ms Teo has over 25 years of work experience spanning
both private and public sectors. Prior to joining theManagers, she was with the Ascendas Group for over
12 years. Ms Teo was the Head, Portfolio Management
for the manager of CapitaLand Ascendas Real Estate
Investment Trust (formerly known as Ascendas Real
Estate Investment Trust) and was responsible forformulating and executing business strategies tomaximise the income and asset value of the REIT’s
properties. Her role also involved overseeing theproperty managers in the delivery of marketing andleasing, property management, lease management,
customer care services and asset enhancement
initiatives. Previously, Ms Teo also held various positions
including Head of Operations & Services, Head of Group
Strategy Management, and Vice President of FundManagement within the Ascendas Group.
Prior to the Ascendas Group, Ms Teo was in the
Singapore Economic Development Board and EDB
Investments where she spent more than 10 years in
the development of the semiconductors and otherelectronics industries in Singapore, as well as direct
equity investments in communications, software andlogistics companies. She started her career as anengineer in Chartered Semiconductors.
Ms Teo holds a Master in Business Administration fromINSEAD and a Bachelor in Electrical and Electronic
Engineering (Honours) from the National University ofSingapore.

18

CAPITALAND ASCOTT TRUST

Chief Financial Officer

Ms Kang has over 30 years of experience in thefinance profession. Prior to joining the Managers,
Ms Kang had been with The Ascott Limited (Ascott)for over 13 years and held various leadership
positions including Vice President, Finance andVice President, Business Development and Planning.
While at Ascott, she was responsible for all aspectsof Ascott’s financial management and accounting,including preparation of the group consolidated
accounts and quarterly reporting of financial results
to the SGX-ST, coordinating with external auditors,
and ensuring compliance with statutory reporting
requirements and financial reporting standards.
Ms Kang was also involved in merger and acquisition
activities at Ascott, as well as the formulation andimplementation of its financial policies and practices,budgeting and internal controls. She was also a key
pioneer member of the team responsible for the listingof CLAS in 2006.
Ms Kang holds a Bachelor of Accountancy degreefrom the National University of Singapore. She is alsoa Chartered Accountant of the Institute of Singapore
Chartered Accountants.

Overview

CHAN KIN LEONG GERRYWONG XIAO FEN, DENISE

Mr Chan heads the investment and asset management
functions of the Managers, and oversees CLAS’
investments, divestments, portfolio management andasset enhancements. He has about two decadesof relevant experience, and has assumed various
leadership positions in investment, asset management
and capital markets.

Ms Wong heads the investor relations and sustainability
functions of the Managers. She is responsible forproviding strategic counsel to senior management
and facilitating timely and effective communication
with the investment community. In addition, she drives
the sustainability efforts for CLAS, and is instrumental
in elevating CLAS’ commitment towards ESG andachieving its sustainability ambitions.

Managing Director, REIT Investments

Ms Wong obtained her Bachelor of Business
Management from the Singapore Management
University, with majors in Finance (Wealth Management)
and Marketing. Ms Wong also obtained the International
Certificate in Investor Relations from the Investor
Relations Society of UK and Advanced Certificate
in Sustainability & Sustainable Businesses from theSingapore Management University.

Sustainability & Governance

Mr Chan holds a Master of Business and a Bachelorof Accountancy from the Nanyang Technological
University, Singapore. He is also a Chartered Financial
Analyst® and Member of the CFA Institute.

Portfolio & Performance

Prior to joining the Managers, Mr Chan held various
leadership positions within the CapitaLand Group.
He was Vice President, Business Development for
CapitaLand Retail, successfully launching its commercial
management business for APAC ex China. He wasalso with CapitaLand’s Retail Division for eight years,
during which he headed the investment functions ofboth CapitaLand Mall Trust and CapitaLand Malaysia
Mall Trust. In those roles, he was the investment andasset manager responsible for various large-scale asset
enhancement initiatives including the redeveloped
Funan mixed-use development, Queensbay Mallrepositioning, and the relaunch of SingPost Centre.

Ms Wong brings with her over 10 years of relevant
experience. Prior to joining the Managers, Ms Wongassumed positions in the manager of Far East
Hospitality Trust, where she was instrumental in theinvestor relations, asset management and complianceof the trust, and Financial PR Pte. Ltd., where she
provided investor relations counsel to Singaporelisted companies in the real estate, construction andtechnology sectors. Ms Wong also held positions in
wealth management and financial advisory.

Leadership

Mr Chan has been instrumental in CLAS’ strategic pivot
towards longer-stay accommodation which includes
rental housing and student accommodation. In January
2021, he led the expansion of CLAS’ investment
mandate to include student accommodation properties
and subsequently executed a string of acquisitions,building a diversified and quality portfolio of nine
student accommodation properties to date.

Head, Investor Relations and Sustainability

19

Financial Statements andOther Information

ANNUAL REPORT 2023

OUR GLOBALPRESENCE
CLAS marries stability and growth,with its diversified geographic
presence, range of lodging types
and mix of income sources.

United States of America
11 properties>> Page 59

20

CAPITALAND ASCOTT TRUSTOverview>> Page 49

Asia Pacific

Leadership

Europe>> Page 30

FRANCE
12 properties

AUSTRALIA
14 properties

INDONESIA
3 properties

UNITED KINGDOM
5 properties

CHINA
5 properties

MALAYSIA
1 propertyJAPAN
32 properties

SOUTH KOREA
2 properties>> Page 50

BELGIUM
2 properties>> Page 55>> Page 34>> Page 36

SINGAPORE
5 properties>> Page 56>> Page 40

IRELAND
1 property

VIETNAM
5 properties>> Page 46>> Page 47

THE PHILIPPINES
2 properties>> Page 48

Sustainability & Governance

GERMANY
5 properties>> Page 57>> Page 45

Portfolio & Performance>> Page 53>> Page 31>> Page 43

SPAIN
1 property>> Page 58

Reconstituting Our Portfolio>> Page 22>> Page 26

ANNUAL REPORT 2023

21

Financial Statements andOther Information

Portfolio Overview

RECONSTITUTINGOUR PORTFOLIO

Ascott Kuningan Jakarta, Indonesia

Citadines Holborn-Covent Garden London,
United Kingdom (artist's impression)

As part of CLAS’ active portfolio reconstitution strategy,
we proactively pursue investment, divestment and asset
enhancement opportunities to enhance the quality ofour portfolio and sustainability of returns to Stapled
Securityholders.
Accretive acquisitions and asset enhancement
initiatives (AEIs) create value for CLAS and improve
the returns to Stapled Securityholders. CLAS invests
in properties with prime locations and strong demand

Divestment

Investment

Asset
Enhancement

drivers. CLAS also undertakes AEIs to enhance theyield and profitability of its assets.
Divesting properties which have reached the optimal
stage of their life cycle enables a more efficient use ofcapital, as the proceeds may be redeployed towards
more optimal uses. This includes investing in higheryielding assets, funding AEIs that can generate stronger
yields or paying down higher interest rate debt.

Divested S$260.1M inassets at average exit
yield of 4.3% in FY 2023,
recycling capital into more
optimal uses

DIVESTMENTIn FY 2023, CLAS entered into agreements to divest
nine properties for a total price of S$260.1 million at
an average exit yield of 4.3%1.
Four mature properties in regional France were divested
for a total of EUR44.4 million (S$64.7 million), at 63%
above book value and an exit yield of about 4%.
The divestment was completed in September 2023.
The other five properties comprise three hotels locatedin Osaka, Japan, and two hotels outside the city centreof Sydney, Australia.
The three hotels in Japan were divested for a total
price of JPY10.7 billion (S$99.8 million), a 15% premium
over book value. The divestment was completed on
14 March 2024. The total sale price of the two hotels
1
2

22

in Australia was AUD109.0 million (S$95.6 million),
5% above the properties’ total book value, which
represents an exit yield of about 4.4%. The divestmentof one of the hotels, Courtyard by Marriott SydneyNorth Ryde, was completed on 31 January 2024 andthe other, Novotel Sydney Parramatta, is expected tocomplete in 3Q 2024.
In February 2024, CLAS announced the divestment
of Citadines Mount Sophia Property Singapore for
S$148.0 million, close to S$1.0 million a key. The saleprice was 19% above the property’s book value, which
represents an exit yield of about 3.2%2. The divestment
was completed on 1 March 2024. Including Citadines
Mount Sophia Property Singapore, the average exit yieldof the 10 divestments was 3.8%.

The exit yield of the France and Australia properties is computed based on FY 2022 Earnings before Interest, Taxes, Depreciation andAmortisation (EBITDA). The exit yield for the Japan portfolio is not meaningful as the properties were largely closed in 2022.
Based on FY 2023 EBITDA.
CAPITALAND ASCOTT TRUSTOverview

DIVESTMENTS ENTERED INTO IN FY 2023

1

Citadines City Centre
Lille

Lille,
France2

Citadines CroisetteCannesCannes,France3

Citadines Castellane
Marseille

Marseille,
France4

Citadines Prado Chanot
Marseille

Marseille,
France5Hotel WBF Honmachi

Osaka,
Japan

6

Hotel WBF Kitasemba
East

Osaka,
Japan

7

Hotel WBF Kitasemba
West

Osaka,
Japan

8

Courtyard by Marriott
Sydney-North Ryde

Sydney,Australia

Novotel Sydney
Parramatta

Sydney,Australia

9

Sale price

EUR44.4M EUR34.1M(S$64.7M) (S$49.7M)

63%

4%

Sep 2023

JPY10.7B(S$99.8M)

JPY3.9B(S$36.4M)

15%

Not
meaningful

Mar 2024

AUD109.0M AUD98.0M(S$95.6M) (S$85.9M)

5%

4.4%

Jan 2024
3Q 2024

INVESTMENT

All three properties are in prime locations within key capitalcities and are well-positioned to capture travel demand.
The Cavendish London, which comprises 230 units, iswell-located in the exclusive Mayfair high-end
shopping district of central London and the 136-unit
Temple Bar Hotel is in the Temple Bar district, both ofwhich are high-traffic areas near iconic attractions.
The 185-unit Ascott Kuningan Jakarta is in the capitalcity’s central business district (CBD), close to embassies
and commercial offices.

3
4
5

renovated and rebranded under The Crest Collection,a luxury brand managed by The Ascott Limited,which is expected to enhance its EBITDA yield
to approximately 6.5% on a post-renovation
stabilised basis4. The valuation of the property is
expected to be GBP316.0 million post-renovationand st abilisation in 2027 5 , an increase of
GBP97.0 million compared to its valuation of
GBP219.0 million as at 31 December 2023. The
renovation will be carried out in phases from 4Q 2024
to 4Q 2025 and CLAS will distribute past divestment
gains to mitigate the impact from the renovation when
the property is temporarily closed during some months.

The EBITDA yield of 6.2% is on a FY 2022 pro forma basis and based on agreed property value of the properties excluding themilestone payment and before AEIs, if any. Including the milestone payment, the EBITDA yield is 5.1%.
Based on stabilised EBITDA before furniture, fixtures and equipment reserves in year 2027/28 over The Cavendish London’s agreed
property value, estimated capitalised costs, and estimated proportion of project cost attributable to CLAS. Such EBITDA figures arefrom the HVS London valuation. The property's EBITDA yield was 4.1% on a FY 2022 pro forma basis.
Based on the valuation by HVS London.
ANNUAL REPORT 2023

23

Financial Statements andOther Information

The Cavendish London presents an excellent
value-add opportunity for CLAS. The property will be

Invested in S$530.8M of
lodging assets in FY 2023,
delivering EBITDA yieldof 6.2%

Sustainability & Governance

Acquisitions
In November 2023, CLAS acquired three properties
in London, Dublin and Jakarta. The properties wereacquired at a combined agreed property value of
S$530.8 million. The EBITDA yield of the acquisition
was 6.2% 3 and the accretion to DPS was 1.8%.
The acquisition was funded by a mix of equity, debt
and part of the proceeds from the divestment of thefour France properties.

Portfolio & Performance

Location

Premiumover bookvalue

Leadership

No. Property

Net
proceeds

Divestment
date /
targetcompletion
Exit yield1
dateRECONSTITUTINGOUR PORTFOLIO
Additionally, CLAS completed the turnkey acquisitionsof two Japan rental housing properties – Eslead
Residence Osaka Fukushima East and Granfore Hakata
Waterfront – in April 2023 and May 2023, respectively.
CLAS had entered into forward acquisitions forthese two properties in FY 2022 at JPY1.9 billion(S$22.2 million) and JPY4.0 billion (S$47.9 million)
respectively. The 108-unit Eslead Residence Osaka
Fukushima East is located in central Osaka, close to the
CBD and Port of Osaka. The 247-unit Granfore Hakata
Waterfront is centrally-located in Fukuoka and close
to the city’s commercial and entertainment districts.
In January 2024, CLAS also completed the turnkey
acquisition of Teriha Ocean Stage in Fukuoka, Japan,
which had been entered into in FY 2022. The 258-unit
rental housing property is located on Island City, inclose proximity to both Tenjin, the commercial andentertainment district, and Hakata, Fukuoka’s businesshub. CLAS’ rental housing properties have an averageoccupancy of over 95% and average length of stay of

about two years, providing a stable stream of income
to CLAS through market cycles.
Development Projects
The development of Standard at Columbia, a 678-bed
freehold student accommodation property in South
Carolina, USA, was completed in June 2023. The
property received its first batch of students in August2023 and has a healthy occupancy of more than 90%
for the academic year 2023-2024, contributing a stablestream of income to CLAS.
Development works are currently ongoing for the
192-unit Somerset Liang Court Property Singapore6,
a serviced residence with hotel licence located in
the Clarke Quay precinct. Substructure works arein progress and targeted to complete in 2024. The
development is expected to complete in 2H 2025.
As at 31 December 2023, CLAS’ development activities
comprise less than 10% of its deposited property, within
the Monetary Authority of Singapore’s development limit.

INVESTMENTS ENTERED INTO IN FY 2023
Lodging
type

Location

No. ofunits

No.

Property

1

The Cavendish
LondonHotel

London,United Kingdom

2302

Temple Bar
Hotel

Hotel

Dublin,Ireland136

3

Ascott Kuningan Serviced
Jakartaresidence

Jakarta,Indonesia

185

ASSET ENHANCEMENT
Eight properties, including The Cavendish London, areundergoing or slated for AEIs over the next few years.
These properties are in prime, central locations of key
gateway cities and the AEIs are expected to enhance
the properties’ performance and valuations, offering thenext wave of uplift for CLAS beyond the travel recovery.
Apart from the refurbishment of guest rooms,
common areas and facilities, the AEIs also encompass
mechanical and engineering improvements and theadoption of higher-efficiency equipment, in line with
CLAS’ commitment to green its properties.
Riverside Hotel Robertson Quay was renovated from
1Q 2023 to 1Q 2024 and rebranded to The Robertson
House by The Crest Collection. Post-renovation, theproperty has obtained green certification and therefurbished rooms have an average room rate that isabout 30% higher.
6
7
8
9

24

Purchase
price

EBITDAyield

Acquisitiondate

S$357.8M7

6.2%3

Nov 2023

Other notable AEIs are that of Sydney Central Hotel(formerly Novotel Sydney Central) in Australia andCitadines Holborn-Covent Garden London. Both projects
have an expected yield on AEI cost of about 11% andthe valuations of the properties are expected to increase
post-renovation and stabilisation to AUD339.8 million8
and GBP125.3 million9 respectively. The AEI of the
Sydney property includes a brownfield extension to
add eight floors and 72 rooms in the airspace above
the carpark podium, expanding the property’s grossfloor area by about 10%. Development approval has
been obtained for the extension.
The capital expenditure for some of the AEIs will be
partially funded by the master lessee or operator of
the properties. About S$103.0 million has been raisedfor the Sydney and London AEIs during the equity fundraising in 2023, and the remaining amount of capital
expenditure for the other projects is expected to be
funded by divestment proceeds, debt facilities and/or
cash generated from the properties.

Expected opening date and property details for Somerset Liang Court Property Singapore are subject to change.
Excludes the shareholder’s loans which were assigned to CLAS.
Based on the valuation by Colliers following the extension, renovation and stabilisation of the property in 2028. As at 31 December
2023, the valuation of the property was AUD166.5 million.
Based on valuation by HVS following the renovation and stabilisation of the property in 2025. As at 31 December 2023, the valuationof the property was GBP100.4 million.
CAPITALAND ASCOTT TRUSTOverview

More details on CLAS’ AEI projects can be found in the table below:
PROPERTIES UNDERGOING OR SLATED FOR AEI
Property

Location

Timeline of AEI10

1

The Robertson House by The Crest Collection

Singapore

1Q 2023 to 1Q 2024

2

Citadines Les Halles Paris

Paris, France

2Q 2023 to 2Q 2024

3

Citadines Kurfürstendamm Berlin

Berlin, Germany

4Q 2023 to 2Q 2024

4

La Clef Tour Eiffel Paris

Paris, France

3Q 2023 to 2Q 2024

5

Citadines Holborn-Covent Garden London

London, United Kingdom

3Q 2023 to 3Q 2024

6

Temple Bar Hotel

Dublin, Ireland

1Q 2024 to 4Q 2024

7

The Cavendish London

London, United Kingdom

4Q 2024 to 4Q 2025

8

Sydney Central Hotel

Sydney, Australia

4Q 2024 to 1Q 2026

LeadershipNo.

CAPITALAND ASCOTT TRUST’S POSITIONINGGEOGRAPHICAL ALLOCATION

Predominantlyin Asia Pacific
Largestlodging trustin
Asia PacificDiversified
across16 countries,
Asia Pacificremains core

Remainder inEurope/USA
Presence inlarge domestic
markets andkey gateway
citiesin longer-stay accommodation
Resilient and counter-cyclical assets
Capturing Growth as
Travel Recovers

70-75%

in serviced residences and hotels

Nonetheless, CLAS continues to monitor and evaluateacquisition opportunities across the four lodging asset
classes, as part of our active portfolio reconstitution andasset management strategy. As at 31 December 2023,
longer-stay accommodation comprised about 17%
of CLAS’ portfolio value (FY 2022: 19%), and serviced
residences and hotels comprised about 83% of CLAS’
portfolio value (FY 2022: 81%).
While CLAS is diversified across 16 countries, themajority of CLAS’ total assets are in Asia Pacific withthe remainder in Europe and USA. Asia Pacific remains
core for CLAS, and we seek to maintain a portfolio thatis predominantly Asia Pacific-centric.

10 Timeline of AEI is subject to change.
ANNUAL REPORT 2023

25

Financial Statements andOther Information

In the medium term, CLAS has a target asset allocationof 25-30% in longer-stay accommodation and
70-75% in serviced residences and hotels.

25-30%

Sustainability & Governance

CLAS’ diversified and well-balanced portfolio offers
resilience amidst macroeconomic uncertainties andglobal geopolitical tensions. The longer-stay properties(rental housing and student accommodation), properties
under master leases and properties under management
contracts with a minimum guaranteed income offer
stable income streams, while the serviced residences
and hotels under management contracts allow CLAS
to capture the upside from global travel recovery. In
FY 2023, stable and growth income sources contributed
56% and 44% of CLAS’ gross profit respectively.

Stable Income Base from
Longer-stay Lodging

Portfolio & Performance

Global Presence,
Anchored in Asia Pacific

TARGET ASSET ALLOCATIONPORTFOLIOOVERVIEWLARGEST LODGING TRUST IN ASIA PACIFICMARRYING STABILITY AND GROWTH

CLAS’ portfolio comprises 106 properties1 with morethan 19,000 units in 45 cities across 16 countries.
These include serviced residences, hotels/businesshotels, rental housing and student accommodation
properties, serving a wide spectrum of guests withvarying accommodation needs.

In addition to being diversified across geographies andasset classes, CLAS has a balanced mix of stable andgrowth income sources which enables us to deliver
sustainable returns to our Stapled Securityholders.

Our properties are mainly located in key gateway cities
across Australia, Belgium, China, France, Germany,
Indonesia, Ireland, Japan, Malaysia, the Philippines,
South Korea, Singapore, Spain, United Kingdom, USA
and Vietnam. Apart from being popular destinations
with international travellers, many of these countries
also have large domestic markets. CLAS’ properties
are well located near CBDs, manufacturing hubs or
tourist landmarks, and enjoy convenient access totransportation nodes and amenities.

FY 2023 GROSS PROFIT BY CONTRACT TYPE
Gross Profit: S$338.2 million

StableIncome:56%

CLAS’ scale and geographic diversification enables
us to be resilient, as the portfolio is not subjected
to concentration risk. Our portfolio is anchored in
Asia Pacific, where we have built up our capabilities
and track record, and where there remain significant
opportunities for growth. As at 31 December 2023,
approximately 56% of CLAS’ total assets are in Asia
Pacific, 24% in Europe and 20% in the Americas.

France

9%

USA

14%

Japani6%

Australia

12%

Germany4%Vietnam

5%

Australia

3%

Japan

4%

South Korea

2%Singapore

4%

The Philippines

2%
2%

MCMGI

S$8.7 billion
The Americas
20%

UK

8%

China

Singapore4%

Indonesia

1%

Belgium

2%

Malaysia

<1%

Spain

2%

Ireland<1%

Management contractsof longer-stay assets
Student Accommodation

Asia Pacific
56%

USA

10%

Rental Housing

Europe24%

Japan

Asia Pacific56%

Europe24%

n Australia

12%n Belgium

1%n China3%

n France

7%

n Indonesia

2%n Germany3%n Japan

16%n Ireland1%n Malaysia<1%n Spain1%

n The Philippines

2%n United Kingdom

11%

n Singapore

17%n South Korea

2%

The Americas

20%

n Vietnam

2%

USA

20%

26

Management contracts
of serviced residences
and hotels

Master Leases

As at 31 December 2023

1

44%

Contract types with afixed / minimum rent
component

TOTAL ASSETS BY GEOGRAPHY

Total Assets:

GrowthIncome:i6%Includes Eslead College Gate Kindaimae, a student
accommodation in Japan under master lease.

Stable Income
For FY 2023, approximately 56% of CLAS’ gross profit
was from stable income sources, comprising master
leases, management contracts with minimum guaranteed
income (MCMGI) and longer-stay accommodation(rental housing and student accommodation properties).
Master leases and MCMGI have a fixed or minimum rent
component, which provides income stability to CLAS.

As at 31 December 2023, including Somerset Liang Court Property Singapore which is under development.
CAPITALAND ASCOTT TRUSTOverview

Master Leases
Under a master lease, CLAS receives rental income
from the master lessee who operates or engages anoperator to manage the operations of the property.
A master lease typically comes with a fixed rent
component, which provides downside protection
and stable income to CLAS. Most of the operational
expenses under a master lease are paid for by themaster lessee.

In addition to the seven French master leases, themaster lease for Quest Mascot in Australia and
The Madison Hamburg in Germany were also renewedin 2023. The former was renewed on fixed rent terms,
while the latter was renewed on fixed and variable rent
terms, ahead of its expiry in 2024.

2

2024

2025

4%

0%

2026

2027

2028
& after

Percentage of gross rental income for master leases expiring
at respective years over the total gross rental income for all
master leases.

Management Contracts With Minimum Guaranteed
IncomeManagement contracts are entered into between CLAS
and the operators and managers of our properties.
Unlike the properties under master leases, guests lease
the units directly from CLAS, including our subsidiaries(for properties outside of Japan) or other entities acting
on behalf of CLAS (for properties within Japan2).
Under a MCMGI, the management contract enables
CLAS to capture the upside during a market upturn,while the minimum income guarantee from the operator
mitigates downside risks. As at 31 December 2023,
10 of our properties across Belgium, Ireland, Singapore,
Spain and United Kingdom are on MCMGI. The operating
performance of all 10 properties surpassed theirrespective minimum income guarantee levels in
FY 2023. The weighted average remaining term of CLAS’MCMGI is around 15 years.
Longer-stay Accommodation
CLAS’ longer-stay accommodation comprises rental
housing and student accommodation properties. Rental
housing and student accommodation are countercyclical lodging asset types with long average lengthof stay of two years and one year respectively. Given
the long leases and high average occupancies, longerstay accommodation provides CLAS with income
stability and resilience through market cycles. As at
31 December 2023, CLAS has 23 rental housing andnine student accommodation properties.

In Japan, CLAS’ interests in properties are indirectly held as trust beneficial interests through the godo kaisha and tokutei mokuteki
kaisha structures and Singapore special purpose vehicles.
ANNUAL REPORT 2023

27

Financial Statements andOther Information

The weighted average remaining tenure of CLAS’ master
leases is about 10 years. For master leases which wererenewed in FY 2023, the weighted average lease expiry
based on the date of commencement of the leases isapproximately 17 years. The renewed master leases
account for about 2% of CLAS’ FY 2023 gross revenue.
There were no income support payments for CLAS in
FY 2023.

11%

Sustainability & GovernanceAn independent consultant was engaged for the renewalof the French master leases, and the rent to revenue
ratios of the master leases are in line with that of themarket. According to the independent consultant, CLAS
is projected to receive approximately 28% higher rent
in FY 2024 under the revised rent structure.

i8%

Portfolio & Performance

In 2023, seven of CLAS’ French master lease agreements
were renewed on a revised rent structure which was
based on the higher of the fixed rent and variable rent.
The fixed rent is indexed to the French commercial
lease index, and the rent is automatically increased or
decreased accordingly each year. The variable rent isbased on a percentage of the property’s total revenue.
CLAS and the master lessee will co-share furniture,
fixtures, and equipment capital expenditure during
renovation.

77%

Leadership

As at 31 December 2023, 28 of our operating properties– 12 in France, five in Germany, four in Japan, five inAustralia, and two in South Korea are on master leases.
17 of CLAS’ master leases (mainly in Asia and France)
have fixed and variable rent components, and all ofthem received variable rent in FY 2023. The remaining
11 master leases (mainly in Germany and Australia) areon fixed rent terms, which may be subject to annual
indexation, market review or rental revisions pegged
to indices representing construction cost, inflation orcommercial rental prices.

LEASE EXPIRY FOR MASTER LEASESi

As at 31 December 2023

PORTFOLIOOVERVIEW
Growth Income
For FY 2023, approximately 44% of CLAS’ grossprofit was from growth income sources, which aremanagement contracts of serviced residences andhotels.

QUALITY ASSETS MANAGED BY
BEST-IN-CLASS OPERATORS
CLAS’ Sponsor, The Ascott Limited (Ascott), one of
the leading international lodging owner-operators with
40 years of industry track record and award-winningbrands that are recognised worldwide, manages mostof the serviced residences within the CLAS portfolio.
Ascott’s serviced residence, coliving and hotel brands
include Ascott, Citadines, lyf, Quest, Somerset and
The Crest Collection, among others.

Management Contracts of Serviced Residences andHotelsUnder a management contract without minimum
guaranteed income, the income stream to CLAS
is dependent on the operating performance ofthe property. In a market upturn, properties undermanagement contracts provide the greatest growthpotential.

A number of CLAS properties were recognised as‘Leading Serviced Apartments 2023’ by the World
Travel Awards 2023, namely Ascott Makati, Citadines
Arnulfpark Munich, Citadines Ramblas Barcelona andCitadines Sainte-Catherine Brussels. lyf one-northSingapore was also awarded the Co-living ExcellenceAward in EdgeProp Singapore Excellence Awards 20233.

36 of our operating serviced residences and hotels
across Australia, China, Indonesia, Japan, Malaysia,
the Philippines, Singapore, USA and Vietnam are on
management contracts.
Note: A waiver from the Monetary Authority of Singapore
was obtained in relation to paragraphs 11.1(c) (iv) and (v)of the Property Funds Appendix regarding the disclosuresof lease maturity profile and weighted average lease expiry
for properties under management contracts, subject to thefollowing disclosures:(1) the average length of stay of guests of properties under the
management contracts (combined for both management
contracts with and without minimum guaranteed income)for current year and past five years; and(2) the weighted average remaining term of the MCMGI.

Other third-party operators we engage include Accor,
IHG, Marriott and Sotetsu, with properties operating
under their established brands such as Pullman,
Novotel, Sheraton, voco and Sotetsu Grand Fresa.

lyf one-north Singapore

PORTFOLIO INFORMATION BY LENGTH OF STAYi(Portfolio Apartment Rental Income)Average Length of Stayn More than 12 months

3 months

3 months

3 months

4 months

14%

15%

17%

4%
8%

3%
8%

20%

13%

12%

n 6 to 12 months

4%
12%
19%

n 1 to 6 months
n 1 week to 1 monthn Less than 1 week

61%

2018
i

3

28

62%

2019

45%

2020

17%
11%

3 months

2 months

8%

8%

14%

12%

7%

7%

9%

9%

62%

64%

2022

2023

16%

39%

2021

Historical information is prepared for illustrative purposes only and are not guarantees of future performance. Portfolio information
excludes properties on master leases and properties under development.
For the full list of awards won by Ascott, please refer to www.discoverasr.com/en/the-ascott-limited/awards.
CAPITALAND ASCOTT TRUSTOverview

KEY STATISTICS OF CLAS’ PORTFOLIOi
PORTFOLIOOCCUPANCY (%)
76

PORTFOLIO AVERAGE
DAILY RATE (S$)
196

177

68

ii

2022

2023

2022

NUMBER OF UNITSii
19,440

148

1,636
120

2023

2022

18,869

2,900

1,636
2,545

14,904

14,6882023

Key statistics, other than the number of units, pertain to operational properties only andexclude rental housing, student accommodation and properties on master leases.
Includes properties under development.

Leadership

2023
i

PORTFOLIO REVENUEPER AVAILABLE UNIT
(S$)

2022

Student Accommodation
Rental Housing
Serviced Residences and Hotels

FY 2023 PORTFOLIO INFORMATION BY INDUSTRYi

in Industrial

25%

n Government & Non-governmental Organisations (NGOs)

15%n Financial Institutions

12%n Consumers

11%

n Manufacturing

9%n Media & Telecommunications

6%

n Information Technology

6%n Energy & Utilities

5%n Others

4%n Real estate / Lodging

4%n Healthcare

3%

Portfolio & Performance

Industry

Based on rental income from corporate accounts of properties under Ascott management contracts only.

Sustainability & Governance

FY 2023 TOP 10 CORPORATE CLIENTSi
Corporate Clienti
ii

Government & NGOs
Manufacturing
Industrial
Real Estate
Manufacturing
Information Technology
Government & NGOs
Industrial
Industrial
Industrial
Consumer% of Total Apartment
Rental Income

1.1%
0.4%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
2.7%

Based on rental income from corporate accounts of properties under Ascott management contracts only.
Refers to the largest contributing industry for corporate clients with multiple business operations.

ANNUAL REPORT 2023

29

Financial Statements andOther Information

Government entities and embassies of various countries
ToyotaMitsubishi
CapitaLand
Volkswagen
Accenture
INSEADLG
Dyson
AlstomQantas
Total

Industryii

OPERATIONSREVIEW
ASIA PACIFIC OVERVIEWGROWTH ACROSS MOST ASIA PACIFIC
MARKETS AS RECOVERY TOOK HOLD
In 2023, Asia Pacific registered 233 million international
visitor arrivals, recovering to 65% of pre-pandemic
levels, after most destinations fully reopened bylate 2022. Performance varied across subregions, with
South Asia leading at 87% of pre-pandemic levels.
Oceania and Southeast Asia fared similarly, recovering
to 74% and 70% of pre-pandemic levels respectively.
Northeast Asia lagged at 55%, albeit accelerating
more than the others in the second half of the year, as
countries like China, South Korea and Japan continued
to welcome more international travellers1.
The increase in travel activity in Asia Pacific was driven
predominantly by the leisure segment, with corporate
travel recovering to less than 30% of pre-pandemic
levels2. Most markets experienced a recovery indomestic travel first, followed by international travel3.
In markets such as Australia and Singapore,large-scale activities like sporting and MICE events aswell as concerts continued to pick up, further boosting
demand.
China, the world’s predominant outbound market
pre-COVID-19, completed its reopening in 2023, having
removed all domestic travel requirements in December
2022 and the requirement for inbound travellers to
submit a negative COVID-19 test result in August 2023.
Outbound travel increased gradually thereafter, at a
slower pace than initially expected. This was due tofactors such as cautious spending in view of hightravel costs, slow visa processing speeds and safetyconcerns, which translated into a greater proportion ofChinese travellers opting to travel domestically.
Pent-up demand in early 2023 boosted room rates in
Asia Pacific significantly, with many markets recording
room rates above pre-pandemic peaks in 1H 2023.
Tokyo led the expansion with an increase of 122% YoY2.
As of late 2023, market Revenue Per Available Room
(RevPAR) for Asia Pacific had reached 95% of 2019
levels4. Singapore was amongst the top five countries
in RevPAR performance globally, while China, Vietnam
and the Philippines lagged 2019 levels5.
Amongst CLAS' key markets, Australia, Japan andSingapore continued to exceed pre-COVID-19
same-store RevPAU levels in 4Q 2023. In China and

30

CAPITALAND ASCOTT TRUST

Vietnam, RevPAU of our serviced residences continued
to improve quarter-on-quarter, performing at above 85%
of pre-COVID-19 levels in 4Q 2023.
ANTICIPATING FURTHER UPSIDE IN 2024
International visitor arrivals for Asia Pacific are
forecasted to reach 2019 levels by the end of 20246.
Supporting this growth is an increase in international
flights to and from China, which are expected to recover
to 80% of pre-COVID-19 levels by 20247.
Asia Pacific markets are poised to benefit from theincrease in China flights as group travellers seek
short-haul destinations like South Korea and Japan6,
or countries like Singapore and Malaysia where there
is greater flexibility in visa requirements facilitated bybilateral agreements. For the Spring Festival period in
February 2024, China outbound bookings had increased
tenfold compared to 2023, and the growth was seen
particularly in Southeast Asia, Japan and South Korea1.
Nonetheless, the return of China outbound tourism
is expected to be gradual, and a full return to prepandemic levels may not occur until 20256.
Corporate travel in the region is projected to increase.
Apart from China’s reopening, robust domestic demandin Japan, South Korea and Australia is also anticipatedto drive this growth. The return of international businesstravel is expected to boost YoY performance more
prominently in Southeast Asian countries such asSingapore and Malaysia which are more reliant oninternational arrivals8.
Further supporting the sector’s recovery is a limited
supply pipeline, as the supply growth rate for major
Asia Pacific markets is expected to slow from 2023 to
2026, compared to their historical averages6.
Average Daily Rate (ADR) growth is expected tonormalise in most of the region in 2024, and occupancy
growth is expected to be the key driver of RevPAR
growth6. With more than 55% of our assets in Asia
Pacific and most of the properties under management
contracts, CLAS is well-positioned to ride the continued
recovery of the region.
1
2
3
4
5

Source: UNWTO (2024)
Source: Savills (2023)
Source: HVS (2023)
Source: JLL (2023)
Source: STR (2024)

6
7
8

Source: CBRE (2023 and2024)
Source: Reuters (2024)
Source: Global BusinessTravel Association (2023)

AUSTRALIA

Overview

OPERATIONSREVIEW
KEY MARKET

14

PROPERTIES

2,840
UNITS

Leadership

S$171.2
millionTOTAL REVENUE(FY 2023)

S$50.0
millionTOTAL GROSS PROFIT(FY 2023)

millionVALUATION(as at 31 December 2023)

Pullman Sydney Hyde Park

Australia is one of CLAS’ key markets, contributing 15%of the total gross profit for FY 2023.

MASTER LEASES

CLAS has two serviced residences under management
contracts. The 85-unit Citadines St Georges Terrace
Perth is conveniently located in Perth’s CBD, along St
Georges Terrace while the 380-unit Citadines on Bourke
Melbourne is situated in the heart of Melbourne’s CBD,
close to the Parliament House and 101 Collins Street.
CLAS also has seven hotels under management
contracts. The 150-unit Citadines Connect Sydney
Airport is a limited-service business hotel situatedadjacent to the Quest Mascot serviced residence andwithin proximity to the Sydney Airport. The 241-unit
Pullman Sydney Hyde Park and the 255-unit Sydney
Central Hotel (formerly Novotel Sydney Central) arebusiness hotels located in the Sydney CBD, situatednear well-known attractions such as the Sydney Darling
Harbour and Paddy’s Market. Courtyard by Marriott
Sydney-North Ryde is a 196-unit business hotel centrally
located in Macquarie Business Park and close to
several commercial buildings popular with multinational
corporations. Novotel Sydney Parramatta is situated in
the Parramatta CBD, Sydney’s fast-growing second CBD.
The 194-unit business hotel is located close to visitor
ANNUAL REPORT 2023

31

Financial Statements andOther Information

CLAS has five serviced residences under master leases.
The 140-unit Quest Sydney Olympic Park is a 99-yearleasehold property located within Sydney Olympic
Park, near ANZ Stadium and Qudos Bank Arena, a large
entertainment and sporting complex. The 81-unit Quest
Campbelltown is well-located in south-west Sydney’s
urban hub, an established residential, commercial andindustrial area, while the 91-unit Quest Mascot is afive-minute drive away from Sydney Airport. Strategicallylocated in Sydney’s second largest business district ofMacquarie Park is the 111-unit Quest Macquarie Park,
which is a five-minute drive to Macquarie University,
Macquarie University Hospital and Macquarie Centre.
The 100-unit Quest Cannon Hill is located in theemerging suburb of Cannon Hill in Brisbane, withina five-minute walk to the train station and with directaccess to the CBD.

MANAGEMENT CONTRACTS

Sustainability & Governance

As at 31 December 2023, CLAS’ Australia portfolio
comprises one leasehold and 13 freehold properties
located across Brisbane, Sydney, Melbourne and Perth.
Of the 14 properties in Australia, there are five serviced
residences under master leases, two serviced residences
and seven hotels under management contracts.

Including the extension period at the lessees' option,
each of the master leases in Australia has a remaining
lease term of at least 16 years.

Portfolio & Performance

S$962.6

OPERATIONSREVIEW
attractions and the main restaurant and entertainment
precinct along Church Street.
The 378-unit Pullman and Mercure Melbourne Albert
Park is a unique dual-branded business hotel comprising
169 Pullman and 209 Mercure units. Overlooking
the scenic Albert Park where the annual Formula 1
Australian Grand Prix is held, the property is also locatedclose to the Melbourne CBD, the popular St Kilda Road
precinct and the Royal Botanic Gardens.
The 438-unit Pullman and Mercure Brisbane King
George Square comprises a 16-storey Pullman Tower
with 210 units and a 16-storey Mercure Tower with 228
units. Prominently situated in the Brisbane CBD andfacing Brisbane City Hall, the hotel is within walking
distance to the city’s key attractions and landmarks.
The properties under management contracts have an
average length of stay of less than a month.
2023 REVIEW
Australia’s GDP is estimated to have increased 1.5%
in 20231, a softer growth compared to the 3.8%
expansion in 2022. The growth in 2023 was mainly
driven by increased government consumption andcapital investment, partially offset by soft household
consumption on the back of higher inflation and interest
rates2.
Despite the lower consumer spending in 2023, domestic
travel in Australia was robust, with visitors and visitor
nights slightly behind 2019 levels3. The recovery ininternational travel lagged that of the domestic
segment – international arrivals were forecasted tohave increased to 7.3 million in 2023 and expected tocross 2019 levels only in 20254.
CLAS’ Australia properties performed well in 2023
mainly due to an increase in occupancies YoY. Domestic
travellers continued to drive the performance, withhealthy demand from both the corporate and leisuresegments. International bookings also continued toreturn, particularly to the serviced residences.
Large-scale sporting events such as the F1 Grand Prix,
FIFA Women’s World Cup and AFL Grand Final weresignificant drivers of demand in 2023. Other concerts
and notable events such as the Royal Easter Show,
Vivid Festival and SXSW also resulted in an increasein transient bookings.

1
2
3
4

32

Source: Reserve Bank of Australia (2024)
Source: Australian Bureau of Statistics (2023)
Source: Colliers (2023)
Source: Tourism Research Australia (2023)

CAPITALAND ASCOTT TRUSTIn FY 2023, the RevPAU of CLAS’ properties undermanagement contracts increased 24% YoY in AUD
terms. RevPAU in 4Q 2023 was 13% above 4Q 2019
pro forma RevPAU5, although 1% lower YoY due to thehigher base in 4Q 2022.
The master leases, which have fixed rent terms withannual indexation, continued to provide a source ofstable income to the portfolio. Revenue of the master
leases rose 6% YoY in AUD terms in FY 2023.
2024 OUTLOOKAustralia’s GDP growth is expected to fall from 1.5% in
2023 to 1.3% in June 2024, before improving graduallyfor the rest of 2024. Household consumption and publicdemand are forecasted to remain soft. However, headline
inflation is expected to decline from 4.1% to 3.2%1.
Should inflation ease on a sustainable path towards
the central bank’s 2% to 3% target, the Reserve Bank
of Australia could look to loosen its monetary policy6.
The pace of recovery in international visitors is
expected to surpass that of domestic travel in 2024,
as the latter moderates after a strong rebound since
the reopening of Australia. International arrivals areprojected to increase to 9.3 million in 2024, 98% of
pre-pandemic levels, while international visitor spend
is expected to surpass pre-pandemic levels during
the year. Domestic trip numbers and travel spend areforecasted to continue growing and to remain above
pre-pandemic levels over the next few years4.
As pent-up demand eases, the RevPAU growth of
CLAS’ Australia properties is expected to normalise in
2024. Nonetheless, the outlook remains healthy, as therecovery in both corporate and leisure travel segments
continues to drive demand for accommodation.
Concerts and large-scale events, such as the AustralianOpen 2024 and F1 Grand Prix in Sydney and Melbourne,
are also expected to benefit the properties.
Sydney Central Hotel has been earmarked forrenovation and extension from 4Q 2024 to 1Q 2026.
During the AEI, 72 rooms across eight floors will be
added, increasing the hotel’s inventory by 28% andgross floor area (GFA) by 10%. Development approvalhas been obtained for this brownfield initiative. Post AEI
and stabilisation, the property is expected to achieve avaluation of AUD339.8 million in 20287, an increase of
AUD173.3 million from the valuation as at 31 December
2023. The incremental EBITDA on stabilisation
is expected to translate to a yield on AEI cost of
approximately 11.3%7.
567The combination with Ascendas Hospitality Trust (A-HTRUST)
was completed on 31 December 2019 and the 2019 pro forma
RevPAU includes the performance of the A-HTRUST properties.
Source: Reuters (2024)
Based on the valuation by Colliers.

Overview

In November 2023, CLAS entered into agreements todivest Courtyard by Marriott Sydney-North Ryde andNovotel Sydney Parramatta. The divestment of Courtyard
by Marriott Sydney-North Ryde was completed in

January 2024 and the divestment of Novotel Sydney
Parramatta is expected to be completed in 3Q 2024.
Post-completion of the divestments, CLAS will have 12
properties in Australia.

GROSS RENTAL INCOME (AUD’000)
FY 2022

Citadines on Bourke Melbourne

19,92914,242

Citadines Connect Sydney Airport

7,592

6,883

Citadines St Georges Terrace Perth

4,647

3,735

Quest Campbelltown

1,691

1,620

Quest Cannon Hill

2,093

168

Quest Macquarie Park

2,969

2,974

Quest Mascot

1,880

2,577

Quest Sydney Olympic Park

2,816

3,752

i

i

Leadership

FY 2023

The acquisition of the property was completed on 30 November 2022; hence gross rental income stated for FY 2022 is for
December 2022.

HOTEL REVENUE (AUD’000)
FY 2022

12,698

9,387

Novotel Sydney Parramatta

14,675

12,551

Pullman and Mercure Brisbane King George Square

35,261

32,109Pullman and Mercure Melbourne Albert Park

27,29827,252

Pullman Sydney Hyde Park

28,14523,186

Sydney Central Hotel(formerly Novotel Sydney Central)

26,735

19,101

Portfolio & Performance

FY 2023

Courtyard by Marriott Sydney-North Ryde

REVENUE PER AVAILABLE UNIT (AUD)
FY 2022140

100

Citadines Connect Sydney Airport

138

125

Citadines St Georges Terrace Perth

150

120

Courtyard by Marriott Sydney-North Ryde

144

104

Novotel Sydney Parramatta

149

123

Pullman and Mercure Brisbane King George Square

144

133

Pullman and Mercure Melbourne Albert Park

105

108

Pullman Sydney Hyde Park

226

175

Sydney Central Hotel(formerly Novotel Sydney Central)

198

130

33

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

FY 2023

Citadines on Bourke MelbourneOPERATIONSREVIEW
CHINA

KEY MARKET

5

PROPERTIES

1,066
UNITS

S$24.1
millionTOTAL REVENUE(FY 2023)

S$5.5
millionTOTAL GROSS PROFIT(FY 2023)

S$228.1
millionVALUATION(as at 31 December 2023)

Somerset Heping Shenyang

China is one of CLAS’ key markets which contributed
2% to the total gross profit for FY 2023. The five China
serviced residences are under management contracts.
As long stays are the primary source of business, CLAS’
China properties have an average length of stay of over
six months.
Somerset Grand Central Dalian is a 195-unit property
situated in the central business district of the DalianDevelopment Area; Somerset Heping Shenyang is a
270-unit property that lies in the heart of Shenyang’s maincommercial and shopping district; Somerset Olympic
Tower Property Tianjin is a 185-unit property situatedin the Heping district, the city’s prime commercial,entertainment and residential area; Citadines Xinghai
Suzhou is a 167-unit property in the heart of the Suzhou
Industrial Park; and Citadines Zhuankou Wuhan is a
249-unit property situated in the Wuhan Economic andTechnological Development Zone.

1
2
3
4
5

34

Source: Reuters (2022 and 2024)
Source: The Business Times (2024)
Source: China Briefing (2023)
Source: The State Council, The People’s Republic of China (2024)
Source: CNN (2024)
CAPITALAND ASCOTT TRUST

2023 REVIEW
China’s economy grew by 5.2% in 20231, lower than
the annual growth averaged in the decade before thepandemic. The recovery post-reopening was bumpierthan expected with the deepening property crisis andweak consumer and business confidence. Foreign
direct investment into China in 2023 was at a 30-year
low, reflecting the effect of the COVID-19 lockdown
and weak economic recovery in 20232.
In January 2023, the Chinese government removed thequarantine requirement for all inbound arrivals, andtravellers only had to present a negative test result within
48 hours of departure1. By August, the government had
removed the mandatory pre-entry COVID-19 test3.
Following the end of China’s ‘zero-COVID’ policy in2023, domestic tourism more than doubled the previous
year in revenue and tourist numbers, bouncing back toover 80% of 2019 levels4. International traveller numbers
lagged that of domestic travellers. China recorded
35.5 million entries and exits by foreign nationals in
2023, which was close to seven times more than thenumber in 2022, but only 36% of the number in 20195.
Reasons for the soft inbound traveller numbers included
significant delays in visa applications and limited flightOverviewcapacities. As of December 2023, international flightcapacity to and from China was only 62% of December
2019 levels6.

In FY 2023, RevPAU increased gradually quarter-onquarter. On a full year basis, RevPAU increased 16%
YoY in RMB terms. 4Q 2023 RevPAU increased 7% YoY
to 86% of 4Q 2019 same-store RevPAU7.
2024 OUTLOOK

To attract more foreign investment, the Chinese
government rolled out 24 policy measures, pledging

International arrivals are projected to return to 50%
of 2019 levels in 2024. Since the second half of 2023,
China has eased administrative and visa requirements
to facilitate international travel into the country11.
The restoration of international flights has also pickedup pace. China’s international capacity has recovered
to 70% of pre-COVID-19 levels in 1Q 20246. This is
expected to facilitate travel to China for business,
education and leisure.
With long-stay guests as the primary source of business,
CLAS’ China properties are expected to remain resilient
against macroeconomic headwinds. International
demand is expected to improve further in the coming
months, as the frequency of flights to and from China
continues to recover progressively, and as China
introduces more visa-free arrangements with othercountries.

Portfolio & Performance

Growth in China is projected at 4.6% in 20248. China’s
economy is facing several challenges including low
consumer confidence and deflationary pressure 5.
In January 2024, China’s consumer prices fell at its
steepest pace month-on-month in more than 14 years1.
In a welcomed move, China’s central bank announced
the deepest cut to bank reserves in two years in late
January 2024, injecting about US$140 billion of cash
into the banking system, to defend markets and spur
growth2.

Chinese travellers are expected to make morethan 6 billion domestic trips in 2024, close to 2019
numbers10. China reported a record upsurge in travel
and consumption during the Lunar New Year holidays.
A total of 474 million trips were made within mainland
China during the 2024 Lunar New Year – the first since
China reopened fully, an increase of 34% compared
to 2023 and up 19% compared to 20195.

Leadership

In line with the market, bookings at CLAS’ China
properties were largely from the domestic segment in
2023. The average occupancy of the properties wasresilient at close to 70%, given the base of corporate
long stays and project group bookings. Several
exhibitions, concerts and events, in addition to public
holidays, such as the Labour Day weekend and Golden
Week, and the summer holidays, boosted transientdemand.

to beef up support for foreign investors’ researchand development in China and ensuring their equal
participation in government procurement activities4.
However, it remains uncertain if foreign investors will
return in 2024, due to worsening geopolitical relations
and investor skepticism9.

GROSS RENTAL INCOME (RMB’000)
FY 2022

12,961

7,968

Citadines Zhuankou Wuhan

12,044

14,365Somerset Grand Central Dalian

33,867

28,684Somerset Heping Shenyang

25,732

19,056

Somerset Olympic Tower Property Tianjin

37,96837,858FY 2023

FY 2022

Citadines Xinghai Suzhou

209

128

Citadines Zhuankou Wuhan

120

145

Somerset Grand Central Dalian

455

389

Somerset Heping Shenyang

261

193

Somerset Olympic Tower Property Tianjin

469

445

REVENUE PER AVAILABLE UNIT (RMB)

6
7

Source: OAG (2024)
Excluding Ascott Guangzhou which was divested in December
2020 and Somerset Xu Hui Shanghai which was divested in May
2021.

8
9
10
11

Source: International Monetary Fund (2024)
Source: Peterson Institute for International Economics (2023)
Source: South China Morning Post (2024)
Source: The Straits Times (2023)
ANNUAL REPORT 2023

35

Financial Statements andOther Information

Citadines Xinghai Suzhou

Sustainability & Governance

FY 2023

OPERATIONSREVIEW
JAPANKEY MARKET

32

PROPERTIES

5,630
UNITS

S$79.0
millionTOTAL REVENUE(FY 2023)

S$52.3
millionTOTAL GROSS PROFIT(FY 2023)

S$1,286.5
millionVALUATION(as at 31 December 2023)

Sotetsu Grand Fresa Tokyo-Bay Ariake

Japan is one of CLAS’ key markets which contributed
16% to the total gross profit for FY 2023.

units, located in close walking proximity to the main
campus of Kindai University in Osaka.

As at 31 December 2023, CLAS owns 32 freeholdproperties in Japan. Three hotels and one student
accommodation property are under master leases.
The rest of the Japan portfolio which consists of threeserviced residences, two hotels and 23 rental housing
properties, are under management contracts.

The master leases have remaining lease terms varying
between one to 13 years.

In 2023, CLAS completed two turnkey acquisitionsof rental housing properties – Eslead Residence
Osaka Fukushima East in Osaka, and Granfore Hakata
Waterfront in Fukuoka.
MASTER LEASES
Sotetsu Grand Fresa Tokyo-Bay Ariake is a 912-unit hotel
located within the Tokyo Secondary City Centre in close
proximity to Big Sight, a major international convention
centre, Ariake Colosseum and retail options. Sotetsu
Grand Fresa Osaka-Namba is a 698-unit hotel centrally
located in Namba, Osaka. The 182-unit Hotel WBF
Honmachi is located in the Honmachi district of Osaka.
Eslead College Gate Kindaimae is CLAS’ first and only
student accommodation property in Japan. It is aseven-storey building comprising 112 studio apartment
1

36

MANAGEMENT CONTRACTS
Citadines Central Shinjuku Tokyo, a 206-unit serviced
residence, and Citadines Shinjuku Tokyo, a 160-unit
serviced residence, are both located in the bustlingentertainment district of Shinjuku. Citadines KarasumaGojo Kyoto is a 124-unit serviced residence locatedclose to the Gojo subway station, and the business
district and entertainment areas of Kyoto. The threeserviced residences have an average length of stay ofless than a month.
The 168-unit Hotel WBF Kitasemba East and 168-unit
Hotel WBF Kitasemba West are situated in the Honmachi
district of Osaka, in close proximity to Hotel WBF
Honmachi.
CLAS’ 23 rental housing properties1 are located acrosseight cities – Fukuoka, Hiroshima, Hyogo, Kyoto, Nagoya,
Osaka, Tokyo and Sapporo. All the properties areconveniently located close to public transportation andother lifestyle amenities. The rental housing properties
have an average length of stay of over 12 months.

Excluding Teriha Ocean Stage, the acquisition of which was completed in January 2024.
CAPITALAND ASCOTT TRUSTOverview2023 REVIEW
On a full year basis, Japan’s GDP grew 1.9% in 20232,
higher than the 1.1% growth in 2022. The key factors that
supported activity included a depreciated Yen, pent-up
inbound travel, and recovery in business investment
following earlier delays in implementing projects2,
partially offset by a weaker second half, due to softdomestic demand3. The contraction in 2H 2023 wasdespite a sharp rise in inbound consumption, which
included tourist spending4.

CLAS’ properties under master leases continued toprovide stable income. In 2023, the three hotels received
variable rent in addition to fixed rent due to stronger
performance, while the student accommodation
property received fixed rent.
CLAS' rental housing properties registered high stableaverage occupancies of over 95% in 2023, continuing
to offer resilience to the portfolio.
2024 OUTLOOK

CLAS’ serviced residences under management
contracts are expected to continue to benefit fromthe robust international visitor demand in 2024. The
hotels under master leases are also expected to capture
the potential upside from the continued momentum
in 2024 given the variable rent components, while thefixed rent components provide downside protection for
CLAS. CLAS’ rental housing properties, which mainlycater to domestic corporate long stays, are expected
to register stable performance, given the long leases.
In December 2023, CLAS entered into agreements todivest three hotels in Osaka – Hotel WBF Honmachi,
Hotel WBF Kitasemba East and Hotel WBF KitasembaWest. The divestments were completed in March 2024.
In January 2024, the turnkey acquisition of a rental
housing property in Fukuoka, Teriha Ocean Stage,
which was entered into in FY 2022, was completed.
Post-completion of the divestments and with theinclusion of Teriha Ocean Stage, CLAS now has 30
properties in Japan.
2
3
4
5
6
7

Source: International Monetary Fund (2024)
Source: CNBC (2024)
Source: CNN (2024)
Source: Japan National Tourism Organization (2024)
Source: Savills (2023 and 2024)
RevPAU excludes rental housing properties, and Hotel WBF
Kitasemba East and Hotel WBF Kitasemba West which wereclosed.
8 Excluding Somerset Azabu East Tokyo which was divested in
December 2020.
9 Source: Deloitte Global Economics Research Center (2024)
10 Source: JTB (2023)
11 Source: Seasia.co (2024)
12 Source: Japan Property Central (2024)
ANNUAL REPORT 2023

37

Financial Statements andOther Information

In 2024, Japan’s GDP growth is forecasted to decelerate
to 0.9%, as the one-off factors which supported activity
in 2023 are expected to taper off2. Domestic demandand private consumption are expected to either remain
subdued or continue to decline, as inflation outpaces
wage growth as of 1Q 2024. Expectations are that by
2H 2024, moderating inflation, supported by a tighter

New hotel room supply in Japan has been slowing down
significantly and is forecasted to be at its lowest since2015, hence boding well for the sector6.

Sustainability & GovernanceIn line with the market, CLAS’ serviced residences
under management contracts reflected a robust
performance. In the first quarter alone, RevPAU7 jumpedby 351% YoY, exceeding pre-COVID-19 same-store8
levels by 5%, driven by pent-up demand. International
leisure demand was strong, particularly during thecherry blossom season from late-March to April andautumn leaf season from mid-October to November.
For the full year, RevPAU7 increased 180% YoY in JPY
terms. RevPAU7 for 4Q 2023 exceeded pre-COVID-19
same-store8 levels by 39%, mainly driven by higher ADR,
which surpassed pre-pandemic levels by more than 30%.

In terms of source markets, the volume of visitors fromSouth Korea, Taiwan, the United States and Hong Kong
have exceeded or recovered close to pre-COVID-19
levels, and are expected to further increase and reacha record high in 202410. Amongst Southeast Asians,
Japan is also the most favoured holiday destination, withover a quarter of respondents in a study done acrossthe region selecting Japan as their most preferred11.
Although the return of visitors from China has beensignificantly slower than other regions, at 25% of2019 levels in 202312, the number of visitors is slowly
increasing and expected to recover further in 2024.

Portfolio & Performance

Due to the surge in inbound travel, the majority ofJapan's hotels registered RevPARs at or above prepandemic levels, mainly driven by ADR growth.
Occupancies improved at a slower pace. Many hotels
prioritised raising room rates over occupancies due tolabour shortages6.

A record high of 33.1 million inbound travellers are
forecasted to travel to Japan in 2024, about 4% higher
than 2019 levels and about 31% higher than in 2023.
The positive outlook is largely due to factors such as
the increased ease of travelling to Japan, and a senseof better value for money due to the cheaper Yen andrelatively low prices compared with other destinations10.
Leadership

In terms of visitor arrivals, Japan started off the year ona strong positive note, on the back of its full reopening
to independent travellers in October 2022. More than
25 million visitors had travelled to Japan in 2023, almost
80% of 2019 levels5. In 4Q 2023 alone, the number of
inbound travellers surpassed 2019 levels, even with
the number of Chinese tourists at less than half of
pre-pandemic levels, showing strong potential for further
growth6.

monetary policy, and accelerating wages should allow
for a stronger recovery to take hold9.

OPERATIONSREVIEWGROSS RENTAL INCOME (JPY’000)
Citadines Central Shinjuku Tokyo
Citadines Karasuma-Gojo Kyoto
Citadines Shinjuku Tokyo
Hotel WBF Kitasemba Easti
Hotel WBF Kitasemba Westi
Hotel WBF Honmachi
Sotetsu Grand Fresa Osaka-Namba
Sotetsu Grand Fresa Tokyo-Bay Ariake
Actus Hakata V-Tower
Alpha Square Kita 15 jo
Big Palace Kita 14 jo
Big Palace Minami 5 jo
City Court Kita 1 jo
Eslead College Gate Kindaimaeii
Eslead Residence Bentencho Grandeiii
Eslead Residence Osaka Fukushima Eastiv
Eslead Residence Umeda Grandeiii
Granfore Hakata Waterfrontv
Gravis Court Kakomachi
Gravis Court Kokutaiji
Gravis Court Nishiharaekimae
House Saison Shijo-dorivi
Infini Garden
Marunouchi Central Heightsvi
Roppongi Residences Tokyo
S-Residence Fukushima Luxe
S-Residence Gakuenzakavi
S-Residence Hommachi Marks
S-Residence Midoribashi Serio
S-Residence Namba Vialevi
S-Residence Shukugawavi
S-Residence Tanimachi 9 chome

FY 2023

FY 20221,255,213
360,527
1,079,612
64,054
848,312
1,298,913
253,362
102,160
108,001
142,486
127,92986,016
99,01866,33257,307
122,777
45,21235,251
27,574
154,938
546,474
47,032
182,669
168,254
68,02689,00680,736
97,36049,621
100,350

476,177
151,740
381,111
71,151740,000
1,170,000
250,395
107,162
107,803
141,575
124,883
67,7493,889
2,320
45,85535,44528,021
13,394543,396
4,174
176,287
168,378
5,929
88,80381,287
8,061
4,135
100,064

FY 2023

FY 2022

15,626
7,966
18,486

5,340
3,353
6,526

REVENUE PER AVAILABLE UNIT (JPY)
Citadines Central Shinjuku Tokyo
Citadines Karasuma-Gojo Kyoto
Citadines Shinjuku Tokyo

38

CAPITALAND ASCOTT TRUSTOverview

RENTAL HOUSING RENTAL PER SQUARE METRE (JPY)
Actus Hakata V-Tower

FY 2023

FY 2022

2,477

2,474

2,202

2,176

2,129

2,109

Big Palace Minami 5 jo

1,652

1,635

City Court Kita 1 jo

2,116

2,052

Eslead Residence Bentencho Grandeiii

2,825

2,722

Eslead Residence Osaka Fukushima East

3,320

-

Eslead Residence Umeda Grande

3,431

3,161

iv

iii

Granfore Hakata Waterfront

2,407

-

Gravis Court Kakomachi

2,018

2,032

Gravis Court Kokutaiji

2,161

2,189

2,232

2,257

v

Gravis Court Nishiharaekimae
House Saison Shijo-dori

2,607

2,746

Infini Garden

1,403

1,381

Marunouchi Central Heightsvi

2,306

2,537

vi

4,308

4,290

3,049

3,119

S-Residence Gakuenzakavi

2,342

2,449

S-Residence Hommachi Marks

2,604

2,798

S-Residence Midoribashi Serio

2,589

2,434

S-Residence Namba Vialevi

2,605

2,661

S-Residence Shukugawa

1,663

1,680

S-Residence Tanimachi 9 chome

2,854

2,794

vi

i
ii

39

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

There was no gross rental income in FY 2022 and FY 2023 as the property was closed due to poor market demand.
The acquisition of the property was completed on 18 March 2022; hence the gross rental income stated for FY 2022 is for 19 March2022 to 31 December 2022.
iii The acquisition of the property was completed on 16 December 2022; hence the gross rental income and rental housing rental
per square metre stated for FY 2022 are for 17 December 2022 to 31 December 2022.
iv The acquisition of the property was completed on 5 April 2023; hence the gross rental income and rental housing rental per square
metre stated for FY 2023 are for 6 April 2023 to 31 December 2023.
v The acquisition of the property was completed on 19 May 2023; hence the gross rental income and rental housing rental per square
metre stated for FY 2023 are for 20 May 2023 to 31 December 2023.
vi The acquisition of the property was completed on 30 November 2022; hence the gross rental income and rental housing rental per
square metre stated for FY 2022 are for December 2022.

Portfolio & Performance

Roppongi Residences Tokyo
S-Residence Fukushima Luxe

Leadership

Alpha Square Kita 15 jo
Big Palace Kita 14 jo

OPERATIONSREVIEW
SINGAPORE

KEY MARKET

51

PROPERTIES

1,2262
UNITS

S$68.6
millionTOTAL REVENUE(FY 2023)

S$28.8millionTOTAL GROSS PROFIT(FY 2023)

S$1,331.8
millionVALUATION(as at 31 December 2023)

The Robertson House by The Crest Collection

Singapore contributed 8% of CLAS’ total gross profit
for FY 2023. As at 31 December 2023, CLAS has
five properties in Singapore. There are two serviced
residences and a hotel under management contracts,
as well as a serviced residence under MCMGI. The
remaining serviced residence, Somerset Liang Court
Property Singapore, is currently under development
and expected to be completed in 2H 2025.
MANAGEMENT CONTRACTS
CLAS has two serviced residences and a hotel undermanagement contracts. Citadines Mount Sophia
Property Singapore comprises 154 units. The 96-yearleasehold serviced residence is situated in the heartof Singapore's arts, culture, learning and entertainment
hub, with easy access to Orchard Road and the CBD.
lyf one-north Singapore is situated in one-north, aprominent research, innovation, and business district,and caters to the technopreneurs and business schools
in the area. The 324-unit leasehold coliving property
soft-launched in November 2021 and obtained its final
Temporary Occupation Permit in January 2022.

1
2

40

The Robertson House by The Crest Collection (TRH),
formerly known as Riverside Hotel Robertson Quay, isa 336-unit leasehold hotel located in the Clarke Quay
entertainment precinct. The hotel was under a phased
renovation since March 2023, and was rebranded as
The Crest Collection, a luxury brand managed by The
Ascott Limited in October 2023. The renovation was
fully completed in 1Q 2024. Situated along the Singapore
River, the hotel is well-connected to Orchard Road andthe CBD, and offers guests a unique experience with
its colonial charm.
MANAGEMENT CONTRACT WITH MINIMUM
GUARANTEED INCOME
Ascott Orchard Singapore is a 220-unit leasehold
serviced residence located in the prime Orchard
entertainment and commercial district, with easy
access to the CBD via the Orchard and Somerset MRT
stations. The property was formerly under a master
lease before the lease expired in November 2022 andwas converted to a MCMGI thereafter.
Collectively, the properties under management
contracts and MCMGI have an average length of stayof about two months.

Includes Somerset Liang Court Property Singapore, which is currently under development.
Includes the 192-unit Somerset Liang Court Property Singapore, which is currently under development. Number of units may besubject to change.
CAPITALAND ASCOTT TRUSTOverview

DEVELOPMENT PROPERTY

2023 REVIEWSingapore’s tourism sector recovered strongly with
13.6 million international visitor arrivals in 2023, a 115%
growth YoY to 71% of pre-pandemic levels in 2019. The
increase was led by Indonesia, followed by China andMalaysia. Tourism receipts were estimated to reach
S$24.5 billion to S$26.0 billion, about 88% to 94% of2019 levels. Apart from a robust leisure and sporting
events calendar in 2023, new business events whichwere hosted in Singapore also drove the recovery4.

Singapore’s hotel sector RevPAR grew about 20% YoY in
2023, reaching 118% of 2019 levels on a full year basis,but declined about 9% YoY in the last quarter of 2023.
ADR for the sector was 12% higher YoY in 2023, at 128%of pre-pandemic levels, while occupancy came in at
80%, below the occupancy of 87% recorded in 20194.

3
4
5
6

The continued recovery in air travel and tourism demandis expected to support growth in Singapore’s tourism
and aviation-related sectors, albeit at a moderated pacefrom that in 20233.
The Singapore Tourism Board expects the recoveryof the tourism sector in 2024 to be largely driven by
improved global flight connectivity and capacity as
well as the implementation of the mutual 30-day
visa-free travel between China and Singapore. A vibrantlineup of events in 2024, including concerts by popularartistes, are expected to further boost demand andactivity levels. International visitor arrivals are forecasted
to reach around 15 million to 16 million, bringing inapproximately S$26.0 billion to S$27.5 billion in tourism
receipts4. Nonetheless, these forecasts remain below
2019 pre-pandemic levels.
The outlook for CLAS’ Singapore properties is expected
to trend in line with the market. As pent-up demandeases, RevPAU growth is expected to be driven byoccupancies as opposed to room rates. With thefull inventory of rooms at TRH available for salepost-renovation, the property is expected to contribute
positively to CLAS’ performance in FY 2024.
In February 2024, CLAS entered into an agreement todivest Citadines Mount Sophia Property Singapore.
The divestment was completed in March 2024.
Post-divestment, CLAS now has four properties in
Singapore.

Source: Ministry of Trade and Industry (2024)
Source: Singapore Tourism Board (2024)
Source: The Straits Times (2024)
Excluding Somerset Liang Court Property Singapore which was divested in July 2020.
ANNUAL REPORT 2023

41

Financial Statements andOther Information

Reflective of the market trend, the performance of CLAS’properties surpassed pre-COVID-19 levels in FY 2023.

Singapore’s GDP is forecasted to grow by 1% to 3% in
2024. Amid tight financial conditions and geopoliticaluncertainty, economic activity in outward-oriented
sectors is projected to remain subdued in the first halfof the year, before recovering gradually in tandem withan expected easing of monetary policy as inflationarypressures recede3.

Sustainability & Governance

While international visitor arrivals were higher on afull-year basis, growth began to normalise in the lastquarter of 20234. At Singapore’s Changi Airport, therate of growth in passenger traffic was also observed tomoderate, given intensifying competition in the region.
Singapore had an early head start as one of the firstin Asia to reopen to international travellers, and othercountries were catching up5.

2024 OUTLOOKPortfolio & Performance

In 2023, the Singapore economy grew by 1.1%,
moderating from the 3.8% growth in 2022, due tocontraction of the manufacturing sector and slower
expansion of services-producing industries3. Headline
inflation eased to 4.8%, as compared to 6.1% in 2022.

For FY 2023, the RevPAU of CLAS’ properties undermanagement contracts and MCMGI increased 61% YoY to
S$172 despite the renovation at TRH and relatively softer
demand in 4Q 2023. Excluding TRH, RevPAU increased
88% YoY in FY 2023. On a same-store basis6, the RevPAU
of Citadines Mount Sophia Property Singapore in
4Q 2023 was 5% higher than 4Q 2019.

Leadership

Somerset Liang Court Property Singapore was formerly
a 197-unit leasehold serviced residence in Clarke Quay
under a management contract before part of its GFA
was divested in July 2020. The retained GFA of about
13,000 square metres is currently under redevelopment
into a 192-unit serviced residence with hotel licenceand a refreshed lease of 99 years. CLAS owns a 100%interest in the property. Site works commenced in
mid-July 2021 and foundation piling works werecompleted in 2022. Substructure works are ongoing andtargeted to be completed in 2024. The new property,
which will be part of an iconic waterfront integrated
development, is on track to be completed in 2H 2025.

Demand from both the corporate and leisure segments,
as well as the uplift from MICE events, enabled theproperties to command high room rates during the year.

OPERATIONSREVIEWGROSS RENTAL INCOME (S$’000)
Ascott Orchard Singapore
Citadines Mount Sophia Property Singapore
lyf one-north Singapore

FY 2023

FY 2022

29,052
10,516
13,884

21,1038,095
9,055

FY 2023

FY 2022

12,38912,531

FY 2023

FY 2022

359
187
117
96

437
144
77
102

HOTEL REVENUE (S$’000)
The Robertson House by The Crest Collection(formerly Riverside Hotel Robertson Quay)

REVENUE PER AVAILABLE UNIT (S$)
Ascott Orchard Singaporei
Citadines Mount Sophia Property Singapore
lyf one-north Singapore
The Robertson House by The Crest Collection(formerly Riverside Hotel Robertson Quay)i

The master lease for Ascott Orchard Singapore was converted to MCMGI from December 2022; hence the RevPAU stated for
FY 2022 is for December 2022.

lyf one-north Singapore

42

CAPITALAND ASCOTT TRUSTOverview

VIETNAMKEY MARKET

5

PROPERTIES

893
UNITS

Leadership

S$36.5
millionTOTAL REVENUE(FY 2023)

S$18.0
millionTOTAL GROSS PROFIT(FY 2023)

millionVALUATION(as at 31 December 2023)

Somerset Central TD Hai Phong City

CLAS owns five leasehold serviced residences inVietnam, which contributed about 5% of the total
gross profit for FY 2023. Operating under management
contracts, the five properties have an average lengthof stay of five months.

Somerset Chancellor Court Ho Chi Minh City is a
172-unit serviced residence with a prime location in
the CBD, which attracts expatriates working for large
multinational companies within the vicinity. The 198-unit
Somerset Ho Chi Minh City is strategically located inDistrict 1, the city's acclaimed commercial, diplomaticand shopping district.

1
2

Vietnam’s GDP growth in 2023 slowed to about 5.1%,
down from 8.0% in 20221. High inflation, soft global
demand and political uncertainties weighed on the
country’s exports. Nonetheless, Vietnam’s GDP growthin 2023 was respectable, as the country was amongst
the fastest-growing economies regionally and globally2.
Foreign direct investment (FDI) into Vietnam rose
32.1% YoY in 2023, breaking records. Major investment
destinations in the country included Ho Chi Minh Cityand Hai Phong1.
Vietnam received 12.6 million international visitors in
2023. While the number of visitors was higher by 240%
YoY, it was 70% of pre-pandemic levels. The recovery
in international inbound travel into Vietnam was slower
compared to its neighbouring countries, largely due torestrictive visa policies which deterred tourists1, eventhough these policies had been relieved in phases.

Source: VietnamPlus (2024)
Source: The Business Times (2023)
ANNUAL REPORT 2023

43

Financial Statements andOther Information

Somerset Central TD Hai Phong City is a 132-unit
serviced residence that is part of an integrated
development and close to a multitude of international
schools, shopping malls and hospital facilities.
The property is located in the growth city of Hai Phong,2023 REVIEW
Sustainability & GovernanceSomerset Grand Hanoi comprises 185 units and islocated within Hanoi’s largest CBD, close to a hostof restaurants, entertainment stretches and local
attractions. Somerset Hoa Binh Hanoi comprises
206 units and is well located next to the business andfinancial districts as well as the flourishing Hoa Lac
high technology development zone.

the third largest city and one of the largest industrial
hubs and ports of Vietnam. A 15-minute drive fromthree industrial parks, the property is well-positioned
to capture the demand arising from foreign direct
investment and business activities in the city.

Portfolio & Performance

S$193.0

OPERATIONSREVIEW
In August 2023, Vietnam extended its visa exemption
period from 15 to 45 days, for 13 countries which
comprised key European markets, South Korea andJapan, as well as the extension of e-visa durationfrom 30 to 90 days with multiple entries permitted3.
Another factor which slowed down international
corporate demand into Vietnam was the difficulty inobtaining and renewing of work permits for foreign
employees since COVID-19. In September 2023, adecree for improvements was executed, with changes
that improved the efficiency of work permit issuance4.
As a market, the RevPAR of Vietnam hotels in 2023
was around 77% of 2019 levels5. For CLAS’ properties,
RevPAU rose 33% YoY in VND terms, on a same-store
basis6. As of 4Q 2023, RevPAU had recovered to 88%
of 4Q 2019 same-store7 levels.
CLAS’ properties in Vietnam primarily serve thecorporate long-stay and project group segments,
which continued to provide resilience to the portfolio.
The properties reflected steady recovery in 2023, anddemand for short stays from both leisure and corporate
travellers progressively returned as flight frequencies
to and from Vietnam increased. In particular, there wasan increase in MICE events and tradeshows which
contributed to the improvement during certain periodsof 2023. The year-end holiday season also saw a risein the number of short-stay leisure bookings by small
groups and families.

2024 OUTLOOKThe Vietnam economy is expected to grow 6% in
2024, a higher growth compared to 2023, driven by
the expectation of export recovery8. FDI in 2024 is
expected to be robust, which will contribute to Vietnam
remaining as one of the strongest growth environments
in Southeast Asia1.
As of early 2024, visitors from key markets such as
China, the United States, Taiwan, Australia and India are
still required to apply for e-visas3. In terms of facilitating
better accessibility of visitors from China, Vietnam’s
largest pre-pandemic source market, Vietnam has fallen
behind its neighbouring countries which have enteredinto mutual visa exemption arrangements9. Government
officials are exploring the introduction of short-term
visa waivers for major markets like China and India
so that recovery can be sped up further9. With this,Vietnam is expected to welcome around 18 million
foreign visitors in 2024, recovering to pre-pandemic
levels1. International passenger numbers into Vietnam
are also projected to increase 31% YoY8.
CLAS’ Vietnam properties are well-positioned tocontinue riding the recovery in inbound travel, andtheir long-stay base offers resilience, despite the returnof Chinese travellers to Vietnam being slower than
expected. Demand for mid and long stay bookings byinternational corporate guests remains healthy moving
forward. The retail and commercial spaces at CLAS’properties are also expected to remain well-leased,
offering diversification and a resilient income stream.

GROSS RENTAL INCOME (VND’MILLION)
Somerset Central TD Hai Phong City
Somerset Chancellor Court Ho Chi Minh City
Somerset Grand Hanoi
Somerset Ho Chi Minh City
Somerset Hoa Binh Hanoii

FY 2023

FY 202252,030136,153
232,507
130,547
61,4904,626
114,995
177,696
108,524
41,328FY 2023

FY 2022

1,023
1,487
1,826
1,706
658

1,072
1,239
1,179
1,421
436

REVENUE PER AVAILABLE UNIT (VND'000)Somerset Central TD Hai Phong Cityi
Somerset Chancellor Court Ho Chi Minh City
Somerset Grand Hanoi
Somerset Ho Chi Minh City
Somerset Hoa Binh Hanoii

The acquisition of the property was completed on 30 November 2022; hence the gross rental income and RevPAU stated for
FY 2022 are for December 2022.

3
4
5
6

Source: Vietnam National Authority of Tourism (2024)
Source: Risk in Asia (2023)
Source: STR (2024)
Excluding Somerset Central TD Hai Phong City which was
acquired in November 2022.

44

CAPITALAND ASCOTT TRUST7
8
9

Excluding Somerset West Lake Hanoi which was divested in
October 2019.
Source: Vietnam News (2024)
Source: VN Express (2023)

Overview

INDONESIA

3

PROPERTIES

588
UNITS

Leadership

S$14.1
millionTOTAL REVENUE(FY 2023)

S$4.8
millionTOTAL GROSS PROFIT(FY 2023)

millionVALUATION(as at 31 December 2023)

Ascott Kuningan Jakarta

After the completion of the acquisition of Ascott
Kuningan Jakarta in November 2023, CLAS now owns
three leasehold serviced residences in Indonesia which
are under management contracts. Collectively, the threeproperties have an average length of stay of aroundthree months.

In FY 2023, RevPAU of the Indonesia properties increased
by 6% YoY in IDR terms, mainly due to higher ADR. On asame-store basis1, RevPAU of the Indonesia properties
increased 4% YoY. In 4Q 2023, same-store RevPAU wasclose to pre-pandemic levels.

GROSS RENTAL INCOME (IDR’MILLION)FY 2023

FY 2022

90,54487,210

Ascott Kuningan Jakarta

8,132

-

Somerset Grand Citra Jakarta

59,34957,487FY 2023

FY 2022

1,195,461

1,153,492

Ascott JakartaiSustainability & GovernanceThe 204-unit Ascott Jakarta, 185-unit Ascott Kuningan
Jakarta and 199-unit Somerset Grand Citra Jakarta aresituated near the Golden Triangle of Jakarta – the city’s

main business, shopping and entertainment district – andsurrounded by offices, embassies, convention centres
and shopping centres.

Portfolio & Performance

S$145.8

REVENUE PER AVAILABLE UNIT (IDR)
Ascott Jakarta
Somerset Grand Citra Jakarta

1,405,048-

832,541

789,443i

The acquisition of the property was completed on 30 November 2023; hence the gross rental income and RevPAU stated for
FY 2023 are for December 2023.

1

Excluding Ascott Kuningan Jakarta which was acquired on 30 November 2023.
ANNUAL REPORT 2023

45

Financial Statements andOther Information

Ascott Kuningan JakartaiOPERATIONSREVIEW
MALAYSIA

1

PROPERTY

205
UNITS

S$3.7
millionTOTAL REVENUE(FY 2023)

S$0.7
millionTOTAL GROSS PROFIT(FY 2023)

S$35.2
millionVALUATION(as at 31 December 2023)

Somerset Kuala Lumpur

CLAS owns a freehold serviced residence in Kuala
Lumpur, Malaysia. Operating under a management
contract, the serviced residence has an average lengthof stay of over a month.
The 205-unit Somerset Kuala Lumpur is situated along
Jalan Ampang, close to several embassies, offices andshopping malls. Its prime location provides easy accessto Kuala Lumpur’s Golden Triangle, the city’s renowned
commercial, shopping and entertainment district.
In FY 2023, RevPAU of the property rose 8% YoY in
MYR terms, mainly due to higher ADR. In 4Q 2023,
RevPAU of Somerset Kuala Lumpur was 98% of
pre-COVID-19 levels.

GROSS RENTAL INCOME (MYR’000)
Somerset Kuala Lumpur

FY 2023

FY 2022

12,358

11,437FY 2023

FY 2022165

153

REVENUE PER AVAILABLE UNIT (MYR)
Somerset Kuala Lumpur

46

CAPITALAND ASCOTT TRUSTOverview

SOUTH KOREA

KEY MARKET

2

PROPERTIES

480
578
UNITS
UNITS

Leadership

S$8.5
millionTOTAL REVENUE(FY 2023)

S$7.9
millionTOTAL GROSS PROFIT(FY 2023)

millionVALUATION(as at 31 December 2023)

ibis Ambassador Seoul Insadong

CLAS owns two freehold hotels in Seoul, South Korea,
under master leases with fixed and variable rent
components.

In FY 2023, revenue for the South Korea portfolio
increased by 61% YoY in KRW terms, due to higher
variable rent received from both properties on the backof improved operating performance.

GROSS RENTAL INCOME (KRW’000)
FY 2023

FY 2022

ibis Ambassador Seoul Insadong

4,132,537

1,925,438

Sotetsu Hotels The Splaisir Seoul Dongdaemun

4,047,149

3,150,000

Based on the assumption that the lessee exercises its right to terminate the 20-year lease agreement at the 10-year mark, by paying
one year of rent. Based on the full 20-year term of the lease, the remaining lease term would be approximately 15 years.
ANNUAL REPORT 2023

47

Financial Statements andOther Information

1

Sustainability & Governanceibis Ambassador Seoul Insadong is a 363-unit hotel
and is strategically located near the Central BusinessDistrict, one of the major business districts in Seoul,
where many large Korean corporates and financial
institutions are based. The hotel is also located near
key tourist destinations such as Insadong retail precinct,
Changdeokgung Palace and Jongmyo Shrine. It is a
short walking distance from the Jongno 3-ga Station,
which runs three lines of the Seoul metropolitan subway,
offering convenience and excellent connectivity toother parts of the city. The property has a remaining
lease term of approximately 10 years.

Sotetsu Hotels The Splaisir Seoul Dongdaemun is a
215-unit hotel located in the wholesale and retailprecinct of Dongdaemun, one of the most popular
destinations in Seoul. Landmarks within its vicinity
include the Dongdaemun Design Plaza and the
Doota Mall. The hotel is well-connected to other partsof Seoul as it enjoys direct access to the Dongdaemun
History & Culture Park Station, which runs three linesof the Seoul metropolitan subway. The property has aremaining lease term of approximately six years1.

Portfolio & Performance

S$162.2

OPERATIONSREVIEW
THE PHILIPPINES

2

PROPERTIES

480
UNITS

S$22.3
millionTOTAL REVENUE(FY 2023)

S$7.4
millionTOTAL GROSS PROFIT(FY 2022)

S$110.1
millionVALUATION(as at 31 December 2023)

Somerset Millennium Makati

CLAS owns two serviced residences in Makati, thePhilippines. Both properties are under management
contracts, and they have an average length of stay ofover a month.
Ascott Makati is a 362-unit leasehold property locatedwithin Glorietta Mall, a retail and commercial complex
situated in the Ayala Triangle, a bustling area comprisinghigh-end shopping malls, office buildings, luxury dining
options, multinational companies, international banks

and embassies. Somerset Millennium Makati is a
118-unit freehold property located in the shopping
and business district of Makati City. It is withinwalking distance to Glorietta Mall and Greenbelt,
a 12-hectare space comprising a sprawling garden amidst
world-class shopping, dining and entertainment options.
In FY 2023, RevPAU of the properties increased 18%
YoY in PHP terms due to higher ADR. In 4Q 2023,
RevPAU was 91% of pre-pandemic levels.

GROSS RENTAL INCOME (PHP’000)
FY 2023

FY 2022

Ascott Makati

718,249

601,780

Somerset Millennium Makati

141,424

123,516

REVENUE PER AVAILABLE UNIT (PHP)FY 2023

FY 2022

Ascott Makati

5,116

4,300

Somerset Millennium Makati

3,136

2,726

48

CAPITALAND ASCOTT TRUSTOverview

OPERATIONSREVIEWEUROPE OVERVIEW

Leadership

RECOVERY REMAINS STRONG AS TRAVELENTHUSIASM CONTINUES TO RISEThe European travel sector demonstrated its resilience,
registering growth despite challenges such as highinflation, tighter financial conditions and strikes. While
the volume of travellers from certain long-haul source
markets such as China and Japan may require moretime to fully return to pre-COVID-19 levels, the progress
made in 2023 was encouraging2.

In line with the industry, CLAS’ properties in Europe
continued to surpass pre-COVID-19 performance levels
in 2023, primarily led by higher ADR.

International visitor arrivals to Europe are expected toachieve 2019 levels by 20242, notwithstanding ongoing
economic and geopolitical headwinds1.

Forward bookings at CLAS’ European properties arehealthy, supported by demand across all segments. Our
properties in France are expected to benefit from theParis Olympics, as the variable rent components underthe master leases allow us to capture the potential
upside. Our properties in the UK, Belgium, Ireland andSpain, which are under MCMGI, are similarly able tocapture the upside from growth in market demand,
while the minimum guaranteed income provides
downside protection. The master leases in Germany
are predominantly indexed to the German CPI index,
which provides for inflation adjustments YoY.
1
2
3
4
5

Source: World Tourism Organization (2024)
Source: European Travel Commission (2023 and 2024)
Source: STR (2024)
Source: CBRE (2024)
Source: American Express Global Business Travel (2024)
ANNUAL REPORT 2023

49

Financial Statements andOther Information

PROGRESSING WITH CAUTIOUS OPTIMISM AS
GROWTH INCOME STREAMS CAPTURE UPSIDEAND STABLE INCOME STREAMS MITIGATEHEADWINDSIn Paris, the 2024 Summer Olympics is expected to bringabout a boost to the performance of properties in the
French capital. As of January 2024, forward bookingsfor hotels had already reflected occupancy trending
above 50% for almost the entire period of the Summer
Olympics, with significant increases in room rates3.
Other major sporting and entertainment events that are
expected to drive visitor interest and provide an uplift
include UEFA Euro 2024 in Germany, as well as major
music tours in the UK and Western Europe.

Sustainability & GovernanceFor the full year of 2023, market RevPAR for Europe
grew by 20% YoY, surpassing pre-COVID-19 levels. The
growth in RevPAR was driven primarily by high ADR
that exceeded 2019 levels, whilst average occupancy
remained below pre-pandemic comparables. Globally,
France and Ireland were amongst the top five countries
in RevPAR performance in 2023. Ireland and the UK
ranked first and second in terms of occupancy, while
France recorded the highest ADR3.

Despite uncertain economic prospects and new hotel
supply in certain parts of Europe, room rates are still
trending upwards in 2024, although at a reduced velocity
compared to 20235. Market RevPAR growth is forecasted
to ease to a high single-digit rate in 20244. Given theoutlook for sustained demand and moderating inflation,
2024 is anticipated to be a year of profit increases andmargin expansion for the industry4.

Portfolio & Performance

Europe, being the world’s most visited destination
region, saw strong tourism levels in 2023. In total, Europe
welcomed 700 million arrivals in 2023, reaching 94%
of pre-pandemic levels1. The upward performance
was supported by robust intra-regional demand as
well as travellers from the United States leveraging
favourable exchange rates1,2. Western Europe reflected
an even stronger recovery in international visitor arrivals,
reaching 97% of pre-pandemic levels.

Domestic and short-haul leisure travel will continue
to be the primary drivers of demand in 2024, whilst
further upside will come from the ongoing return ofinternational long-haul leisure travel from Asian markets
which had lagged the others. In particular, Chinese
outbound tourist demand in Europe is projected toreturn further in 20244.

OPERATIONSREVIEW
FRANCEKEY MARKET

12

PROPERTIES

1,264
UNITS

S$33.1
millionTOTAL REVENUE(FY 2023)

S$29.8millionTOTAL GROSS PROFIT(FY 2023)

S$568.0
millionVALUATION(as at 31 December 2023)

La Clef Tour Eiffel Paris

France is one of CLAS’ key markets, contributing 9% tototal gross profit for FY 2023. Following the divestmentof four regional France properties in September 2023,
CLAS now owns 12 freehold serviced residences inFrance. All the 12 properties are under master leases,
with remaining lease terms ranging between less thana year to 12 years. Three of the master leases are due
for renewal in 2024.
10 of the serviced residences are in the French capitalof Paris, and the remaining two are in the cities of
Lyon and Montpellier. The properties in Paris arelocated near iconic landmarks such as the Eiffel Tower,
The Louvre, Notre Dame, Arc de Triomphe and the
shopping street of Champs-Élysées. Citadines
Presqu’île Lyon is located on the Lyon peninsula, withinminutes of Place Bellecour, Passerelle du Palais deJustice and Old Lyon. Citadines Antigone Montpellier islocated in the famous Antigone district, in the centre ofMontpellier. The historic centre of La Surdouée and its
famous Place de La Comédie, and Polygone Shopping
Centre are just a 10-minute walk away.

1
2
3
4

50

Source: European Commission (2024)
Source: Campus France (2023)
Source: Atout France (2023)
Source: Bloomberg (2023)
CAPITALAND ASCOTT TRUST

2023 REVIEWFrance's GDP is forecasted to have increased by 0.9%
in 2023, compared to a growth of 2.6% in 2022, as highinflation and tighter financial conditions weighed on
growth despite government support measures and afavourable labour market1.
In 2023, France remained an attractive destination
for travellers, recording approximately EUR59 billion
in tourism receipts for the first 11 months of 2023, a
9% increase from the same period a year ago and anincrease of 3% from the same period in 20192. This
was attributed to an increase in travellers from North
America and neighbouring European countries, apositive impact from the Rugby World Cup and a gradual
return of travellers from Asia Pacific. The Rugby World
Cup in September saw a 39% YoY increase in nights
booked by international travellers in the nine host cities
during the competition period, with majority of growth
contributed by long-haul travellers from Australia, Japan,
Argentina and South Africa3.

Overview

On the other hand, several terrorist attacks anddemonstrations in France and other European countries
following the Israel-Hamas war which began in October
2023 partially dampened the demand for trips to Parisand other European capitals4. Tour operators andhigh-end hospitality players saw some cancellations
amid fears of terrorism4.

Total revenue from France increased 22% YoY in EUR
terms in FY 2023, mainly due to higher variable rent at
the properties and full year contribution from La Clef
Tour Eiffel Paris, partially offset by the divestment of thefour properties. On a same-store basis5, total revenue
increased 6% YoY.

The French government lowered its 2024 GDP forecast
to 1% from its earlier estimation of 1.4% as the wars
in Ukraine and Gaza and a slowdown at its top trading
partners darkened the outlook for France6. Economic
activity is expected to gather momentum in the second
half of 2024 and private consumption is set to drive GDP
growth on the back of declining inflation1.

Notably, the 2024 Summer Olympics held in Paris from
July to August 2024 bodes well for accommodation
providers with around 15 million spectators and3 million additional visitors expected in Paris, increasing
tourism spending by up to EUR4 billion8. As at
January 2024, hotels and rental apartments in Paris
have doubled or tripled their typical summer rates6.
Occupancy on the books for almost the entire event
period is also trending above the 50% level as atJanuary 2024, and will continue to increase as the

In 2023, seven of the master leases were renewed on arevised rent structure which was based on the higherof fixed rent and variable rent. The fixed rent is indexed
to the French commercial lease index, and the rent
is automatically increased or decreased accordingly
each year. The variable rent is based on a percentageof the property’s total revenue. The total rent for allseven master leases is projected to be 28% higher in
FY 2024 under the revised structure, according to anindependent consultant. CLAS and the master lessees
will co-share furniture, fixtures, and equipment capital
expenditure during renovation.
The Olympics season aside, CLAS expects continued
healthy performance during the rest of the year. ADR are
expected to normalise from the current highs, which areabout 20% above pre-pandemic levels on a same-store
basis5. Leisure demand is expected to remain robust,and demand from the corporate segment, which has
lagged in recovery, is expected to strengthen.
Two properties – Citadines Les Halles Paris and La Clef
Tour Eiffel Paris – have been undergoing refurbishment
to their apartment units and common areas from
2Q 2023 and 3Q 2023 respectively. The renovation
capital expenditure for both properties are largely
borne by the master lessees. The two properties
have remained operational during the AEIs, and CLAS
continues to receive rent. The AEIs are expected to becompleted in 2Q 2024, ahead of the Olympics.

Excluding Citadines Castellane Marseille, Citadines City Centre Lille, Citadines Croisette Cannes and Citadines Prado Chanot Marseille,
which were divested in September 2023, and La Clef Tour Eiffel Paris, which was acquired in November 2022.
6 Source: The Business Times (2024)
7 Source: World Travel & Tourism Council (2024)
8 Source: Euromonitor International (2023)
9 Source: STR (2024)
10 Source: 2024 Paris Olympics Official Website (2024)
11 Source: The Connexion (2023)
ANNUAL REPORT 2023

51

Financial Statements andOther Information

5

Sustainability & GovernanceFrance is set to retain its position as the world’s mostpopular destination for international arrivals in 2024.
Airlines are also ramping up their capacities to matchthe growing demand from around the world, with thenumber of seats poised to surpass 2019 levels in 20247.

CLAS’ master leases in France, which predominantly
have fixed and variable rent components, arewell-positioned to capture the upside from the expected
increase in demand in 2024, while having downsideprotection against potential headwinds.

Portfolio & Performance

2024 OUTLOOKIn January 2024, the French government tripled thetourist tax on hotels and other accommodations, which
may impact tourism businesses and the competitivenessof France as a leisure tourism destination11. Geopoliticaltensions and security concerns may also, to someextent, weigh on France’s appeal and the performanceof its hospitality market4.

LeadershipAs a whole, the operational performance of CLAS’
France properties for FY 2023 was robust and surpassed
pre-COVID-19 levels on higher ADR. The growth was
primarily led by the Paris properties, and driven by amix of leisure, corporate and group bookings, withadditional uplift from the Paris Air Show in June, theRugby World Cup in September and Fashion Week in
September and October.

event draws nearer9. Apart from Paris, the sporting
event will also extend to the other cities such as Lyon,
Saint-Etienne, Nice and Bordeaux. The Lyon Stadium,France’s third largest stadium, will be hosting thefootball tournament10.

OPERATIONSREVIEWGROSS RENTAL INCOME (EUR’000)
FY 2023

FY 2022

Citadines Antigone Montpellier

602

591

Citadines Austerlitz Paris

351

359

Citadines Castellane Marseille

266

406

Citadines City Centre Lillei

484

660

Citadines Croisette Cannesi

261

331

Citadines Les Halles Paris

3,030

3,067

934

778

1,315

1,238

1,944

1,842

i

Citadines Maine Montparnasse Paris
Citadines Montmartre Paris
Citadines Place d’Italie Paris
Citadines Prado Chanot Marseille

341

435

Citadines Presqu’île Lyon

942

894

Citadines République Paris

999

907

Citadines Tour Eiffel Paris

2,608

2,372

i

Citadines Trocadéro Paris

1,623

1,479

La Clef Louvre Paris

1,549

1,532

La Clef Tour Eiffel Parisii

3,685

367

i
ii

The divestment of the property was completed on 22 September 2023; hence the gross rental income stated for FY 2023 is for
1 January 2023 to 21 September 2023.
The acquisition of the property was completed on 30 November 2022; hence the gross rental income stated for FY 2022 is for
December 2022.

Citadines Tour Eiffel Paris

52

CAPITALAND ASCOTT TRUSTOverview

UNITED KINGDOMKEY MARKET

5

PROPERTIES

830
UNITS

Leadership

S$62.4
millionTOTAL REVENUE(FY 2023)

S$27.2
millionTOTAL GROSS PROFIT(FY 2023)

millionVALUATION(as at 31 December 2023)

The Cavendish London

United Kingdom (UK) is one of CLAS’ key markets,
contributing 8% of the total gross profit for FY 2023.
Following the acquisition of The Cavendish London in
November 2023, CLAS now owns five properties in theUK, all of which are under MCMGI.

CLAS’ five UK properties have an average length of stayof less than a month.

Despite the softer economic conditions in 2023, theUK hospitality sector continued to register growth on
the back of higher demand since the reopening of its
borders. Inbound visits to the UK increased 31% YoY
in the first nine months of 20233.
Demand from international leisure travellers, especiallyduring the summer holiday season, corporate travellers
and cultural groups drove the higher ADR and RevPAU
at CLAS’ UK properties. City-wide events in London
provided further boost to the properties’ performance.
For instance, the King’s Coronation in May 2023 saw
bookings of UK-bound flights for the weekend jumpby 149% within a day of the date being announced4,123Source: Office for National Statistics (2023)
Source: CNN Business (2024)
Source: VisitBritain (2023)

ANNUAL REPORT 2023

53

Financial Statements andOther Information

The other four properties are freehold serviced
residences located in London. Citadines South
Kensington London is a 92-unit property situatedclose to embassies and the renowned shopping anddining districts of Chelsea and Knightsbridge. Citadines
Barbican London is a 129-unit property situated close
to the Barbican Arts Centre and Museum of London.
Citadines Holborn-Covent Garden London comprises
192 units and is centrally located, close to the financial
district of London. Citadines Trafalgar Square London isa 187-unit serviced residence located near key tourist
attractions including Trafalgar Square, the National
Gallery and River Thames.

UK's GDP is estimated to have increased by 0.1% in
2023, the weakest annual change in real GDP since thefinancial crisis in 2009, excluding the year 20201. The
slow growth can be attributed to the country’s highinterest rates to tackle inflation. While the UK is said
to have slipped into technical recession in the second
half of 2023, employment has continued to rise, real
wages have rebounded, and measures of business andconsumer confidence recovered by the end of 20232.

Sustainability & Governance

The Cavendish London is a 230-unit leasehold hotelin the exclusive Mayfair high-end shopping district of
central London. The property is a five- to 10-minutedrive from iconic attractions including Buckingham
Palace, Big Ben, West End theatre, Piccadilly Circus
and Hyde Park.

2023 REVIEW

Portfolio & Performance

S$890.5

OPERATIONSREVIEWboosting demand for accommodation. The Centre
for Economics and Business Research estimated a
GBP337 million boost from extra tourism and spending
over the three-day weekend5.
The RevPAU of CLAS’ UK properties remained above
pre-COVID-19 levels throughout FY 2023. For the fullyear, RevPAU surged 20% YoY in GBP terms. On asame-store basis6, RevPAU of CLAS’ UK properties
increased 18% YoY, and was 13% above pre-pandemic
levels.
2024 OUTLOOKThe UK economy is forecasted to expand by 0.6%
YoY in 20247, as the lagged negative effects of highenergy prices wane. As the UK enters an election year
in 2024, markets are expecting the Bank of England to
start cutting interest rates from as early as the summer,
given cooling inflation and softer economic growth8.
In 2024, an increase in inbound visits and spending byoverseas visitors in the UK is expected3. It is forecasted
that there will be 39.5 million inbound visits to the UK, up
5% YoY and 3% below 2019 levels. Tourist spending is
projected to hit GBP34.1 billion, a 7% increase YoY anda 20% increase from 2019 levels3. However, a slowdown
in the overall pace of recovery compared to the strong
start seen in the first half of 2023 has been observed, in
addition to competition from other European countries3.
2024 could be the first post-COVID-19 year that sees

occupancy rates in the UK surpass 2019 levels. Inboundtourism stays are expected to sustain its growth in 2024,
particularly in London, which will continue to cement
the city’s reputation as a global destination for business,entertainment and events. As international visitor
numbers are projected to increase and as operationalcosts rise with inflation, market ADR and RevPAR are
expected to remain high in 20249.
The outlook for CLAS’ UK portfolio is positive, withdemand expected across all segments. As theproperties are under MCMGI, they will be able tobenefit from the continued momentum expected in
2024, while the minimum guaranteed income offers
protection against downside risks. Corporate andgroup stays will continue to provide a stable base at
CLAS’ UK properties, mitigating some impact from therefurbishment at Citadines Holborn-Covent Garden
London which is expected to be completed in 3Q 2024.
In addition to Citadines Holborn-Covent Garden London,
The Cavendish London is also slated for renovation.
It will be renovated and rebranded under The Crest
Collection, a luxury brand managed by The Ascott
Limited, which is expected to enhance its EBITDA yield
to approximately 6.5% on a post-renovation stabilised
basis10. The valuation of the property is expected to be
GBP316.0 million post-renovation and stabilisation in
202711, an increase of GBP97.0 million compared to its
valuation of GBP219.0 million as at 31 December 2023.

GROSS RENTAL INCOME (GBP’000)
FY 2023

FY 2022

Citadines Barbican London

6,343

5,652

Citadines Holborn-Covent Garden London

9,576

8,569

Citadines South Kensington London

5,409

4,697

Citadines Trafalgar Square London

14,02911,186The Cavendish Londoni

1,459

-

FY 2023

FY 2022

REVENUE PER AVAILABLE UNIT (GBP)
Citadines Barbican London

132

117

Citadines Holborn-Covent Garden London

132

118

Citadines South Kensington London

155

133

Citadines Trafalgar Square London

199

157

The Cavendish Londoni

201

-

i

The acquisition of the property was completed on 30 November 2023; hence the gross rental income and RevPAU stated for
FY 2023 are for December 2023.

4
5
6

Source: Travelport (2023)
Source: Centre for Economics and Business Research (2023)
Excluding The Cavendish London which was acquired in
November 2023.
Source: International Monetary Fund (2024)
Source: The Guardian (2023)

7
8

54

CAPITALAND ASCOTT TRUST

9 Source: CBRE (2024)
10 Based on stabilised EBITDA before furniture, fixtures andequipment reserves in year 2027/28 over The Cavendish
London’s agreed property value, estimated capitalised costs,
and estimated proportion of project cost attributable to CLAS.
Such EBITDA figures are from the HVS London valuation.
11 Based on the valuation by HVS London.

Overview

BELGIUM

2

PROPERTIES

324
UNITS

Leadership

S$17.4
millionTOTAL REVENUE(FY 2023)

S$5.7
millionTOTAL GROSS PROFIT(FY 2023)

millionVALUATION(as at 31 December 2023)

Citadines Toison d’Or Brussels

Citadines Toison d’Or Brussels is a 155-unit serviced
residence situated in the shopping district of Avenue
Louise, close to the Royal Palace and major embassies.

Citadines Sainte-Catherine Brussels is a 169-unit
serviced residence located within a bustlingneighbourhood of cafes, restaurants and shops, on
the edge of Brussels’ historic centre. It is also near themain business area and Grand Place, the city’s central
square and a UNESCO World Heritage Site.

In FY 2023, the performance of both properties
exceeded the minimum guaranteed levels. RevPAUof the Belgium portfolio grew 52% YoY in EUR terms,
due to higher ADR, on the back of continued recovery
from COVID-19. In 4Q 2023, RevPAU was 109% of prepandemic levels.

GROSS RENTAL INCOME (EUR'000)
FY 2023

FY 2022

Citadines Sainte-Catherine Brussels

6,166

4,914

Citadines Toison d’Or Brussels

5,275

2,806

FY 2023

FY 2022

Citadines Sainte-Catherine Brussels

100

78

Citadines Toison d’Or Brussels

91

48

REVENUE PER AVAILABLE UNIT (EUR)

55

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

CLAS owns two freehold serviced residences in Brussels,
Belgium. Both properties are under MCMGI, and they
have an average length of stay of less than a month.

Portfolio & Performance

S$74.5

OPERATIONSREVIEWGERMANY

5

PROPERTIES

721
UNITS

S$16.6
millionTOTAL REVENUE(FY 2023)

S$14.8millionTOTAL GROSS PROFIT(FY 2023)

S$255.0
millionVALUATION(as at 31 December 2023)

Citadines Arnulfpark Munich

CLAS owns five serviced residences in Germany undermaster lease arrangements, with remaining lease terms
varying between eight years and 24 years, inclusive ofextension periods at the lessees' option. Most of themaster leases come with fixed rent terms, with annual
indexation to the German CPI index. This allows CLAS
to receive higher rents in an inflationary environment.
Citadines Arnulfpark Munich is a 146-unit freeholdproperty located in the Westend technology center
district, and a short drive to the historical city centre
and financial district. It is also close to Olympia
Shopping Centre, Munich's main shopping mall.
Citadines City Centre Frankfurt is a 165-unit freeholdproperty that is located in the city centre, surroundedby numerous retail and commercial developments, anda 10-minute drive to the Financial District. Citadines
Kurfürstendamm Berlin is a 117-unit freehold property
located near Kurfürstendamm, an upscale commercial
and retail neighbourhood. Refurbishment of theproperty commenced in 4Q 2023 and is expected tocomplete in 2Q 2024. Citadines Michel Hamburg, a127-unit leasehold property and The Madison Hamburg,
a 166-unit freehold property, are both strategicallylocated near Hamburg city centre.
In FY 2023, revenue for the Germany portfolio increased
by 24% in EUR terms, mainly due to higher rent received,
the absence of rent adjustments and rent waiver.

GROSS RENTAL INCOME (EUR'000)
FY 2023

FY 2022

Citadines Arnulfpark Munich

1,646

1,537

Citadines City Centre Frankfurt

2,400

2,249

Citadines Kurfürstendamm Berlin

955

935

Citadines Michel Hamburg

2,004

1,877

The Madison Hamburg

3,964

2,168

56

CAPITALAND ASCOTT TRUSTOverview

IRELAND

1

PROPERTY

136
UNITS

Leadership

S$1.6
millionTOTAL REVENUE(FY 2023)

S$0.5
millionTOTAL GROSS PROFIT(FY 2023)

millionVALUATION(as at 31 December 2023)

Temple Bar Hotel

CLAS owns one freehold hotel in Dublin, Ireland.
Acquired in November 2023, the 136-unit Temple Bar
Hotel operates under a MCMGI. The property mainly
serves leisure travellers and has an average length ofstay of less than a month.
The property is located within Dublin’s Temple Bar
area, a key tourist destination and entertainment

district, and close to the city’s central business district.
The hotel is a short walk to Dublin’s shopping streets
and renowned landmarks such as Dublin Castle andthe National Gallery of Ireland.
Renovation of the property has commenced in 1Q 2024
and is expected to complete in 4Q 2024. The property
remains operational during the AEI.

FY 2023

FY 2022

1,095-

FY 2023

FY 2022115-

REVENUE PER AVAILABLE UNIT (EUR)
Temple Bar Hotelii

Sustainability & Governance

HOTEL REVENUE (EUR'000)
Temple Bar Hoteli

Portfolio & Performance

S$114.9

The acquisition of the property was completed on 30 November 2023; hence the gross rental income and RevPAU stated for
FY 2023 are for December 2023.

57

Financial Statements andOther Information

ANNUAL REPORT 2023

OPERATIONSREVIEWSPAIN

1PROPERTY

131
UNITS

S$10.3
millionTOTAL REVENUE(FY 2023)

S$4.9
millionTOTAL GROSS PROFIT(FY 2023)

S$71.7
millionVALUATION(as at 31 December 2023)

Citadines Ramblas Barcelona

CLAS owns a freehold serviced residence in Barcelona,
Spain. The 131-unit property operates under a MCMGIand has an average length of stay of less than a month.

stations, and is close to the main business areas of thecity, making it a prime location for both business andleisure travellers.

Citadines Ramblas Barcelona is located on the La
Rambla boulevard, an iconic entertainment district,and is a few metres away from Plaza Catalunya, one of
the most visited destinations in Barcelona. The property
enjoys good connectivity, with access to three metro

In FY 2023, the performance of Citadines Ramblas
Barcelona exceeded the minimum guarantee level.
RevPAU of the property grew by 45% YoY in EUR terms,
on the back of higher occupancy and ADR. In 4Q 2023,
RevPAU was 150% of pre-pandemic levels.

GROSS RENTAL INCOME (EUR'000)
Citadines Ramblas Barcelona

FY 2023

FY 2022

6,769

4,850

FY 2023

FY 2022

133

92

REVENUE PER AVAILABLE UNIT (EUR)
Citadines Ramblas Barcelona

58

CAPITALAND ASCOTT TRUSTOverview

OPERATIONSREVIEW
UNITED STATES OF AMERICAKEY MARKET

11

PROPERTIES

Leadership

2,528
UNITS

S$175.1
millionTOTAL REVENUE(FY 2023)

S$79.9millionTOTAL GROSS PROFIT(FY 2023)

millionVALUATION(as at 31 December 2023)

Standard at Columbia

accommodation properties. CLAS’ eight student
accommodation properties are located near renowned
universities with competitive athletics programmes,
sizeable student populations and a steady enrolment
growth. They have an average length of stay of about
12 months.

MANAGEMENT CONTRACTS

Paloma Kent is a leasehold property located in Kent,
Ohio, with 384 beds across 126 units. The property
was acquired in February 2022 and offers the closest
proximity to Kent State University.

To enhance income stability, CLAS expanded its
investment mandate in 2021 to include student

CLAS owns two properties in North Carolina, Paloma
Raleigh and Uncommon Wilmington. Paloma Raleigh is afreehold student accommodation with 523 beds across
180 units. Located in the city of Raleigh, one of thefastest-growing cities in the USA, Paloma Raleigh serves
the students at North Carolina State University, which
is about 2 kilometres away. Uncommon Wilmington
is a freehold property with 493 beds across 150 units
located in the city of Wilmington. It is situated about
1.5 kilometres from the University of North Carolina
Wilmington, a short three-minute drive to the campus.
Paloma University City is a freehold property comprising
251 beds across 126 units situated in Philadelphia,
Pennsylvania. Located in the heart of Philadelphia’s
University City, it is walking distance from both the
ANNUAL REPORT 2023

59

Financial Statements andOther Information

All three hotels in CLAS’ USA portfolio are in
New York. Element New York Times Square West,a 411-unit leasehold limited-service hotel and voco
Times Square South, a 224-unit freehold limitedservice hotel are strategically located in Midtown
Manhattan. Both hotels are within walking distanceto the Jacob K. Javits Convention Center (Javits
Center), Hudson Yards live-work-play community,
as well as the popular Times Square commercial
and entertainment district. Both properties are
well-connected to several subway lines and othertransportation options. Situated in the heart of Tribeca,
the 369-unit leasehold Sheraton Tribeca New York Hoteloffers prime access to both the financial district andthe upscale shopping destination of SoHo. The hotels
have an average length of stay of less than a month.

Sustainability & Governance

United States of America (USA) is one of CLAS’ keymarkets. In FY 2023, USA contributed 24% of CLAS’gross profit. CLAS owns 11 USA properties undermanagement contracts, consisting of three hotels andeight student accommodation properties.

Portfolio & Performance

S$1,384.2

OPERATIONSREVIEW
University of Pennsylvania and Drexel University as well
as uCity Square, a life science and technology hub withretail, residential, clinical, office and laboratory space.

growth in midweek business travel. The limited supplyof new hotel rooms in New York City was also a key
factor which drove performance in 20233.

Paloma West Midtown is a freehold property with
525 beds across 183 units located in the heart of Atlanta,
Georgia. It is situated across the street from the Georgia
Institute of Technology.

CLAS’ USA hotels continued to perform well in
FY 2023 as travel demand remained robust. Bookingsfrom international guests increased as citywide
activities returned and large-scale events such as the78th session of the UN General Assembly provided aboost. In 1H 2023, CLAS’ USA hotels performed in linewith pre-pandemic levels before RevPAU picked up
to reach 115% of pre-pandemic levels in 4Q 2023. For
FY 2023, RevPAU was 20% higher YoY, in USD terms.

Seven07 is a freehold property with 548 beds across
218 units located in the city of Champaign, Illinois, lessthan 200 metres away from the University of Illinois.
Wildwood Lubbock is a resort-style freehold property
with 1,005 beds across 294 units located in the city of
Lubbock, Texas. It is situated 2.7 kilometres from thecampus boundary of Texas Tech University.
Standard at Columbia, CLAS’ newest student
accommodation property, obtained its temporary
certificate of occupancy on 30 June 2023 and received
its first batch of students in August 2023. Located inColumbia, South Carolina, it is a freehold property
consisting of 678 beds across 247 units. In 2021,
CLAS and its Sponsor, Ascott, jointly invested in thedevelopment to own 45% stake each, with a third-party
partner owning the remaining 10% stake. In November
2022, CLAS acquired Ascott’s 45% stake, doubling its
ownership in Standard at Columbia to 90%.
2023 REVIEWIn 2023, the USA economy grew by 2.5%, comparedwith a 1.9% growth in 20221. USA’s growth in 2023 wasprimarily fueled by an increase in consumer spending
and a resilient labour market. Notwithstanding the
growth in the economy, inflation pressures subsided.
New York City’s tourism industry was a key driver
for the state and city economy in 2023, generating
about USD74 billion in economic impact2. The city
attracted 61.8 million visitors in 2023, reaching 93% of
the city’s pre-pandemic record visitation levels in 2019.
It also remains the largest point of entry into the USA,with more than 2,900 weekly flight arrivals across its
international airports, highlighting its key position as aworldwide tourist destination.
New York City’s hotel performance remained strong in
2023, with an estimated 36.5 million room nights sold,about 92% of 2019 record levels. The city was alsoranked the best-performing hotel city in the USA in
the fourth quarter of 2023. City-wide, the demand forhotels remained high and was supported by a steady
1
2
3

60

Source: Reuters (2024)
Source: New York City Tourism + Conventions (2023)
Source: PwC (2024)
CAPITALAND ASCOTT TRUST

Similarly, CLAS’ USA student accommodation properties
performed well. They are 93% leased for the 2023-2024
academic year (AY) beginning August 2023. ExcludingStandard at Columbia which began receiving students
in August 2023, rent growth is about 5.5% over theprevious AY. Excluding Standard at Columbia and
Wildwood Lubbock which was undergoing light AEI,
rent growth is higher at about 6.5% over the previous AY.
2024 OUTLOOKThe USA economy is projected to grow 2.1% in
20244. The slower pace of growth as compared to 2023
is mainly due to lagged effects of monetary policy
tightening, gradual fiscal tightening, and a softening inlabour markets.
Amid the softer outlook of the overall USA economy,
New York City’s economy is expected to be bolsteredby resilient travel demand, as seen in 2023. Being thelargest point of entry to the USA and a key destinationof choice, the city is expected to attract 64.5 million
visitors in 2024, an approximate increase of 4.4% YoY2.
Ongoing projects contributing to this growth include
multibillion-dollar improvements to the airports, bothinternational and domestic, including the LaGuardia
Airport which is slated for completion in 2024 after
undergoing the first complete rebuild of a USA airport
in over 25 years2.
CLAS’ hotels, being well-located in bustling districts in
New York City, are poised to benefit from the continued
demand from both corporate and leisure travellers in
2024, with citywide large-scale events providing further
uplift.
The ongoing redevelopment of Hudson Square which
has completed its first phase of projects in 2022 andentered its second phase5, is expected to benefit
Sheraton Tribeca New York Hotel. With minimal direct
45

Source: International Monetary Fund (2024)
Source: Hudson Square Business Improvement District (2024)

Overviewsupply of new hotels in the city in 20243, CLAS’ hotels
are well-positioned for continued strong performance.

historical highs, is expected to moderate from current
levels to remain above average6.

The outlook for the USA student accommodation
market is also positive. As of December 2023,
pre-lease rates of student accommodation beds atcore universities are at a record-high of 41.2% for
AY 2024-2025. Market rent growth, which has reached

In line with the market, pre-leasing of CLAS' student
accommodation properties is favourable and pacing
ahead of the last AY.

GROSS RENTAL INCOME (USD'000)
Element New York Times Square West
Paloma Kenti
Paloma Raleigh
Paloma University City
Paloma West Midtown
Seven07
Sheraton Tribeca New York HotelStandard at Columbiaii
Uncommon Wilmington
voco Times Square South

31,623
3,591
5,306
4,537
7,696
7,141
34,705
3,250
4,572
16,28925,733
3,060
4,988
4,111
7,138
6,518
30,980
4,406
12,247

Wildwood Lubbock

6,689

6,880

FY 2023

FY 2022

211
254
199

172
226
150

FY 2023

FY 2022

779

724
794
1,330
1,133
991
745
570

REVENUE PER AVAILABLE UNIT (USD)
Element New York Times Square West
Sheraton Tribeca New York Hotelvoco Times Square South

Portfolio & Performance

FY 2022

Leadership

FY 2023

RENT PER BED (USD)

i
ii

1,222
1,086
959
773
555

The acquisition of the property was completed on 9 February 2022; hence the gross rental income and rent per bed stated for
FY 2022 are for 10 February 2022 to 31 December 2022.
The property obtained its temporary certificate of occupancy in June 2023, and started receiving students from August 2023; hence
the gross rental income and rent per bed stated for FY 2023 are for 18 August 2023 to 31 December 2023.

Source: RealPage (2024)
ANNUAL REPORT 2023

61

Financial Statements andOther Information

6

845
1,460

Sustainability & Governance

Paloma Kenti
Paloma Raleigh
Paloma University City
Paloma West Midtown
Seven07
Standard at Columbiaii
Uncommon Wilmington
Wildwood Lubbock

FINANCIAL
REVIEWREVENUE AND GROSS PROFIT
CLAS’ revenue of S$744.5 million for the financial
year ended 31 December 2023 (FY 2023) comprised
S$91.0 million (12% of total revenue) from properties
under master leases, S$123.2 million (17%) fromproperties under management contracts with minimum
guaranteed income (MCMGI) and S$530.3 million(71%) from properties under management contracts.
The revenue from management contracts comprised
S$439.6 million from serviced residences and hotels
and S$90.7 million from rental housing and student
accommodation properties.
Revenue for FY 2023 increased by S$123.3 million
as compared to the previous financial year ended
31 December 2022 (FY 2022).
The increase in revenue was mainly due to higher
revenue of S$95.9 million from the existing properties
and additional contribution of S$28.1 million fromthe properties acquired during FY 2023 and full year
contribution from the properties acquired in FY 2022.
The contribution from the acquisitions had more thanoffset the decrease in revenue of S$0.7 million from thedivestment of four properties, Citadines City Centre
Lille, Citadines Croisette Cannes, Citadines Castellane
Marseille and Citadines Prado Chanot Marseille in
FY 2023.
CLAS’ portfolio occupancy was 76% in FY 2023.
Revenue Per Available Unit (RevPAU) increased by
23%, from S$120 in FY 2022 to S$148 in FY 2023.
CLAS’ gross profit of S$338.2 million for FY 2023
comprised S$82.0 million (24% of total gross profit)
from properties under master leases, S$53.5 million(16%) from properties under MCMGI and S$202.7 million(60%) from properties under management contracts.
For the management contracts, the gross profit fromserviced residences and hotels was S$148.4 million

1

62

and the gross profit from rental housing and student
accommodation properties amounted to S$54.3 million.
CLAS’ stable income sources (which include
master leases, MCMGI, rental housing and student
accommodation properties) contributed about 56%
of CLAS’ gross profit for FY 2023.
For the properties under master leases, revenue
and gross profit were higher in FY 2023 due tohigher variable rent and contributions from La Clef
Tour Eiffel Paris and Quest Cannon Hill (acquired in
November 2022). These increases were partially offset
by the divestment of four properties in France, in
September 2023.
For the properties under MCMGI, both the revenue
and gross profit were higher as compared to last year
due to stronger performance and the acquisition of
The Cavendish London and Temple Bar Hotel in
November 2023.
Revenue and gross profit from management contracts
was higher due to stronger performance from mostcountries and contributions from the acquisition ofseven properties in Japan, Vietnam and US (acquiredin November 2022), two turnkey rental housing
properties in Japan (acquired in December 2022), twoturnkey rental housing properties in Japan (acquired in
2Q 2023) and one property in Indonesia (acquired in
November 2023).
CLAS’ inclusion into the FTSE EPRA Nareit Developed
Index, a leading benchmark for listed real estate
investment companies and REITs, has broadened CLAS’reach to institutional investors globally and enhanced
the trading liquidity of our stapled securities. CLAS’
EBITDA1 breakdown according to the FTSE classificationof markets was 88.5% (2022: 88.3%) for developed
markets and 11.5% (2022: 11.7%) for the rest of themarkets in the portfolio.

Refers to earnings before net interest expense, tax, depreciation and amortisation (excluding corporate expenses).
CAPITALAND ASCOTT TRUSTOverview

FY 2023

FY 2022

Local
Currency

Revenue(million)

Gross Profit(million)

Revenue(million)

Gross Profit(million)

Australia

AUD

11.8

10.9

11.1

10.5

France

EUR

22.8

20.5

18.7

17.1

Germany

EUR

11.4

10.2

9.2

8.4

Japan

JPY

2,302.2

2,046.1

2,052.3

1,822.9South Korea

KRW

8,179.7

7,668.3

5,075.4

4,602.6

3.9

8.2

2.3

Master Leases

Belgium

EUR

Ireland

EUR

1.1

0.3

–

–

S$

31.5

15.2

21.3

17.4

Spain

EUR

7.1

3.4

5.1

2.4

United Kingdom

GBP

37.4

16.3

30.5

13.3

AUD

179.2

44.9

151.4

38.8

RMB

126.4

29.0

111.2

23.7

Singaporei

12.0

LeadershipManagement Contracts with Minimum Guaranteed Income

Management Contracts
Australia
China

IDR

160.4

54.2

146.3

55.5

Japan

JPY

5,891.3

3,376.4

3,323.0

1,647.5

Malaysia

MYR

12.6

2.3

11.8

3.1

The Philippines

PHP

925.3

308.7

765.7

215.0

Singapore

S$

37.1

13.6

30.1

11.8

United States of America

USD

130.3

59.4

109.4

48.3

Vietnam

VND

640.3

315.0

467.8

237.7

ii

i
ii

Portfolio & Performance

Indonesiaii

The master lease for Ascott Orchard Singapore was converted to “Management Contracts with Minimum Guaranteed Income” from
December 2022. For comparison purposes, the revenue and gross profit amounts for YTD November 2022 have been reclassified
from the “Master Leases” category to “Management Contracts with Minimum Guaranteed Income” category.
Revenue and gross profit figures for Indonesia and Vietnam are stated in billions.

Sustainability & Governance

63

Financial Statements andOther Information

ANNUAL REPORT 2023

FINANCIAL
REVIEWFY 2023

FY 2022

Revenue

Gross Profit

Revenue

Gross Profit(S$’million)(S$’million)(S$’million)(S$’million)

Master Leases
Australia

10.6

9.8

10.6

10.0

France

33.1

29.8

27.2

25.0

Germany

16.6

14.8

13.4

12.2

Japan

22.2

19.7

22.0

19.5

South Korea

8.5

7.9

5.5

5.0

Subtotal

91.0

82.0

78.7

71.7

Management Contracts with Minimum Guaranteed Income
Belgium

17.4

5.7

12.0

3.4

Ireland

1.6

0.5

–

–

Singapore

31.5

15.2

21.3

17.4

Spain

10.3

4.9

7.4

3.5

United Kingdom

62.4

27.2

52.4

22.8

Subtotal

123.2

53.5

93.1

47.1

160.6

40.2

145.2

37.3

Management Contracts
Australia
China

24.1

5.5

23.0

4.9

Indonesia

14.1

4.8

13.7

5.2

Japan

56.8

32.6

35.6

17.7

Malaysia

3.7

0.7

3.7

1.0

The Philippines

22.3

7.4

19.6

5.5

Singapore

37.1

13.6

30.1

11.8

United States of America

175.1

79.9

150.9

66.6

Vietnam

36.5

18.0

27.6

14.0

Subtotal

530.3

202.7

449.4

164.0

Total

744.5

338.2

621.2

282.8

EQUITY FUND RAISING
On 24 August 2022, CLAS raised S$170.0 million
through a private placement of 151,786,000 new
Stapled Securities (2022 Private Placement). As set
out in the announcements dated 16 August 2022,
30 November 2022 and 30 November 2023 in relation to
the use of proceeds from the 2022 Private Placement,
the proceeds from the 2022 Private Placement havebeen fully utilised as follows:(a) S$109.4 million was used to partially fund thepurchase consideration of the acquisition ofinterests in serviced residence properties in France,
Vietnam and Australia, rental housing properties inJapan and a student accommodation property inSouth Carolina, US on 30 November 2022 (the 2022
Acquisitions);(b) S$45.1 million was used to partially fund theacquisition of The Cavendish London, Temple Bar

64

CAPITALAND ASCOTT TRUSTHotel and Ascott Kuningan Jakarta on 30 November
2023;(c) S$13.2 million was used to repay debts; and(d) S$2.3 million was used to pay the professional andother fees and expenses in connection with the2022 Private Placement.
The amount used for the 2022 Acquisitions was lessthan the originally estimated amount as stated in theannouncement dated 16 August 2022 due to favourable
exchange rate movements. The amount used for the
professional and other fees and expenses was less thanthe originally estimated amount in the announcement
dated 16 August 2022 due to lower fees and expenses
incurred in connection with the 2022 Private Placement.
The Managers thus used the excess proceeds for debt
repayment purposes.
On 2 August 2023, the Managers launched an equity
fund raising comprising a private placement and aOverviewpro rata and non-renounceable preferential offering(2023 Equity Fund Raising). On 14 August 2023, CLAS
raised S$200.0 million from the private placement of
191,755,000 new Stapled Securities to institutional andother investors. Pursuant to the preferential offering,
100,538,407 new Stapled Securities were issued,on the basis of 29 preferential offering new stapled
securities for every 1,000 existing stapled securities,
on 4 September 2023 raising gross proceeds of
S$103.1 million.

This is in accordance with the stated use of the proceeds2
and the Managers will make further announcementon the utilisation of the remaining proceeds andany deviation from the stated use and percentage
allocated in the use of proceeds announcement fromthe 2023 Equity Fund Raising as and when such funds

Distribution income to Stapled Securityholders for
FY 2023 was S$237.0 million, 25% higher as comparedto FY 2022. The distribution per Stapled Security (DPS)
for FY 2023 was 6.57 cents, 16% higher than that for
FY 2022.
Excluding one-off items, the DPS increased 14% YoY
due to stronger operating performance from the existing
properties and contribution from the acquisitions.
In FY 2023, 100% of distribution income (other thangains from the sale of real estate properties) was paidout, demonstrating CLAS’ firm commitment to deliver
stable distributions.
To ensure fairness to holders of the existing Stapled
Securities prior to the issuance of the new Stapled
Securities under the private placement in August 2023,
CLAS paid, in lieu of the scheduled semi-distribution,an advanced distribution of 0.701 cents per Stapled
Security for the period from 1 July 2023 to 13 August 2023
(prior to the date on which the new Stapled Securities
were issued pursuant to the private placement). The
advanced distribution was paid on 11 October 2023.

Portfolio & Performance(a) S$167.9 million was used to partially fund theacquisition of The Cavendish London, Temple Bar
Hotel and Ascott Kuningan Jakarta on 30 November
2023;(b) S$2.5 million was used to fund the renovation of
Citadines Holborn-Covent Garden London;(c) S$24.4 million was used to repay debts; and(d) S$4.6 million was used to pay the professional andother fees and expenses in connection with the2023 Equity Fund Raising.

DISTRIBUTIONSLeadershipAs set out in the announcement dated 30 November 2023,
the gross proceeds of S$303.1 million from the 2023
Equity Fund Raising have been partially utilised asfollows:

are materially utilised. The proceeds from the 2023
Equity Fund Raising that have been allocated towards
the extension and renovation of Sydney Central Hotel(formerly Novotel Sydney Central) of S$82.8 million
have yet to be utilised.

Breakdown of distribution per Stapled Security (DPS) for FY 2023 is as follows:

Distribution rate
per Stapled
Security
Payment Date

For 14 August 2023
Total forto
1 July 2023 to
31 December 2023 31 December 2023

2.778 cents

0.701 cents

3.095 cents

29 August 2023 11 October 2023

29 February 2024

3.796 cents

Total for
FY 2023

6.574 cents

The proceeds from the 2023 Equity Fund Raising that have been allocated towards (i) funding the acquisition of The Cavendish London,
Temple Bar Hotel and Ascott Kuningan Jakarta; and (ii) the professional and other fees and expenses in connection with the 2023
Equity Fund Raising have not been fully utilised as there are still outstanding payments in relation to the abovementioned acquisition
and the 2023 Equity Fund Raising. The proceeds from the 2023 Equity Fund Raising that have been allocated towards the renovationof Citadines Holborn-Covent Garden London have also yet to be fully utilised.
ANNUAL REPORT 2023

65

Financial Statements andOther Information2

For 1 July 2023
to
13 August 2023

Sustainability & GovernanceDistribution

For 1 January 2023
to30 June 2023

FINANCIAL
REVIEWASSETSCAPITAL MANAGEMENT

CLAS’ total asset value stood at S$8.7 billion as at
31 December 2023, 9% higher as compared to
S$8.0 billion as at 31 December 2022. The increase intotal assets was mainly due to higher portfolio valuation
resulting from stronger operating performance andimproving outlook, notwithstanding higher capitalisationand discount rates across markets (except for Japan).

KEY FINANCIAL INDICATORSCHANGE IN FAIR VALUE OF INVESTMENT
PROPERTIES, LAND AND BUILDINGS,INVESTMENT PROPERTIES UNDERDEVELOPMENT AND ASSETS HELD FOR SALE
The net change in fair value of investment properties,
land and buildings, investment properties underdevelopment and assets held for sale has no impact
on Stapled Securityholders’ distribution.
In accordance with the Code on Collective Investment
Schemes issued by the Monetary Authority of Singapore,valuation of CLAS’ properties is to be conducted once
every year. Any increase or decrease in fair value iscredited or charged to the Statement of Total Returnas net appreciation or depreciation on revaluation of
investment properties, land and buildings, investment
properties under development and assets held for sale.
As at 31 December 2023, independent full valuations
were carried out by HVS (except for the three hotels
in USA, the six hotels in Australia, the two hotels inSouth Korea and the eight student accommodation
properties in USA).
For the three hotels in USA and the six hotels inAustralia, the valuations were carried out by Colliers. The
valuations for the two hotels in South Korea were carriedout by CBRE. For the eight student accommodation
properties in USA, the valuations were carried out by
JLL Valuation & Advisory Services, LLC.
In determining the fair value of the Group’s portfolio,
the discounted cash flow method, direct capitalisation
method and residual land method were used. The
valuation methods used are consistent with that used
for the 31 December 2022 valuation and prior years.
The Group’s portfolio was revalued at S$7.8 billion,
resulting in a surplus of S$156.0 million of which
S$101.1 million was recognised in the Consolidated
Statement of Total Return and S$54.9 million wasrecognised in the Asset Revaluation Reserve on thebalance sheet in FY 2023. The surplus for FY 2023
resulted mainly from higher valuation of the Group’s
properties in Australia, Europe, Japan, Singapore andUnited Kingdom, partially offset by lower valuationfrom the properties in China, USA and Vietnam. The
net impact on the Consolidated Statement of Total
Return was S$75.1 million (net of tax and non-controllinginterests).

66

CAPITALAND ASCOTT TRUST

As at
As at
31 December 2023 31 December 2022

Aggregate
Leveragei (%)

37.9

38.0

Unencumberedproperties as %of total property
value (%)

67

61

Interest CoverRatio (times)

4.0

4.4

Adjusted
Interest CoverRatioii (times)

3.4

3.6

Effective
Interest Rate (%)

2.4

1.8

Weighted
Average Debt toMaturity (years)

3.7

4.0

i

ii

As at 31 December 2023, the ratio of net debt to net assets
for CapitaLand Ascott REIT Group and CapitaLand Ascott BT
Group is 67.7% and 21.1% respectively; the ratio for CLAS is
59.9%.
Refers to EBITDA before change in fair value of financial
derivatives, change in fair value of investment properties,
investment properties under development and assets held
for sale, revaluation surplus/(deficit) on land and buildings,
and foreign exchange differences over interest expense anddistributions on perpetual securities.

CLAS adopts a prudent and disciplined approach
towards capital management to ensure financial
flexibility in its funding structure and to mitigate
concentration risk. As at 31 December 2023, 67% of
CLAS’ total debt was funded by bank borrowings and theremaining 33% was tapped from the debt capital market.
As at 31 December 2023, CLAS’ outstanding borrowings
was S$3,048.4 million (2022: S$2,874.6 million) with
an effective interest rate at 2.4% per annum(2022: 1.8% per annum). To hedge against rising interest
rates, approximately 81% of the total borrowings wereeffectively on fixed interest rates.
CLAS is a stapled group comprising CapitaLand Ascott
REIT and CapitaLand Ascott BT. The gearing of CLAS
as at 31 December 2023 was 37.9% (2022: 38.0%) with adebt headroom of S$2.0 billion3 providing it with greater
access to growth opportunities and increased capacity
for more development and conversion projects.
The gearing of CapitaLand Ascott REIT as at 31
December 2023 was 40.3% (2022: 39.7%), below the
45.0% gearing limit allowed by the Monetary Authority
3

Before reaching aggregate leverage of 50%; based on
an aggregate leverage limit of 45%, the debt headroom is
S$1.1 billion.

Overviewof Singapore. With effect from 1 January 2022, theaggregate leverage of a property fund may exceed
45.0% (up to a maximum of 50.0%) only if the property
fund has minimum adjusted interest coverage ratio of
2.5 times after taking into account the interest payment
obligations arising from the new borrowings.
In FY 2023, to demonstrate CLAS’ commitment towards
sustainability, CLAS entered into a sustainability-linked
cross currency interest rate swap of JPY11.0 billion.

In total, CLAS has approximately S$551.2 million insustainable financing.
CLAS holds derivative financial instruments to hedge
its currency and interest rate risk exposures. The fairvalue of derivatives for FY 2023 comprised financial
derivative assets and financial derivative liabilities of
S$92.2 million and S$7.7 million respectively. The net
assets amount of S$84.5 million represented 1.9% of
the net assets of CLAS as at 31 December 2023.
Leadership

DEBT MATURITY PROFILEAs at 31 December 2023

As at 31 December 2022

40%

42%
19%
10%
2024

2025

15%

14%

2026

2027

Total
i

2028
& after
2023
S$’million
562.4
301.3
466.0
429.3
1,289.4
3,048.4i

2023

18%

2024

17%

11%

2025

2026

2027
& after
2022
S$’million
401.7
529.2
320.0
486.4
1,137.3

Maturity
2023
2024
2025
2026
2027 & after
Total

Portfolio & Performance

Maturity
2024
2025
2026
2027
2028 & after

14%

2,874.6i

Net of unamortised transaction costs.

CLAS maintains a well spread debt maturity profile to minimise refinancing risks. Out of CLAS’ total borrowings,
19% falls due in 2024, 10% falls due in 2025, 15% falls due in 2026, 14% falls due in 2027 and the balance falls
due in 2028 and after. The Managers have commenced discussions to refinance the loan facilities due in 2024,
ahead of their maturity dates.

As at 31 December 2023

As at 31 December 2022

S$’million%

S$’million%

Fixed Rate

2,459.081

2,234.678

Floating Rate

589.4

19

640.0

22

3,048.4

100

2,874.6

100

Total
i

i

i

Net of unamortised transaction costs.

4

Net of unamortised transaction costs.
ANNUAL REPORT 2023

67

Financial Statements andOther Information

The fixed rate loans take into account the interest rate swaps and cross currency interest rate swaps whichwere entered into to convert floating rate loans to fixed rate loans. As at 31 December 2023, S$2,459.0 million4
or 81% of CLAS’ borrowings were on fixed interest rates, including S$464.3 million4 due for refinancing in 2024,
in line with the maturity dates of the underlying loans.

Sustainability & Governance

FIXED VERSUS FLOATING RATE PROFILEFINANCIAL
REVIEW
DEBT BY CURRENCY PROFILEAs at 31 December 2023

Currency
n SGD
n USD
n JPY
n EUR
n GBP
n KRW
n RMB
Total

i

As at 31 December 2022

S$’million
855.6
792.4
716.3
329.3
305.6
33.3
15.9
3,048.4i

2023
%
28
26
23
11
10
1
1
100

Currency
n USD
n JPY
n SGD
n AUD
n EUR
n GBP
n KRW
n RMB
n VND
Total

S$’million
862.0
778.1
720.3
221.7
206.1
35.1
33.2
17.5
0.6
2,874.6i

2022
%
30
27
25
8
7
1
1
1
100

Net of unamortised transaction costs and before taking into account the cross currency interest rate swaps to manage theexposure to foreign currency risk.

On a portfolio basis, approximately 52% of CLAS’ assets denominated in foreign currency were hedged.
CASH FLOWS AND LIQUIDITY
CLAS takes a proactive role in monitoring its cash flow position and requirements to ensure that there is sufficientliquidity and adequate funding for distribution to Stapled Securityholders as well as to meet any short-term
obligations.
As at 31 December 2023, CLAS’ cash and cash equivalents was S$432.8 million, an increase of S$69.2 million
over last year. Net cash generated from operating activities for FY 2023 was S$300.7 million, an increase of
S$18.3 million as compared to FY 2022.
In FY 2023, net cash used in investing activities was S$296.7 million mainly due to acquisitions during the year,
capital expenditure on investment properties and investment properties under development and purchase ofproperty, plant and equipment, partially offset by proceeds from disposal of assets held for sale.
Net cash generated from financing activities was S$64.5 million mainly due to proceeds from the 2023 Equity
Fund Raising and net draw down of borrowings, partially offset by interest payments and distribution payment
to Stapled Securityholders and perpetual securities holders.

68

CAPITALAND ASCOTT TRUSTOverview

PORTFOLIOLISTING
CLAS’ portfolio comprises 106 properties as at 31 December 2023. The properties are predominantly held under
CapitaLand Ascott REIT, with the exception of the properties denoted by asterisks (*) which are held under
CapitaLand Ascott BT.
Property Name

Address

Numberof Units

Tenure(Years)TenureExpiryDate(Year)

AgreedProperty Valueat Acquisition(S$’million)

Australia
Freehold-

167.6

Citadines Connect
Sydney Airport

113-121 Baxter Road, Mascot, NewSouth Wales, NSW 2020, Australia

150

Freehold-

58.8

Citadines St Georges
Terrace Perth

185 St Georges Terrace, Perth, WA
6000, Australia

85

Freehold-

36.1

Courtyard by Marriott
Sydney-North Ryde*

7-11 Talavera Road, North Ryde,
NSW 2113, Australia

196

Freehold-

52.3

Novotel Sydney
Parramatta*

350 Church Street, Parramatta, NSW
2150, Australia

194

Freehold-

43.7

Pullman and Mercure Corner Ann and Roma Street,
Brisbane King George Brisbane, QLD 4000, Australia
Square*438

Freehold-

89.2

Pullman and Mercure
Melbourne Albert
Park*

378

Freehold-

109.4

Pullman Sydney Hyde 36 College Street, Sydney, NSW
Park*
2000, Australia

241

Freehold-

156.4

Quest Campbelltown

1 Rennie Road, Woodbine, NSW
2560, Australia

81

Freehold-

21.3

Quest Cannon Hill

930 Wynnum Road, Cannon Hill,
Brisbane, QLD 4170, Australia

100

Freehold-

27.5

Quest Macquarie
Park

71 Epping Road, Macquarie Park,NSW 2113, Australia

111

Freehold-

42.8

Quest Mascot

108-114 Robey Road, Mascot, NSW
2020, Australia

91

Freehold-

26.9

Quest Sydney
Olympic Park

6 Edwin Flack Avenue, Sydney
Olympic Park, NSW 2127, Australia

140

99

2111

44.8

Sydney Central Hotel(formerly Novotel
Sydney Central)*

169-179 Thomas Street, Sydney,
NSW 2000, Australia

255

Freehold-

161.2

Citadines SainteCatherine Brussels

51 quai au Bois à Brûler,1000 Brussels, Belgium

169

Freehold-

26.7

Citadines Toison d’Or
Brussels

61-63 avenue de la Toison d’Or, 1060
Brussels, Belgium

155

Freehold-

23.5

65 Queens Road, Melbourne, VIC
3004, Australia

Sustainability & Governance

380

Portfolio & Performance131-135 Bourke Street, Melbourne,
Victoria 3000, Australia

Leadership

Citadines on Bourke
Melbourne

Belgium

69

Financial Statements andOther Information

ANNUAL REPORT 2023

PORTFOLIOLISTING
Property Name

Address

Numberof Units

Tenure(Years)TenureExpiryDate(Year)

AgreedProperty Valueat Acquisition(S$’million)

China
Citadines Xinghai
SuzhouBlock 27, Jiacheng Gardens, 58
Xinghai Street, Suzhou Industrial
Park, Suzhou 215021, China

167

70

2066

23.2

Citadines Zhuankou
Wuhan

159 Dongfeng Avenue (Xianglong
Business Centre Zone C), Wuhan
Economic and Technological
Development Zone, Wuhan 430056,
China

249

40

2043

51.4

Somerset Grand
Central Dalian

No. 128-2 Jinma Road, DalianDevelopment Area, Dalian 116600,
China

195

50

2056

118.6

Somerset Heping
Shenyang

80 Taiyuan North Street, Heping
District, Shenyang 110000, China

270

40

2046

86.2

Somerset Olympic
Tower Property
Tianjin

126 Chengdu Road, Heping District,Tianjin 300051, China

185

70

2062

76.8

Citadines Antigone
Montpellier

588 boulevard d’Antigone, 34000
Montpellier, France

122

Freehold-

13.8

Citadines Austerlitz
Paris

27 rue Esquirol, 75013 Paris, France

50

Freehold-

9.6

Citadines Les Halles
Paris

4 rue des Innocents, 75001 Paris,
France189

Freehold-

88.2

Citadines Maine
Montparnasse Paris

67 avenue du Maine, 75014 Paris,
France67

Freehold-

20.6

Citadines MontmartreParis

16 avenue Rachel, 75018 Paris,
France111

Freehold-

40.4

Citadines Placed’Italie Paris

18 place d’Italie, 75013 Paris, France

169

Freehold-

56.3

Citadines Presqu’île
Lyon

2 rue Thomassin, 69002 Lyon, France

116

Freehold-

21.4

Citadines RépubliqueParis

75 bis, avenue Parmentier, 75011
Paris, France

76

Freehold-

21.2

Citadines Tour Eiffel
Paris

132 boulevard de Grenelle, 75015
Paris, France

104

Freehold-

59.2

Citadines TrocadéroParis

29 bis, rue Saint-Didier, 75116 Paris,
France97

Freehold-

51.3

La Clef Louvre Paris

8 rue de Richelieu, 75001 Paris,
France51

Freehold-

40.3

La Clef Tour EiffelParis

83 avenue Kléber, 75016 Paris,
France112

Freehold-

145.4

France70

CAPITALAND ASCOTT TRUSTOverview

Property Name

Address

Numberof Units

Tenure(Years)TenureExpiryDate(Year)

AgreedProperty Valueat Acquisition(S$’million)

Germany
Arnulfstrasse 51, 80636 München,
Germany

146

Freehold-

34.0

Citadines City Centre
Frankfurt

Europa-Allee 23, 60327 Frankfurt am
Main, Germany

165

Freehold-

55.6

Citadines
Kurfürstendamm
BerlinOlivaer Platz 1, 10707 BerlinWilmersdorf, Germany

117

Freehold-

21.1

Citadines Michel
Hamburg

Ludwig-Erhard-Straße 7, 20459
Hamburg, Germany

127

99

2111

46.4

The Madison
Hamburg

Schaarsteinweg 4, 20459 Hamburg,
Germany

166

Freehold-

59.4

Ascott Jakarta

Jalan Kebon Kacang Raya No. 2,
Jakarta 10230, Indonesia

204

30

2054

43.0

Ascott Kuningan
Jakarta

Ciputra World 1 Jalan Prof Dr Satrio
Kav. 3-5 Jakarta 12940, Indonesia

185

30

2027

54.8

Somerset Grand Citra
JakartaJalan Prof Dr Satrio Kav 1, Jakarta
12940, Indonesia

199

20

2044

54.6

13-17 Fleet St, Temple Bar, Dublin 2,
D02 WD51, Ireland

136

Freehold-

103.7

Citadines Central
Shinjuku Tokyo

1-2-9, Kabuki-cho, Shinjuku-ku,
Tokyo 1600021, Japan

206

Freehold-

95.2

Citadines KarasumaGojo Kyoto

432 Matsuya-cho, Gojo-doriKarasuma-Higashiiru, Shimogyo-ku,
Kyoto 600-8105, Japan

124

Freehold-

39.9

Citadines Shinjuku
Tokyo1-28-13 Shinjuku, Shinjuku-ku, Tokyo
1600022, Japan

160

Freehold-

84.3

Hotel WBF Honmachi

4-4-10, Kitakyuhojimachi, Chuo-ku,
Osaka 541-0057, Japan

182

Freehold-

43.3

Hotel WBF Kitasemba 2-6-8 Awajicho, Chuo-ku, OsakaEast541-0047, Japan

168

Freehold-

43.1

Hotel WBF Kitasemba 3-2-7, Awajicho, Chuo-ku, OsakaWest
541-0047, Japan

168

Freehold-

43.2

Sotetsu Grand Fresa
Osaka-Namba*

1-1-13, Nipponbashi, Chuo-ku,
Osaka 542-0073, Japan

698

Freehold-

239.8

Sotetsu Grand Fresa
Tokyo-Bay Ariake

3-6-6 Ariake Koto-ku, Tokyo 135-0063,
Japan

912

Freehold-

325.0

Leadership

Citadines Arnulfpark
MunichIndonesia

Temple Bar Hotel*

Portfolio & Performance

IrelandJapan

Financial Statements andOther Information

71

Sustainability & Governance

ANNUAL REPORT 2023

PORTFOLIOLISTING
Property Name

Address

Numberof Units

Tenure(Years)TenureExpiryDate(Year)

AgreedProperty Valueat Acquisition(S$’million)

Actus Hakata V-Tower 3-15-10, Hakata Ekimae Hakata-ku,
Fukuoka, Japan

296

Freehold-

39.5

Alpha Square Kita
15 jo

2-5, Kita 15 jo Higashi 1-chome,
Higashi-ku, Sapporo-shi, Hokkaido,
Japan

127

Freehold-

25.5

Big Palace Kita 14 jo

4-1-6, Kita 14 jo Nishi, Kita-ku,
Sapporo-shi, Hokkaido, Japan

140

Freehold-

17.3

Big Palace Minami
5 jo

3-1, Minami 5 jo Nishi 8-chome, Chuoku, Sapporo-shi, Hokkaido, Japan

158

Freehold-

28.3

City Court Kita 1 jo

6-3 Kita 1 jo Higashi 1-chome, Chuoku, Sapporo-shi, Hokkaido, Japan

126

Freehold-

31.4

Eslead Residence
Bentencho Grande15-44, Benten 5-chome, Minato-ku,
Osaka-shi, Osaka, Japan

120

Freehold-

21.4

Eslead Residence
Osaka FukushimaEast

8-7, Sagisu 5-chome, Fukushima-ku,
Osaka, Japan108

Freehold-

22.2

Eslead Residence
Umeda Grande

9-3, Nakatsu 4-chome, Kita-ku, Osakashi, Osaka, Japan

70

Freehold-

14.1

Granfore Hakata
Waterfront

104-2, Sekijomachi, Hakata-ku,
Fukuoka, Japan

247

Freehold-

47.9

Gravis Court
Kakomachi

13-10, Kakomachi, Naka-ku, Hiroshima,
Japan

63

Freehold-

6.7

Gravis Court Kokutaiji

2-1-9, Kokutaijimachi, Naka-ku,
Hiroshima, Japan

48

Freehold-

5.0

Gravis Court
Nishiharaekimae

8-38-10, Nishihara, Asaminami-ku,
Hiroshima, Japan

29

Freehold-

4.2

House Saison ShijoDori

47-2, Kasaboko-cho, Shimogyo-ku,
Kyoto, Japan

190

Freehold-

29.6

Infini Garden

3-2-2, 3, 4, 5 KashiiTeriha, Higashi-ku,
Fukuoka, Japan

389

Freehold-

95.2

Marunouchi Central
Heights

3-23-6 Marunouchi, Naka-ku, Nagoya
city, Aichi, Japan

30

Freehold-

7.3

Roppongi Residences 3-4-31 Roppongi, Minato-ku, Tokyo
Tokyo
106-0032, Japan

64

Freehold-

57.1

S-Residence
Fukushima Luxe

7-22-9, Fukushima, Fukushima-ku,
Osaka, Japan

178

Freehold-

31.1

S-Residence
Gakuenzaka

2-1-1 Shimo dera, Naniwa-ku,
Osaka-shi, Osaka, Japan

58

Freehold-

13.0

S-Residence
Hommachi Marks

2-3-6, Tokuicho, Chuo-ku, Osaka,
Japan

110

Freehold-

17.3

S-Residence
Midoribashi Serio

3-17-6, Nakamoto, Higashinari-ku,
Osaka, Japan

98

Freehold-

14.5

S-Residence Namba
Viale

3-9-1 Motomachi, Naniwa-ku,
Osaka-shi, Osaka, Japan

116

Freehold-

18.3

S-Residence
Shukugawa

2-88 Kamizono-cho, Nishinomiya
city, Hyogo, Japan

33

Freehold-

7.6

S-Residence
Tanimachi 9 chome

4-29, Ikutamamaemachi, Tennoji-ku,
Osaka, Japan

102

Freehold-

18.1

Japan Rental Housing

72

CAPITALAND ASCOTT TRUSTOverview

Property Name

Address

Numberof Units

Tenure(Years)TenureExpiryDate(Year)

AgreedProperty Valueat Acquisition(S$’million)

19-28, 3-chome Kowakae,
Higashiosaka-shi, Osaka 577-0818,
Japan

112

Freehold-

19.5

187, Jalan Ampang, 50450, Kuala
Lumpur, Malaysia

205

Freehold-

67.4

Ascott Makati

Glorietta 4, Ayala Center, Makati City
1224, The Philippines

362

48

2044

87.5

Somerset Millennium
Makati

104 Aguirre Street, Legaspi Village,
Makati City 1229, The Philippines

118

Freehold-

12.7

Ascott Orchard
Singapore

11 Cairnhill Road, Singapore 229724,
Singapore

220

99

2113

405.0

Citadines Mount
Sophia Property
Singapore

8 Wilkie Road #01-26 Wilkie Edge,
Singapore 228095, Singapore

154

96

2105

107.0

lyf one-northSingaporei

80 Nepal Park, Singapore 139409,
Singapore

324

60

2078

62.4

Somerset Liang Court 177B, River Valley Road, Singapore
179032, Singapore
Property Singaporeii

192

99

2120

140.3

The Robertson
House by The Crest
Collection (formerly
Riverside Hotel
Robertson Quay)

1 Unity Street, Singapore 237983,
Singapore

336

99

2105

325.0

ibis Ambassador
Seoul Insadong*

31 Samil-daero 30-gil, Ikseon-dong,
Jongno-gu, Seoul, South Korea

363

Freehold-

98.1

Sotetsu Hotels
The Splaisir Seoul
Dongdaemun*

226 Jangchoongdan-ro, Gwanghuidong, Jung-gu, Seoul, South Korea

215

Freehold-

95.1

Ramblas 122, 08002 Barcelona,
Spain

131

Freehold-

56.7

Japan Student Accommodation
Eslead College Gate
Kindaimae

Somerset Kuala
LumpurLeadership

Malaysia

The Philippines

Singapore
Portfolio & Performance
Sustainability & Governance

South Korea

Spain
Citadines Ramblas
Barcelona

ANNUAL REPORT 2023

73

Financial Statements andOther Informationi
The Agreed Property Value at Acquisition of S$62.4 million refers to the price of the site acquired through a tender bid.
ii (a) As disclosed in the announcement dated 21 November 2019, partial interest in the land was divested and the retained		interest in the land is currently being redeveloped into a new serviced residence property with 192 units (number of units may		be subject to change).
(b) The Agreed Property Value at Acquisition of S$140.3 million refers to the value of CLAS’ remaining interest in the land		
derived from the sale price per square foot as disclosed in the announcement.

PORTFOLIOLISTING
Property Name

Address

Numberof Units

Tenure(Years)TenureExpiryDate(Year)

AgreedProperty Valueat Acquisition(S$’million)

United Kingdom
Citadines Barbican
London7-21 Goswell Road, London EC1M
7AH, United Kingdom

129

Freehold-

75.0

Citadines HolbornCovent Garden
London94-99 High Holborn, London WC1V
6LF, United Kingdom

192

Freehold-

127.5

Citadines South
Kensington London

35A Gloucester Road, London SW7
4PL, United Kingdom

92

Freehold-

71.1

Citadines Trafalgar
Square London

18/21 Northumberland Avenue,
London WC2N 5EA, United Kingdom

187

Freehold-

130.9

The Cavendish
London81 Jermyn St, St. James’s, London
SW1Y 6JF, United Kingdom

230

150

2158

372.3

411

99

2112

220.7

Sheraton Tribeca New 370 Canal Street, New York, NewYork HotelYork 10013, The United States ofAmerica

369

99

2112

218.0

voco Times Square
South

224

Freehold-

148.4

United States of America (USA)Element New YorkTimes Square West

311 West 39th Street, New York, NewYork 10018, The United States ofAmerica

343 West 36th Street, New York, NewYork 10018, The United States ofAmerica

USA Student Accommodation
Paloma Kent

1450 E Summit Street, Kent, Ohio
44240, The United States of America

126

99

2117

40.3

Paloma Raleigh5701 Hillsborough Street, Raleigh,North Carolina 27606, The UnitedStates of America

180

Freehold-

87.5

Paloma University
City

3600 Lancaster Avenue,
Philadelphia, Pennsylvania 19104,
The United States of America

126

Freehold-

89.5

Paloma West Midtown 800 Marietta Street NW, Atlanta,
Georgia 30318, The United States ofAmerica183

Freehold-

126.3

Seven07707 South Fourth Street, Champaign,
Illinois 61820, The United States ofAmerica

218

Freehold-

112.4

Standard at
Columbiaiii

1401 Assembly Street, Columbia,
South Carolina 29201, The UnitedStates of America

247

Freehold-

75.8

UncommonWilmington

2421 Playa Way, Wilmington, North
Carolina 28403, The United States ofAmerica

150

Freehold-

73.8

Wildwood Lubbock

1701 N Quaker Avenue, Lubbock,
Texas 79416, The United States ofAmerica294

Freehold

-

93.8

iii

74

As disclosed in the Circular dated 15 August 2022, the Agreed Property Value at Acquisition of approximately S$75.8 million is on
a 100.0% basis.

CAPITALAND ASCOTT TRUSTOverview

Property Name

Address

Numberof Units

Tenure(Years)TenureExpiryDate(Year)

AgreedProperty Valueat Acquisition(S$’million)

Vietnam
Tower A, TD Plaza, Lot 20A, New Urban
Zone at 5 Corner – Cat Bi Airport, Dong
Khe Ward, Ngo Quyen District, Hai
Phong City, Vietnam

132

64

2075

22.8

Somerset Chancellor
Court Ho Chi Minh
City

21-23 Nguyen Thi Minh Khai Street,
District 1, Ho Chi Minh City, Vietnam

172

48

2041

69.3

Somerset GrandHanoi

49 Hai Ba Trung Street, Hanoi, Vietnam

185

45

2038

105.7

Somerset Ho Chi
Minh City

8A Nguyen Binh Khiem Street, District
1, Ho Chi Minh City, Vietnam

198

45

2039

66.8

Somerset Hoa Binh
Hanoi

106 Hoang Quoc Viet Street, Cau Giay,
Hanoi, Vietnam

206

36

2042

54.9

Leadership

Somerset Central TD
Hai Phong City

Portfolio & Performance
Sustainability & Governance

75

Financial Statements andOther Information

ANNUAL REPORT 2023

INVESTORRELATIONSCapitaLand Ascott Trust at the Extraordinary General Meeting in October 2023

CLAS is committed to proactive, timely and transparent
communication with our stakeholders, including
potential and existing retail and institutional investors,
sell-side analysts and the media. Our commitment isunderpinned by our Investor Relations Policy, whichstates the guiding principles of our approach andcan be accessed on CLAS’ website (https://investor.
capitalandascotttrust.com/investor_relations_policy.html).
CLAS makes disclosures on an immediate basis asrequired under the Listing Manual, or as soon as
possible where immediate disclosure is not practicable.
This is to ensure that all stakeholders have the essential
knowledge to make informed investment decisions.
All announcements, press releases and presentation
slides relating to CLAS’ latest corporate developments
are promptly disclosed via SGXNet and made available
on CLAS’ website (https://www.capitalandascotttrust.com/).
Information such as CLAS’ stock data, factsheet,publications, tax refund procedures and a list of
frequently asked questions, can be found in the Investor
Relations section of the website.
CLAS makes it a practice to release its financial results
and business updates within 30 days from the end ofeach quarter. To provide more comprehensive updates
on CLAS’ financial and operational performance, postresults briefings are held for the media, analysts andinvestors.

Pre-Extraordinary General Meeting Dialogue with SIAS Members

76

CAPITALAND ASCOTT TRUSTIn 2023, we actively engaged our various stakeholders
through more face-to-face engagements, which
consisted of both group and one-on-one meetings,
which included non-deal roadshows held overseas.
In total, we reached out to about 1,300 analysts andinvestors, across about 90 engagements in 2023.
The meetings provided an effective platform for us
to initiate transparent and timely communication onmatters such as the financial and operating performanceof CLAS, our portfolio reconstitution activities andperspectives on outlook. We also sought feedback
from the investment community on our transactions
and equity fund raising. Through our outreach, theinvestment community, including new investors who
received CLAS’ Stapled Securities as part of CapitaLand
Investment Limited’s distribution-in-specie exercise in2023, was able to gain a better understanding of CLAS.
These interactions also enabled us to hear the views
and concerns of our stakeholders, and continuously
improve our disclosures and value proposition toinvestors.
In 2023, CLAS continued to receive industry recognition
for its efforts in investor engagement and corporate
governance. Testament to our commitment in upholding
high standards on the corporate governance front, CLAS
was ranked 1st in the REITs and Business Trusts categoryof the Singapore Governance and Transparency Index
2023 for the third year running.

Tour of lyf one-north Singapore with Thai investors

Overview2023 INVESTOR RELATIONS ACTIVITIESKey Events

1st Quarter2023

10 JanFY 2022 post-results briefing to media and analysts

30 JanFY 2022 post-results investor meeting

30 JanFY 2022 briefing to trading representatives

2 Feb

Tour of lyf one-north Singapore with Thai investors

15 MarNon-deal roadshow in Hong Kong

16-17 Mar

2nd Quarter Pre-Annual General Meeting with retail investors

3 Apr
5 Apr

Annual General Meeting 2023

18 Apr

1Q 2023 post-results briefing to analysts

26 Apr

1Q 2023 post-results briefing to investors

26 Apr

DBS-REITAS Private Banking Luncheon

18 MayREITs Symposium 2023

20 MayUBS ASEAN Conference

30 MayHSBC 7th Annual Asia Credit Conference (Hong Kong)

15 JunTour of lyf one-north Singapore with Thai Investors

22 JunNon-deal roadshow in Kuala Lumpur
3rd Quarter

26-27 Jun
28 Jul

1H 2023 post-results briefings to investors

28 Jul

1H 2023 post-results briefings to private bankers

31 JulBriefings to media, analysts and investors on CLAS’ proposed acquisition, AEI
and equity fund raising

2 Aug

Citi ASEAN Financials and Real Estate Investment Forum

15 AugMeetings with investors on CLAS’ proposed acquisition, AEI and equity fund raising18-23 AugUBS Wealth Management Event
4th Quarter

26 SepMeetings with investors on CLAS’ proposed acquisition and master lease renewals

2-11 Oct
11 OctInvestor event at The Robertson House by The Crest Collection

12 OctRoadshow in Hong Kong

13 OctExtraordinary General Meeting

24 Oct3Q 2023 post-results briefing to analysts

30 Oct3Q 2023 post-results briefing to investors

30 Oct

CLI & REITs Bangkok Conference

24 Nov

SGX non-deal roadshow with Korean investors

8 Dec

ANNUAL REPORT 2023

77

Financial Statements andOther Information

Pre-Extraordinary General Meeting Dialogue with SIAS members

Sustainability & Governance

1H 2023 post-results briefing to media and analysts

Portfolio & Performance

Pre-Annual General Meeting Dialogue with SIAS members

Leadership

DBS Vickers Pulse of Asia Conference

INVESTORRELATIONSFINANCIAL CALENDAR
Financial Year Ended 31 December 2023

1Q 2023 Business Updates
1H 2023 Results Announcement
Payment of Distribution to Stapled Securityholders(six months ended 30 June 2023)
Payment of Advanced Distribution to Stapled Securityholders(period from 1 July 2023 to 13 August 2023)
3Q 2023 Business Updates
FY 2023 Results Announcement
Payment of Distribution to Stapled Securityholders(period from 14 August 2023 to 31 December 2023)
Annual General Meeting

26 Apr 2023
28 Jul 2023
29 Aug 2023
11 Oct 2023
30 Oct 2023
29 Jan 2024
29 Feb 2024
19 Apr 2024

TRADING PRICE PERFORMANCE
EventsOpening price on the first trading day of the year (S$)
Closing price on the last trading day of the year (S$)
Highest closing price (S$)
Lowest closing price (S$)
Average closing price (S$)
Average daily trading volume (stapled securities)
Total trading volume (stapled securities)

2023

2022

1.050
0.990
1.130
0.845
1.016
7,143,531
1,771,595,811

1.030
1.050
1.180
0.875
1.065
6,762,695
1,683,911,162

Source: Bloomberg

COMPARATIVE TRADING PERFORMANCE FOR FY 2023
110%
105%
ENGL: +2%
FSTREI: +1%
STI: Unchanged

100%

FSTRE: -4%
CLAS: -6%

95%
90%
85%
80%
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug
STI

Source: Bloomberg

Sep
CLAS

Oct

Nov

FSTRE

Dec
FSTREIENGL

For enquiries or more information about CapitaLand Ascott Trust, please contact:
Ms Denise Wong
Investor Relations

78

Ms Joan Tan
Group Communications

CAPITALAND ASCOTT TRUSTTel:+65 6713 2888
Fax:
+65 6713 2999
Email: ask-us@capitalandascotttrust.com
Corporate Website: www.capitalandascotttrust.com

Global Sector Leader

Rated 9.5 –Negligible Risk

Scored B
CDP Climate
Change 2023

Sustainalytics ESG
Risk Rating

Top 10 in
Singapore

Ranked 1st

REITs and Business Trusts category
Singapore Governance and Transparency Index
2021, 2022 and 2023

Equileap Gender
Equality Ranking 2024

Overview(Listed – Hotel)
GRESB Real Estate Assessment
2021, 2022 and 2023

Constituent of• iEdge-UOB APAC Yield Focus Green REIT Index• iEdge-OCBC Singapore Low Carbon Select 50
Capped Index

Leadership
Portfolio & Performance

Sustainability
is at the Core ofEverything We Do

Employees

51 : 49

male : female2
Sustainability & GovernanceDirectors

3 out of 8

49%

female4of global portfolio1
achieved green building
certificationc.S$551.2M

in sustainable financing
raised to date

8.5%

reduction in energy intensity3
since 2019

Zerostaff work-related fatality andpermanent disability incidents

Retained ISO 14001
and ISO 45001 certification in

13 countries

for more than a decade

1
2
3
4

Refers to the gross floor area of CLAS' properties by m2.
Based on employees of CLAS' Ascott-managed properties (including our subsidiaries) and the Managers.
Computation of intensity data is for the first nine months of 2023; excludes properties undergoing asset enhancement programmes
and third-party operated properties.
Based on the board composition as at 31 December 2023.
ANNUAL REPORT 2023

79

Financial Statements andOther Information

For more information on our other performance metrics, please refer to pages 80 to 86.

SUSTAINABILITYMANAGEMENTBOARD STATEMENT
At CLAS, sustainability is at the core of everything we do. We are committed to growing in a responsible
manner, delivering long-term economic value, and contributing to the environmental and social wellbeing of our communities. CLAS’ material environmental, social and governance (ESG) factors are alignedwith CapitaLand Investment Limited's (CLI) 2030 Sustainability Master Plan (SMP), which was refreshedin 2023 and endorsed by CLAS’ Boards and Management.
The SMP steers our efforts on a common course to maximise impact through building portfolio resilienceand resource efficiency, enabling thriving and future-adaptive communities, and stewarding responsible
business conduct and governance. Ambitious ESG targets have been set which include carbon emissions
reduction targets validated by the Science Based Targets initiative (SBTi). In 2023, the SMP targets wererevised to elevate the SBTi-approved targets in line with a 1.5OC scenario, incorporate CLI’s Net Zerocommitment and enhance its focus on social indicators.
CLAS’ Boards are responsible for overseeing CLAS’ sustainability efforts, and take ESG factors into
consideration in determining its strategic direction and priorities. The Boards also approve the executive
compensation framework based on the principle of linking pay to performance. CLAS’ business plans
are guided by both quantitative and qualitative performance targets, and executed through sustainablecorporate practices.
CLAS’ sustainability efforts have been recognised by global indices such as GRESB. We will continue toidentify and adopt meaningful ESG practices and enhance sustainability in our business.

BOARD, TOP MANAGEMENT AND
STAFF COMMITMENT
CLAS’ Boards recognise the importance of sustainability
as a business imperative, and ensure that sustainability
considerations are factored into CLAS’ strategy
development. This enables CLAS to remain competitiveand resilient in an increasingly challenging businessenvironment.
The Boards are kept informed of CLAS’ sustainability
management performance, key material issues
identified by stakeholders, and the planned follow-up
measures. The Boards are updated quarterly and at
ad hoc Board meetings. The Boards discuss mattersrelating to sustainability risks, and relevant performance
metrics, which include carbon emissions and ourprogress on achieving the reduction targets, green
certification, human capital development, as well as
stakeholders’ expectations on climate change, social
impact and/or other matters. The Boards are also
informed of any incidents relating to workplace safety,
business malpractice and environmental impact, which
may include climate-related damage or disruptions.
CLAS’ Sustainability Committee is responsible foroverseeing CLAS’ sustainability strategies and goals,
and monitoring the progress of the sustainability

80

CAPITALAND ASCOTT TRUST

initiatives. CLAS’ Sustainability Committee comprises
the CEO and Heads of Department of CLAS’ Managers,
and the Heads of Department of the operations
and technical teams of its Sponsor. A Sustainability
Working Committee, led by the Head, Investor Relations& Sustainability, provides support to the Sustainability
Committee.
At CapitaLand Investment Limited (CLI), lead
Independent Director Mr Anthony Lim chairs theStrategy and Sustainability Committee (SSC), which
is a Board Committee of CLI. The SSC typically meets
twice a year, with additional meetings convened asnecessary. The CLI Leadership Council makes strategic
resource allocation decisions and meets on a regularbasis. The CLI Leadership Council comprises the Group
CEO, CEOs of the business units and key management
officers of the corporate office.
The sustainability work teams comprise representatives
from CLI business units and corporate functions.
Each business unit has its own Environmental, Healthand Safety (EHS) Committee to drive initiatives incountries where it operates with support from various
departments.

Overview

CLAS Sustainability
Management Structure

CLI Sustainability Management Structure

Providemanagement
oversight ofESG
implementation

CLI Board of Directors

Strategy and Sustainability
Committee(Board Committee)

Business
Unit/REIT
andBusiness
Trust

CLAS Sustainability Committee
Chaired by:
CEO of CLAS' Managers
Comprising management of:
CLAS’ Managers• Investment & Asset Management• Finance• Investor Relations & Sustainability

CLI Leadership Council(Comprising senior management)

Management and implementationof CLAS’ sustainability
objectives and strategies

CLAS Sustainability Working
Committee

Business units and corporate
departments covering• Innovation• Stakeholder
Engagement• HumanResource, Group
Procurement,
others• Investment,
AssetManagement• Enterprise Risk
Management

Staff

Business
Unit/REIT
and Business
Trust
Sustainability
Committee

Chaired by:
Head, Investor Relations &Sustainability of CLAS’ Managers
Comprising representatives from:• Sustainability• Engineering & Technical Services

Staff

MAINTAINING DIVERSITY ON THE BOARD*

tenure, ethnicity and culture, and geographicalbackground including nationality, as well as any otherrelevant aspects of diversity.
Our Board Diversity Policy, targets, plans and progressare detailed under Corporate Governance Board
Matters Principle 2 on pages 105 to 107 of this report.

Includes EHS Internal Audit and Environment Tracking System (ETS)ANNUAL REPORT 2023

81

Financial Statements andOther Information

CLAS’ Boards embrace diversity and have in place a
Board Diversity Policy which ensures that the Boards
comprise talented and dedicated Directors with awide mix of expertise (including industry, domain andfunctional expertise), skills, experience (includinginternational experience) and perspectives. This iswith due consideration to diversity in gender, age,

Sustainability & Governance• Environmental,
Health and
Safety (EHS)*

Portfolio & Performance

CLAS’ Sponsor• Sustainability• Engineering & Technical Services

Various Sustainability Work
Teams/Committees comprising

Drive
implementationof initiatives
under
ESG pillars

CLAS Boards of Directors

Leadership

Providestrategic
oversightof ESG
policies andintegration

Serve assustainability
champions(accountablefor business
unit/REIT's andbusiness trust's
performance)

SUSTAINABILITYMANAGEMENTSUSTAINABILITY REPORTING &BENCHMARKING
CLAS is one of the few listed trusts in Singapore to
publish a sustainability report which is externallyassured since FY 2022. CapitaLand was also one of
the first companies in Singapore to voluntarily publish
an annual Global Sustainability Report since FY 2009,
and to have its entire report externally assured since
FY 2010. Benchmarking against international standards
and frameworks which are externally validated helps us
to overcome the challenges in sustainability reportingthat may arise from our portfolio of diverse asset types
and geographies.
CLI’s global sustainability reporting (GSR) has evolved
into a uniquely hybrid model using the Global Reporting
Initiative (GRI) Standards and Greenhouse Gas (GHG)
Protocol (operational control method) since 2009,GRESB since 2013, Value Reporting Foundation’s
Integrated Reporting Framework since 2015, UN SDG
Reporting since 2016, Taskforce for Climate-related
Financial Disclosures (TCFD) framework since 2017,
and Sustainability Accounting Standards Board (SASB)
Standards since 2020. The GSR covers CLI's global
portfolio and employees, including CLAS and CLI’sother listed real estate investment trusts and businesstrusts.

RECOGNITION BY GLOBAL BENCHMARKS
CLI has been a signatory to the United Nations (UN)Global Compact since 2015 and our Communication
on Progress for FY 2023 will be published atwww.unglobalcompact.org. In February 2023, CLI also
became a signatory of the UN-supported Principles
for Responsible Investment (UN PRI), as part of its
commitment to invest responsibly.
In recognition of our leadership in sustainability,
CLAS has been named Global Sector Leader(Listed – Hotel) and ranked first in the Asia Pacific
Hotel – Listed category in the 2023 GRESB Real
Estate Assessment for the third consecutive
year. CLAS was also included as a constituent ofiEdge-UOB APAC Yield Focus Green REIT Indexduring the year. On the S&P Corporate Sustainability
Assessment, CLAS is ranked 89th percentile of realestate investment trusts globally, and CLAS’ MSCI ESG
rating was upgraded from “BB” to “BBB” in 2023.
CLI continues to be listed on the Dow Jones Sustainability
World Index and Asia-Pacific Index, GRESB (Global
Sector Leader – Listed (Diversified) with the highest
5-star rating), FTSE4Good Index Series, MSCI Global
Sustainability Indexes and The Sustainability Yearbook.

We will continue to enhance our disclosures andwork towards preparing for International Sustainability
Standards Board (ISSB) standards relating to climate
reporting. CLAS’ and CLI’s reports will continue to be
externally assured with reference to the International
Standard on Assurance Engagements (ISAE) 3000.
This sustainability chapter references selected GRI
standards to report specific information and covers
CLAS’ properties from 1 January 2023 to 31 December
2023 unless otherwise indicated. The CLI team behind
CLAS’ Managers and the property managers responsible
for property and portfolio operations are identified
as employees of CLAS. More information on CLAS’sustainability management practices will be publishedin the Sustainability Report 2023 by 31 May 2024.

82

CAPITALAND ASCOTT TRUST

Receiving the 2023 Global Sector Leader (Listed - Hotel)
award from GRESBOverview

MATERIALITY
CLAS identifies and prioritises the management ofmaterial ESG issues that are most relevant and significant
to the trust and its stakeholders. CLAS adopts a double
materiality approach, considering issues which arematerial from either the impact perspective or financial
perspective4 or both.

In addition, CLAS has a regular review, assessment andfeedback process in relation to ESG topics. Identified
material issues are reported in our corporate risk register

Leadership

Potentially material ESG issues arising from activities
across CLAS’ value chain (including potential risks andopportunities in the immediate and longer term) areprimarily identified via ongoing engagement with its
stakeholders and reviews of sources including investor
questionnaires, as well as ESG surveys, benchmarks
and frameworks such as GRESB.

through the annual Group-wide Risk and Control SelfAssessment (RCSA) exercise5, which identifies, assesses
and documents material risks and the corresponding
internal controls to manage those risks. These material
risks include fraud and corruption, environmental(e.g. climate change), health and safety, and humancapital risks which are ESG-relevant. Identified material
ESG issues are then prioritised based on the likelihood
and potential impact of issues affecting the business
continuity of CLAS. For external stakeholders, priority
is given to issues important to the community andapplicable to CLAS. In FY 2023, the material ESG topics
that were identified were approved by the SSC andendorsed by CLAS’ Boards.
For more information on stakeholder engagement andour sustainability strategy, please refer to the CLAS
Sustainability Report 2023 and CLI Global Sustainability
Report 2023, which will be published by 31 May 2024.

PRIORITISATION OF MATERIAL ESG ISSUES

SocialPortfolio & Performance

Environment

Governance

CRITICAL• Occupational health andsafety• Human capital• Stakeholder engagementi• Products and servicesii• Supply chain management• Diversity (Boards and staff)• Risk managementiii• Business ethics

Sustainability & Governance• Climate change andcarbon emissions
reduction• Energy efficiency• Water management

MODERATE AND EMERGING• Waste management• Biodiversity
i
ii
iii
iv

5

This includes green leases and tenant engagement on ESG matters.
This includes products and services promoting customer health and safety, and green certified buildings.
This includes consideration of compliance, economic performance and cybersecurity.
This relates to CLAS' zero tolerance stance towards child/forced labour.

Taking reference from the SASB Standards for Real Estate and Real Estate Services, which identify sustainability factors that arematerial to short, medium, and long-term enterprise value for the industry.
For more information on CLAS’ Enterprise Risk Management and Group-wide Risk and Control Self-Assessment exercise, pleaserefer to pages 87 to 92 of this report.
ANNUAL REPORT 2023

83

Financial Statements andOther Information

4• Human rightsiv

SUSTAINABILITYMANAGEMENTCREATING VALUE AND ALIGNMENT TO UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS(UN SDGS)
CLAS’ material ESG issues and the value created, aligned to CLI 2030 SMP focus areas and commitments, aremapped to the International Integrated Reporting Commission (IIRC) Framework’s six integrated reporting Capitals –Environmental, Manufactured, Human, Social and Relationship, Organisational and Financial. This is further mapped
against eight UN SDGs that are most aligned with CLI 2030 SMP focus areas, and where CLAS can achieve thegreatest positive impact.
For more information, please refer to the CLAS Sustainability Report 2023 and CLI Global Sustainability Report
2023, which will be published by 31 May 2024.
OUR COMMITMENTS

2023 VALUE CREATED

Environment• Transit to low-carbon business andreduce energy consumption throughimproved energy efficiency andincreased use of renewable energy• Reduce water consumption, reuse water,
and prevent water pollution, especiallyin countries where the availabilityof clean water and sanitation are ofconcern• Green our global operational portfolio
by 2030• Strengthen our portfolio’s climate
resilience by addressing climate relatedrisks and opportunities throughout thereal estate lifecycle• Actively embrace innovation toensure commercial viability withoutcompromising the environment for
future generations• Influence our supply chain to operate
responsibly in the area of environmental
management through CLI’s Supply
Chain Code of Conduct• 0.7% reduction in carbon emissions
intensity (per m2 from 2019 baseline)i• 8.5% and 7.8% reduction in energy
and water intensity (per m² from 2019baseline) respectivelyi• Achieved green building certificationsfor 49% of global portfolioii• Publishing CLAS TCFD reporting withclimate risk assessment and scenario
analysis for our portfolioiii• Retained ISO 14001 certification in
13 countries

Environmental
CapitalSocial• CLAS believes staff can make asignificant contribution based on
their talent, expertise and experience,
regardless of ethnicity, age or gender.
We adopt consistent, equitable, andfair labour policies and practices inrewarding as well as developing our staff• CLAS aims to provide a safe work
environment that contributes to
the general well-being of our staff,
tenants, contractors, suppliers and thecommunities that use our properties• CLI’s Supply Chain Code of Conduct
influences its supply chain to operate
responsibly in the areas of human rights,
and health and safety• Global workforce (more than 1,700
employees)iv• More than 86 nationalities• Males and females at a ratio of
51:49• About 60% of employees are
between 30 and 50 years old• 75% of CLAS’ key management
personnel are women• 84% staff engagement score, with
89% survey participationv• Around 28 training hours per staffiv• Zero staff work-related fatality andpermanent disability incidents

Human Capital

i
ii
iii
iv
v

84

Manufactured
CapitalSocial and
Relationship
CapitalManufactured
CapitalComputation of intensity data is for the first nine months of 2023; excludes properties undergoing asset enhancement programmes
and third-party operated properties.
Refers to the gross floor area of CLAS' properties by m2.
For more information, please refer to the CLAS Sustainability Report 2023, which will be published by 31 May 2024.
Based on employees of CLAS' Ascott-managed properties (including our subsidiaries) and the Managers.
For CLI's Lodging business unit, which the employees of CLAS' Ascott-managed properties and the Managers are a part of.

CAPITALAND ASCOTT TRUSTOverview2023 VALUE CREATED• CLAS, as part of CLI, is committed toactivities that are aligned with our focus
on community investment. We engage
our stakeholders to raise awareness inthe areas of philanthropy, environment,
health and safety, as well as promotesustainability within the tenantcommunity• Zero contractor work-related
fatality and work-related permanent
disability incident• No reported incidents relating todiscrimination, child labour or forced
labour• Retained ISO 45001 certification in
13 countries• CLI contributed more than
S$3.1 million to CapitaLand HopeFoundation (CHF) and CHF Indiavi;
CHF donated over S$3.5 millionvii
globally in 2023
• More than 1,500 CLI staff tappedon the volunteer service leave tocontribute more than 13,500 hours
for various activities

Governance• 3 out of 8 (37.5%) of CLAS’ directors
are womenviii

Organisational
Capital• 76% of staff attended Fraud, Bribery& Corruption awareness and whistle
blowing online trainingiv

Human Capital
Portfolio & Performance• CLAS adopts a Board Diversity Policy
which ensures that the Boards comprisetalented and dedicated Directors with awide mix of expertise (including industry,
domain and functional expertise), skills,
experience (including international
experience) and perspectives, with due
consideration to diversity in gender,
age, tenure, ethnicity, culture, andgeographical background including
nationality, as well as any other relevant
aspects of diversity

Leadership

OUR COMMITMENTS

Sustainability & Governance• CLAS is committed to meeting highstandards of risk management in
the way it conducts its business. All
employees are required to understandand be responsible for ensuring thatrisks are managed effectively in their
day-to-day work
• CLAS requires third-party service
providers and vendors to adhere toanti-bribery and anti-corruption
provisions• CLI's Supply Chain Code of Conduct
influences its supply chain to operate
responsibly in the area of anti-corruptionvi

ANNUAL REPORT 2023

85

Financial Statements andOther Information

CHF (India) (CHFI) is a non-government, private, unlisted Section 8 company, incorporated in April 2019 along with necessary
registration under Indian Income Tax (IT) Act to carry out CSR activities that qualify as CSR expenditure under Indian Companies
Act, 2013. CHF (India) also adopted CLI's corporate governance framework including internal policies, procedures and codesof business conduct (e.g. anti-corruption and whistle-blowing policies) and CHF (India)'s constitution also states that no grantor assistance shall be given in aid of any political organisation or purpose.
vii This amount included donations made under CHF (India) which is a separate entity from CHF as well as CapitaLand Development.
viii Based on the board composition as at 31 December 2023.

SUSTAINABILITYMANAGEMENTOUR COMMITMENTS

2023 VALUE CREATED

Economic• Integrate CLAS’ ESG performance withfinancial metrics• Please refer to the following sectionsin this report:• FY 2023 Key Highlights, pages 4-5• 5-year Financial Summary, page 7• Financial Review, pages 62-68• CLAS entered into a sustainabilitylinked cross currency swap of
JPY11.0 billion in FY 2023, bringing
the total amount of sustainablefinancing to date to c.S$551.2 million

TOTAL SUSTAINABLE FINANCING

n Sustainability-linked bondn Sustainability-linked
cross currency swap
n Green loann Sustainability-linked loan

86

CAPITALAND ASCOTT TRUST

64%
18%
9%
9%

Financial CapitalOverview

RISK
MANAGEMENTThe Managers of CLAS maintain a robust risk management framework to proactively identify, assess and respondto material risks that can impact our objectives of delivering sustainable returns to Stapled Securityholders, andcreating long-term value for our stakeholders. We position CLAS for long-term sustainable results by pursuinga risk strategy of optimisation of opportunities within approved risk appetite levels.
ENSURING BEST-IN-CLASS RISK MANAGEMENT, CORPORATE GOVERNANCE AND COMPLIANCETO BUILD A SUSTAINABLE BUSINESS

Leadership

The Managers’ Enterprise Risk Management (ERM) Framework is adapted from the International Organizationfor Standardization 31000 International Risk Management Standards. It is benchmarked against other relevant
best practices and guidelines and reviewed annually to ensure its continued relevance and practicality. It sets
out the required environmental and organisational components needed to identify, assess, respond to, monitor
and report material risks in an integrated, systematic and consistent manner as depicted below.

ERM
FRAMEWORKRISK STRATEGYBoard Oversight & Management Involvement••

Investment Risk
Evaluation
Quantitative Analysis••

Scenario Analysis
Whistle-blowing

RISK
IDENTIFICATION& ASSESSMENT••

Key Risk
Indicators
Quarterly Risk
ReportingPortfolio
Monitoringof Financial
Risks

RISK
MONITORING& REPORTINGRISKRESPONSE••••

AcceptAvoid
Mitigate
Transfer

Sustainability & Governance•Independent Review and Audit

Internal Control System

Risk Appetite
Risk & Control
Self-Assessment

Portfolio & Performance••

Risk-Aware Culture

87

Financial Statements andOther Information

ANNUAL REPORT 2023

RISK
MANAGEMENTRISK GOVERNANCE
The Boards of Directors of the Managers (the Boards) are responsible for the governance of risk and ensure that
the Management maintains a sound system of risk management and internal controls, to safeguard the interestsof CLAS and its stakeholders. Under our risk management approach, the Boards, assisted by the Audit andRisk Committee (ARC), approve CLAS’ risk appetite (risk tolerance) which determines the nature and extent ofmaterial risks CLAS is willing to take to achieve its strategic objectives. The Boards also regularly review CLAS’risk profile, material risks and mitigation strategies, and ensure the adequacy and effectiveness of the risk
management framework and policies.
The Management supports the Boards and the ARC in terms of risk governance and oversight. Management
directs and monitors the implementation and practice of risk management across CLAS, including the monitoringof risk exposure through key risk indicators.
INTERNAL CONTROLS SYSTEMThe ERM Framework operates within a risk governance structure based on three lines of defence.

First Line
Employees play an importantrole as the first line ofdefence and are accountable
for the effective identificationand management of risks
that arise from theirbusiness activities.

Second LineThe risk management andcompliance departments,
as part of the second line ofdefence, provide oversightover risk management andcompliance practices, as wellas promote and embed aculture of risk ownershipand accountability.

Third LineInternal and External Audit,
as the third line of defence,
review the adequacyand effectiveness of risk
management and internal
control systems' design andimplementation to provide
reasonable assurance to
the ARC and the Boards.

A Strong Culture of Risk Awareness
The fostering of a strong risk culture helps to ensure that risk management practices are
implemented effectively and consistently across CLAS.
The first and second lines of defence work closely to ensure risk awareness andaccountability are ingrained in our culture.
In addition, risk workshops are conducted regularly by the risk management and compliancedepartments, as part of the second line of defence, to enhance the risk management
knowledge of our employees and ensure risk management principles are embeddedin all decision-making and business processes.
The Management further reinforces the culture by setting the right ‘tone at the top’,leading by example, and communicating our risk management strategy.

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CAPITALAND ASCOTT TRUSTOverview

CLAS’ MATERIAL RISKS AND KEY MITIGATING ACTIONSThe Group-wide Risk and Control Self-Assessment (RCSA) is conducted annually to identify key material risks(which include new and emerging risks) that CLAS faces in delivering our strategic objectives, the mitigating
measures and any opportunities that we can leverage on.
In identifying CLAS’ key material risks, the likelihood and impact of each risk are assessed. Sensitivity analysis
and stress testing are carried out for both financial and non-financial risks where applicable. Material risks andtheir associated controls are consolidated and reviewed by the Managers before they are presented to the ARC
and the Boards.

MATERIAL RISKS

KEY MITIGATING ACTIONSBusiness Interruption› Put in place business continuity plans and standard operatingprocedures for crisis management at each property to respond toany disruption.

Climate Related

Physical risks which are a resultof climate change and can beacute or chronic in climate
patterns, such as rising sea
levels, violent storms, longintense heat waves, flash floods
and freshwater depletion› Assessment of physical risks of the existing portfolio and newacquisitions, which could have potential impact such as: increased
capital expenditure to construct infrastructure (e.g. for coastal
defence, flood control), increased operating costs (e.g. repair costs,
business interruption costs).
› Incorporate shadow internal carbon price in the evaluation of new
investment/capital expenditure decisions. This helps to factor
in climate-related costs and opportunities, support low-carbon
investments, prepare for stringent climate legislation, and avoid
stranded assets.
› Regularly review CLAS’ mitigation and adaptation efforts, which
include• future-proofing our portfolio against changing climatic conditions
from the design stage and• improving the operational efficiency of our properties, setting
targets for carbon emissions, water, energy and waste efficiency.
› CLI has a well-established Group environmental management system
which is externally certified to ISO 14001 in 19 countries.
› Take actions to influence decarbonisation, which include engagementwith our supply chain (main contractors, vendors, suppliers, creditors)
and customers (guests, tenants).

Sustainability & GovernanceTransition risks which result
from a transition to a lowercarbon economy, and could
entail potentially more stringent
regulations and increased
expectations from customers
and stakeholders› Ensure business interruption insurance coverage is adequately
purchased.

Portfolio & Performance

Exposure to sudden andmajor disaster events such as
pandemics, terrorist attacks,
fires, prolonged power outages
or other major infrastructure or
equipment failures which cancause business interruption andsignificantly disrupt operations
at the properties

Leadership

Based on the 2023 RCSA results, CLAS’ key material risks and measures that we have taken to mitigate the risks
are set out below:› For more information, please refer to CLAS’ Sustainability Report
2023, which will be published by 31 May 2024.

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Financial Statements andOther Information

ANNUAL REPORT 2023

RISK
MANAGEMENT
MATERIAL RISKS

KEY MITIGATING ACTIONS

Fraud, Bribery & Corruption› Foster a culture of ethics and integrity in CLAS.

Any form of fraud, bribery
and corruption that could be
perpetuated by employees, third
parties or collusion between
employees and third parties› Adopt a zero-tolerance stance against fraud, bribery and corruption(FBC) across our businesses.
› Communicate our commitment to integrity from the top throughpolicies and practices, such as FBC Risk Management Policy, Whistleblowing Policy, Ethics and Code of Business Conduct Policies andAnti-Money Laundering and Countering the Financing of Terrorism
Policy.
› Ongoing mandatory e-learning modules to raise awareness and train
employees on ways to avoid or prevent non-compliant behaviour.

Safety, Health & Well-being

Increased expectations fromstakeholders to provide asafe and healthy environment,
including well-being, at ourassets and operations› Assess health and safety related risks in the evaluation of any new
acquisitions.
› Entrench a strong safety culture in CLAS and its supply chain throughdeep safety capabilities, disciplined safety practices and a progressive
safety mindset.
› CLI has a well-established Group occupational health and safety
management system which is externally certified to ISO 45001 in 19
countries.
› For more information, please refer to CLAS’ Sustainability Report
2023, which will be published by 31 May 2024.

Competition

Keen industry competition
from established real estate
investment managers who areable to attract and manage more
capital by meeting investors’
expectations or reacting aptly
to market trends› Constantly strive to differentiate ourselves from our peers by adapting
CLAS’ business and products to the evolving needs of our customers,delivering exceptional products and services, and engaging customercentric initiatives and loyalty programmes.
› Leverage on the extensive network and capabilities of CLAS’ Sponsor
and third-party operators such as Accor, IHG and Marriott for our
hospitality assets.
› Leverage on strong network of property management professionals
with deep knowledge in rental housing and student accommodation
properties.
› Incorporate ESG considerations and align CLAS' business withrecognised industry standards, to reinforce our leading position asa sustainable trust.
› Enhance our product offerings through asset enhancement initiatives
and refresh of brands.
› Leverage in-house team of industry analysts to keep CLAS on topof latest market trends.

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CAPITALAND ASCOTT TRUSTOverview

MATERIAL RISKS

KEY MITIGATING ACTIONSCyber Security & Information
Technology› The outsourced information technology (IT) function from CLI executes
its Cyber Security Strategy through ongoing review against existing/evolving threat landscapes, and institute measures to minimise
vulnerability exposure and manage threat vectors.
› Ongoing mandatory staff IT Security Awareness Training to counterhuman intervention in the information security chain.
› Periodically review and update Group-wide IT Security Policy andData Protection Framework to ensure relevancy.
› Maintain and test IT Security Incident Management Procedure toensure prompt response to and timely remediation of cyber security
incidents.
› Conduct third party vulnerability testing and annual Disaster Recovery
Plan exercise to ensure IT infrastructure/management system security
and timely recoverability of business-critical IT systems.

Leadership

Ongoing business digitalisation
exposes the business to ITrelated threats, which may
result in compromising theconfidentiality, integrity andavailability of the CLAS’
information assets and/or
systems› Put in place enhanced protection controls for systems that holdpersonal data.
› Board oversight with regular updates to the ARC on the state ofCyber Security risk activities and key control improvements.

Economic› Adopt a disciplined approach to financial management.
› Diversify our portfolio across asset classes and geographies inaccordance with Board-approved country limits.
› Focus on markets where CLAS or its Sponsor, The Ascott Limited(Ascott), has operational scale and where the underlying economic
fundamentals are more robust.
› Actively monitor macroeconomic trends, policies and regulatorychanges in key markets.
› To mitigate inflationary pressures and rising operating costs, enter
into fixed-rate utility contracts, employ energy-saving technology or
go-green initiatives where possible.

Portfolio & Performance

Economic instability or changes
in macroeconomic factors suchas inflation or unemployment,
which results in challenging
business conditions› CLAS’ predominantly long-stay properties have lower manningrequirements and leaner cost structures compared to the typicalfull-service hospitality property.

Financial

Exposure to financial risks
involving liquidity, foreign
currency and interest rates
given CLAS’ diversified portfolioof businesses
Volatility of cash flow negatively
imp acting planned cash
generation and cash usage profile› Access to various sources of funds from both banks and capital
markets to minimise over-reliance on a single source of funds forany funding or refinancing requirements.
› Adopt natural hedging, where possible, by borrowing in the same
currency as the revenue streams generated from CLAS’ investments.
› Actively review and maintain an optimal mix of fixed and floatinginterest rate borrowings, taking into consideration the investments’holding period and nature of the assets.
› For more details, please refer to the Financial Risk Management
section on page 265 of this Annual Report.

ANNUAL REPORT 2023

91

Financial Statements andOther Information

Volatility of foreign currencies
and interest rates resulting inrealised/unrealised losses› Actively monitor CLAS’ debt maturity profile, operating cash flows
and the availability of funding to ensure that there are sufficient liquid
reserves, in the form of cash and banking facilities, to finance CLAS’operations.

Sustainability & Governance› Properties under master leases receive stable rent and are not directly
impacted by rising costs, while utility costs are passed through torental housing and student accommodation tenants.

RISK
MANAGEMENT
MATERIAL RISKS

KEY MITIGATING ACTIONSInvestment & Divestment› Evaluate all investment and divestment proposals against a rigorous
set of criteria which includes potential for value creation and DPS
accretion, review key financial assumptions and perform sensitivity
analysis on key variables. All proposals are subject to a robust
approval process and undergo comprehensive due diligence byengaging the support of an inter-disciplinary internal team, and/or
local independent consultants to advise on the following aspects:
legal, tax, building design, quality, environmental, health & safety andsecurity, and compliance with local laws and regulations.

Deployment of capital into lossmaking or below- target returninvestments due to wrong
underwriting assumptions orpoor execution
I n a d e q u a t e p l a n n i ng t oidentify suitable divestment
opportunities› The Boards review and approve all major investment and divestment
decisions.
› Identify potential risks associated with proposed projects and theissues that may prevent smooth implementation or attainment ofprojected outcomes at the evaluation stage and devise action plans
to mitigate such risks as early as possible.
› Integrate sustainability in the real estate life cycle, from the earliest
stage of our investment, redevelopment and divestment processes.

Geopolitical

Instability or political changes
in a country, changes ininternational policies or relations
between countries that could
lead to sudden changes in realestate related regulations andsentiment in major economies
and key markets where CLAS
operates

Regulatory & ComplianceNon-compliance with applicablelaws, regulations and rules,
relating to tax, data protection
and privacy, financial crimes
and sanctions in the key markets
where CLAS operates› Actively monitor the geopolitical environment, government policies
and regulatory changes to anticipate shifts in trade, growth andinnovation in our key markets.
› Local management teams establish good working relationship withlocal authorities to keep abreast of regulatory and policy changes,
and lobby or engage with local authorities.

› Maintain a framework that proactively identifies the applicable laws,
regulations and rules, assesses the regulatory and compliance risks,and embeds compliance risk mitigation measures into day-to-day
operations.
› Leverage in-house specialised teams such as legal, complianceand tax, and external consultants to provide advisory services andupdates on changes to laws, regulations and rules.
› Establish Group-wide policies and procedures to address therequirements of the applicable laws, regulations and rules such
as Personal Data Protection Policy, Anti-Money Laundering andCountering the Financing of Terrorism Policy, Global Sanctions
Compliance Policy and Tax Strategy.
› Ongoing mandatory e-learning modules to raise awareness and train
employees on ways to avoid or prevent non-compliant behaviour.

92

CAPITALAND ASCOTT TRUSTOverview

CORPORATEGOVERNANCEOUR ROLE
CapitaLand Ascott Trust (CLAS) is a stapled group comprising CapitaLand Ascott Real Estate Investment
Trust (CapitaLand Ascott REIT) and CapitaLand Ascott Business Trust (CapitaLand Ascott BT) pursuant to astapling deed dated 9 September 2019 (as amended) and each stapled security consists of one CapitaLand
Ascott REIT Unit and one CapitaLand Ascott BT Unit and is treated as a single instrument (Stapled Security).

We, as the Managers, set the strategic direction of CLAS on any investment or divestment opportunities andasset enhancements in accordance with the stated investment strategy of CLAS. The research, evaluation
and analysis required for this purpose are coordinated and carried out by us as the Managers.

Leadership

CapitaLand Ascott Trust Management Limited (REIT Manager) was appointed manager of CapitaLand Ascott
REIT in accordance with the terms of the trust deed dated 19 January 2006 (as amended) between the REITManager and DBS Trustee Limited, as the trustee of CapitaLand Ascott REIT (Trustee). CapitaLand AscottBusiness Trust Management Pte. Ltd. (Trustee-Manager) (collectively with the REIT Manager, the Managers)
was appointed the trustee-manager of CapitaLand Ascott BT in accordance with the terms of the trust deed
constituting CapitaLand Ascott BT dated 9 September 2019 (as amended) (collectively, Trust Deeds)1.

As the Managers, we have general powers of management over the assets of CLAS. Our primary responsibility
is to manage the assets and liabilities of CLAS for the benefit of the stapled securityholders of CLAS (Stapled
Securityholders). We do this with a focus on generating rental income and enhancing asset value overtime so as to maximise returns from the investments, and ultimately the distributions and total returns, toStapled Securityholders.

using our best endeavours to conduct CLAS’ business in a proper and efficient manner;(b)

preparing annual business plans for review by the directors of the Managers (Directors), including
forecasts on revenue, net income, and capital expenditure, explanations on major variances to previous
years’ financial results, written commentaries on key issues and underlying assumptions on rental rates,
operating expenses and any other relevant assumptions;(c)ensuring compliance with relevant laws and regulations, including the Listing Manual of Singapore
Exchange Securities Trading Limited (SGX-ST) (Listing Manual), the Code on Collective Investment
Schemes (CIS Code) issued by the Monetary Authority of Singapore (MAS) (including Appendix 6 of
the CIS Code (Property Funds Appendix)), the Business Trusts Act 2004 (BTA), the Business Trusts
Regulations 2005 (BTR), the Securities and Futures Act 2001 (SFA), written directions, notices, codesand other guidelines that the MAS may issue from time to time, the tax rulings issued by the Inland
Revenue Authority of Singapore on the taxation of CLAS and Stapled Securityholders, and the United
Kingdom’s Alternative Investment Fund Managers Regulations 2013 (as amended) (AIFMR);(d)attending to all regular communications with Stapled Securityholders; and(e)supervising the relevant property manager which performs the day-to-day property management functions(including leasing, marketing, promotion, operations coordination and other property management
activities) for CLAS’ properties.

Sustainability & Governance(a)Portfolio & Performance

Our other functions and responsibilities as the Managers include:

The Managers also consider sustainability issues (including environmental and social factors) as part of our
responsibilities. CLAS’ environmental sustainability and community outreach programmes can be found in
CLAS’ Sustainability Report 2023, which will be published in May 2024.

1

Copies of the Trust Deeds for the time being in force shall be made available for inspection at the registered offices of the REIT Manager
and the Trustee-Manager at all times during usual business hours. Prior appointment would be appreciated.

ANNUAL REPORT 2023

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Financial Statements andOther Information

CLAS is externally managed by the Managers. The Managers appoint experienced and well qualified personnel
to run their day-to-day operations.

CORPORATE
GOVERNANCE
The Managers were appointed in accordance with the terms of the Trust Deeds. The Trust Deeds outline certain
circumstances under which the Managers can be removed. In the case of CapitaLand Ascott REIT, by resolution
passed by a simple majority, and in the case of CapitaLand Ascott BT, by 75% of Stapled Securityholders
present and voting at a meeting of Stapled Securityholders duly convened and held in accordance with theprovisions of the Trust Deeds.
The Managers are wholly owned subsidiaries of CapitaLand Investment Limited (CLI) which holds a significant
stapled securityholding interest in CLAS. CLI is a leading global real estate investment manager, with a vested interestin the long-term performance of CLAS. CLI’s significant stapled securityholding interest in CLAS demonstrates
its commitment to CLAS and as a result, CLI’s interest is aligned with that of other Stapled Securityholders. The
Managers’ association with CLI provides the following benefits, among other things, to CLAS:(a)strategic pipelines of property assets through CapitaLand Group;(b)wider and better access to banking and capital markets on favourable terms;(c)fund raising and treasury support; and(d)access to a bench of experienced management talent.

OUR CORPORATE GOVERNANCE FRAMEWORK AND CULTURE
The Managers embrace the tenets of good corporate governance, including accountability, transparency andsustainability. We are committed to enhancing long-term stapled securityholder value and have appropriate
people, processes and structure to direct and manage the business and affairs of the Managers with a viewto achieving operational excellence and delivering CLAS’ long-term strategic objectives. The policies andpractices developed by the Managers to meet the specific business needs of CLAS provide a firm foundation
for a trusted and respected business enterprise.
Our corporate governance framework as at the date of this corporate governance report (Report) is set out below:

BOARDS OF DIRECTORS OF THE MANAGERS
6 Independent Directors (ID) and 3 Non-Independent Directors (Non-ID)
Led by Mr Tan Beng Hai, Bob, Chairman and ID*

94

AUDIT AND RISKCOMMITTEE (ARC)*EXECUTIVE COMMITTEE
(EC)

4 IDs
Led by Mr Sim Juat Quee Michael
Gabriel, ARC Chairman

3 Non-IDs
Led by Mr Goh Soon Keat
Kevin, EC Chairman

NOMINATING AND
REMUNERATION COMMITTEE(NRC)
2 IDs and 1 Non-ID
Led by Mr Tan Beng Hai, Bob,
NRC Chairman

The Audit Committee was renamed the Audit and Risk Committee with effect from 1 January 2024

CAPITALAND ASCOTT TRUSTOverview

The Boards of Directors of the Managers (Boards) set the tone from the top and are responsible for the Managers’
corporate governance standards and policies, underscoring their importance to CLAS.
This Report sets out the corporate governance practices for the financial year (FY) 2023 with reference to theCode of Corporate Governance 2018 (Code).

CLAS has received multiple accolades for its excellence in corporate governance and efforts to uphold highstandards of transparency in its disclosures. In FY 2023, CLAS was conferred the top spot in the Singapore
Governance and Transparency Index within the REITs and Business Trusts category for the third consecutive
year, and in FY 2022, CLAS was named “Best Investor Relations – Gold” in the Singapore Corporate Awards.
CLAS has been included by the SGX-ST in the Fast Track Programme list. The scheme recognises listedcompanies with good governance standards and compliance practices, and accords prioritised clearance
for selected corporate-action submissions.

Directors who are appointed to the Boards from time to time either have prior experience as a director of anissuer listed on the SGX-ST or will undergo further training required under Rule 210(5)(a) of the Listing Manual.
Mr Max Loh Khum Whai, being a first-time director, is or will be undergoing the requisite training under Rule210(5)(a) of the Listing Manual before 22 November 2024 (being one year from the date of his appointment to
the Boards). As at the date of this Report, Mr Max Loh Khum Whai has attended and completed some but not
all of the relevant modules under the Listed Entity Directors (LED) Programme conducted by the Singapore
Institute of Directors. Arrangements have been made for Mr Loh to attend the remaining modules under the
LED Programme to complete the mandatory training requirements under Practice Note 2.3 of the Listing
Manual, with the target date of completion being end March 2024.

Portfolio & Performance

Board Changes
As part of the Boards’ renewal process, Mr Ong Su Kiat Melvyn stepped down from the Boards with effectfrom 1 January 2024 while Mr Max Loh Khum Whai and Mr Lui Chong Chee were appointed as Independent
Directors (IDs) on 23 November 2023 and 1 February 2024 respectively.

Leadership

Throughout FY 2023, the Managers have complied with the principles of corporate governance laid down by
the Code and also complied, substantially, with the provisions underlying the principles of the Code. Where
there are deviations from the provisions of the Code, appropriate explanations are provided in this Report.
This Report also sets out additional policies and practices adopted by the Managers which are not provided
in the Code.

BOARD MATTERS

Boards’ Duties and Responsibilities
The Boards oversee the strategic direction, performance and affairs of the Managers, in furtherance of the Managers’
primary responsibility to foster the success of CLAS so as to deliver sustainable value over the long term to Stapled
Securityholders. The Boards provide overall guidance to the management team (Management), led by the Chief
Executive Officer (CEO). The Boards work with Management to achieve CLAS’ objectives and long-term successand Management is accountable to the Boards for its performance. Management is responsible for the executionof the strategy for CLAS and the day-to-day operations of CLAS’ business.

ANNUAL REPORT 2023

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Financial Statements andOther Information

The Boards establish goals for Management and monitor the achievement of these goals. The Boards ensurethat proper and effective controls are in place to assess and manage business risks and compliance withrequirements under the Listing Manual, the Property Funds Appendix, as well as any other applicable guidelines
prescribed by the SGX-ST, MAS or other relevant authorities, and applicable laws. The Boards also set thedisclosure and transparency standards for CLAS and ensure that obligations to Stapled Securityholders andother stakeholders are understood and met.

Sustainability & GovernancePrinciple 1: The Boards’ Conduct of Affairs

CORPORATE
GOVERNANCE
The Boards have adopted a set of internal controls which establishes financial approval limits for capital expenditure,investments, divestments, bank borrowings and issuance of debt instruments and this is clearly communicatedto Management in writing. The Boards have reserved authority to approve certain matters including:(a)material acquisitions, investments and divestments;(b)

issue of new stapled securities in CLAS (Stapled Securities);(c)income distributions and other returns to Stapled Securityholders; and(d)matters which involve a conflict of interest for a controlling Stapled Securityholder or a Director.

Apart from matters that specifically require the Boards’ approval, the Boards delegate authority for transactions
below the Boards’ approval limits to Board committees (Board Committees) and Management to optimise
operational efficiency.
The Directors are fiduciaries and are collectively and individually obliged at all times to act honestly andobjectively in the best interests of CLAS. Consistent with this principle, the Boards are committed to ethics
and integrity of action and have adopted a Board Code of Business Conduct and Ethics (Board Code) which
provides that every Director is expected to, among other things, adhere to the highest standards of ethicalconduct. All Directors are required to comply with the Board Code. This sets the appropriate tone from the
top in respect of the desired organisational culture, and assists the Boards in ensuring proper accountability
within the Managers. In line with this, the Boards have a standing policy that a Director must not allow himself
or herself to get into a position where there is a conflict between his or her duty to CLAS and his or her own
interests. Where a Director has a conflict of interest in a particular matter, he or she will be required to disclose
his or her interest to the Boards, recuse himself or herself from deliberations on the matter and abstain fromvoting on the matter. Every Director has complied with this policy, and where relevant, such compliance has
been duly recorded in the minutes of meeting or written resolutions.
Furthermore, the Directors have the responsibility to act with due diligence in the discharge of their duties andensure that they have the relevant knowledge to carry out and discharge their duties as directors, including
understanding their roles as executive, non-executive, and independent directors, the business of CLAS andthe environment in which CLAS operates. The Directors are also required to dedicate the necessary effort,
commitment and time to their work as directors, and are expected to attend all meetings of the Boards, except
if unusual circumstances make attendance impractical.
Sustainability
The Managers place sustainability at the core of everything we do. We are committed to growing our businessin a responsible manner, delivering long-term economic value, and contributing to the environmental
and social well-being of the communities in which we have a presence. In keeping with this commitment,sustainability-related considerations are key aspects of the Boards’ strategic formulation.
At the board level, in recognition of the importance of sustainability as a business imperative and consistent
with the principle that the Boards play an important role in considering and incorporating sustainability
considerations as part of its strategy development, an important consideration is ensuring that Environmental,
Social and Governance (ESG) risks and opportunities are holistically integrated into and form the Managers’
long-term strategy. This also sets the tone at the top to ensure the alignment of the Managers’ activities with
its purpose and stakeholder interests.

96

CAPITALAND ASCOTT TRUSTOverview

The Boards and the Managers are committed to ensuring environmental and workplace health and safety
for their stakeholders, including employees and customers. CapitaLand’s Environmental, Health and Safety
Management System is audited by a third-party accredited certification body to ISO 14001 and ISO 45001
standards, internationally recognised standards for the environmental management of businesses andoccupational health and safety management of businesses respectively. CLAS’ health and safety practices
are also aligned with the Code of Practice on Chief Executives’ and Board of Directors’ Workplace Safety and
Health Duties which was gazetted in October 2022. CapitaLand’s Environmental, Health and Safety policy isreadily available to employees on CLI Group’s intranet and to all suppliers, service providers and partners.

Leadership

All the members of the Boards attended or will attend the sustainability training as prescribed by the SGX-ST.
New Directors who are appointed to the Boards from time to time who have not undergone training onsustainability matters as prescribed by the SGX-ST will either have expertise in sustainability matters or will
undergo further training required under Rule 720(7) of the Listing Manual. Arrangements have been made for
Mr Max Loh Khum Whai and Mr Lui Chong Chee, who were appointed as Directors in November 2023 andFebruary 2024 respectively, to attend such mandatory sustainability training in FY 2024.
More details of CLAS’ sustainability approach, environmental policies, anti-corruption efforts, training anddevelopment can be found on pages 79 to 86 of this Annual Report and in CLAS’ Sustainability Report 2023
which will be published in May 2024.

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Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

Each newly-appointed Director is provided with a formal letter of appointment setting out the key terms of
appointment, the time commitment expected and other relevant matters pertaining to the appointment. Heor she also has access to the Director’s Manual which includes information on a broad range of mattersrelating to the role, duties and responsibilities of a Director and CLAS’ policies relating to disclosure ofinterests in securities, conflicts of interests and securities trading restrictions. All Directors upon appointment
also undergo an induction or orientation programme which focuses on orientating the Director to CLAS’business, operations, strategies, organisation structure, responsibilities of CEO and other persons having
executive roles with authority and responsibility for planning, directing and controlling the activities of theManagers (key management personnel), and financial and governance practices. Conducted by the CEO andkey management personnel, the induction programme may include visits to CLAS’ properties. Through theinduction programme, the new Directors also get acquainted with members of Management which facilitates
their interaction at Board meetings. Where a newly appointed Director has no prior experience as a directorof an issuer listed on SGX-ST, such Director will undergo training on the roles and responsibilities of adirector of a listed issuer, as prescribed by SGX-ST. Mr Max Loh Khum Whai, being a first-time director, will
undergo training in the roles and responsibilities of a director of a listed issuer, as prescribed by the SGX-ST,
the details of which are set out above in the Board Changes section on page 95 of this Report.

Portfolio & Performance

Directors’ Development
In view of the increasingly demanding, complex and multi-dimensional role of a director, the Boards recognise
the importance of continual training and development for their Directors so as to equip them to discharge theduties and responsibilities of their office as directors to the best of their abilities. This is even if the Directors
are generally experienced professionals in their own right, and takes into account the specific role a Director
plays and the specific skills a Director should possess in relation to that role he or she has to perform.
The Boards ensure that the Managers have in place a training and professional development framework to
guide and support the Managers towards meeting the objective of having Boards which comprise individuals
who are competent and possess up-to-date knowledge and skills necessary to discharge their duties andresponsibilities. The costs of training are borne by the Managers. The induction, training and development
provided to new and existing Directors are set out below.

CORPORATE
GOVERNANCE
Following appointment, the Directors are provided with opportunities for continuing education in areas suchas director’s duties and responsibilities, changes to regulations, risk management and accounting standards,
and industry-related matters, so as to be updated on matters that affect or may enhance their performance
as Directors or Board Committee members. Directors can also request for further information on any aspectof CLAS’ business from Management. Directors may also contribute by recommending to the Boards specifictraining and development programmes which he or she believes would benefit Directors or the Boards as awhole. The Directors are regularly kept informed by the Company Secretary of the availability of appropriate
courses, conferences and seminars including those conducted by the Singapore Institute of Directors, andthe Directors are encouraged to attend such training at the Managers’ expense. Bespoke arrangements as
required and catered to address the needs of particular members of the Boards may also be organised fromtime to time. These would also facilitate Board-Management interaction and feedback.
During the year, the training programmes attended by the Directors included the Sustainability Training
for Directors of REIT manager organised by REITAS, as well as various seminars organised by business
partners in relation to board matters, audit and risk committee matters including Business Interruption Risk,
Cybersecurity, Environmental Health and Safety and Global Sanctions Compliance Policy.
Board Committees
The Boards have established various Board Committees to assist them in the discharge of their functions.
These Board Committees are the Audit and Risk Committee (ARC), the Executive Committee (EC) and theNominating and Remuneration Committee (NRC).
Each Board Committee is formed with clear written terms of reference (setting out their composition, authorities
and duties, including reporting back to the Boards) and operates under delegated authority from the Boards with
the Boards retaining overall oversight. The chairpersons of these Board Committees report on the decisions
and significant matters discussed at the respective Board Committees meetings to the Boards on a periodic
basis. The minutes of the Board Committee meetings which record the deliberations and decisions taken
during these meetings are also circulated to all members of the Boards for their information. The compositionof the various Board Committees is set out on page 134 of this Annual Report and the inside back cover ofthis Annual Report. The duties and responsibilities of the Board Committees are set out in this Report.
The Boards may form other Board Committees from time to time. The composition of each Board Committee
is also reviewed by the Boards, through the NRC, and as and when there are changes to membership of theBoards. Considerations include leveraging on the respective Directors’ leadership and governance backgrounds
and expertise to optimise the overall effectiveness of the Board Committees, ensuring continuity of experiencein the respective Board Committees and an equitable and balanced distribution of duties among members of
the Boards whilst providing members of the Boards the opportunity to focus on specific areas and develop
expertise over time to benefit CLAS.

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CAPITALAND ASCOTT TRUSTOverview

Meetings of Board and Board Committees
Board and Board Committee meetings are scheduled prior to the start of each financial year in consultation
with the Directors. The Constitutions of the Managers permit the Directors to participate in Board and Board
Committee meetings via audio or video conference. If a Director is unable to attend a Board or Board Committee
meeting, he or she may provide his or her comments to the Chairman or the relevant Board Committee
Chairman ahead of the meeting and these comments are taken into consideration in the deliberations. The
Boards and Board Committees may also make decisions by way of written resolutions.

At each scheduled Board meeting, the Boards are apprised of the following:(b)

ARC’s recommendation on CLAS’ periodic and year-end financial results following ARC’s review ofthe same;(c)decisions made by Board Committees in the period under review;(d)updates on CLAS’ business and operations in the period under review, including market developments
and trends, as well as business initiatives and opportunities;(e)financial performance, budgetary and capital management related matters in the period under review,
including any material variance between any projections in budget or business plans and the actual
results from business activities and operations;(f)any risk management issues that materially impact CLAS’ operations or financial performance;(g)

updates on key Stapled Securityholder engagements in the period under review, as well as analyst views
and market feedback;(h)prospective transactions which Management is exploring; and(i)updates on CLAS’ sustainability efforts and performance, including but not limited to environmental
and climate change related initiatives, as well as workplace health and safety.

All of the above allow the Boards to develop a good understanding of the progress of CLAS’ business as wellas the issues and challenges faced by CLAS, and also promote active engagement with Management.
The Managers adopt and practise the principle of collective decisions and therefore, no individual Director
influences or dominates the decision-making process. There is mutual respect and trust among the Directors
and therefore the Boards benefit from a culture of frank and rigorous discussions. Such discussions conducted
on a professional basis contribute to the dynamism and effectiveness of the Boards. The Boards’ compositionis such that there is diversity in views and perspectives which enriches deliberations and contributes to better
decision-making of the Boards in the best interests of CLAS. At Board and Board Committee meetings, all the
Directors actively participate in discussions. In particular, they engage in open and constructive debate andchallenge Management on its assumptions and recommendations.

ANNUAL REPORT 2023

99

Financial Statements andOther Information

Management provides the Directors with complete, adequate and timely information prior to Board and Board
Committee meetings and on an ongoing basis. This enables the Directors to make informed decisions anddischarge their duties and responsibilities.

Sustainability & Governancesignificant matters discussed at the ARC meeting which is typically scheduled before the Board meeting;Portfolio & Performance(a)

Leadership

The IDs, led by the independent Chairman or other IDs as appropriate, also meet regularly at least oncea year without the presence of Management. The chairman of such meetings will provide feedback to allmembers of the Boards and/or Management as appropriate. In FY 2023, the IDs met four times without thepresence of Management.

CORPORATE
GOVERNANCE
As a general rule, meeting materials are provided to the Directors at least five working days prior to Board andBoard Committee meetings, to allow them to prepare for the meetings and to enable discussions to focus on
any questions or issues that they may have or identify. Agendas for Board and Board Committee meetings
are prepared in consultation with the Chairman and the chairmen of the respective Board Committees. This
provides assurance that there is time to cover all relevant matters during the meetings.
In line with the Managers’ ongoing commitment to minimise paper wastage and reduce their carbon footprint, theManagers do not provide printed copies of Board and Board Committee meeting materials. Instead, the Directors
are provided with tablet devices to enable them to access and review meeting materials prior to and during
meetings. This initiative also enhances information security as the meeting materials are made available througha secure channel. The Directors are also able to review and approve written resolutions using the tablet devices.
A total of seven Board meetings, five ARC meetings and two NRC meetings were held in FY 2023. The key
deliberations and decisions taken at Board and Board Committee meetings are minuted.
A record of the Directors’ attendance at Board and Board Committee meetings for FY 2023 is set out on page134 of this Annual Report. The CEO who is also a Director attends all Board meetings. She also attends all ARC
and NRC meetings on an ex officio basis. Other members of Management attend Board and Board Committee
meetings as required to brief the Boards and Board Committees on specific business matters.
There is active interaction between the Directors and Management during and outside Board and Board Committee
meetings. The Directors have separate, independent and unfettered access to Management for any informationthat they may require. The Boards and Management share a productive and harmonious relationship, which is
critical for good governance and organisational effectiveness.
The Directors also have separate and independent access to the company secretary of the Managers (Company
Secretary). The Company Secretary keeps herself abreast of relevant developments. She has oversight ofcorporate secretarial administration matters and advises the Boards and Management on corporate governancematters. The Company Secretary attends Board meetings and assists the Chairman in ensuring that Board
procedures are followed. The Company Secretary also facilitates the induction programme for new Directors
and undertakes the administration work relating to professional development for the Directors. The Company
Secretary is legally trained and the appointment and removal of the Company Secretary is subject to theBoards’ approval.
The Directors, whether individually or collectively as the Boards, are entitled to have access to independent
external professional advice where necessary, at the Managers’ expense.
PRINCIPLE 2: BOARD COMPOSITION AND GUIDANCE
Board Independence
The Boards have a strong independent element given that six out of nine directors, including the Chairman,
are non-executive IDs1. Other than the CEO who is the only executive Director on the Boards, non-executive
Directors make up the rest of the Boards. None of the Directors have served on the Boards for nine years
or longer. No lead ID is appointed as the Chairman is an ID. Profiles of the Directors, their respective Board
Committee memberships and roles are set out on pages 13 to 17 of this Annual Report. Key information on the
Directors is also available on CLAS’ website at https://www.capitalandascotttrust.com (Website). The statementon the Composition of the Board of Directors of the Trustee-Manager pursuant to Regulation 12(8) of the BTR
can be found on pages 141 to 142 of this Annual Report.
The Boards, through the NRC, review from time to time the size and composition of the Boards and each Board
Committee, with a view to ensuring that the size is appropriate in facilitating effective decision-making, and thecomposition reflects a strong independent element as well as balance and diversity of thought and background.
The review takes into account the scope and nature of CLAS’ operations, the evolving external environment andthe competition that the Stapled Group faces.

1

For FY 2023 and as at the date of this Report.

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CAPITALAND ASCOTT TRUSTOverview

The Boards, with the recommendation of the NRC, assess and determine annually (and as and when circumstances
require) the independence of each Director in accordance with the requirements of the Listing Manual andthe guidance in the Code, the Securities and Futures (Licensing and Conduct of Business) Regulations (SFR),
the BTR and where relevant, the recommendations set out in the Practice Guidance accompanying the Code(Practice Guidance). A Director is considered independent if he or she is independent in conduct, characterand judgement and:(b)

is independent from the management of the Managers and CLAS, from any business relationship with
the Managers and CLAS, and from every substantial shareholder of the Managers and every substantial
Stapled Securityholder of CLAS;(c)is not a substantial shareholder of the Managers or a substantial Stapled Securityholder of CLAS;(d)is not employed and has not been employed by the Managers or CLAS or their related corporations in
the current or any of the past three financial years;(e)does not have an immediate family member who is employed or has been employed by the Managers
or CLAS or their related corporations in the current or any of the past three financial years and whose
remuneration is or was determined by the Boards; and(f)

has not served on the Boards for a continuous period of nine years or longer.

There is a rigorous process to evaluate the independence of each ID. As part of the process:each ID provides information of his or her business interests and confirms, annually, that there are
no relationships which interfere with the exercise of his or her independent business judgement witha view to the best interests of the Stapled Securityholders as a whole, and such information is thenreviewed by the Boards; and(b)

the Boards also reflect on the respective IDs’ conduct and contributions at Board and Board Committee
meetings, in particular, whether the relevant ID has exercised independent judgement in discharging
his or her duties and responsibilities.

Each ID is required to recuse himself or herself from the Boards’ deliberations on his or her independence. In
appropriate cases, the NRC also reviews the independence of an ID as and when there is a change of circumstances
involving the ID, and makes its recommendations to the Boards for its consideration and determination. In thisregard, an ID is required to report to the Managers when there is any change of circumstances which may affecthis or her independence. Thereafter, the NRC’s recommendation is presented to the Boards for approval.
The Boards have carried out the assessment of the independence of the IDs for FY 2023 and the paragraphs
below set out the outcome of the assessment. Each of the IDs had recused himself or herself from thedeliberations of the Boards and NRC on his or her independence.

101

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance(a)Portfolio & Performance

has no relationship with the Managers, their related corporations, their substantial shareholders, CLAS’substantial Stapled Securityholders (being Stapled Securityholders who have interests in voting Stapled
Securities with 5% or more of the total votes attached to all voting Stapled Securities) or the Managers’
officers that could interfere, or be reasonably perceived to interfere with the exercise of his or her
independent business judgement in the best interests of CLAS;

Leadership(a)CORPORATE
GOVERNANCE
Mr Tan Beng Hai, Bob
Mr Tan is a non-executive director (NED) of Singapore Post Limited (SingPost), an associated company ofTemasek Holdings (Private) Limited (Temasek), which provides postal services to CLI and its subsidiaries(CLI Group). In addition, SingPost engages CLI Group to manage SingPost Centre. The decision to procure
or provide the services was made by the management of CLI in the ordinary course of business, on arm’s
length basis and based on normal commercial terms and/or market rates. He was also a NED of Sembcorp
Marine Ltd (Sembcorp) before he stepped down on 28 February 2023. Sembcorp was a subsidiary of Temasek
until 28 February 2023. Temasek is deemed to be a substantial Stapled Securityholder and a substantial
shareholder of the Managers. Mr Tan is therefore considered as connected to Temasek. Mr Tan’s role in these
corporations is non-executive in nature and he is not involved in the day-to-day conduct of the business ofthese corporations.
Mr Tan has confirmed that he serves on the Managers’ board in his personal capacity and not as a representativeof Temasek and he is not under any obligation, whether formal or informal, to act in accordance with thedirections of Temasek in relation to the affairs of the Managers and CLAS.
The Boards also considered the conduct of Mr Tan in the discharge of his duties and responsibilities as a
Director, and are of the view that the relationships set out above did not impair his ability to act with independentjudgement in the discharge of his duties and responsibilities as a Director. Save for the relationships statedabove, Mr Tan does not have any other relationships and is not faced with any of the circumstances identified in
the Code, SFR, BTR and Listing Manual, or any other relationships which may affect his independent judgement.
The Boards are therefore of the view that Mr Tan has exercised independent judgement in the discharge of his
duties and responsibilities. Based on the above, the Boards arrived at the determination that Mr Tan is an ID.
Mr Sim Juat Quee Michael Gabriel
Mr Sim serves as a board member of Jurong Town Corporation (JTC), a statutory board under the Ministry ofTrade and Industry. CLI Group had made payments to JTC for JTC leases and the subletting thereof. Mr Sim has
confirmed that he has no involvement in the process or approval of the lease arrangements between CLI Groupand JTC. The leases signed are conducted in the ordinary course of business, on arm’s length basis and basedon normal commercial terms and/or market rates. Mr Sim’s role in JTC is non-executive in nature and he is not
involved in the day-to-day business operations of JTC.
The Boards also considered the conduct of Mr Sim in the discharge of his duties and responsibilities as a
Director, and are of the view that the relationships set out above did not impair his ability to act with independentjudgement in the discharge of his duties and responsibilities as a Director. Save for the relationships statedabove, Mr Sim does not have any other relationships and is not faced with any of the circumstances identified in
the Code, SFR, BTR and Listing Manual, or any other relationships which may affect his independent judgement.
The Boards are therefore of the view that Mr Sim has exercised independent judgement in the discharge of his
duties and responsibilities. Based on the above, the Boards arrived at the determination that Mr Sim is an ID.
Mr Chia Kim Huat
Mr Chia is the Regional Head, Corporate and Transactional Group of Rajah & Tann Singapore LLP (Rajah & Tann),which provides legal services to some of the subsidiaries of CLI Group. Mr Chia is considered as having a business
relationship with the related corporations of the Managers. The engagement of Rajah & Tann to provide legal
services to CLI Group was made by the management teams within the CLI Group and Mr Chia is not involved in
the process or approval of such engagement. These services were provided in the ordinary course of business,on arm’s length basis and based on normal commercial terms and/or market rates.
Mr Chia is also a director of SATS Ltd (SATS), an associated company of Temasek. Temasek is deemed to bea substantial Stapled Securityholder and a substantial shareholder of the Managers. Mr Chia’s role in SATS
is non-executive in nature and he is not involved in the day-to-day conduct of the business of SATS. Mr Chia
has confirmed that he serves on the Managers’ Board in his personal capacity and not as a representative ofTemasek and he is not under any obligation, whether formal or informal, to act in accordance with the directionsof Temasek in the affairs of the Managers and CLAS.

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CAPITALAND ASCOTT TRUSTOverview

The Boards also considered the conduct of Mr Chia in the discharge of his duties and responsibilities asa Director, and are of the view that the relationships set out above did not impair his ability to act withindependent judgement in the discharge of his duties and responsibilities as a Director. Save for the
relationships stated above, Mr Chia does not have any other relationships and is not faced with any of
the circumstances identified in the Code, SFR, BTR and Listing Manual, or any other relationships which
may affect his independent judgement. The Boards are therefore of the view that Mr Chia has exercised
independent judgement in the discharge of his duties and responsibilities. Based on the above, the Boards
arrived at the determination that Mr Chia is an ID.

The Boards also considered the conduct of Ms Lee in the discharge of her duties and responsibilities as a
Director. The Boards are of the view that Ms Lee has exercised independent judgement in the discharge ofher duties and responsibilities. Based on the above, the Boards arrived at the determination that Ms Lee isan ID.

Mr Ong is also a NED of Singapore Technologies Engineering Ltd (STE), a subsidiary of Temasek. Temasek isdeemed to be a substantial Stapled Securityholder and a substantial shareholder of the Managers. Mr Ong’srole in STE is non-executive in nature and he is not involved in the day-to-day conduct of the business of STE.
He was also not under any obligation, whether formal or informal, to act in accordance with the directions ofTemasek in the affairs of the Managers and CLAS.

Mr Max Loh Khum Whai
Mr Loh was a managing partner of Ernst & Young LLP, Singapore (EY LLP) and a director of EY Corporate
Advisors Pte. Ltd. (EY CAPL) and a few other companies affiliated with EY LLP. CLAS and its subsidiaries (CLASGroup), and CLI Group have business relationships with EY CAPL for tax consultancy and compliance services
provided by EY CAPL. In addition, several member firms of Ernst & Young Global Limited established outside
Singapore (EY Overseas Firms) have provided tax consultancy and compliance services to CLAS Group and
CLI Group. EY LLP and related entities have made short term apartment bookings at the properties of CLAS
and/or CLI Group for their employees’ accommodation requirements. Mr Loh has confirmed that he had no
involvement in the process or approval of such engagements and that such transactions were conductedin the ordinary course of business, on arm’s length basis and based on normal commercial terms and/or
market rates.

ANNUAL REPORT 2023

103

Financial Statements andOther Information

Mr Loh is a NED of SPH Media Holdings Pte. Ltd. (SPH Media). CLI Group has business relationships with SPH
Media for the subscription of newspapers, placement of advertisements in the newspapers and provision ofsponsorships for a yearly campaign organised by SPH Media. SPH Media has also made short-term apartment
bookings at the properties of CLAS and/or CLI Group for their employees’ accommodation requirements.
Mr Loh’s role in SPH Media is non-executive in nature and he is not involved in the day-to-day conduct of thebusiness of these corporations. Mr Loh has confirmed that he had no involvement in the process or approvalof such engagements and that such transactions were conducted in the ordinary course of business, on arm’s
length basis and based on normal commercial terms and/or market rates.

Sustainability & Governance

The Boards also considered the conduct of Mr Ong in the discharge of his duties and responsibilities as a
Director, and are of the view that the relationships set out above did not impair his ability to act with independentjudgement in the discharge of his duties and responsibilities as a Director. Save for the relationships statedabove, Mr Ong did not have any other relationships and was not faced with any of the circumstances identified
in the Code, SFR, BTR and Listing Manual, or any other relationships which may affect his independentjudgement. The Boards are therefore of the view that Mr Ong has exercised independent judgement in the
discharge of his duties and responsibilities. Based on the above, the Boards arrived at the determination that
Mr Ong was an ID.

Portfolio & Performance

Mr Ong Su Kiat Melvyn
Mr Ong stepped down from the Boards with effect from 1 January 2024. He is a Board member of JTC, astatutory board under the Ministry of Trade and Industry. CLI Group had made payments to JTC for JTC leases
and the subletting thereof. Mr Ong has confirmed that he had no involvement in the process or approval of thelease arrangements between CLI Group and JTC and that the leases signed were conducted in the ordinary
course of business, on arm’s length basis and based on normal commercial terms and/or market rates. Hisrole in JTC is non-executive in nature and he is not involved in the day-to-day business operations of JTC.

Leadership

Ms Deborah Lee Siew Yin
Ms Lee is not faced with any of the circumstances identified in the Code, SFR, BTR and Listing Manual anddoes not have any other relationships which may affect her independent judgement.

CORPORATE
GOVERNANCE
The Boards also considered the conduct of Mr Loh in the discharge of his duties and responsibilities as a
Director, and are of the view that the relationships set out above did not impair his ability to act with independentjudgement in the discharge of his duties and responsibilities as a Director. Save for the relationships statedabove, Mr Loh does not have any other relationships and is not faced with any of the circumstances identified in
the Code, SFR, BTR and Listing Manual, or any other relationships which may affect his independent judgement.
The Boards are therefore of the view that Mr Loh has exercised independent judgement in the discharge of his
duties and responsibilities. Based on the above, the Boards arrived at the determination that Mr Loh is an ID.
Mr Lui Chong Chee
Mr Lui was appointed to the Boards on 1 February 2024. He was a non-executive independent chairmanof the board of CapitaLand Malaysia REIT Management Sdn. Bhd. (CMRM), the manager of CapitaLand
Malaysia Trust, before he stepped down on 1 February 2024. CMRM is a wholly owned subsidiary of CLI,
which is a substantial Stapled Securityholder of CLAS. Thus, CMRM is a related corporation of the Managers.
CLI Group has business relationships with CMRM for various matters.
Mr Lui’s role in CMRM was non-executive in nature and he has confirmed that he was not involved in the
day-to-day conduct of CMRM’s business including the business relationship with CLI Group.
As a NED of CMRM, Mr Lui was paid/will be paid director’s fees for his services as chairman of the board of
CMRM (as well as member of the NRC). The framework for remuneration of directors is reviewed and determined
by CMRM, taking into account compensation benchmarks within the industry and professional advice fromindependent remuneration consultants.
Mr Lui was deemed a person connected to CLI by virtue of his directorship in CMRM. This deemed relationshipceased when he stepped down as a director of CMRM on 1 February 2024. Mr Lui has confirmed that he is notunder any obligation, whether formal or informal, to act in accordance with the direction of CLI in the affairsof the Managers and CLAS.
Save for the relationship stated above which ceased with effect from 1 February 2024, Mr Lui does not have anyother relationships and is not faced with any of the circumstances identified in the Code, SFR, BTR and Listing
Manual, or any other relationships which may affect his independent judgement. The Boards are thereforeof the view that Mr Lui is able to exercise independent judgement and act in the best interests of all Stapled
Securityholders, in the discharge of his duties and responsibilities. Based on the above, the Boards arrived at
the determination that Mr Lui is an ID.
The Boards are of the view that as at the last day of FY 2023, each of Mr Tan, Mr Sim, Mr Chia, Ms Lee,
Mr Loh and Mr Ong was able to act in the best interests of all Stapled Securityholders in respect of the period
in which they served as Directors in FY 2023.
In addition, under Regulation 13H(1) of the SFR, where a substantial shareholder of a manager of a real estate
investment trust (REIT) is a corporation, a person would be considered to be connected to that substantial
shareholder if he is, inter alia, a director of the substantial shareholder or a director of a related corporationor an associated company of the substantial shareholder. Such person will prima facie not be deemed to be
independent unless the directors nevertheless regard him to be independent.
The Trustee-Manager is a related corporation of the REIT Manager as both the Trustee-Manager and the REITManager are directly held by CLI Group and as CapitaLand Ascott BT and CapitaLand Ascott REIT are stapled,the directors of the Managers are identical to avoid any differences or deadlock in the operation of the Stapled
Group. As a result, all independent directors of the REIT Manager, namely Mr Tan Beng Hai, Bob, Mr Sim Juat
Quee Michael Gabriel, Mr Chia Kim Huat, Ms Deborah Lee Siew Yin, Mr Ong Su Kiat Melvyn, Mr Max Loh KhumWai and Mr Lui Chong Chee will prima facie be deemed to be connected to a substantial shareholder of the
REIT Manager and hence not independent pursuant to Regulation 13H of the SFR.
Against the foregoing, the board of directors of the REIT Manager (REIT Manager Board) has reviewed andassessed the independence of each of the IDs of the REIT Manager in relation to Regulation 13H of the SFR
and has pursuant to Regulation 13D(8) of the SFR, resolved that notwithstanding that each of the IDs is adirector of both the REIT Manager and the Trustee-Manager, the REIT Manager Board is satisfied that the IDs’
independent judgement and ability to act with regard to the interests of all the Stapled Securityholders of
CLAS as a whole will not be impaired, on the basis that:104

CAPITALAND ASCOTT TRUSTOverviewfor so long as CapitaLand Ascott BT is stapled to CapitaLand Ascott REIT, there will be no real prejudice
to the interests of the holders of CapitaLand Ascott REIT Units for the Trustee-Manager and the REITManager to have the same board of directors as CapitaLand Ascott REIT Units and the CapitaLand
Ascott BT Units will be stapled together and held by the same investors. The stapling together ofCapitaLand Ascott REIT Units and CapitaLand Ascott BT Units means that the holders of CapitaLand
Ascott REIT Units are at the same time the investors of the Stapled Securities, who stand to benefit asa whole; and(b)since the CapitaLand Ascott BT Units and CapitaLand Ascott REIT Units are held by the same poolof investors in the same proportion, concerns and potential abuses applicable to interested party
transactions will be absent in transactions between CapitaLand Ascott REIT and CapitaLand Ascott BT.

The remaining non-executive Directors, namely, Mr Goh Soon Keat Kevin and Ms Beh Siew Kim are employeesof CLI Group and are not considered to be independent.

Leadership(a)

Board Diversity
The Boards embrace diversity and have formally adopted a Board Diversity Policy. The Board Diversity Policy
provides for the Boards to comprise talented and dedicated Directors with a diverse mix of expertise, experience,
perspectives, skills and backgrounds, with due consideration to diversity factors, including but not limited to,diversity in age and gender.

The diversity targets, plans and timelines for achieving the targets and progress towards achieving the targets
are described below.
DIVERSITY TARGETS, PLANS AND TIMELINESTARGETS ACHIEVED / PROGRESS TOWARDSACHIEVING TARGETS

Portfolio & Performance

The Boards believe in diversity and value the benefits that diversity can bring to the Boards in their deliberations
by avoiding groupthink and fostering constructive debate. Diversity enhances the Boards’ decision-making
capability and ensures that the Managers have the opportunity to benefit from all available talent and perspectives,
which is essential to effective business governance and for ensuring long-term sustainable growth.

GenderTo have at least 2 female Directors on the Boards
during the period leading up to 2025.

Age
To ensure that the Boards comprise Directors acrossthe following age groups:

Achieved – As at the end of FY 2023, the Boards
comprise Directors across all 3 age groups.

(a)
(b)
(c)

In particular:

50 and below;
51 to 60; and61 and above,and to maintain such level of age diversity during theperiod leading up to 2025.

50 and below – 3 Directors
51 to 60 – 2 Directors
61 and above – 4 Directors

Following the retirement of Mr Melvyn Ong with effectfrom 1 January 2024 and the appointment of Mr Lui
Chong Chee with effect from 1 February 2024, as at thedate of this Report, there are 2 Directors in each of theage group 50 and below and 51 to 60, and 5 Directors
in the age group 61 and above.

ANNUAL REPORT 2023

105

Financial Statements andOther Information

The Managers believe that age diversity would
provide a broad spectrum of thoughts and views indeliberations of the Boards and Board Committees.

(a)
(b)
(c)

Sustainability & Governance

The Managers believe in achieving an optimum mix ofmen and women on the Boards to provide different
approaches and perspectives.

Achieved – As at the end of FY 2023 and as at thedate of this Report, 3 out of 9 Directors are female.
This represents 33.3% of the Boards.

CORPORATE
GOVERNANCE
DIVERSITY TARGETS, PLANS AND TIMELINESTARGETS ACHIEVED / PROGRESS TOWARDSACHIEVING TARGETS

TenureTo ensure that the Boards comprise Directors acrossthe following tenure groups:
(a)
(b)
(c)

less than 3 years;
3 to 6 years; andmore than 6 years,

and to maintain such level of tenure diversity during
the period leading up to 2025.

Achieved – As at the end of FY 2023 and as at thedate of this Report, the Boards comprise Directors
across all 3 tenure groups. In particular:
(a)
(b)
(c)

less than 3 years – 3 Directors
3 to 6 years – 3 Directors
more than 6 years – 3 Directors

The Managers believe that tenure diversity would
facilitate renewal of the Boards progressively andin an orderly manner, whilst ensuring knowledge
continuity about the Managers and CLAS and theirbusiness operations and sustainability of corporate
performance.
Skills & Experience
To ensure that the Directors as a group, possess:
(a)

(b)

a variety of skill sets, including in corecompetencies, domain knowledge and otherfields of expertise, such as finance, banking,real estate and investment management; anda mix of industry experience, management
experience and listed company board
experience by 2025, or (if applicable) tomaintain such level of diversity in skill sets
and experience during the period leading up
to 2025.

The Managers believe that diversity in skill sets would
support the work of the Boards and Board Committees
and needs of the Managers, and that an optimal
mix of experience would help shape the Managers’
strategic objectives and provide effective guidance
and oversight of Management and the Managers’
operations. The Managers continually endeavour
to deepen the bench strength of the Boards withcomplementary and relevant expertise, including in
the areas of lodging, hospitality and sustainability.

Achieved / Achieving Targets – As at the end of
FY 2023 and as at the date of this Report, the Boards
comprise Directors who, as a group, possess asignificant majority of the identified core skills andexperience. The Boards will continue to look foropportunities to strengthen certain skill sets.
In terms of skill sets, the Boards comprise Directors
with a variety of skills and expertise in areas
including hospitality, investment management, realestate, accounting, finance, governance, banking
and capital markets and sustainability.
In terms of experience, the Boards comprise
Directors who are corporate and business leaders
and who collectively have experience in generalbusiness management, have served on public listedcompany boards, have international or regional
experience and have exposure in various industry
sectors and markets.

The NRC, in carrying out its duties of determining the optimal composition of the Boards in their board renewal
process and addressing board vacancies, identifies possible candidates that bring a diversity of backgroundand opinion from amongst candidates with the appropriate background and industry or related expertiseand experience. In identifying possible candidates and making recommendations of board appointments
to the Boards, the NRC considers, among others, achieving an appropriate level of diversity in the Boards’
composition having regard to diversity factors such as age, educational, business and professional backgroundsof their members.
Gender diversity is also considered an important aspect of diversity. The current Boards have three female
members, one of whom is also the CEO, and the current female representation on the Boards is 33.3%. It isnoted that the Council for Board Diversity has a target of women making up 25% of the boards of SGX-ST
listed companies by 2025.

106

CAPITALAND ASCOTT TRUSTOverview

BOARD INDEPENDENCE

BOARD GENDER DIVERSITY

No. of Directors
n Independent
Director

6n Non-Independent
Director

3

No. of Directors
n Male6n Female3

Leadership

TENURE MIX

AGE SPREAD

No. of Directors

No. of Directors

n 61 years and above

5

n 0 to 3 years

3n 51-60 years

2n >3 to 5 years

3n 50 years and below

2n >5 to 7 years

3

Note: Based on the board composition as at the date of this Report

Principle 3: Chairman and Chief Executive Officer
The roles and responsibilities of the Chairman and the CEO are held by separate individuals, in keeping with theprinciples that there be a clear division of responsibilities between the leadership of the Boards and Management
and that no one individual has unfettered powers of decision-making. The non-executive independent Chairman
is Mr Tan Beng Hai, Bob, whereas the CEO is Ms Teo Joo Ling, Serena. They do not share any family ties. The
Chairman and the CEO enjoy a positive and constructive working relationship between them, and support eachother in their respective leadership roles.

The Chairman devotes considerable time to understanding the business of CLAS, as well as the issues andthe competition that CLAS faces. He plays a significant leadership role by providing clear oversight, direction,
advice and guidance to the CEO. He also maintains open lines of communication and engages with othermembers of Management regularly, and acts as a sounding board for the CEO on strategic and significant
operational matters.
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The Chairman provides leadership to the Boards and facilitates the conditions for the overall effectiveness of
the Boards, Board Committees and individual Directors. This includes setting the agenda of Board meetings,
ensuring that there is sufficient information and time at meetings to address all agenda items, and promoting
open and constructive engagement among the Directors as well as between the Boards and the CEO on
strategic issues.

Sustainability & GovernanceFor further information on the Boards’ work in this regard, please refer to “Board Membership” under Principle 4
in this Report.

Portfolio & Performance

The NRC has reviewed the size and composition of the Boards and is of the opinion that the Boards’ current
size is appropriate with an appropriate balance and diversity of skills, talents, experience and backgrounds,
taking into account the objectives of the Board Diversity Policy and CLAS’ business needs and plans, foreffective decision-making and constructive debate. In line with the Board Diversity Policy, the current Boards
comprise members who are corporate and business leaders, and are professionals with varied backgrounds,
expertise and experience including in accounting and finance, banking and capital markets, investment, realestate, legal and compliance, technology and leadership and governance, and sustainability. The Boards also
have a few members with prior working experience in the industry in which CLAS operates. The members of
the Boards bring with them the combination of skills, talents, experience and diversity required to serve theneeds of CLAS.

CORPORATE
GOVERNANCE
The Chairman also presides over the Annual General Meeting (AGM) each year and other general meetings
where he plays a crucial role in fostering constructive dialogue between the Stapled Securityholders, theBoards and Management.
The CEO has full executive responsibilities to manage the Stapled Group’s business and to develop andimplement policies approved by the Boards.
The separation of the roles and responsibilities of the Chairman and the CEO, and the resulting clarity of roles
provide a healthy professional relationship between the Boards and Management, facilitate robust deliberations
on CLAS’ business activities and the exchange of ideas and views to help shape the strategic process, andensure an appropriate balance of power, increased accountability and greater capacity of the Boards forindependent decision-making.
As the roles of the Chairman and the CEO are held by separate individuals who are not related to each other,and the Chairman is an ID, no lead ID has been appointed. Moreover, the Boards have a strong independent
element as six out of nine directors (including the Chairman) are non-executive IDs. There are also sufficientmeasures in place to address situations where the Chairman is conflicted as the Directors are required torecuse themselves from deliberations and abstain from voting on any matters that could potentially give rise
to conflict. Accordingly, the foregoing is consistent with the intent of Principle 3 of the Code.
Principle 4: Board Membership
The Boards have a formal and transparent process for the appointment and re-appointment of Directors,
taking into account the need for progressive renewal of the Boards. The Boards have established the NRC,
which makes recommendations to the Boards on all appointments to the Boards and Board Committees. All
Board appointments are made based on merit and approved by the Boards.
The NRC comprises three NEDs, two of whom (including the chairman of the NRC) are IDs. As at the date ofthis Report, the three members on the NRC are Mr Tan Beng Hai, Bob (NRC Chairman), Ms Deborah Lee Siew
Yin1 and Mr Goh Soon Keat Kevin.
The NRC has also reviewed and approved various matters within its remit via circulating papers.
Under its terms of reference, the NRC’s scope of duties and responsibilities in relation to nomination andappointment of directors includes:(a)reviewing and making recommendations to the Boards on the structure, size and composition of theBoards and the Board Committees, formulating, reviewing and making recommendations to the Boards
on succession plans for Directors, in particular, the appointment and/or replacement of the Chairman
and the CEO;(b)reviewing and making recommendations to the Boards on the process and criteria for the evaluationof the performance of the Boards, Board Committees and individual Directors and the results of such
evaluation annually;(c)considering annually and, as and when circumstances require, if a Director is independent; and(d)considering and making recommendations to the Boards on the appointment and re-appointment of
Directors (including alternate directors, if any)2.

Guided by its terms of reference, the NRC oversees the development and succession planning for the CEO.
This includes overseeing the process for selection of the CEO and conducting an annual review of careerdevelopment and succession matters for the CEO.

1
2

Mr Ong Su Kiat Melvyn relinquished his role, and Ms Deborah Lee Siew Yin was appointed as NRC member with effect from 1 January 2024.
For the avoidance of doubt, there are no alternate directors appointed for FY 2023.

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In addition to the above, the NRC and/or the Boards as a whole are kept abreast of relevant matters relating to
the review of succession plans relating to the key management personnel, in particular the appointment and/or replacement of the key management personnel. While this is a deviation from Provision 4.1(a) of the Codewhich requires the NRC to make recommendations to the Boards on relevant matters relating to the review ofsuccession plans, in particular the appointment and/or replacement of the key management personnel, theBoards are of the view that such matters could be considered either by the NRC or by the Boards as a whole.
This is accordingly consistent with the intent of Principle 4 of the Code.

Leadership

In respect of the review of training and professional development programmes for the Boards and the
Directors, the Boards are of the view that this should be a matter involving the views and feedback of all
members of the Boards. Hence, any Director may contribute by recommending to the Boards specific training
and development programmes which he or she believes would benefit Directors or the Boards as a whole.
The review of training and professional development programmes for the Boards and their Directors is doneby the Boards as a whole, and this function was not delegated to the NRC. This is consistent with the intent
of Principle 4 of the Code, notwithstanding that the NRC was not specifically assigned to review and makerecommendations to the Boards on such matters. For further information on the training and professional
development programmes for the Boards and their Directors, please refer to “Directors’ Development” underPrinciple 1 in this Report.
The NRC’s duties and responsibilities in relation to remuneration matters are set out on page 112 of thisAnnual Report.

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The Boards support the principle that board renewal is a necessary and continual process, for good governanceand ensuring that the Boards have the skills, expertise and experience which are relevant to the evolving
needs of CLAS’ business.

Sustainability & Governance

There is a structured process for determining Board composition and for selecting candidates for appointment
as Directors. In undertaking its duty of reviewing and making Boards appointment recommendations to theBoards, the NRC considers different time horizons for purposes of succession planning. The NRC evaluates theBoards’ competencies on a long-term basis and identifies competencies which may be further strengthenedin the long term to achieve CLAS’ strategy and objectives. As part of medium-term planning, the NRC seeks torefresh the membership of the Boards progressively and in an orderly manner, whilst ensuring continuity andsustainability of corporate performance. The NRC also considers contingency planning to prepare for sudden
and unforeseen changes. In reviewing succession plans, the NRC has in mind CLAS’ strategic priorities
and the factors affecting the long-term success of CLAS. Board succession planning takes into accountthe need to maintain flexibility to effectively address succession planning and to ensure that the Managers
continue to attract and retain highly qualified individuals to serve on the Boards. The NRC aims to maintainthe optimal composition of the Boards by considering the trends affecting CLAS, reviewing the skills needed
and identifying gaps, including considering whether there is an appropriate level of diversity of thought. The
process ensures that the Board composition is such that the Boards have capabilities and experience which
are aligned with CLAS’ strategy and environment, and includes the following considerations: (a) the current
size of the Boards and Board Committees, composition mix and core competencies; (b) the candidate’s/
Director’s independence, in the case of an independent director; (c) the composition requirements for the
Boards and relevant Board Committees (if the candidate/Director is proposed to be appointed to any Board
Committee); and (d) the candidate’s/Director’s age, gender, track record, experience and capabilities andsuch other relevant factors as may be determined by the Boards, which would provide an appropriate balanceand contribute to the collective skill of the Boards.

Portfolio & Performance

Board Composition and Renewal
The Boards, through the NRC, strive to ensure that there is an optimal blend in the Boards of backgrounds,
experience and knowledge in business and general management, expertise relevant to the Stapled Group’sbusiness and track record, and that each Director can bring to the Boards an independent and objective
perspective to enable balanced and well-considered decisions to be made in the interests of the Stapled
Group. The Boards comprise members who have experience in the sector that CLAS operates in. The
channels used in the search and nomination process for identifying appropriate candidates, and the channels
via which the eventual appointee(s) were found, and the criteria used to identify and evaluate potential new
directors, are set out below.

CORPORATE
GOVERNANCE
Board succession planning is carried out through the annual review by the NRC of the Boards’ composition
as well as when a Director gives notice of his or her intention to retire or resign. The outcome of that review
is reported to the Boards. The Boards seek to refresh their membership progressively and in an orderly
manner, whilst ensuring continuity and sustainability of corporate performance. The Boards also have inplace guidelines on the tenure of Directors. The guidelines provide that an ID should serve for no more thana maximum of two three-year terms and any extension of tenure beyond six years will be reviewed on a yearlybasis up to a period of nine years (inclusive of the initial two three-year terms served) by the NRC in arriving
at a recommendation to the Boards.
The NRC identifies suitable candidates for appointment to the Boards. Searches for possible candidates
are conducted through contacts and recommendations. In this regard, the Managers may rely on external
consultants from time to time to assist the NRC in identifying candidates. Candidates are identified based on
the needs of CLAS and the relevant skills required, taking into account, among other things, the requirementsin the Listing Manual and the Code, as well as the factors in the Board Diversity Policy. The candidates will beassessed against a range of criteria including their demonstrated business sense and judgement, skills andexpertise, and market and industry knowledge (and may include elements such as financial, sustainability orother specific competency, geographical representation and business background). The NRC also considers
the qualities of the candidates, in particular whether they are aligned to the strategic directions and valuesof CLAS. In addition, the NRC assesses the candidates’ ability to commit time to the affairs of CLAS, taking
into consideration their other current appointments. The NRC uses a skills matrix to determine the skills gapsof the Boards and if the expertise and experience of a candidate would complement those of the existing
members of the Boards.
The NRC also determines annually, and as and when circumstances require, if a director is independent, having
regard to the circumstances set forth in Provision 2.1 of the Code. Directors disclose their relationships with
the Managers, their related corporations, their substantial shareholders or their officers, if any, which may
affect their independence, to the Boards. For further information on the Boards’ determination in this regard,
please refer to “Board Independence” under Principle 2 in this Report.
Board Changes
The changes to the Boards have been set out above in the “Board Changes” section on page 95 of this Report.
Review of Directors’ Ability to Commit Time
In view of the responsibilities of a Director, Directors need to be able to devote sufficient time and attention toadequately perform their duties and responsibilities. The NRC conducts a review of the other appointments
and commitments of each Director on an annual basis and as and when there is a change of circumstances
involving a Director which may affect his or her ability to commit time to the Managers. In this regard, Directors
are required to report to the Boards any changes in their other appointments.
In respect of the Directors’ other appointments and commitments, no limit is set as to the number of listedcompany board appointments. The Boards take the view that the number of listed company directorshipsthat an individual may hold should be considered on a case-by-case basis, as a person’s available time andattention may be affected by many different factors, such as his or her individual capacity, whether he or
she is in full-time employment, the nature of his or her other responsibilities and his or her near-term plan
regarding some of the other appointments. A Director with multiple directorships is expected to ensure thathe or she can devote sufficient time and attention to the affairs of the Managers. IDs are also required to
inform the Chairman before accepting any invitation for appointment as a director of another entity’s board
or governing body, or offer of a full-time executive appointment or other principal commitment, to enable any
concerns relating to potential conflicts of interest or the ability to commit time, to be shared and addressed.
There is also no alternate director to any of the Directors. In keeping with the principle that a Director must
be able to commit time to the affairs of the Managers, the NRC has adopted the principle that it will generally
not approve the appointment of alternate directors to the Directors.
Each of the Directors is required to make his or her own self-assessment and confirm that he or she is able
to devote sufficient time and attention to the affairs of the Managers. For FY 2023, all non-executive Directors
had undergone the self-assessment and provided the confirmation.

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On an annual basis and, where appropriate when there is a change of circumstances involving a Director, the
NRC assesses each Director’s ability to commit time to the affairs of the Managers. In conducting the assessment,
the NRC takes into consideration each Director’s confirmation, his or her commitments, attendance record at
meetings of the Boards and Board Committees, as well as conduct and contributions (including preparedness
and participation) at Board and Board Committee meetings.

The Boards, taking into consideration the NRC’s assessment, have noted that each Director has beenadequately carrying out his or her duties and responsibilities as a Director.

Leadership

The Directors’ listed company directorships and principal commitments are disclosed on pages 13 to 17 of
this Annual Report and their attendance record for FY 2023 is set out on page 134 of this Annual Report. In
particular, the CEO does not serve on any listed company board outside of the Stapled Group. For FY 2023,
the Directors achieved high meeting attendance rates and have contributed positively to discussions at Board
and Board Committee meetings. Based on the above, the NRC has determined that each Director has beenadequately carrying out his or her duties as a Director and noted that no Director has a significant number oflisted directorships and principal commitments.

Principle 5: Board Performance
The Managers believe that oversight from strong and effective Boards goes a long way towards guiding abusiness enterprise to achieving success.

Board and Board Committees
The evaluation categories covered in the questionnaire include Board composition, Board processes,
strategy, performance and governance, access to information and Board Committee effectiveness. As partof the questionnaire, the Boards also consider whether the creation of value for Stapled Securityholders has
been taken into account in the decision-making process. For FY 2023, the outcome of the evaluation was
satisfactory and the Boards as a whole, and each of the Board Committees, received affirmative ratings acrossall the evaluation categories.

The Boards also recognise that contributions by an individual Director can take different forms including providing
objective perspectives on issues, facilitating business opportunities and strategic relationships, and accessibility
to Management outside of the formal environment of Board and Board Committee meetings.
Each Director has objectively discharged his or her duties and responsibilities at all times as fiduciaries in theinterests of the Managers and CLAS.
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Individual Directors
The evaluation categories covered in the questionnaire include Director’s duties, contributions, conduct
and interpersonal skills, as well as strategic thinking and risk management. For FY 2023, the outcome of theevaluation was satisfactory and each of the Directors on the whole received affirmative ratings across all theevaluation categories.

Sustainability & Governance

The NRC recommends for the Boards’ approval the objective performance criteria, and the Boards undertake,with the assistance of the Company Secretary, a process to evaluate the effectiveness of the Boards as awhole and that of each of its Board Committees and individual Directors for every financial year. As part ofthe process, a questionnaire is sent to the Directors by the Company Secretary, who aggregates and reports
the evaluation results to the NRC, and thereafter the Boards. Management’s feedback is also sought in areas
including Board structure, developing strategy, performance and governance, board functions and practices.
The findings are considered by the Boards and follow up action is taken where necessary with a view toenhancing the effectiveness of the Boards, Board Committees and individual Directors in the discharge of
their duties and responsibilities. As and when required, external facilitators may be appointed to assist in theevaluation process of the Boards, Board committees and the individual Directors. For FY 2023, the evaluation
process was conducted without involving any external facilitator.

Portfolio & Performance

Whilst Board performance is ultimately reflected in the long-term performance of CLAS, the Boards believe thatengaging in a regular process of self-assessment and evaluation of Board performance provides an opportunity
for the Boards to reflect on their effectiveness including the quality of their decisions, and for Directors toconsider their performance and contributions. It also enables the Boards to identify key strengths and areas
for improvement which are essential to effective stewardship and attaining success for CLAS.

CORPORATE
GOVERNANCE
Board Evaluation as an Ongoing Process
The Boards believe that performance evaluation should be an ongoing process and the Boards achieve thisby seeking feedback on a regular basis. The regular interactions between the Directors, and between the
Directors and Management, also contribute to this ongoing process. Through this process of engaging theirmembers, the Boards also benefit from an understanding of shared norms between Directors which also
contributes to a positive board culture. The collective Boards performance and the contributions of individual
Directors are also reflected in, and evidenced by, the synergistic performance of the Boards in discharging their
responsibilities as a whole by providing proper guidance, diligent oversight and able leadership, and lending
support to Management in steering CLAS in the appropriate direction, as well as the long-term performanceof CLAS whether under favourable or challenging market conditions.
REMUNERATION MATTERS
Principles 6, 7 and 8: Procedures for Developing Remuneration Policies, Level and Mix of Remuneration
and Disclosure on Remuneration
All fees and remuneration payable to Directors, key management personnel (including the CEO) and staff ofthe Managers are paid by the Managers.
The Boards have a formal and transparent procedure for developing policies on Director and executive
remuneration, and for fixing the remuneration packages of individual Directors and key management personnel.
The Boards have established the NRC and under its terms of reference, the scope of duties and responsibilitiesof the NRC in relation to remuneration matters include reviewing and making recommendations to the Boards on:(a)the Boards’ remuneration framework and the specific remuneration packages for the Directors; and(b)the compensation framework and the specific remuneration packages for the CEO and otherkey management personnel.

While Provision 6.1 of the Code provides for the NRC to make recommendations to the Boards on such matters,
the Boards are of the view that such matters are best decided by the NRC as part of its focused scope, andhave delegated the decision-making on such matters to the NRC. The NRC reports any decisions made onsuch matters to the Boards. This is accordingly consistent with the intent of Principle 6 of the Code.
Guided by its terms of reference, the NRC oversees the development and succession planning for the CEO.
This includes overseeing the process for selection of the CEO and conducting an annual review of careerdevelopment and succession matters for the CEO.
For further information on the composition of the NRC, please refer to “Board Membership” under Principle
4 in this Report.
Remuneration Policy for Key Management Personnel
The remuneration framework and policy are designed to support the implementation of CLAS’ businessstrategy and deliver sustainable returns to Stapled Securityholders. The principles governing the remuneration
policies of the Managers’ key management personnel are as follows:Business Alignment›
Focus on generating recurring income and enhancing asset value over time so as to maximise returns
from investments and ultimately the distributions and total returns to Stapled Securityholders›
Provide sound and structured funding to ensure affordability and cost-effectiveness in line withperformance goals›
Enhance retention of key talents to build strong organisational capabilities›
Strengthen alignment to ESG practices
Motivate Right Behaviour›
Pay for performance – align, differentiate and balance rewards according to multiple dimensions of
performance›Strengthen line-of-sight linking rewards and performance

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Fair & Appropriate›
Ensure competitive remuneration relative to the appropriate external talent markets›
Manage internal equity such that remuneration is viewed as fair across the Stapled Group›
Significant and appropriate portion of pay-at-risk, taking into account risk policies of the Stapled
Group, symmetrical with risk outcomes and sensitive to the risk time horizon
Effective Implementation›
Maintain rigorous corporate governance standards›
Exercise appropriate flexibility to meet strategic business needs and practical implementation considerations›
Facilitate employee understanding to maximise the value of the remuneration programme

In FY 2023, Willis Towers Watson was appointed as independent remuneration consultant to provide professional
advice on executive remuneration. Willis Towers Watson is a leading global advisory, broking and solutions
company with over 46,000 employees serving more than 140 countries and markets. The consultant is not
related to the Managers, their controlling shareholder, their related corporations or any of their Directors.

A

Fixed Components:
The fixed components comprise the base salary, fixed allowances and compulsory employer contribution
to an employee’s Central Provident Fund.

B

Variable Component:
The variable component is derived from the Performance Bonus Plan (PBP). It is linked to the evaluationof the achievement of each key management personnel’s annual performance targets as set in their
Balanced Scorecard (BSC).

Sustainability & Governance

Remuneration of Key Management Personnel
The remuneration of key management personnel comprises fixed components, a variable component, long-term
components and employee benefits. A significant proportion of key management personnel’s remuneration
is in the form of variable compensation, awarded in a combination of short-term, deferred and long-term
incentives, in keeping with the principle that the interests of the key management personnel should be alignedwith those of Stapled Securityholders and that the remuneration framework should link rewards to businessand individual performance and promote the long-term success of CLAS.

Portfolio & Performance

In reviewing policies on remuneration and determining the remuneration packages for key management
personnel, the NRC, through an independent remuneration consultant, takes into consideration appropriatecompensation benchmarks within the industry, so as to ensure that the remuneration packages payable to key
management personnel are competitive and in line with the objectives of the remuneration policies. It also
considers the compensation framework of CLI as a point of reference. The Managers are subsidiaries of CLI
which also holds a significant stake in CLAS. The association with the CLI Group puts the Managers in a better
position to attract and retain better qualified management talent. Additionally, it provides an intangible benefit
to the Managers in that it allows the employees to associate themselves with an established corporate groupwhich can offer them the depth and breadth of experience and enhanced career development opportunities.

Leadership

These remuneration policies are in line with CLAS’ business strategy and the executive compensation framework
is based on the key principle of linking pay to performance, which is emphasised by linking total remuneration to
the achievement of business and individual goals and objectives. The NRC considers all aspects of remuneration,
including termination terms, to ensure they are fair, and has access to remuneration consultants for advice on
remuneration matters as required.

Under the Balanced Scorecard framework, CLAS’ strategy and goals are translated to performanceoutcomes comprising both quantitative and qualitative targets in the dimensions of:
REIT Performance: This includes targets relating to profitability and distributions, capital structure,
financial and risk management, as well as investor engagement;›

Preparing for Future: This includes targets relating to asset enhancement initiatives and portfolio
reconstitution, asset performance and renewal of master leases and management contracts;

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CORPORATE
GOVERNANCE›

Sustainability: This includes targets relating to talent retention, succession planning and sustainablecorporate practices (including workplace safety); and›Managers’ Financial Health: This includes targets relating to the Managers’ financial viability
and efficiency.

These Balanced Scorecard targets are approved by the Boards and cascaded down throughout theorganisation, thereby creating alignment across CLAS.
After the close of each financial year, the Boards review CLAS’ achievements against the targets set in
the Balanced Scorecard and determine the overall performance taking into consideration qualitative
factors such as the quality of earnings, operating environment, regulatory landscape and industry trends.
In determining the payout quantum for each key management personnel under the PBP, the NRC
considers the overall business and individual performance as well as the affordability of the payout
to the Managers. The PBP is delivered in a combination of cash and deferred Stapled Securities with
employees in senior management grades receiving a greater proportion of their PBP payout in deferred
Stapled Securities. These time-based Stapled Securities are awarded pursuant to the Managers’
Restricted Stapled Security Plan (RSSP) and will vest in three equal annual tranches without further
performance conditions. Recipients will receive fully paid Stapled Securities, their equivalent cash
value or combinations thereof, at no cost. These Stapled Securities awards ensure ongoing alignment
between remuneration and sustainable business performance.
C

Long-term Components:
Stapled Security awards were granted in FY 2023 pursuant to the Managers’ Performance Stapled Security
Plan (PSSP). The Managers believe that the Stapled Security-based components of the remuneration for
key management personnel serve to align the interests of such key management personnel with that of
Stapled Securityholders and CLAS’ long-term growth and value. The obligation to deliver the Stapled
Securities is satisfied out of existing Stapled Securities held by the Managers.
To promote the alignment of Management’s interests with that of Stapled Securityholders in the longer
term, senior members of Management are subject to Stapled Security ownership guidelines to instill
stronger identification with the longer-term performance and growth of the Stapled Group. Under theseguidelines, senior members of Management are required to retain a prescribed proportion of Stapled
Securities received under the Stapled Security Plans worth up to at least one year of basic salary.
Stapled Securities vested pursuant to the Stapled Security Plans may be clawed back in circumstanceswhere the relevant participants are found to be involved in financial misstatement, misconduct, fraud
or malfeasance to the detriment of the Stapled Group.
Managers’ Performance Stapled Security Plan (PSSP)In FY 2023, the NRC granted awards which are conditional on targets set for a three-year performance
period. A specified number of Stapled Securities will only be released to the recipients at the end of
the qualifying performance period, provided that minimally the threshold target is achieved.
Under the PSSP, an initial number of Stapled Securities (PSSP baseline award) is allocated conditional on
the achievement of pre-determined targets for Stapled Securityholder returns and sustainability (included
with effect from the FY 2023 award). In respect of Stapled Securityholder returns, Management is measured
by the Relative Total Stapled Securityholder Return (TSSR) of the Stapled Group, based on the percentile
ranking of the TSSR of the Stapled Group relative to the constituent REITs in the FTSE ST REIT Index. In
respect of sustainability, Management is measured on outcomes such as green building certification.

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For FY 2023, the relevant award for assessment of the performance achieved by CLAS is the award
granted in FY 2021 where the qualifying performance period was FY 2021 to FY 2023. Based on the NRC’s
assessment that the performance achieved by CLAS has exceeded the pre-determined performancetargets for such performance period, the resulting number of Stapled Securities released has beenadjusted accordingly to reflect the performance level.

Leadership

The above performance measures have been selected as a key measurement of wealth creation for
Stapled Securityholders and the commitment of the Stapled Group towards sustainability. The final
number of Stapled Securities to be released will depend on the Stapled Group’s performance against
the pre-determined targets over the three-year qualifying performance period. This serves to alignManagement’s interests with that of Stapled Securityholders in the longer term and to deter short-termrisk taking. No Stapled Securities will be released if the threshold target is not met at the end of thequalifying performance period. On the other hand, if superior targets are met, more Stapled Securities
than the PSSP baseline award can be delivered, up to a maximum of 200% of the PSSP baseline award.
The NRC has the discretion to adjust the number of Stapled Securities released taking into consideration
other relevant quantitative and qualitative factors. Recipients will receive fully paid Stapled Securities,
their equivalent cash value or combinations thereof, at no cost.

In respect of the Stapled Security awards granted under the PSSP in FY 2022 and FY 2023, the respective
qualifying performance periods have not ended as at the date of this Report.

Under the RSSP, an initial number of Stapled Securities (RSSP baseline award) is allocated conditionalon the achievement of pre-determined targets in respect of the following performance conditions:(a)Profit After Tax & Minority Interest of the Stapled Group; and(b)Distribution per Stapled Security of the Stapled Group.

There were no performance-based awards granted under the RSSP in FY 2023.
D

Employee Benefits:
The benefits provided are comparable with local market practices.

The Boards, together with the NRC, seek to ensure that the remuneration of the CEO and other key management
personnel is strongly linked to the achievement of business and individual performance targets. The performancetargets are set at realistic yet stretched levels each year to motivate a high degree of business performancewith emphasis on both shorter-term and longer-term quantifiable objectives.
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Each year, the NRC evaluates the extent to which each of the key management personnel has delivered on
the business and individual goals and objectives, and based on the outcome of the evaluation, approves thecompensation for the key management personnel. In such evaluation, the NRC considers whether the level of
remuneration is appropriate to attract, retain and motivate key management personnel to successfully manage
CLAS for the long term. The CEO does not attend discussions relating to her own performance and remuneration.

Sustainability & Governance

The above performance measures have been selected as they are the key drivers of business performanceand are aligned to Stapled Securityholder value. The final number of Stapled Securities to be released
will depend on the Stapled Group’s performance against the pre-determined targets at the end of the
one-year qualifying performance period. The Stapled Securities will be released in equal annual tranches
over a vesting period of three years. No Stapled Securities will be released if the threshold targets are
not met at the end of the qualifying performance period. On the other hand, if superior targets are met,
more Stapled Securities than the RSSP baseline award can be delivered, up to a maximum of 150%of the RSSP baseline award. The NRC has the discretion to adjust the number of Stapled Securities
released taking into consideration other relevant quantitative and qualitative factors. Recipients will
receive fully paid Stapled Securities, their equivalent cash value or combinations thereof, at no cost.

Portfolio & Performance

Managers’ Restricted Stapled Security Plan (RSSP)
Prior to FY 2023, the NRC granted awards which are conditional on targets set for a one-year performance
period. A specified number of Stapled Securities will only be released to recipients at the end of thequalifying performance period, provided that minimally the threshold targets are achieved.

CORPORATE
GOVERNANCE
While the disclosure of, among others, the CEO’s exact remuneration amount and the names, amounts andbreakdown of remuneration of at least the top five key management personnel (who are not Directors or the CEO)in bands no wider than S$250,000 and the aggregate of the total remuneration paid to these key management
personnel would be in full compliance with Provision 8.1 of the Code, the Boards have considered carefully anddecided that such disclosure would not be in the interests of the Managers or Stapled Securityholders due to:(a)the intense competition for talents in the REIT management industry, the Managers are of the viewthat it is in the interests of Stapled Securityholders to not make such disclosures so as to minimise
potential staff movement and undue disruption to its key management team;(b)

the need to balance the confidential and commercial sensitivities associated with remuneration
matters, the Managers are of the view that such disclosures could be prejudicial to the interests ofStapled Securityholders;(c)the importance of retaining competent and experienced staff to ensure CLAS’ stability and continuityof business operations, the Managers are of the view that such disclosures may subject the Managers
to undue risks, including unnecessary key management turnover; and(d)there being no misalignment between the remuneration of the CEO and key management personnel
and the interest of Stapled Securityholders. Their remuneration is not borne by CLAS as they are paidout of the fees that the Managers receive (the quantum and basis of which have been disclosed on
page 260 of this Annual Report).

The Managers are of the view that despite the partial deviation from Provision 8.1 of the Code, the disclosuresin this Annual Report are consistent with the intent of Principle 8 of the Code and would provide sufficient
information and transparency to the Stapled Securityholders on the Managers’ remuneration policies and the leveland mix of remuneration accorded to the key management personnel, and enable the Stapled Securityholders
to understand the relationship between CLAS’ performance, value creation and the remuneration of key
management personnel. For the above reasons, the Managers are of the view that the interests of Stapled
Securityholders are not prejudiced by the partial deviation.
Apart from the key management personnel and other employees of the Managers, the Managers outsource various
other services to a wholly owned subsidiary of CLI (CLI Subsidiary). The CLI Subsidiary provides these services
through its employees and employees of CLI Group (together, the Outsourced Personnel). This arrangement is
put in place so as to provide flexibility and maximise efficiency in resource management to match the needsof CLAS from time to time, as well as to leverage on economies of scale and tap on the management talent ofan established corporate group which can offer enhanced depth and breadth of experience. Notwithstanding
the outsourcing arrangement, the responsibility for due diligence, oversight and accountability continues toreside with the Boards and Management. In this regard, the remuneration of such Outsourced Personnel, being
employees of the CLI Subsidiary and CLI Group, is not included as part of the disclosure of remuneration of key
management personnel of the Managers in this Report.

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CAPITALAND ASCOTT TRUSTOverview

In FY 2023, there were no employees of the Managers who were substantial shareholders of the Managers,
substantial Stapled Securityholders of CLAS or immediate family members of a Director, the CEO, any substantial
shareholder of the Managers or any substantial Stapled Securityholder of CLAS. “Immediate family member”
refers to the spouse, child, adopted child, step-child, sibling or parent of the individual.

All individuals included in the aggregated figures disclosed are rewarded in line with the Managers’ remuneration
policies described in this Report.
The aggregate amount of remuneration awarded by the Managers to its staff (including CEO and non-executive
Directors) in respect of FY 2023 was approximately S$4.20 million. This figure comprised fixed pay of
S$2.30 million, variable pay of S$1.71 million (including Stapled Securities issued under the Stapled Security
Plans, where applicable) and allowances and benefits-in-kind of S$0.19 million. There were a total of 19
beneficiaries of the remuneration described above. In respect of FY 2023, the aggregate amount of remuneration
awarded by the Managers to its senior management (which are also members of staff whose actions have amaterial impact on the risk profile of CLAS) was approximately S$2.52 million, comprising 4 individuals having
considered, among others, their roles and decision-making powers.

ANNUAL REPORT 2023

117

Financial Statements andOther Information

Remuneration for Non-Executive Directors
The non-executive Directors’ fees are paid by the Managers and the FY 2023 fees, together with a breakdown of thecomponents, are set out in the Non-Executive Directors’ Remuneration Table on page 135 of this Annual Report.

Sustainability & Governance

Remuneration Disclosures under AIFMR
The Managers are required under the AIFMR to make quantitative disclosures of remuneration. Disclosures areprovided in relation to (a) the staff of the Managers; (b) staff who are senior management; and (c) staff who havethe ability to materially affect the risk profile of CLAS.

Portfolio & Performance

In FY 2023, no termination, retirement or post-employment benefits were granted to Directors, the CEO andother key management personnel. There was also no special retirement plan, ‘golden parachute’ or special
severance package for any of the key management personnel.

Leadership

In FY 2021, a one-time Special CLI Founders Performance Share Plan (Special PSP Award) was granted by the
CLI Group to selected senior executives within the group (including the Managers) to commemorate its listing,foster a “founders’ mindset” in driving transformation and retain talent. The grant has a five-year performance
period with defined performance parameters which are linked to CLI. Subject to the performance achieved,
the award may vest at the end of the third year and/or fifth year. In addition, such compensation is in thelong-term interests of CLAS as CLAS is a key part of CLI’s business and ecosystem (and it is also the largest
Stapled Securityholder of CLAS), and Management’s actions to grow CLAS and drive CLAS’ performance will
also have a positive impact on CLI, thus reinforcing the complementary nature of the linked performance
between CLAS and CLI. The cost of this one-time award will be borne by the Managers and it is not expected
to form a significant part of the key management personnel’s remuneration over a five-year period. In addition, a
proportion of the Management’s remuneration is paid in the form of Stapled Securities, which further incentivises
the Management to take actions which are beneficial to the Stapled Securityholders. Accordingly, the Special
PSP Award will not result in the Management prioritising the interest of CLI over that of CLAS given that thebulk of their remuneration is determined based on the evaluation of the performance of CLAS and a proportionof their remuneration comprises Stapled Securities. In addition, it should be further noted that under the SFA,
the REIT Manager and the Directors of the REIT Manager are required to act in the best interest of CLAS andgive priority to the interest of CLAS over the interests of the shareholders of the REIT Manager and under the
BTA, the Trustee-Manager is required to also act in the best interest of CLAS and give priority to the interestof CLAS over its own interest, and this would further mitigate any potential conflicts of interests. Save for theSpecial PSP Award, the NRC will continue to assess and reward the key management personnel based on
the performance of CLAS. Accordingly, the Managers are of the view that there would not be any conflicts ofinterest arising from the arrangement, nor would the arrangement result in any misalignment of interest withthose of Stapled Securityholders. There was no new Special PSP Award in FY 2023. In respect of the Special
PSP Award granted in FY 2021, the qualifying performance period has not ended as at the date of this Report.

CORPORATE
GOVERNANCE
The compensation policy for non-executive Directors is based on a scale of fees divided into basic retainer
fees for serving as Director and additional fees for serving on Board Committees. The non-executive Directors’
fee structure and Directors’ fees are reviewed and benchmarked against the REIT industry, appropriate to
the level of contribution and taking into account the effort, time spent and demanding responsibilities on thepart of the non-executive Directors in light of the scale, complexity and geographic scope of the Stapled
Group’s business. The remuneration of non-executive Directors is reviewed from time to time to ensure that
it is appropriate to attract, retain and motivate the non-executive Directors to provide good stewardship ofthe Managers and CLAS.
The CEO, who is an executive Director, is remunerated as part of the key management personnel of theManagers and does not receive any Director’s fees for her role as an executive Director. The non-executive
Directors who are employees of the CLI Group also do not receive any Directors’ fees.
The non-executive Directors’ fees are paid in cash (about 80%) and in the form of Stapled Securities (about20%), save that (i) a non-executive Director (not being an employee of the CLI Group) who steps down fromthe Boards during a financial year will be paid fees fully in cash and; (ii) Mr Ong Su Kiat Melvyn’s fees are paid
fully in cash to a government agency, The Directorship & Consultancy Appointments Council. The Managers
believe that the payment of a portion of the non-executive Directors’ fees in Stapled Securities will serveto align the interests of non-executive Directors with the interests of Stapled Securityholders and CLAS’
long-term growth and value. The payment of non-executive Directors’ fees in Stapled Securities is satisfied
out of the Stapled Securities held by the Managers. No individual Director is involved in any decision of the
NRC relating to his or her own remuneration.
In order to encourage the alignment of the interests of the non-executive Directors with the interests ofStapled Securityholders, a non-executive Director is required to hold the number of Stapled Securities worth
at least one year of the basic retainer fee or the total number of Stapled Securities awarded to him or her,
whichever is lower, at all times during his or her Board tenure.
As with previous years, an independent remuneration consultant, Willis Towers Watson, was appointed in
FY 2023 to provide professional advice on Board remuneration, with a view to ensuring the fee structure ismarket competitive and consistent with industry practices.
ACCOUNTABILITY AND AUDIT
Principle 9: Risk Management and Internal Controls
The Managers maintain adequate and effective systems of risk management and internal controls (including
financial, operational, compliance, information technology (IT) and sanctions-related controls) to safeguard
Stapled Securityholders’ interests and CLAS’ assets.
The Boards have overall responsibility for the governance of risk and oversee the Managers in the design,
implementation and monitoring of the risk management and internal controls systems. The ARC assists theBoards in carrying out the Boards’ responsibility of overseeing the risk management framework and policies
for CLAS and ensuring that Management maintains sound systems of risk management and internal controls.
Under its terms of reference, the scope of the ARC’s duties and responsibilities includes:(a)making recommendations to the Boards on the Risk Appetite Statement (RAS) for CLAS and CLAS’ risk
profile;(b)assessing the adequacy and effectiveness of the risk management and internal controls systems
established by the Managers to manage risks;(c)overseeing the formulation, updating and maintenance of an adequate and effective risk management
framework, policies and strategies for managing risks that are consistent with CLAS’ risk appetite andreports to the Boards on its decisions on any material matters concerning the aforementioned;

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CAPITALAND ASCOTT TRUSTOverview(d)making the necessary recommendations to the Boards such that an opinion regarding the adequacyand effectiveness of the risk management and internal controls systems can be made by the Boards in
the Annual Report in accordance with the Listing Manual and the Code; and(e)considering and advising on risk matters referred to it by the Boards or Management, including reviewing
and reporting to the Boards on any material breaches of CLAS’ RAS, any material non-compliance withthe approved framework and policies and the adequacy of any proposed action.

As part of the ERM Framework, the Managers undertake and perform a Risk and Control Self-Assessment(RCSA) annually to identify material risks along with their mitigating measures. The adequacy and effectivenessof the systems of risk management and internal controls are reviewed at least annually, by Management, the
ARC and the Boards, taking into account the best practices and guidance in the Risk Governance Guidance
for Listed Boards issued by the Corporate Governance Council and the Listing Manual.

Leadership

The Managers adopt an Enterprise Risk Management (ERM) Framework which sets out the required environmental
and organisational components for managing risks in an integrated, systematic and consistent manner. The
ERM Framework and related policies are reviewed annually.

CLAS’ RAS, which incorporates CLAS’ limits, addresses the management of material risks faced by CLAS.
Alignment of CLAS’ risk profile to CLAS’ RAS is achieved through various communication and monitoringmechanisms (including key risk indicators set for Management) put in place across the various functions
within the Managers.

The internal and external auditors conduct reviews of the adequacy and effectiveness of the material internal
controls (including financial, operational, compliance, IT and sanctions-related controls) and risk management
systems. This includes testing, where practicable, material internal controls in areas managed by external
service providers. Any material non-compliance or lapses in internal controls together with corrective
measures recommended by the internal and external auditors are reported to and reviewed by the ARC. In
the course of their statutory audit, the external auditors had considered the risk assessment conducted by theinternal auditors. Any material non-compliance and weakness in internal controls, together with the internal
auditors’ recommendations to address them, are reported to the ARC. The ARC also reviews the adequacyand effectiveness of the measures taken by the Managers on the recommendations made by the internal andexternal auditors in this respect.

The CEO, the CFO and the relevant key management personnel of the Managers have obtained similar
assurances from the respective risk and control owners. In addition, for FY 2023, the Boards received half-yearlycertification by Management on the integrity of financial reporting and the Boards provided a negative assurance
confirmation to Stapled Securityholders as required by the Listing Manual.

ANNUAL REPORT 2023

119

Financial Statements andOther Information

Based on the ERM Framework established and the reviews conducted by Management and both the internaland external auditors, as well as the assurance from the CEO and the CFO, the Boards are of the opinion thatthe systems of risk management and internal controls (including financial, operational, compliance, IT andsanctions-related controls) are adequate and effective to address the risks (including financial, operational,
compliance, IT and sanctions-related risks) which CLAS considers relevant and material to its current businessenvironment as at 31 December 2023. The ARC concurs with the Boards in their opinion.

Sustainability & Governance

The Boards have received assurance from the CEO and the Chief Financial Officer (CFO) of the Managers
that the financial records of CLAS have been properly maintained and the financial statements for FY 2023
give a true and fair view of CLAS’ operations and finances. They have also received assurance from the CEO,the CFO and the relevant key management personnel who have responsibility regarding various aspects ofrisk management and internal controls that the systems of risk management and internal controls within
CLAS are adequate and effective to address the risks (including financial, operational, compliance, IT andsanctions-related risks) that the Managers consider relevant and material to the current business environment.

Portfolio & Performance

More information on the Managers’ ERM Framework including the material risks identified can be found in the
Risk Management section on pages 87 to 92 of this Annual Report.

CORPORATE
GOVERNANCE
No material weaknesses in the systems of risk management and internal controls were identified by the
Boards or the ARC in the review for FY 2023. The Boards note that the systems of risk management andinternal controls established by the Managers provide reasonable assurance that CLAS, as it strives to achieve
its business objectives, will not be significantly affected by any event that can be reasonably foreseen or
anticipated. However, the Boards also note that no system of risk management and internal controls canprovide absolute assurance in this regard, or absolute assurance against poor judgement in decision-making,human error, losses, fraud or other irregularities.
Principle 10: Audit and Risk Committee
At present, the ARC comprises four non-executive Directors, all of whom (including the chairman of the ARC)
are IDs. The four members on the ARC are Mr Sim Juat Quee Michael Gabriel (ARC Chairman), Mr Chia Kim
Huat, Ms Deborah Lee Siew Yin and Mr Max Loh Khum Whai. The ARC Chairman is a Director other than the
Chairman of the Boards. The ARC Chairman and members bring with them invaluable recent and relevant
managerial and professional expertise in accounting, auditing and related financial management domains.
KPMG LLP are CLAS’ incumbent external auditors and will hold office until the conclusion of the upcoming
AGM. It is proposed that Deloitte & Touche LLP be appointed as CLAS’ external auditors commencing fromFY 2024 at the upcoming AGM. The ARC does not comprise former partners of CLAS’ incumbent external
auditors, KPMG LLP, and its incoming external auditors, Deloitte & Touche LLP, respectively, (a) within a periodof two years commencing from the date of their ceasing to be partners of the respective firm; or (b) who haveany financial interest in the respective firm.
The ARC has explicit authority to investigate any matter within its terms of reference. Management provides
the fullest co-operation in providing information and resources, and in implementing or carrying out all
requests made by the ARC. The ARC has direct access to the internal and external auditors and full discretion
to invite any Director or key management personnel to attend its meetings. Similarly, both the internal andexternal auditors have unrestricted access to the ARC.
Under its terms of reference, the ARC’s scope of duties and responsibilities includes:(a)reviewing the significant financial reporting issues and judgements so as to ensure the integrity of thefinancial statements of the Stapled Group and any announcements relating to the Stapled Group’s
financial performance;(b)reviewing and reporting to the Boards at least annually the adequacy and effectiveness of the Managers’internal controls (including financial, operational, compliance and IT controls) and risk management systems;(c)reviewing the assurances from the Management (including the CEO and the CFO) on the financial
records and financial statements;(d)reviewing the adequacy, effectiveness, independence, scope and results of the external audit and the
independence and objectivity of the external auditors;(e)reviewing the adequacy, effectiveness, independence, scope and results of the internal audit and theadequacy and effectiveness of the Managers’ internal audit and compliance functions;(f)making recommendations to the Boards on the proposals to Stapled Securityholders on the appointment,
re-appointment and removal of the external auditors, and approving the remuneration and terms ofengagement of the external auditors;

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reviewing and approving processes to regulate transactions between an interested person (as definedin Chapter 9 of the Listing Manual) and/or interested party (as defined in the Property Funds Appendix)(each, an Interested Person) and CLAS and/or its subsidiaries (Interested Person Transactions), to
ensure compliance with the applicable regulations. The regulations include the requirements that
Interested Person Transactions are on normal commercial terms and are not prejudicial to the interestsof CLAS and its minority Stapled Securityholders. In respect of any property management agreement
which is an Interested Person Transaction, the ARC also carries out reviews at appropriate intervals tosatisfy itself that the Managers have reviewed the property manager’s compliance with the terms of theproperty management agreement and has taken remedial actions where necessary; and(h)reviewing the policy and arrangements for concerns about possible improprieties in financial reportingor other matters to be safely raised, and independently investigated, for appropriate follow up action to
be taken.

The ARC undertook a review of the independence of the external auditors, taking into consideration, among
other factors, the non-audit services provided, CLAS’ relationships with the external auditors in FY 2023, as
well as the processes and safeguards adopted by the Managers and the external auditors relating to audit
independence. Based on the review, the ARC is satisfied that the independence of the external auditors is
not affected by the provision of the non-audit services. The external auditors have also provided confirmationof their independence to the ARC. The amount of fees paid or payable to the external auditors for FY 2023
amounted to S$3,862,000, of which audit (and audit-related) fees amounted to S$3,658,000 and non-audit feesamounted to S$204,000.

As part of CLAS’ ongoing good corporate governance initiatives, the Board has concurred with the ARC’srecommendation for the proposed appointment of Deloitte & Touche LLP as the independent external auditorsof CLAS at the upcoming AGM of the Stapled Securityholders. Further details on the proposed change ofexternal auditors is set out in the Managers’ notice of AGM dated 28 March 2024 and the Letter to Stapled
Securityholders dated 28 March 2024 (in relation to the proposed change of external auditors). The incumbent
external auditors, KPMG LLP, will be retiring and will not be seeking re-appointment as external auditors for
FY 2024.

Where relevant, the ARC makes reference to the best practices and guidance for audit committees in Singapore
including practice directions issued from time to time in relation to the Financial Reporting Surveillance
Programme administered by the Accounting and Corporate Regulatory Authority of Singapore.
ANNUAL REPORT 2023

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Financial Statements andOther Information

The ARC also meets with the external auditors and with the internal auditors, without the presence of Management,
at least once a year. In FY 2023, the ARC met with the external auditors and internal auditors once separately andwithout Management’s presence, to discuss the reasonableness of the financial reporting process, the internal
controls and risk management systems, and the significant comments and recommendations by the auditors.

Sustainability & Governance

The ARC holds at least four scheduled meetings in a year and met five times in FY 2023. At all scheduled ARC
meetings in FY 2023, the CEO and the CFO were in attendance. CLAS announces its financial statements ona half-yearly basis and provides quarterly business updates in between such announcements or as and whennecessary. Accordingly, during the ARC meetings in January 2023 and July 2023, among other things, theARC reviewed the half-yearly financial statements, including the relevance and consistency of the accounting
principles adopted and any significant financial reporting issues, and recommended the half-yearly financial
statements and corresponding announcements to the Boards for approval. During the ARC meetings in April
2023 and October 2023, the ARC reviewed, among other things, the quarterly business and financial updates
presented by Management. Such business updates contain, among other things, information on CLAS’ key
operating and financial metrics. In FY 2023, the ARC also reviewed and assessed the adequacy and effectivenessof the internal controls and risk management systems established by the Managers to manage risks, taking
into consideration the outcome of reviews conducted by Management and both the internal and external
auditors, as well as the assurances from the CEO and the CFO.

Portfolio & Performance

KPMG LLP was appointed as the external auditors for CLAS and its Singapore-incorporated subsidiaries andsignificant associated companies. Stapled Securityholders’ approval was obtained for their re-appointment
at the last AGM on 18 April 2023. KPMG LLP will hold office until the conclusion of the upcoming AGM. The
ARC has assessed the performance of the external auditors based on factors such as the performance andquality of their audit and the independence of the auditor.

Leadership(g)CORPORATE
GOVERNANCE
Key Audit Matters
In the review of the financial statements of CLAS for FY 2023, the ARC has discussed with Management theaccounting principles that were applied and their judgement of items that might affect the integrity of thefinancial statements and also considered the clarity of key disclosures in the financial statements. The ARC
reviewed, amongst other matters, the following key audit matter as reported by the external auditors for FY 2023.
Key audit matter

How this issue was addressed by the ARC

Valuation of investment
properties, land and buildings
and investment properties
under development

The ARC considered the valuation methodologies and key assumptions
applied by the valuers for investment properties, land and buildings andinvestment properties under development in arriving at the valuations andalso evaluated the valuers’ objectivity and competency. In order to provide
fresh perspectives to the valuation process, the valuers do not value thesame property for more than two consecutive years. This practice has been
consistently adhered to over time.
The ARC reviewed the outputs from the valuation process and held
discussions with Management and the external auditors to review the valuation
methodologies, focusing on significant changes in fair value measurement
and key drivers of the changes including assessing the reasonableness of the
discount rates, terminal capitalisation rates, capitalisation rates, revenue peravailable unit and gross development costs adopted by the valuers.
The valuation of investment properties, land and buildings and investment
properties under development was also an area of focus for the external auditors.
The ARC considered the findings of the external auditors, including theirassessment of the appropriateness of valuation methodologies and the
key assumptions applied in the valuation.
The ARC was satisfied with the valuation process, the methodologies used andthe valuation of the investment properties, land and buildings and investment
properties under development.

The Managers confirm, on behalf of CLAS, that CLAS complies with Rules 712 and 715 of the Listing Manualin relation to the appointment of its external auditors as KPMG LLP is registered with the Accounting andCorporate Regulatory Authority.
Internal Audit
The Managers have in place an internal audit function supported by CLI’s Internal Audit Department (CLI IA).
The head of the CLI IA is Ms Jenny Tan. CLI IA is independent of the activities it audits and has unfettered accessto CLAS’ documents, records, properties and employees, including access to the ARC, and has appropriate
standing with respect to the Managers. The primary reporting line of CLI IA in respect of the Stapled Group
is to the ARC, however, the ARC does not decide on the appointment, termination and remuneration of thehead of CLI IA as it operates at the CLI Group level. While this is a deviation from Provision 10.4 of the Codewhich requires the ARC to decide on the appointment, termination and remuneration of the head of theinternal audit function, CLI IA is able to carry out its role effectively for the reasons below and is accordingly
consistent with the intent of Principle 10 of the Code.

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The ARC monitors and assesses the role and effectiveness of the internal audit function through reviewing
the internal audit process from time to time and may make recommendations to the Boards for any changes
to the internal audit process. The ARC also reviews to ensure that the internal audit function is adequately
resourced and skilled in line with the nature, size and complexity of the Managers and CLAS’ business, andthat an adequate budget is allocated to the internal audit function to assure its proper functioning. In FY 2023,
the ARC carried out a review of the internal audit function and was satisfied that the internal audit function
performed by CLI IA is adequately resourced, effective and independent.

Leadership

CLI IA formulates its internal audit plan in consultation with, but independently of, Management and its planis submitted to the ARC for approval prior to the beginning of each year. CLI IA adopts a risk-based approachin formulating the audit plan that aligns its activities to the key strategies and risks across the CLI Group’s and
CLAS’ business. The reviews performed by CLI IA are focused on assisting the Boards in promoting soundrisk management, robust internal controls and good corporate governance, through assessing the designand effectiveness of operating controls that govern key business processes and risks identified in the overallrisk framework of the CLI Group and CLAS. CLI IA also reviews compliance with the CLI Group’s and CLAS’
policies, procedures and regulatory responsibilities, performed in the context of financial and operational,
and information system reviews.
During FY 2023, the ARC reviewed the results of audits performed by CLI IA based on the approved audit plan. All
significant findings are reported to Management and the ARC. CLI IA also reviews the status of implementationof the audit recommendations and whether there are any past due items, and reports the same to Management
and the ARC.

To ensure that internal audits are performed effectively, CLI IA recruits and employs suitably qualified professional
staff with the requisite skill sets and experience. For instance, CLI IA staff who are involved in IT audits have therelevant professional IT certifications and are also members of the ISACA Singapore Chapter, a professional
body administering information systems audit and information security certifications that is headquartered in theUSA. The ISACA Information Systems Auditing Standards provide guidance on the standards and procedures
to be applied in IT audits. CLI IA identifies and provides training and development opportunities for its staff
to ensure their technical knowledge and skill sets remain current and relevant.

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Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

The ARC notes that the CLI IA is independent, effective, adequately resourced and staffed with persons withthe relevant qualifications and experience. CLI IA is a corporate member of the Institute of Internal Auditors
Inc. (IIA), Singapore, which is an affiliate of the IIA with its headquarters in the United States of America (USA).
CLI IA subscribes to, and is guided by, the International Standards for the Professional Practice of Internal
Auditing (Standards) developed by IIA, and has incorporated these Standards into its audit practices.

Portfolio & Performance

The ARC also reviewed reports on whistle blower complaints reviewed by CLI IA to ensure independent andthorough investigation and adequate follow up. The ARC also received reports on Interested Person Transactions
reviewed by CLI IA that they were on normal commercial terms and are not prejudicial to the interests of CLAS
and its minority Stapled Securityholders. This is pursuant to procedures established by the Managers to comply
with the Listing Manual requirements relating to interested person transactions. All interested person transactions
are reported to and monitored by the Finance department which also keeps tab on the aggregate value, prior to
the review by CLI IA. Legal advice is sought, if required, in respect of any issues relating to any specific interested
person transaction. In the year under review, save for the Acquisition, there were no significant interested persontransactions involving controlling Stapled Securityholders, controlling shareholders of each of the Managers or
Directors requiring approval of the Stapled Securityholders.

CORPORATE
GOVERNANCE
STAPLED SECURITYHOLDER RIGHTS AND ENGAGEMENT
Principles 11, 12 and 13: Shareholder Rights and Conduct of General Meetings, Engagement with Shareholders,Managing Stakeholder Relationships
The Managers are committed to treating all Stapled Securityholders fairly and equitably. All Stapled Securityholders
enjoy specific rights under the Trust Deeds and the relevant laws and regulations. These rights include, among
other things, the right to participate in profit distributions.
General Meetings
In FY 2023, CLAS convened and held a physical AGM on 18 April 2023 (AGM 2023).
A live webcast of AGM 2023 was made available for Stapled Securityholders who were unable to attend theAGM 2023 in person but wished to view the AGM 2023 proceedings. Although Stapled Securityholders were notable to submit questions or vote remotely via the live webcast of the AGM proceedings, they were allowed to(a) submit questions in advance of and/or live at the AGM 2023 itself and (b) vote at the AGM 2023 by themselves or
appoint proxy(ies) (other than the chairman of the meeting) or the chairman of the meeting as proxy to attend andvote on their behalf at the AGM 2023. Substantial and relevant questions received from Stapled Securityholders
prior to the AGM 2023 were addressed before the AGM 2023 via publication on the Website and on the SGXNet.
In FY 2023, CLAS also convened and held a hybrid extraordinary general meeting on 24 October 2023 (EGM)
physically and by way of electronic means pursuant to the amendments to Practice Note 7.5 of the Listing Manual,
which permitted Stapled Securityholders to attend the physical meeting or the virtual meeting. This provided
Stapled Securityholders with the opportunity to participate effectively in and vote at the EGM and facilitated theinteraction by the Directors and Management with the Stapled Securityholders at and after the EGM.
The hybrid arrangements put in place for the conduct of the EGM included attendance at the EGM via electronicmeans under which Stapled Securityholders could observe and/or listen to the EGM proceedings via live
audio-visual webcast or live audio-only stream, submission of questions in advance of or live at the EGM,
addressing of substantial and relevant questions prior to or live at the EGM and voting at the EGM live by
themselves or their duly appointed proxy(ies) (other than the chairman of the meeting) via electronic meansor by appointing the chairman of the meeting as proxy to vote on their behalf at the EGM.
All Directors (including the CEO who is also a Director) attended both the AGM 2023 and the EGM either in person
or via electronic means except Mr Chia Kim Huat who was absent with apologies at the EGM. A record of the
Directors’ attendance at the AGM 2023 and the EGM can be found in the record of their attendance at general
meetings and Board and Board Committee meetings for FY 2023 set out on page 134 of this Annual Report.
The upcoming AGM to be held on 19 April 2024 (AGM 2024) will also be held in a hybrid format similar to the
EGM as described above. Further information on the arrangements relating to the conduct of the AGM 2024
is set out in the Managers’ notice of AGM dated 28 March 2024.
Stapled Securityholders are entitled to attend general meetings and are accorded the opportunity to participate
effectively in and vote at general meetings (including through the appointment of up to two proxies, if they
are unable to attend in person or in the case of a corporate Stapled Securityholder, through its appointed
representative). Stapled Securityholders such as nominee companies which provide custodial services forsecurities are not constrained by the two proxy limitation, and are able to appoint more than two proxies toattend, speak and vote at general meetings of CLAS.

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At general meetings, Management makes a presentation to Stapled Securityholders to update them on CLAS’
performance, position and prospects. The presentation materials are made available to Stapled Securityholders
on the Website and also on SGXNet.

Leadership

CLAS supports the principle of encouraging Stapled Securityholder participation and voting at general meetings.
CLAS’ Annual Report is provided to Stapled Securityholders within 120 days from the end of CLAS’ financial year.
Stapled Securityholders may download the Annual Report (printed copies are available upon request) and thenotices of general meeting from the Website. More than the legally required notice period for general meetings is
generally provided. The notices of general meeting are also available on SGXNet. The rationale and explanationfor each agenda item which requires Stapled Securityholders’ approval at a general meeting are provided in thenotice of general meeting or in the accompanying circular (if any) issued to Stapled Securityholders in respectof the matter(s) for approval at such general meeting. This enables Stapled Securityholders to exercise theirvotes on an informed basis. To safeguard the Stapled Securityholders’ interests and rights, a separate resolution
is proposed for each substantially separate matter to be approved at a general meeting, unless the issues areinterdependent and linked so as to form one significant proposal. Where the resolutions are “bundled”, thereasons and material implications will be explained in the notice of general meeting.

At general meetings, Stapled Securityholders are informed of the rules governing general meetings and given
the opportunity to communicate their views, ask questions and discuss with the Boards and Management on
matters affecting CLAS. Representatives of the Trustee, Directors (including the Chairman of the respective Board
Committees), key management personnel and the external auditors of CLAS, are present for the entire durationof the general meetings to address any queries that the Stapled Securityholders may have, including queries
about the conduct of CLAS’ external audit and the preparation and contents of the external auditors’ report.

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Financial Statements andOther Information

Minutes of the general meetings recording the substantial and relevant comments made, questions raised andanswers provided, are prepared and are available to Stapled Securityholders for their inspection upon request.
Minutes of general meetings are also made available on the Website as soon as practicable. Accordingly, therights provided to Stapled Securityholders are consistent with the intent of Principle 11 of the Code.

Sustainability & Governance

Provision 11.4 of the Code requires an issuer’s Constitution to allow for absentia voting at general meetings ofshareholders. CLAS’ Trust Deeds currently do not permit Stapled Securityholders to vote at general meetingsin absentia (such as via mail or email). Further to legislative changes implemented in July 2023 to recognise
real-time remote electronic voting, the REIT Manager considered and on 6 October 2023 implemented relevant
amendments to the trust deed dated 19 January 2006 (as amended) constituting CapitaLand Ascott REIT so as
to permit real-time remote electronic voting for CapitaLand Ascott REIT. As a result of similar recent legislativechanges to the business trusts regime which automatically permitted real-time remote electronic voting for
CapitaLand Ascott BT provided that the trust deed constituting CapitaLand Ascott BT is not subsequently
amended to exclude such automatic application, the Trustee-Manager has considered and opted not to exclude
the recognition of real-time remote electronic voting for CapitaLand Ascott BT. The Managers are of the viewthat although these aforementioned changes may still be considered a partial deviation from Provision 11.4 of
the Code as Stapled Securityholders or their duly appointed proxy(ies) are still required to attend the general
meeting virtually in order to avail themselves of real-time remote electronic voting, Stapled Securityholders
nevertheless now have greater opportunities (in addition to the proxy regime) to communicate their views on
matters affecting CLAS even when they are not physically in attendance at general meetings. The Managers
will consider implementing further amendments to CLAS’ Trust Deeds to fully permit absentia voting after
they have carried out careful study and are satisfied that the integrity of information and the authentication of
the identity of Stapled Securityholders will not be compromised, and after the implementation of legislativechanges to recognise methods of voting without the need for Stapled Securityholders or their duly appointed
proxy(ies) to be present in-person or virtually.

Portfolio & Performance

To ensure transparency in the voting process and better reflect Stapled Securityholders’ interests, CLAS conducts
electronic poll voting for all the resolutions proposed at general meetings. One Stapled Security is entitled to
one vote. Voting procedures and the rules governing general meetings are explained and vote tabulations aredisclosed at the general meetings. An independent scrutineer is also appointed to validate the vote tabulation
procedures. Votes cast, for or against and the respective percentages, on each resolution are tallied and displayed
live on-screen to Stapled Securityholders after each resolution is voted on at the general meetings. The total
number of votes cast for or against each resolution and the respective percentages are also announced on
SGXNet after the general meetings.

CORPORATE
GOVERNANCE
Distribution Policy
CLAS’ distribution policy is to distribute at least 90.0% of its taxable income (other than gains from the sale ofreal estate properties by CLAS which are determined to be trading gains), with the actual level of distribution
to be determined at the Managers’ discretion. Distributions are generally paid within 35 market days after the
relevant record date.
Timely Disclosure of Information
The Managers are committed to keeping all Stapled Securityholders, other stakeholders, analysts and the
media informed of CLAS’ performance and any changes in CLAS or its business which are likely to materiallyaffect the price or value of the Stapled Securities.
For FY 2023, the Managers provided Stapled Securityholders with unaudited half year and full year financial
statements within the relevant periods prescribed by the Listing Manual. These half year and full year financial
statements were reviewed and approved by the Boards prior to release to Stapled Securityholders by announcement
on SGXNet. The release of half year and full year financial statements were accompanied by news releases issued
to the media and also made available on SGXNet. In presenting the half year and full year financial statements
to Stapled Securityholders, the Boards sought to provide Stapled Securityholders with a balanced, clear andcomprehensible assessment of CLAS and the Stapled Group’s performance, position and prospects.
In addition to the announcement of half year and full year financial statements in FY 2023, in keeping with
the Managers’ commitment to provide its Stapled Securityholders with information promptly, the Managers
also provided Stapled Securityholders, on a voluntary basis, with quarterly business updates in between
the announcement of half-yearly financial statements. Such business updates contain, among other things,
information on CLAS’ key operating and financial metrics. In addition to the release of financial statements
and business updates, the Managers also keep CLAS’ Stapled Securityholders, stakeholders and analysts
informed of the performance and changes in CLAS or its business which would likely materially affect the priceor value of the Stapled Securities on a timely and consistent basis, so as to assist Stapled Securityholders andinvestors in their investment decisions. This is performed through the release on SGXNet of announcements
in compliance with regulatory reporting requirements and news releases for the media, on a timely andconsistent basis. These announcements and news releases are also posted on the Website. In addition, theManagers also conduct analyst, investor and media briefings, and the materials used for such briefings are
uploaded on SGXNet.
The Managers have a formal policy on corporate disclosure controls and procedures to ensure that CLAS
complies with its disclosure obligations under the Listing Manual. These controls and procedures incorporate
the decision-making process and an obligation on internal reporting of the decisions made.
The Managers believe in conducting the business of CLAS in ways that seek to deliver sustainable value toStapled Securityholders. Best practices are promoted as a means to build an excellent business for CLAS
and the Managers’ accountability to Stapled Securityholders for CLAS’ performance. Prompt fulfilment of
statutory reporting requirements is but one way to maintain Stapled Securityholders’ confidence and trust in
the capability and integrity of the Managers.
Investor Relations
The Managers have in place an Investor Relations department which facilitates effective communication with
Stapled Securityholders and analysts. The Managers also maintain the Website which contains information
on CLAS including but not limited to its prospectus, circulars, current and past announcements and news
releases, financial statements, investor presentations and Annual Reports.
The Managers actively engage with Stapled Securityholders with a view to solicit and understand their views,
and have put in place an Investor Relations Policy which allows for an ongoing exchange of views so as toactively engage and promote regular, effective and fair communications with Stapled Securityholders. The
Investor Relations Policy, which sets out the mechanism through which Stapled Securityholders may contact
the Managers with questions and through which the Managers may respond to such questions, is available
on the Website. Stapled Securityholders are welcome to engage with the Managers beyond general meetings
and they may do so via phone calls or emails to the Investor Relations team, whose contact details may befound on the Website.

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More information on the Managers’ investor and media relations efforts can be found in the Investor Relations
section on pages 76 to 78 of this Annual Report.
The Managers also have in place a corporate communications function supported by CLI’s Group Communications
department which works closely with the media and oversees CLAS’ media communications efforts.

LeadershipManaging Stakeholder Relationships
The Boards’ role includes considering sustainability as part of their strategic formulation. The Managers
adopt an inclusive approach for CLAS by considering and balancing the needs and interests of material
stakeholders, as part of the overall strategy to ensure that the best interests of CLAS are served. The Managers
are committed to sustainability and incorporate the key principles of environmental and social responsibility,
and corporate governance in CLAS’ business strategies and operations. The Managers have arrangements
in place to identify and engage with material stakeholder groups from time to time to gather feedback on
the sustainability issues most important to them and to manage their relationships with such groups. Sucharrangements include maintaining the Website, which is kept updated with current information, to facilitatecommunication and engagement with CLAS’ stakeholders.
The rights of CLAS’ creditors, which comprises of lending banks, are protected with well-spread debt maturity,
healthy interest coverage ratio and gearing ratio below the regulated limits. Regular internal reviews are also
conducted to ensure that various capital management metrics remain compliant with loan covenants.
More details of CLAS’ stakeholder engagements can be found on pages 76 to 78 of this Annual Report and in
CLAS’ Sustainability Report 2023 which will be published in May 2024.

Executive Committee
In addition to the ARC and the NRC, the Boards have also established an EC.
At present, the EC comprises three Directors. The three members on the EC are Mr Goh Soon Keat Kevin(EC Chairman), Ms Teo Joo Ling, Serena and Ms Beh Siew Kim.

Portfolio & Performance

ADDITIONAL INFORMATIONThe EC oversees the day-to-day activities of the Managers and that of CLAS, on behalf of the Boards. The EC is
guided by its terms of reference, in particular, the EC:
approves specific budgets for capital expenditure on development projects, acquisitions and enhancements/
upgrading of properties within its approved financial limits;(b)reviews management reports and operating budgets; and(c)awards contracts for development projects.

The members of the EC also meet informally during the course of the year.

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Financial Statements andOther Information

Dealings with Interested Persons
Review Procedures for Interested Person Transactions
The Managers have established internal control procedures to ensure that all Interested Person Transactions
are undertaken on an arm’s length basis and on normal commercial terms, which are generally no morefavourable than those extended to unrelated third parties, and are not prejudicial to the interests of CLAS andStapled Securityholders. In respect of such transactions, the Managers would have to demonstrate to the ARC
that such transactions are undertaken on normal commercial terms and are not prejudicial to the interests of
CLAS and Stapled Securityholders which may include obtaining (where practicable) third party quotations or
obtaining valuations from independent valuers (in accordance with applicable provisions of the Listing Manualand the Property Funds Appendix). The internal control procedures also ensure compliance with Chapter 9of the Listing Manual and the Property Funds Appendix.

Sustainability & Governance(a)CORPORATE
GOVERNANCE
In particular, the procedures in place include the following:
Interested Person Transactions1

Approving Authority, Proceduresand Disclosure

Below S$100,000 per transaction› Management

S$100,000 and above per transaction which:› Management(a)(for the purpose of the Listing Manual) singly, or when aggregated › Audit and Risk Committeewith other transactions2 entered into by CapitaLand Ascott REIT
or CapitaLand Ascott BT with the same Interested Person in thesame financial year is less than 3.0% of CLAS’ net tangible assets;or(b)(for the purpose of the Property Funds Appendix) singly, or whenaggregated with other transactions entered into by CapitaLand
Ascott REIT with the same Interested Person in the same financial
year is less than 3.0% of CapitaLand Ascott REIT’s net asset value› Management
Transaction2 which:(a)(for the purpose of the Listing Manual) if entered into by CapitaLand › Audit and Risk Committee
Ascott REIT or CapitaLand Ascott BT, is equal to or exceeds 3.0% › Immediate announcementof CLAS’ net tangible assets;(b)(for the purpose of the Property Funds Appendix) if entered into by
CapitaLand Ascott REIT, is equal to or exceeds 3.0% of CapitaLand
Ascott REIT’s net asset value;(c)(for the purpose of the Listing Manual) if entered into by CapitaLand
Ascott REIT or CapitaLand Ascott BT, when aggregated with othertransactions2 with the same Interested Person in the same financial
year is equal to or exceeds 3.0% of CLAS’ net tangible assets; or(d)(for the purpose of the Property Funds Appendix) if entered into by
CapitaLand Ascott REIT, when aggregated with other transactions
with the same Interested Person in the same financial year is equal
to or exceeds 3.0% of CapitaLand Ascott REIT’s net asset value
Transaction2 which:› Audit and Risk Committee(a)(for the purpose of the Listing Manual) if entered into by CapitaLand › Immediate announcement
Ascott REIT or CapitaLand Ascott BT, is equal to or exceeds 5.0% › Stapled Securityholders3of CLAS’ net tangible assets;(b)(for the purpose of the Property Funds Appendix) if entered into by
CapitaLand Ascott REIT, is equal to or exceeds 5.0% of CapitaLand
Ascott REIT’s net asset value;(c)(for the purpose of the Listing Manual) if entered into by CapitaLand
Ascott REIT or CapitaLand Ascott BT, when aggregated with othertransactions2,3 with the same Interested Person in the same financial
year is equal to or exceeds 5.0% of CLAS’ net tangible assets; or(d)(for the purpose of the Property Funds Appendix) if entered into by
CapitaLand Ascott REIT, when aggregated with other transactions2,4
with the same Interested Person in the same financial year is equal
to or exceeds 5.0% of CapitaLand Ascott REIT’s net asset value
12
34This table does not include the procedures applicable to Interested Person Transactions falling under the exceptions set out in Rules
915 and 916 of the Listing Manual.
Any transaction of less than S$100,000 in value is disregarded.
In relation to approval by Stapled Securityholders for transactions that are equal to or exceed 5.0% of CLAS’ net asset value (whether
singly or aggregated), any transaction which has been approved by Stapled Securityholders, or is the subject of aggregation with anothertransaction that has been approved by Stapled Securityholders, need not be included in any subsequent aggregation.
In relation to approval by Stapled Securityholders for transactions that are equal to or exceed 5.0% of CapitaLand Ascott REIT’s net asset
value, any transaction which has been approved by Stapled Securityholders, or is the subject of aggregation with another transaction thathas been approved by Stapled Securityholders, need not be included in any subsequent aggregation.

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Role of the Audit and Risk Committee for Interested Person Transactions
The Managers’ internal control procedures are intended to ensure that Interested Person Transactions
are conducted at arm’s length, on normal commercial terms and are not prejudicial to CLAS and Stapled
Securityholders’ interests.

Leadership

The Managers maintain a register to record all Interested Person Transactions which are entered into by CLAS
(and the basis on which they are entered into, including the quotations obtained to support such basis). All
Interested Person Transactions are subject to regular periodic reviews by the ARC, which in turn obtains
advice from CLI IA, to ascertain that the guidelines and procedures established to monitor Interested Person
Transactions, including the relevant provisions of the Listing Manual and the Property Funds Appendix, as
well as any other guidelines which may from time to time be prescribed by the SGX-ST, MAS or other relevant
authorities, have been complied with. The review includes an examination of the nature of the transaction andits supporting documents or such other information deemed necessary by the ARC. If a member of the ARC
has an interest in a transaction, he/she is to abstain from participating in the review and approval process inrelation to that transaction.
Details of all Interested Person Transactions (equal to or exceeding S$100,000 each in value) entered into by
CLAS in FY 2023 are disclosed on page 344 of this Annual Report.
Dealing with Conflicts of Interest
The following principles and procedures have been established to deal with potential conflicts of interest
which the Managers (including their Directors, key management personnel and employees) may encounterin managing CLAS:(b)

all resolutions at meetings of the Boards in relation to matters concerning CLAS must be decided by amajority vote of the Directors, including at least one ID;(c)in respect of matters in which CLI and/or its subsidiaries have an interest, whether direct or indirect,
any nominees appointed by CLI and/or its subsidiaries to the Boards will abstain from voting. In suchmatters, the quorum must comprise a majority of IDs and shall exclude such nominee Directors of CLI
and/or its subsidiaries;(d)in respect of matters in which a Director or his or her associates have an interest, whether direct orindirect, such interested Director will abstain from voting. In such matters, the quorum must comprisea majority of the Directors and shall exclude such interested Director(s);(e)

if the REIT 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 for and on behalf of CapitaLand Ascott
REIT with an affiliate of the REIT Manager, the REIT Manager is 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, on behalf of CapitaLand Ascott REIT, has a prima facie case against the
party allegedly in breach under such agreement, the REIT Manager is obliged to pursue the appropriate
remedies under such agreement; and(f)

at least one-third of the Boards shall comprise IDs.

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Financial Statements andOther Information

Additionally, CLAS has been granted a right of first refusal by The Ascott Limited (Ascott) which is a wholly
owned subsidiary of CLI over any proposed sale of (a) any properties that are used, or predominantly used,as serviced residences or rental housing properties in Europe and the Pan-Asia region and (b) any shares or
equity interests in single-purpose corporations which hold such properties (each a Relevant Asset), by Ascott or
any of its wholly owned subsidiaries (each an Ascott entity), for so long as the Managers remain the managersof CLAS and Ascott and/or any of its related corporations remain a shareholder of the Managers (TAL ROFR).

Sustainability & Governance

the Managers are dedicated managers to CLAS and will not manage any other REIT or BT or be involvedin any other real property business;

Portfolio & Performance(a)CORPORATE
GOVERNANCE
Following the completion of the combination of CapitaLand Ascott REIT and Ascendas Hospitality Trust, theagreement in relation to the right of first refusal granted by Ascendas Land International Pte. Ltd. (ALI), as
sponsor of Ascendas Hospitality Trust (A-HTRUST), in favour of Perpetual (Asia) Limited, in its capacity as
trustee of Ascendas Hospitality Real Estate Investment Trust and Ascendas Hospitality Trust Management
Pte. Ltd., in its capacity as trustee-manager of Ascendas Hospitality Business Trust dated 9 July 2012 (asamended) (A-HTRUST ROFR, and together with TAL ROFR, the ROFRs) pursuant to which ALI had granted
a right of first refusal to A-HTRUST in the event ALI wishes to dispose of certain assets which are subject to
the A-HTRUST ROFR, had been novated by ALI to Ascott, such that Ascott becomes the obligor under the
A-HTRUST ROFR. Consequently, Ascott is required to ensure that CLAS has the first right to acquire any asset
falling within the scope of either of the above ROFRs.
In respect of voting rights where the Managers would face a conflict between their own interests and that of
Stapled Securityholders, the Managers shall cause such voting rights to be exercised according to the discretionof the Trustee.
Dealings in Securities
The Managers have adopted a securities dealing policy for the officers and employees which applies the bestpractice recommendations in the Listing Manual. Under this policy, Directors and employees of the Managers
as well as certain relevant executives of the CLI Group (together, the Relevant Persons) are required to refrainfrom dealing in CLAS’ securities (i) while in possession of material unpublished price-sensitive information,and (ii) during a one-month period immediately preceding, and up to the time of the announcement of CLAS’
half year and full year financial statements. Prior to the commencement of each relevant black-out period, anemail would be sent to all the Relevant Persons to inform them of the duration of the black-out period. The
Managers also do not deal in CLAS’ securities during the same black-out period. In addition, Directors and certain
employees identified as “Key Insiders” are prohibited from dealing in the securities of CLAS, except during
the open trading window (being one calendar month commencing from the relevant date of announcement of
CLAS’ results), provided that they are not in possession of undisclosed material or price-sensitive information.
Employees and Capital Markets Services Licence Appointed Representatives (CMSL Representatives) of theManagers are also required to give a pre-trading notification to the CEO and the Compliance department
before any dealing in CLAS’ securities.
This policy also provides for the Managers to maintain a list of persons who are privy to price-sensitive information
relating to the Stapled Group as and when circumstances require such a list to be maintained. Directors andemployees of the Managers are also required to refrain from dealing in CLAS’ securities if they are in possessionof unpublished price-sensitive information of CLAS arising from their appointment as Directors and/or in thecourse of performing their duties. As and when appropriate, they would be issued an advisory to refrain fromdealing in CLAS’ securities.
Under this policy, Directors and employees of the Managers are also discouraged from trading on short-termor speculative considerations. They are also prohibited from using any information with respect to othercompanies or entities obtained in the course of their employment in connection with securities transactions ofsuch companies or entities.
A Director is required to notify the Managers of his or her interest in CLAS’ securities within two business days
after (a) the date on which he or she becomes a Director or (b) the date on which he or she acquires an interestin CLAS’ securities. A Director is also required to notify the Managers of any change in his or her interests in
CLAS’ securities within two business days after he or she becomes aware of such change.
Dealings by the Directors are disclosed in accordance with the requirements in the SFA and the Listing Manual.
In FY 2023, based on the information available to the Managers, save as disclosed in accordance with suchrequirements and other than the awards of Stapled Securities in part payment of Directors’ fees, there were
no dealings by the Directors in CLAS’ securities.

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Code of Business Conduct
The Managers adhere to an ethics and code of business conduct policy which deals with issues such asconfidentiality, conduct and work discipline, corporate gifts and concessionary offers. Clear policies andguidelines on how to handle workplace harassment and grievances are also in place.
The policies and guidelines are published on CLI Group’s intranet, which is accessible by all employeesof the Managers. The scope of the code is also published on the Website and may be accessed athttps://www.capitalandascotttrust.com/about-us/the-managers.

First, the Managers offer fair compensation packages, based on practices of pay-for-performance and promotion
based on merit to their employees. The Managers also provide various healthcare subsidies and financial
assistance schemes to alleviate the common financial pressures their employees may face.

Leadership

The policies that the Managers have implemented aim to help to detect and prevent occupational fraud inmainly three ways, as set out below.

Second, clearly documented policies and work procedures incorporate internal controls which ensure that
adequate checks and balances are in place. Periodic audits are also conducted to evaluate the efficacy ofthese internal controls.
Finally, the Managers seek to build and maintain the right organisational culture through their core values,
educating their employees on good business conduct and ethical values.

More details of CLAS’ fraud, bribery and corruption risk management can be found on pages 87 to 92 of thisAnnual Report and in CLAS’ Sustainability Report 2023 which will be published in May 2024.

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ANNUAL REPORT 2023

Sustainability & Governance

The Managers’ employees undergo training and adhere to CLI’s Fraud, Bribery and Corruption Risk Management
Policy (FBC Risk Management Policy). The FBC Risk Management Policy reiterates the strong stance against
fraud, bribery and corruption, and sets the overarching approach and standards in managing fraud, bribery
and corruption risks in an integrated, systematic and consistent manner. The Managers’ stance against bribery
and corruption is also reiterated by Management during their regular staff communication sessions.

Portfolio & Performance

Fraud, Bribery and Corruption Risk Management Policy
In line with their core values, the Managers are committed to doing business with integrity. This is reflected intheir longstanding zero tolerance stance against fraud, bribery and corruption. Consistent with this commitment,
various policies and guidelines are in place to guide all employees of the Managers to maintain the highest
standards of integrity in their work and business dealings. This includes clear guidelines and procedures forthe giving and receipt of corporate gifts and concessionary offers, and an annual pledge by all employees ofthe Managers to uphold the Managers’ core values and to not engage in any corrupt or unethical practices.
The Managers’ zero tolerance policy on bribery and corruption extends to their business dealings with third
parties. Pursuant to this policy, the Managers require that certain agreements incorporate anti-bribery andanti-corruption provisions.

CORPORATE
GOVERNANCE
Grievance Handling and Whistle-Blowing Policy
A whistle-blowing policy has been put in place by the Managers which sets out the procedures for the Managers’
employees and parties who have dealings with the Managers, including vendors and customers, to make a reporton misconduct or wrongdoings relating to the Managers and their officers. Reportable suspected wrongdoings
include but are not limited to misconduct relating to financial matters, corruption, failure to comply with legal
or regulatory obligations, significant breaches of policies or internal controls and endangerment of the healthand safety of an individual.
Procedures are put in place to provide such employees and parties with independent, well defined, accessible
and trusted channels to report suspected fraud, corruption, dishonest practices or other improprieties in theworkplace, and for the independent investigation of any reported incidents and appropriate follow up action.
The Managers ensure that the identity of the whistle-blower is kept confidential. Anonymous reporting is allowed.
However, concerns expressed anonymously are difficult to act upon and whistle-blowers are encouraged toprovide their contact information so that clarifications can be sought during investigations.
The objective of this policy is to encourage the reporting of such matters so that employees or external parties
making any reports in good faith will be able to do so with the confidence that they will be treated fairly and,to the extent possible, be protected from reprisal. The Managers are committed to ensuring protection of
the whistle-blower against detrimental or unfair treatment. The ARC maintains oversight and monitoring ofwhistle-blowing reports made in good faith at its scheduled meetings. Independent, thorough investigation
and appropriate follow up actions are taken. The outcome of each investigation is reported to the ARC. All
employees of the Managers are informed of this policy which is made available on CLI Group’s intranet andat https://www.capitaland.com/en/more-from-capitaland/whisteblowing-policy.html.
Business Continuity Management
The Managers have implemented a Business Continuity Management (BCM) programme that puts in place theprevention, detection, response and, business recovery and resumption measures to minimise the impactof adverse business interruptions or unforeseen events on the Stapled Group’s operations and also has inplace a Business Continuity Plan (BCP). Under the BCP, Management has identified the critical business
functions, processes and resources, and is able to tap on a pool of CLI Group’s employees who are trained
under a Business Psychological Resilience Programme to provide peer support to colleagues following theoccurrence of adverse events. As part of the BCP, periodic desktop exercises and drills, simulating different
scenarios, are carried out to stress-test the effectiveness of processes, procedures and escalation protocols.
This holistic approach under the BCP serves to ensure organisational and staff preparedness and readiness todeal with adverse business disruptions such as acts of terrorism, cyber attacks, data breaches and epidemics.
This approach aims to minimise financial loss to CLAS, allowing the Managers to continue to function as
the managers of CLAS and mitigate any negative effects that the disruptions could have on the Managers’
reputation, operations and ability to remain in compliance with relevant laws and regulations. The Managers
have also acquired insurance policies for the Stapled Group on business interruption events.
Anti-Money Laundering and Countering the Financing of Terrorism Measures
As a holder of a Capital Markets Services Licence issued by MAS, the REIT Manager abides by the MAS’ guidelines
on the prevention of money laundering and countering the financing of terrorism. Under these guidelines, themain obligations of the REIT Manager are:(a)evaluation of risk;(b)customer due diligence;(c)suspicious transaction reporting;(d)record keeping;(e)employee and CMSL Representative screening; and(f)training.

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The Managers have in place a policy on the prevention of money laundering and terrorism financing and remainalert at all times to suspicious transactions. Enhanced due diligence checks are performed on counterparties
where there is a suspicion of money laundering or terrorism financing. Suspicious transactions will also bereported to the Suspicious Transaction Reporting Office of the Commercial Affairs Department.
Under this policy, all relevant records or documents relating to business relations with the Stapled Group’s
customers or transactions entered into must be retained for a period of at least five years following the terminationof such business relations or the completion of such transactions.

LeadershipAll prospective employees, officers and CMSL Representatives of the REIT Manager are also screened against
various money laundering and terrorism financing information sources and lists of designated entities andindividuals provided by MAS. Periodic training is provided by the REIT Manager to its Directors, employees
and CMSL Representatives to ensure that they are updated and aware of applicable anti-money launderingand countering of terrorism financing regulations, the prevailing techniques and trends in money launderingand terrorism financing and the measures adopted by the REIT Manager to combat money laundering andterrorism financing.
Global Sanctions Compliance
The Managers are committed to carrying on business in accordance with the highest ethical standards.
This includes complying with applicable sanctions laws and regulations. The international nature of CLAS’business means that the transactions CLAS engages in may be subject to unilateral sanctions imposed byrelevant authorities.

Portfolio & Performance

To help ensure that the Managers and its directors, employees and officers and other third parties acting on
its behalf or any entity within CLAS fully complies with all sanctions applicable to CLAS’ business activities,
the Managers are subject to a policy to comply with sanctions. The policy sets out the sanctions risk appetiteand the risk management framework to help directors, employees and third parties identify the areas where
breaches of applicable sanctions laws might arise and to support them in making the right decisions in linewith the corporate position as stated in the policy and in the process establish a consistent approach for theManagers’ response to sanctions laws and regulations.

Sustainability & Governance

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ANNUAL REPORT 2023

CORPORATE
GOVERNANCE
Composition of Board Committees in FY 2023 and as at the date of this Report

Board Members

Audit and Risk
Committee (ARC)

Executive
Committee (EC)#

Nominating andRemuneration
Committee (NRC)

–
–
C
M
M
M
M
–
–
–

–
M
–
–
–
–
–
C
M
–

C
–
–
–
M
M
–
M
–
–

Tan Beng Hai, Bob, Chairman
Teo Joo Ling, Serena, CEO
Sim Juat Quee Michael Gabriel
Chia Kim Huat
Deborah Lee Siew Yin1
Ong Su Kiat Melvyn2
Max Loh Khum Whai3
Goh Soon Keat Kevin
Beh Siew Kim
Lui Chong Chee4

Denotes: C – Chairman M – Member CEO – Chief Executive Officer# Given the nature and scope of the work of the EC, their business was discussed/transacted primarily through conference call, correspondence
and informal meetings.
1 Ms Deborah Lee Siew Yin was appointed as a member of the NRC with effect from 1 January 2024.
2 Mr Ong Su Kiat Melvyn stepped down as Non-Executive Independent Director with effect from 1 January 2024 and relinquished his roleas member of the ARC and member of the NRC on the same day.
3 Mr Max Loh Khum Whai was appointed as Non-Executive Independent Director and a member of the ARC with effect from 23 November 2023.
4 Mr Lui Chong Chee was appointed as Non-Executive Independent Director with effect from 1 February 2024.

Attendance Record of Meetings of Stapled Securityholders, Boards and Board Committees in FY 20231

No. of Meetings Held

Boards3

ARC

NRC

AGM

EGM

7

5

2

1

1

Board Members
Tan Beng Hai, Bob

100%

N.A.

100%

100%

100%

Teo Joo Ling, Serena

100%

N.A.

N.A.

100%

100%

Sim Juat Quee Michael Gabriel

100%

100%

N.A.

100%

100%

Chia Kim Huat

100%

80%

N.A.

100%

0%

Deborah Lee Siew Yin

100%

80%

N.A.

100%

100%

Ong Su Kiat Melvyn

100%

100%

100%

100%

100%

Max Loh Khum Whai2

100%

N.A.

N.A.

N.A.

N.A.

Goh Soon Keat Kevin

100%

N.A.

100%

100%

100%

Beh Siew Kim

100%

N.A.

N.A.

100%

100%

N.A.: Not applicable
1 All Directors are required to attend general meetings and Board and/or Board Committee meetings called, in person or via audio or videoconference, unless required to recuse. Attendance is marked against the general meetings and Board and Board Committee meetingseach Director is required to attend, and the percentage computed accordingly.
2 Mr Max Loh Khum Whai was appointed as Non-Executive Independent Director and a member of the ARC with effect from 23 November 2023.
3 Includes a Board Strategy meeting, a Business Plan & Budget meeting and an ad-hoc meeting.

134

CAPITALAND ASCOTT TRUSTOverview

CEO’s Remuneration Table for FY 2023
Components of remuneration

Remuneration

Salary andemployer’s CPF

Bonus and otherbenefits inclusiveof employer’s
CPF1

Award of
StapledSecurities2

Total

34%

29%

37%

100%

CEO
Teo Joo Ling, Serena
1
2

The amounts disclosed include bonuses earned which have been accrued for in FY 2023.
Includes contingent Performance Stapled Security awards made during the year pursuant to the Performance Stapled Security Plan(PSSP) which are subject to the achievement of pre-determined performance conditions and vesting period. Also includes time-baseddeferred shares awarded pursuant to the Restricted Stapled Security Plan as part of the FY2023 performance bonus.

Leadership

Remuneration band for CEO: Above S$1,000,000 to S$1,250,000

Non-Executive Directors’ Remuneration Table for FY 2023
Components of Directors’ fees1,2 (S$)
Cash component

Stapled Securities
component2

Total (S$)4

Non-Executive Directors
124,000

31,000155,000

Sim Juat Quee Michael Gabriel

95,20023,800119,000

Chia Kim Huat

79,20019,80099,000Deborah Lee Siew Yin

79,20019,80099,0003

Ong Su Kiat Melvyn

115,000–

115,000

Max Loh Khum Whai5

7,609

1,902

9,511

Goh Soon Keat Kevin

N.A.

4

4

N.A.

N.A.4

Beh Siew Kim

N.A.4

N.A.4

N.A.4

Portfolio & Performance

Tan Beng Hai, Bob

Aggregate of remuneration for Non-Executive Directors: S$596,511

STATEMENT OF POLICIES AND PRACTICES OF CAPITALAND ASCOTT BT
Apart from the corporate governance practices disclosed above, the Trustee-Manager has prepared a statementof policies and practices in relation to the management and governance of CapitaLand Ascott BT (as describedin section 87(1) of the Business Trusts Act 2004) in respect of the financial year ended 31 December 2023
(FY 2023), which is set out on pages 136 to 142 of this Annual Report.

135

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

N.A.: Not applicable
1 Inclusive of attendance fees for overseas meeting (if any) of (a) S$3,000 per trip for travel within the region; and (b) S$10,000 per trip for
travel outside the region.
2 Each non-executive Director (save for non-executive Directors who are employees of CLI Group or public officers) shall receive up to
20% of his or her Director’s fees in the form of Stapled Securities (subject to truncation adjustments). The remainder of the Director’s fees
shall be paid in cash. No new Stapled Securities will be issued for this purpose as these Stapled Securities will be paid by the Managers
from the Stapled Securities they hold.
3 The director fees payable to Mr Ong Su Kiat Melvyn, a public officer, will be paid fully in cash to a government agency.
4 Non-executive Directors who are employees of CLI Group do not receive Directors’ fees.
5 Mr Max Loh Khum Whai was appointed as Non-Executive Independent Director and a member of the ARC with effect from 23 November 2023.

STATEMENT OF POLICIES AND PRACTICES IN RELATION TO
THE MANAGEMENT AND GOVERNANCE OF CAPITALAND
ASCOTT BUSINESS TRUSTThe Board of Directors of CapitaLand Ascott Business Trust Management Pte. Ltd. (Trustee-Manager Board),
as trustee-manager of CapitaLand Ascott BT (Trustee-Manager), is responsible for safeguarding the interestsof the unitholders of Ascott BT (Ascott BT Unitholders) as a whole and managing the business of CapitaLand
Ascott BT. The Trustee-Manager has general power of management over the business and assets of CapitaLand
Ascott BT and its main responsibility is to manage CapitaLand Ascott BT’s assets and liabilities for the benefitof the CapitaLand Ascott BT Unitholders as a whole. In the event of a conflict between the interests of theCapitaLand Ascott BT Unitholders as a whole and its own interests, the Trustee-Manager will give priority to
the interests of the CapitaLand Ascott BT Unitholders as a whole over its own interests.
The Trustee-Manager Board is also obliged to exercise due care to comply with the relevant provisions of all
applicable legislations and regulations, the listing manual of Singapore Exchange Securities Trading Limited(the Listing Manual), the trust deed constituting CapitaLand Ascott BT dated 9 September 2019 (as amended)(CapitaLand Ascott BT Trust Deed), the stapling deed dated 9 September 2019 (as amended) (Stapling Deed)and all relevant contracts entered into by CapitaLand Ascott BT.
The Trustee-Manager, in exercising its powers and carrying out its duties as trustee-manager of the CapitaLand
Ascott BT, is required to, and will:›treat the CapitaLand Ascott BT Unitholders who hold units of CapitaLand Ascott BT (CapitaLand
Ascott BT Units) in the same class fairly and equally and CapitaLand Ascott BT Unitholders who hold
CapitaLand Ascott BT Units in different classes (if any) fairly;›

ensure that all payments out of the trust property of CapitaLand Ascott BT (CapitaLand Ascott BT Trust
Property) are made in accordance with the Business Trusts Act 2004 (BTA), the CapitaLand Ascott BT
Trust Deed and the Stapling Deed;›report to Monetary Authority of Singapore (MAS) any contravention of the BTA or Business Trusts
Regulations 2005 (BTR) by any other person that:•

relates to CapitaLand Ascott BT; and•has had, has or is likely to have, a material adverse effect on the interests of all the CapitaLand
Ascott BT Unitholders, or any class of CapitaLand Ascott BT Unitholders, as a wholeas soon as practicable after the Trustee-Manager becomes aware of the contravention;›

ensure that the CapitaLand Ascott BT Trust Property is properly accounted for; and›ensure that the CapitaLand Ascott BT Trust Property is kept distinct from the property of the Trustee-Manager
held in its own capacity.

In addition, the Trustee-Manager will:›at all times act honestly and exercise reasonable diligence in the discharge of its duties as the trustee-managerof the CapitaLand Ascott BT in accordance with the BTA, the CapitaLand Ascott BT Trust Deed and theStapling Deed;›act in the best interests of all the CapitaLand Ascott BT Unitholders as a whole and give priority to theinterests of all CapitaLand Ascott BT Unitholders as a whole over its own interests in the event of aconflict between the interests of all CapitaLand Ascott BT Unitholders as a whole and its own interests;›

not make improper use of any information acquired by virtue of its position as the Trustee-Manager to gain,
directly or indirectly, an advantage for itself or for any other person to the detriment of the CapitaLand
Ascott BT Unitholders;136

CAPITALAND ASCOTT TRUSTOverview

hold the CapitaLand Ascott BT Trust Property on trust for all CapitaLand Ascott BT Unitholders as awhole in accordance with the terms of the CapitaLand Ascott BT Trust Deed;›adhere with the business scope of CapitaLand Ascott BT as set out in the CapitaLand Ascott BT Trust Deed;›review interested person transactions in relation to CapitaLand Ascott BT;›

review expense and cost allocations payable to the Trustee-Manager in its capacity as trustee-manager
of CapitaLand Ascott BT out of the CapitaLand Ascott BT Trust Property and ensure that fees andexpenses charged to CapitaLand Ascott BT are appropriate and in accordance with the CapitaLand
Ascott BT Trust Deed; and›comply with the BTA and the Listing Manual.

The MAS has also granted the Trustee-Manager an exemption from compliance with Section 10(2)(a) of the BTA
and the directors of the Trustee-Manager (the Trustee-Manager Directors) from compliance with Section 11(1)(a) of
the BTA subject to the condition that for the duration of the time that the CapitaLand Ascott BT Units are stapled
to the units of CapitaLand Ascott REIT, the Trustee-Manager and Trustee-Manager Directors shall act in the bestinterests of all the holders of the stapled securities of CapitaLand Ascott Trust (CLAS) (Stapled Securityholders).

Leadership›

The Trustee-Manager Board, in exercising its power and carrying out its duties as trustee-manager of CapitaLand
Ascott BT, has put in place measures to ensure that:›the business scope of CapitaLand Ascott BT as set out in the CapitaLand Ascott BT Trust Deed has
been adhered to;›potential conflicts between the interests of the Trustee-Manager and the interests of the Ascott BT
Unitholders as a whole are appropriately managed;›

interested person transactions are transparent, properly recorded and disclosed;›

expenses and cost allocations payable to the Trustee-Manager out of the CapitaLand Ascott BT Trust
Property, and the fees and expenses charged to CapitaLand Ascott BT are appropriate and are madein accordance with the CapitaLand Ascott BT Trust Deed; and›the BTA and the Listing Manual have been complied with.

The Trustee-Manager has also adopted a set of corporate governance practices as set out on pages 93 to 135
of this Annual Report.
CAPITALAND ASCOTT BT TRUST PROPERTY PROPERLY ACCOUNTED FOR
To ensure that the CapitaLand Ascott BT Trust Property is properly accounted for and is kept distinct from theproperty held by the Trustee-Manager in its own capacity, the accounting records of CapitaLand Ascott BT
are kept separate and distinct from the accounting records of the Trustee-Manager. Different bank accounts
are maintained for the Trustee-Manager in its capacity as trustee-manager of CapitaLand Ascott BT and in its
own capacity. Regular internal reviews are also carried out to ascertain that all CapitaLand Ascott BT Trust
Property has been fully accounted for.

ANNUAL REPORT 2023

137

Financial Statements andOther Information

Each of the financial statements of CapitaLand Ascott BT and the Trustee-Manager are approved by theTrustee-Manager Board on a semi-annual basis and annual basis respectively. Each of the financial statements ofCapitaLand Ascott BT and Trustee-Manager are also kept separate and distinct and are duly audited by external
auditors on an annual basis to ensure that the CapitaLand Ascott BT Trust Property is properly accounted forand the CapitaLand Ascott BT Trust Property is kept distinct from the property of the Trustee-Manager held
in its own capacity.

Sustainability & Governance

the CapitaLand Ascott BT Trust Property is properly accounted for and is kept distinct from the property
held by the Trustee-Manager in its own capacity;

Portfolio & Performance›

STATEMENT OF POLICIES AND PRACTICES IN RELATION TO
THE MANAGEMENT AND GOVERNANCE OF CAPITALAND
ASCOTT BUSINESS TRUSTADHERENCE TO BUSINESS SCOPE
The Trustee-Manager Board reviews and approves all authorised businesses undertaken by CapitaLand
Ascott BT so as to ensure its adherence to the business scope under the CapitaLand Ascott BT Trust Deed.
Such authorised businesses include:(i)the management or operation of hospitality assets;(ii)

the acquisition, disposition and ownership of Authorised Investments (as defined in the CapitaLand
Ascott BT Trust Deed) and all activities, concerns, functions and matters reasonably incidental thereto;(iii)

ownership of subsidiaries which are engaged in the acquisition, disposition and ownership of Authorised
Investments and all activities, concerns, functions and matters reasonably incidental thereto; and(iv)

any business, undertaking or activity associated with, incidental and/or ancillary to the carrying on of
the businesses referred to in paragraphs (ii) and (iii) of this definition, including (without limitation) the
management, and/or leasing of the Authorised Investments.

Management provides regular updates to the Trustee-Manager Board and the Audit and Risk Committee about
potential projects that it is looking into on behalf of CapitaLand Ascott BT and the Trustee-Manager Board,and the Audit and Risk Committee ensures that all such projects are within the permitted business scope
under the CapitaLand Ascott BT Trust Deed. Prior to the carrying out of any significant business transactions,
the Trustee-Manager Board, the Audit and Risk Committee and or management will have careful regard to theprovisions of the CapitaLand Ascott BT Trust Deed and when in doubt, will seek advice from professional advisers.
POTENTIAL CONFLICTS OF INTEREST
The Trustee-Manager is not involved in any other businesses other than managing CapitaLand Ascott BT. All
potential conflicts of interest, as and when they arise, will be identified by the Trustee-Manager Board andmanagement, and will be reviewed accordingly.
The Trustee-Manager is a wholly-owned subsidiary of CLI. CLI is the parent company of The Ascott Limited.
The Ascott Limited, in turn, is the sponsor of CLAS (Sponsor). Therefore, there may be potential conflicts ofinterest between CapitaLand Ascott BT, the Trustee-Manager and CLAS.
The Trustee-Manager has instituted, among others, the following procedures to deal with issues of conflictsof interest:›

The Trustee-Manager Board comprises six independent directors who do not have management or business
relationships with the Trustee-Manager and are independent from the substantial shareholders of theTrustee-Manager. The independent Trustee-Manager Directors form the majority of the Trustee-Manager
Board. This allows the Trustee-Manager Board to examine independently and objectively, any potential
issue of conflicts of interest arising between the Trustee-Manager in its own capacity and the CapitaLand
Ascott BT Unitholders as a whole.

›

In respect of matters in which the Sponsor and/or its subsidiaries has an interest, direct or indirect, any
nominees appointed by the Sponsor and/or its subsidiaries to the Trustee-Manager Board to represent
its/their interests will abstain from voting. In such matters, the quorum shall comprise a majority of the
independent Trustee-Manager Directors and shall exclude nominee directors of the Sponsor and/ or
its subsidiaries.

›

In respect of matters in which a Trustee-Manager Director or his Associates (as defined in the Listing
Manual) has an interest, direct or indirect, such interested Trustee-Manager Director shall abstain fromvoting. In such matters, the quorum must comprise a majority of the Trustee-Manager Directors andmust exclude such interested Trustee-Manager Director.

138

CAPITALAND ASCOTT TRUSTOverview›

Leadership

Where matters concerning CapitaLand Ascott BT relate to transactions to be entered into by theTrustee-Manager for and on behalf of CapitaLand Ascott BT with an interested person of the Trustee-Manager
or CapitaLand Ascott BT (which would include relevant associates thereof), the Audit and Risk Committee
is required to consider the terms of such transactions (except transactions under agreements which are
deemed to have been specifically approved by CapitaLand Ascott BT Unitholders upon purchase of
CapitaLand Ascott BT Units) to satisfy itself that such transactions are conducted on normal commercial
terms, are not prejudicial to the interests of CapitaLand Ascott BT and the Stapled Securityholders,and are in compliance with all applicable requirements of the Listing Manual and the BTA relating to
the transactions in question. If the Trustee-Manager is to sign any contract with an interested person of
the Trustee-Manager or CapitaLand Ascott BT, the Trustee-Manager will review the contract to ensurethat it complies with the provisions of the Listing Manual and the BTA relating to interested persontransactions (as may be amended from time to time) as well as any other guidelines as may from time
to time be prescribed to apply to business trusts.

PRESENT AND ONGOING INTERESTED PERSON TRANSACTIONSExempted Agreements
The fees and charges payable by CapitaLand Ascott BT to the Trustee-Manager under the CapitaLand
Ascott BT Trust Deed are considered interested person transactions which are deemed to have been
specifically approved by the CapitaLand Ascott BT Unitholders upon their purchase of the CapitaLand
Ascott BT Units, to the extent that there are no subsequent changes to the rates and/ or bases of thefees charged thereunder which will adversely affect CapitaLand Ascott BT.

(ii)

Future Interested Person Transactions
Depending on the materiality of the transaction, CapitaLand Ascott BT may make a public announcementof or obtain prior approval of the CapitaLand Ascott BT Unitholders for such a transaction. If necessary,
the Trustee-Manager Board may make a written statement in accordance with the resolution of
the Trustee-Manager Board and signed by at least two Trustee-Manager Directors on behalf of theTrustee-Manager Board certifying that, inter alia, such interested person transaction is not detrimental
to the interests of the CapitaLand Ascott BT Unitholders as a whole, based on the circumstances at
the time of the transaction.

The Trustee-Manager has in place an internal control system as well as policies and procedures toensure that all future interested person transactions will be undertaken on an arm’s length basis, on
normal commercial terms, will not be prejudicial to the interests of CapitaLand Ascott BT and theminority CapitaLand Ascott BT Unitholders, and will be in accordance with all applicable requirementsof the BTA, the Listing Manual and all applicable guidelines as may from time to time be prescribed toapply to business trusts relating to the transaction in question.

ANNUAL REPORT 2023

139

Financial Statements andOther Information

Management identifies interested person transactions in relation to CapitaLand Ascott BT. The
Trustee-Manager maintains a register to record all interested person transactions which are entered into
by CapitaLand Ascott BT. The Trustee-Manager incorporates into its plan a review of all interested persontransactions entered into by CapitaLand Ascott BT during the financial year. The Audit and Risk Committee
reviews at least quarterly in each financial year the interested person transactions entered into during
such quarterly period to ascertain that the guidelines and procedures established to monitor interested
person transactions have been complied with. The review includes the examination of the nature of thetransactions and their supporting documents or such other data that the Audit and Risk Committee deems
necessary. If a member of the Audit and Risk Committee has an interest in a transaction, he or she will
abstain from participating in the review and approval process in relation to that transaction.

Sustainability & Governance

The Trustee-Manager may, in future, seek an annual general mandate from the CapitaLand Ascott BT
Unitholders for recurrent transactions of revenue or trading nature or those necessary for the day-to-day
operations with interested persons, and all transactions would then be conducted under such a generalmandate for that relevant financial year. In seeking such an annual general mandate, the Trustee-Manager
may appoint an independent financial adviser to render an opinion as to whether the methods or proceduresfor determining the transaction prices contemplated under the annual general mandate are sufficient, inan effort to ensure that such transactions will be carried out on normal commercial terms and will not be
prejudicial to the interests of CapitaLand Ascott BT and the CapitaLand Ascott BT Unitholders.

Portfolio & Performance(i)STATEMENT OF POLICIES AND PRACTICES IN RELATION TO
THE MANAGEMENT AND GOVERNANCE OF CAPITALAND
ASCOTT BUSINESS TRUSTIn addition, all such interested person transactions conducted and any contracts entered into by theTrustee-Manager on behalf of CapitaLand Ascott BT with an interested person of the Trustee-Manager orCapitaLand Ascott BT, shall comply with and be in accordance with all applicable requirements of the Listing
Manual and the BTA as well as such other guidelines as may from time to time be prescribed to apply tobusiness trusts.
In particular, when CapitaLand Ascott BT acquires assets from the Sponsor or parties related to the Sponsor
in future, the Trustee-Manager will obtain valuations from independent parties. In any event, interested persontransactions entered into by CapitaLand Ascott BT, depending on the materiality of such transactions, may
be publicly announced or, as the case may be, approved by CapitaLand Ascott BT Unitholders, and will, in
addition, be:›reviewed and recommended by the Audit and Risk Committee of the Trustee-Manager, which comprises
only independent Trustee-Manager Directors; and›decided by the Trustee-Manager Board, of which more than half of the Trustee-Manager Directors are
independent directors.

FEES AND EXPENSES CHARGED TO CAPITALAND ASCOTT BT ARE APPROPRIATE AND IN ACCORDANCEWITH THE CAPITALAND ASCOTT BT TRUST DEEDThe Trustee-Manager is entitled under the CapitaLand Ascott BT Trust Deed to a management fee comprisinga base fee of up to a maximum of 0.3% per annum of the property values (being the aggregate value of thereal estate held by CapitaLand Ascott BT) and base performance fee of 4.0% per annum of CapitaLand Ascott
BT and its subsidiaries (the CapitaLand Ascott BT Group)’s share of gross profit for each financial year. In
the event that the CapitaLand Ascott BT Group’s share of gross profit increases by more than 6.0% annually,
the Trustee-Manager is entitled to an outperformance fee of 1.0% of the difference between the CapitaLand
Ascott BT Group’s share of that financial year’s gross profit and 106.0% of the preceding year’s gross profit.
The management fee is payable to the Trustee-Manager in the form of cash and/or stapled securities of CLAS
(Stapled Securities) or (as the case may be) CapitaLand Ascott BT Units as the Trustee-Manager may elect,and in such proportion and for such period as may be determined by the Trustee-Manager.
Under the CapitaLand Ascott BT Trust Deed, the Trustee-Manager is entitled to a trustee fee not exceeding
0.015% per annum of the value of the assets for the time being held or deemed to be held upon trust, subject
to a minimum of S$13,500 per month, excluding out-of-pocket expenses and goods and services tax which isborne by CapitaLand Ascott BT. The trustee fee is payable to the Trustee-Manager in arrears on a monthly basis.
The Trustee-Manager is also entitled to receive an acquisition fee at the rate of up to a maximum of 1.0%of the Enterprise Value (as defined in the CapitaLand Ascott BT Trust Deed) of any real estate-related asset
acquired directly or indirectly by CapitaLand Ascott BT, prorated if applicable to the proportion of CapitaLand
Ascott BT’s interest.
The acquisition fee is payable to the Trustee-Manager in the form of cash but in the event that the Trustee-Manager
receives any acquisition fee in connection with an acquisition from a related party, such acquisition fee shallbe payable in the form of Stapled Securities or (as the case may be) CapitaLand Ascott BT Units.
The Trustee-Manager is also entitled to a divestment fee at the rate of 0.5% of the Enterprise Value of any
real estate or real estate-related asset disposed directly or indirectly by CapitaLand Ascott BT, prorated if
applicable to the proportion of CapitaLand Ascott BT’s interest.
Any increase in the rate or any change in structure of the Trustee-Manager’s management fee, trustee fee, theacquisition fee or the divestment fee, must be approved by an extraordinary resolution passed at a meeting ofCapitaLand Ascott BT Unitholders duly convened and held in accordance with the provisions of the CapitaLand
Ascott BT Trust Deed.

140

CAPITALAND ASCOTT TRUSTOverview

The table below sets out the fees earned by the Trustee-Manager for FY 2023.
Fee
Management Fee
Trustee Fee

Amount (S$’000)% in Cash% in Units

4,627

50

50

162

100

–

The Trustee-Manager Board will meet to review, semi-annually, the material expenses, cost allocations and fees
charged to CapitaLand Ascott BT and to ensure that the fees and expenses payable to the Trustee-Manager
out of the CapitaLand Ascott BT Trust Property are appropriate and in accordance with the CapitaLand Ascott
BT Trust Deed.

Leadership

For FY 2023, the Trustee-Manager will receive 100% of trustee fee in cash while the management fee (for allproperties, excluding Temple Bar Hotel) is in the form of 50% cash and 50% Stapled Securities. The management
fee derived from Temple Bar Hotel is paid 100% in the form of Stapled Securities. No expenses were paid to
the Trustee-Manager during FY 2023 and any out-of-pocket expenses incurred were funded by CapitaLand
Ascott BT’s working capital.

COMPLIANCE WITH THE BUSINESS TRUSTS ACT AND LISTING MANUALThe Trustee-Manager will also engage the services of and obtain advice from professional advisers andconsultants from time to time to ensure compliance with the requirements of the BTA and the Listing Manual.

Portfolio & Performance

The Company Secretary and Compliance Officer monitor CapitaLand Ascott BT’s compliance with the BTA
and the Listing Manual. The Trustee-Manager has an internal compliance manual which serves to summarise
all the applicable rules and regulations as well as key internal policies and processes which CapitaLand Ascott
BT needs to comply with. The manual will be consistently updated whenever there are changes to the rules
and regulations and such policies and processes, and this will help management to ensure that applicable
rules and regulations are being complied with.

COMPLIANCE OF THE TRUSTEE-MANAGER BOARD
Under regulation 12(1) of the BTR, the Trustee-Manager Board is required to comprise:at least a majority of Trustee-Manager Directors who are independent from management and business
relationships with the Trustee-Manager;›at least one-third of Trustee-Manager Directors who are independent from management and business
relationships with the Trustee-Manager and from every substantial shareholder of the Trustee-Manager; and›at least a majority of Trustee-Manager Directors who are independent from any single substantial
shareholder of the Trustee-Manager.

The Trustee-Manager Board consists of nine directors, six of whom are independent directors for the purposes of
the BTR. In accordance with Regulation 12(8) read with Regulations 12(6) and 12(9) of the BTR, the Trustee-Manager
Board and the board of CapitaLand Ascott Trust Management Limited (REIT Manager) have determined that thefollowing directors are independent from management and business relationships with the Trustee-Manager
and from every substantial shareholder of the Trustee-Manager, with the nature of such relationships (if any) and
explanations of the grounds for the determination of the relevant director’s independence set out in the section
on “Board Independence” on pages 102 to 104 of this Annual Report:

ANNUAL REPORT 2023

141

Financial Statements andOther Information

Tan Beng Hai, Bob;
Sim Juat Quee Michael Gabriel;
Chia Kim Huat;
Deborah Lee Siew Yin;
Max Loh Khum Whai; andLui Chong Chee

Sustainability & Governance›STATEMENT OF POLICIES AND PRACTICES IN RELATION TO
THE MANAGEMENT AND GOVERNANCE OF CAPITALAND
ASCOTT BUSINESS TRUSTMs Teo Joo Ling, Serena, Mr Goh Soon Keat Kevin and Ms Beh Siew Kim are considered non-independent
directors. Ms Teo Joo Ling, Serena is the CEO of the REIT Manager and the Trustee-Manager (Managers).
Mr Goh Soon Keat Kevin and Ms Beh Siew Kim are employees of CLI Group.
None of the Trustee-Manager Directors would, by definition under the BTR, be independent from a substantial
shareholder of the Trustee-Manager. The Trustee-Manager is a related corporation of the REIT Manager as boththe Trustee-Manager and the REIT Manager are directly held by CLI Group and as CapitaLand Ascott BT and
CapitaLand Ascott REIT are stapled, the directors of the Managers are identical to avoid any differences ordeadlock in the operation of the Stapled Group. As a result, all six independent directors of the Trustee-Manager,
namely Mr Tan Beng Hai, Bob, Mr Sim Juat Quee Michael Gabriel, Mr Chia Kim Huat, Ms Deborah Lee Siew Yin,
Mr Max Loh Khum Whai and Mr Lui Chong Chee, will prima facie be deemed to be connected to a substantial
shareholder of the Trustee-Manager and hence not be independent pursuant to Regulations 12(1)(a) and 12(1)(b) of the BTR.
The MAS has granted an exemption to the Trustee-Manager from compliance with Regulations 12(1)(a) and 12(1)(b) of the BTR to the extent that non-compliance with these regulations is due to any Trustee-Manager Director
being considered to be not independent from management and business relationships with the Trustee-Manager
or from every substantial shareholder of the Trustee-Manager solely by virtue of such Trustee-Manager Director
also being a director of the REIT Manager. For the avoidance of doubt, a Trustee-Manager Director shall not
be considered independent from a substantial shareholder of the Trustee-Manager if he is also a directorof a subsidiary or an associated company of the substantial shareholder of the Trustee-Manager (where thesubsidiary or associated company is not the Trustee-Manager or the REIT Manager).

142

CAPITALAND ASCOTT TRUSTOverview
Leadership

CONTENTS
Financial Statements

145

Report of the Manager ofCapitaLand Ascott Real Estate
Investment Trust

146

Report of the Trustee-Manager
of CapitaLand Ascott Business
Trust

149

Statement by the BT
Trustee-Manager

150

Statement by the Chief
Executive Officer of the BT
Trustee-Manager

151

Independent Auditors’ Report156

Statements of Financial Position

157

Statements of Total Return

158

Statement of Comprehensive
Income of the CapitaLand
Ascott BT Group

159

Distribution Statements

160

Statements of Movements in
Stapled Securityholders’ Funds

170

Portfolio Statements

190

Statements of Cash Flows194

Notes to the
Financial Statements

Sustainability & Governance

Report of the Trustee ofCapitaLand Ascott Real Estate
Investment Trust

Portfolio & Performance

144

143

Financial Statements andOther Information

ANNUAL REPORT 2023

REPORT OF THE TRUSTEE OF CAPITALAND ASCOTTREAL ESTATE INVESTMENT TRUSTDBS Trustee Limited (the “REIT Trustee”) is under a duty to take into custody and hold the assets of CapitaLand
Ascott Real Estate Investment Trust (“CapitaLand Ascott REIT”) held by it or through its subsidiaries (collectively,
the “CapitaLand Ascott REIT Group”) in trust for the holders of units in CapitaLand Ascott REIT. In accordancewith the Securities and Futures Act 2001, its subsidiary legislation and the Code on Collective Investment
Schemes, the REIT Trustee shall monitor the activities of CapitaLand Ascott Trust Management Limited (the“REIT Manager”) for compliance with the limitations imposed on the investment and borrowing powers as
set out in the trust deed dated 19 January 2006 (as amended) (the “CapitaLand Ascott REIT Trust Deed”)
between the REIT Manager and the REIT Trustee in each annual accounting period and report thereon to
Stapled Securityholders in an annual report.
To the best knowledge of the REIT Trustee, the REIT Manager has, in all material respects, managed theCapitaLand Ascott REIT Group during the year covered by these financial statements, set out on pages 156
to 316 in accordance with the limitations imposed on the investment and borrowing powers set out in the
CapitaLand Ascott REIT Trust Deed.

For and on behalf of the REIT Trustee,
DBS Trustee Limited

Chan Kim Lim
Director
Singapore
8 March 2024

144

CAPITALAND ASCOTT TRUSTPortfolio & Performance

For and on behalf of the REIT Manager,
CapitaLand Ascott Trust Management Limited

Leadership

In the opinion of the directors of CapitaLand Ascott Trust Management Limited, the Manager of CapitaLand
Ascott Real Estate Investment Trust (“CapitaLand Ascott REIT”), the accompanying consolidated financial
statements of CapitaLand Ascott REIT and its subsidiaries (the “CapitaLand Ascott REIT Group”), and CapitaLand
Ascott Trust (“CLAS”) (the “Stapled Group”, comprising the CapitaLand Ascott REIT Group and CapitaLand
Ascott Business Trust and its subsidiaries) set out on pages 156 to 316, comprising the Statements of Financial
Position, Statements of Total Return, Statements of Movements in Stapled Securityholders’ Funds, Portfolio
Statements and Statements of Cash Flows of the CapitaLand Ascott REIT Group and the Stapled Group, andthe Distribution Statement of the Stapled Group, and notes to the financial statements, are drawn up so as topresent fairly, in all material respects, the financial positions and portfolio holdings of the CapitaLand Ascott
REIT Group and the Stapled Group as at 31 December 2023 and the financial performance, movements instapled securityholders’ funds and cash flows of the CapitaLand Ascott REIT Group and the Stapled Group, andthe distributable income of the Stapled Group for the year then ended in accordance with the recommendationsof Statement of Recommended Accounting Practice 7 “Reporting Framework for Investment Funds” issued by
the Institute of Singapore Chartered Accountants and the provisions of CapitaLand Ascott REIT’s trust deed
between DBS Trustee Limited (the “REIT Trustee”) and the REIT Manager dated 19 January 2006 (as amended)and the stapling deed of CapitaLand Ascott Trust between the REIT Trustee, the REIT Manager and CapitaLand
Ascott Business Trust Management Pte. Ltd. (Trustee-Manager of CapitaLand Ascott Business Trust) dated
9 September 2019 (as amended). At the date of this statement, there are reasonable grounds to believe that the
CapitaLand Ascott REIT Group and the Stapled Group will be able to meet their respective financial obligations
as and when they materialise.

Overview

REPORT OF THE MANAGER OF CAPITALAND ASCOTTREAL ESTATE INVESTMENT TRUST

Teo Joo Ling, Serena
Director
Singapore
8 March 2024

Sustainability & Governance

145

Financial Statements andOther Information

ANNUAL REPORT 2023

REPORT OF THE TRUSTEE-MANAGER OF
CAPITALAND ASCOTT BUSINESS TRUSTThe directors of CapitaLand Ascott Business Trust Management Pte. Ltd., the trustee-manager of CapitaLand
Ascott Business Trust (“CapitaLand Ascott BT”) (the “BT Trustee-Manager”), are pleased to present their reportto the unitholders of CapitaLand Ascott BT for the financial year ended 31 December 2023, together with theaudited financial statements of CapitaLand Ascott BT and its subsidiaries (the “CapitaLand Ascott BT Group”)
for the financial year ended 31 December 2023.

DIRECTORSThe directors of the BT Trustee-Manager in office at the date of this report are:
Mr Tan Beng Hai, Bob			
Ms Teo Joo Ling, Serena			Mr Sim Juat Quee Michael Gabriel
Mr Chia Kim Huat
Ms Deborah Lee Siew Yin
Mr Max Loh Khum Whai			Mr Lui Chong Chee				
Mr Goh Soon Keat Kevin
Ms Beh Siew Kim(Chairman)(Chief Executive Officer)(Appointed on 23 November 2023)(Appointed on 1 February 2024)

DIRECTORS’ INTERESTS IN UNITS OR DEBENTURES OF CAPITALAND ASCOTT BT
According to the register kept by the BT Trustee-Manager for the purpose of Sections 13 and 76 of the Business
Trusts Act 2004 (the “BTA”), particulars of interests of directors who held office at the end of the financial year(including those held by their spouses and infant children) in units of CapitaLand Ascott BT are as follows:

Name of director
in which interests are held

Mr Tan Beng Hai, Bob
Ms Teo Joo Ling, Serena
Mr Sim Juat Quee Michael Gabriel
Mr Chia Kim Huat
Ms Deborah Lee Siew Yin
Mr Ong Su Kiat Melvyn*
Mr Max Loh Khum Whai
Mr Goh Soon Keat Kevin
Ms Beh Siew Kim

Direct and deemed holdings registered in the nameof the director, spouse or infant children
DirectDeemedAt beginning ofAt beginning of
Directthe year / date of the year / date of
At end ofappointment
appointment
the year

DeemedAt end ofthe year

136,042–
90,649115,322
21,767–
120,000
171,276
1,358,069

–
–
–
–
–
–
–
–
–

167,51057,064113,920
136,988
39,218–120,000
234,319
1,872,934

–
–
–
–
–
–
–
–
–

0 to 268,896

–

0*

–

0 to 370,7822–

0 to 370,7822–* Mr Ong Su Kiat Melvyn resigned witheffect from 1 January 2024.

Contingent award of Performance
Stapled Security1,2 to be delivered
after 2022
Ms Beh Siew Kim (134,448 PSSP)* During the year, 268,896 stapled
securities were released, of which
67,224 stapled securities were settled in
cash.

Contingent award of Performance
Stapled Security1 to be delivered
after 2023
Ms Beh Siew Kim (185,391 PSSP)

146

CAPITALAND ASCOTT TRUSTName of director
in which interests are held

Contingent award of Performance
Stapled Security1 to be delivered
after 2025
Ms Teo Joo Ling, Serena(169,573 PSSP)Unvested Restricted Stapled
Security1 to be delivered after2020
Ms Beh Siew Kim

Direct and deemed holdings registered in the nameof the director, spouse or infant children
DirectDeemedAt beginning ofAt beginning of
Directthe year / date of the year / date of
At end ofappointment
appointment
the year

DeemedAt end ofthe year–0 to 221,8262–

0 to 443,6542–

0 to 443,6542

–

–

–

0 to 339,1462–

35,5393–0*–

185,3913–

92,6963–

0 to 166,3692
0 to 332,7402––

110,9133
221,8273––* During the year, 42,610 stapled
securities were released.

Unvested Restricted Stapled
Security1 to be delivered after2021
Ms Beh Siew Kim
Contingent award of Restricted
Stapled Security1 to be delivered
after 2022
Ms Teo Joo Ling, Serena
Ms Beh Siew Kim

Notes:
1
2

3This refers to the number of Stapled Securities which are the subject of contingent awards granted or finalised but not released under the
REIT Manager’s Performance Stapled Security Plan (“PSSP”) and the Restricted Stapled Security Plan (“RSSP”).
The final number of Stapled Securities to be released will depend on the achievement of pre-determined targets at the end of the threeyear performance periods for the PSSP and one-year performance period for the RSSP. The final number of Stapled Securities that will be
released could range from 0% to 200% of the baseline award under the PSSP and from 0% to 150% of the baseline award under the RSSP.
The Nominating and Remuneration Committee of the REIT Manager has the discretion to adjust the number of Stapled Securities released
taking into consideration other relevant quantitative and qualitative factors. The Stapled Securities released under PSSP, if any, will bedelivered in a combination of stapled securities and cash.
Being the unvested Stapled Securities under the RSSP. On the final vesting, an additional number of Stapled Securities of a total value
equal to the value of the accumulated distributions which are declared during each of the vesting periods and deemed foregone due to thevesting mechanism of the RSSP, will also be released.

ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE UNITS AND DEBENTURES
Neither at the end of nor at any time during the financial year was the BT Trustee-Manager a party to any
arrangement whose object was to enable any or all directors of the BT Trustee-Manager to acquire benefits bymeans of the acquisition of units, or debentures, of CapitaLand Ascott BT.
ANNUAL REPORT 2023

147

Financial Statements andOther Information

Except as disclosed in this report, no director who held office at the end of the financial year had interests inunits, options, warrants or debentures of CapitaLand Ascott BT, either at the beginning (or date of appointment,
if later) or at the end of the financial year.

Sustainability & Governance

There were no changes in the abovementioned interests of CapitaLand Ascott BT between 31 December 2023
and 21 January 2024.

Portfolio & Performance

0 to 221,8262

Leadership

Contingent award of Performance
Stapled Security1 to be delivered
after 2024
Ms Teo Joo Ling, Serena(110,913 PSSP)
Ms Beh Siew Kim (221,827 PSSP)

Overview

REPORT OF THE TRUSTEE-MANAGER OF
CAPITALAND ASCOTT BUSINESS TRUSTREPORT OF THE TRUSTEE-MANAGER OF
CAPITALAND ASCOTT BUSINESS TRUSTDIRECTORS’ CONTRACTUAL BENEFITS
During the financial year, no director of the BT Trustee-Manager has received or became entitled to receivea benefit in CapitaLand Ascott BT by reason of a contract made by the BT Trustee-Manager, on behalf ofCapitaLand Ascott BT or a related corporation with the director, or with a firm of which such director is amember or with a company in which such director has a substantial financial interest, except that the directors
served as directors or employees of related corporations and received remuneration in that capacity from
related corporations.

UNIT OPTIONS
During the financial year, there were:(i)	no options granted by the BT Trustee-Manager to any person to take up unissued units in CapitaLand
Ascott BT; and(ii)	no units issued by virtue of any exercise of option to take up unissued units of CapitaLand Ascott BT.
There were no unissued units in CapitaLand Ascott BT under option as at the end of the financial year.

AUDIT AND RISK COMMITTEE
The members of the audit and risk committee of the BT Trustee-Manager (the “ARC”) at the date of this statementare:●
Mr Sim Juat Quee Michael Gabriel (Chairman), Independent, Non-Executive Director;●
Mr Chia Kim Huat, Independent, Non-Executive Director;●
Ms Deborah Lee Siew Yin, Independent, Non-Executive Director; and●	Mr Max Loh Khum Wai, Independent, Non-Executive Director (Appointed on 23 November 2023).
The ARC performs the functions specified in Section 201B of the Companies Act 1967, Regulation 13(6) of theBusiness Trusts Regulations 2005 (“BTR”), the Listing Manual by Singapore Exchange Securities Trading Limited(the “SGX Listing Manual”) and the Code of Corporate Governance 2018.
The ARC has held five meetings since the last report of the BT Trustee-Manager. In performing its functions,
the ARC met with CapitaLand Ascott BT’s external and internal auditors to discuss the scope of their work, theresults of their examination and evaluation of CapitaLand Ascott BT’s internal accounting control system.
The ARC also reviewed the following:●	assistance provided by CapitaLand Ascott BT’s officers to the internal and external auditors;●	semi-annual financial information and annual financial statements of CapitaLand Ascott BT prior to theirsubmission to the directors of the BT Trustee-Manager for adoption; and●	interested person transactions (as defined in Chapter 9 of the SGX Listing Manual).
The ARC has full access to management and is given the resources required for it to discharge its functions. It
has full authority and the discretion to invite any director or executive officer to attend its meetings. The ARC
also recommends the appointment of the external auditors and reviews the level of audit and non-audit fees.
The ARC is satisfied with the independence and objectivity of the external auditors during the financial year.
The ARC has recommended to the Board of Directors of the BT Trustee-Manager the appointment of Deloitte& Touche LLP as independent external auditors of CapitaLand Ascott BT at the forthcoming Annual General
Meeting of CapitaLand Ascott BT.
In appointing our auditors for the CapitaLand Ascott BT Group, we have complied with Rules 712 and 715 of
the SGX Listing Manual.

INDEPENDENT AUDITOR
The retiring auditors, KPMG LLP, will not be seeking re-appointment at the forthcoming Annual General Meeting.
Deloitte & Touche LLP has expressed its willingness to accept appointment as the independent external auditors
of CapitaLand Ascott BT.

148

CAPITALAND ASCOTT TRUSTOverview

STATEMENT BY
THE BT TRUSTEE-MANAGER
In the opinion of the directors of the BT Trustee-Manager,(a)	the consolidated financial statements of the CapitaLand Ascott BT Group as set out on pages 156 to 316
are drawn up so as to give a true and fair view of the financial position of the CapitaLand Ascott BT Groupas at 31 December 2023, and the financial performance, changes in unitholders’ funds and cash flows of
the CapitaLand Ascott BT Group, for the year ended on that date in accordance with the provisions of theBusiness Trusts Act 2004 (the “BTA”), and Singapore Financial Reporting Standards (International); and(b)	at the date of this statement, there are reasonable grounds to believe that the BT Trustee-Manager will beable to fulfil, out of the trust property of CapitaLand Ascott BT, the liabilities of CapitaLand Ascott BT as
and when they fall due.

–	the fees or charges paid or payable out of the property of the CapitaLand Ascott BT Group to the
BT Trustee-Manager are in accordance with the CapitaLand Ascott BT trust deed dated 9 September
2019 (as amended);

Leadership

In accordance with Section 86(2) of the BTA, the directors of the BT Trustee-Manager further certify that:–	interested person transactions are not detrimental to the interests of all the unitholders as a whole basedon the circumstances at the time of the transactions; and–	the Board of Directors is not aware of any violation of duties of the BT Trustee-Manager which would
have a materially adverse effect on the business of the CapitaLand Ascott BT Group or the interests of
the unitholders as a whole.
Portfolio & Performance

The Board of Directors has, on the date of this statement, authorised these financial statements for issue.

For and on behalf of the Board of Directors of the BT Trustee-Manager,
CapitaLand Ascott Business Trust Management Pte. Ltd.

Teo Joo Ling, Serena
Director

Sustainability & Governance

Tan Beng Hai, Bob
Director
Singapore
8 March 2024

149

Financial Statements andOther Information

ANNUAL REPORT 2023

STATEMENT BY THE CHIEF EXECUTIVE OFFICER OF
THE BT TRUSTEE-MANAGER
In accordance with Section 86 of the Business Trusts Act 2004, I certify that I am not aware of any violationof duties of the BT Trustee-Manager which would have a materially adverse effect on the business of theCapitaLand Ascott BT Group or on the interests of all the unitholders of CapitaLand Ascott BT as a whole.

Teo Joo Ling, Serena
Chief Executive Officer
Singapore
8 March 2024

150

CAPITALAND ASCOTT TRUSTINDEPENDENT AUDITORS’ REPORT
Overview

Stapled Securityholders of CapitaLand Ascott Trust(Constituted under the Stapling Deed in the Republic of Singapore)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OpinionWe have audited:(ii)	the consolidated financial statements of CapitaLand Ascott Business Trust (“CapitaLand Ascott BT”) andits subsidiaries (the “CapitaLand Ascott BT Group”), which comprise the Statement of Financial Position as
at 31 December 2023, the Statement of Total Return and Statement of Comprehensive Income, Statementof Movements in Stapled Securityholders’ Funds and Statement of Cash Flows of the CapitaLand Ascott
BT Group for the year then ended, and notes to the financial statements, including material accounting
policy information; andas set out on pages 156 to 316. CapitaLand Ascott Trust, which comprises the CapitaLand Ascott REIT Groupand the CapitaLand Ascott BT Group, is hereinafter referred to as the “Stapled Group”.
In our opinion:(a)	the accompanying consolidated financial statements of the CapitaLand Ascott REIT Group and theStapled Group present fairly, in all material respects, the financial positions and portfolio holdingsof the CapitaLand Ascott REIT Group and the Stapled Group as at 31 December 2023, the financial
performance, movements in stapled securityholders’ funds and cash flows of the CapitaLand Ascott REIT
Group and the Stapled Group, and the distributable income of the Stapled Group for the year then endedin accordance with the recommendations of Statement of Recommended Accounting Practice (“RAP”) 7
Reporting Framework for Investment Funds issued by the Institute of Singapore Chartered Accountants(“ISCA”);

Basis for opinion

ANNUAL REPORT 2023

151

Financial Statements andOther Information

We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities
under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial
statements’ section of our report. We are independent of the Stapled Group in accordance with the Accounting
and Corporate Regulatory Authority Code of Professional Conduct and Ethics for Public Accountants andAccounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of thefinancial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Sustainability & Governance(b)	the accompanying consolidated financial statements of the CapitaLand Ascott BT Group are properly
drawn up in accordance with the provisions of the Business Trusts Act 2004 (the “BTA”), and Singapore
Financial Reporting Standards (International) (“SFRS(I)s”) so as to give a true and fair view of the stateof affairs of the CapitaLand Ascott BT Group as at 31 December 2023 and the financial performance,
movements in stapled securityholders’ funds and cash flows of the CapitaLand Ascott BT Group for theyear ended on that date.

Portfolio & Performance(iii)	the consolidated financial statements of CapitaLand Ascott Trust, which comprise the Statement of
Financial Position and Portfolio Statement as at 31 December 2023, the Statement of Total Return,Distribution Statement, Statement of Movements in Stapled Securityholders’ Funds and Statement of
Cash Flows of CapitaLand Ascott Trust for the year then ended, and notes to the financial statements,
including material accounting policy information;

Leadership(i)	the consolidated financial statements of CapitaLand Ascott Real Estate Investment Trust (“CapitaLand
Ascott REIT”) and its subsidiaries (the “CapitaLand Ascott REIT Group”), which comprise the Statementof Financial Position and Portfolio Statement as at 31 December 2023, the Statement of Total Return,Statement of Movements in Stapled Securityholders’ Funds and Statement of Cash Flows of theCapitaLand Ascott REIT Group for the year then ended, and notes to the financial statements, including
material accounting policy information;

INDEPENDENT AUDITORS’ REPORT
Stapled Securityholders of CapitaLand Ascott Trust(Constituted under the Stapling Deed in the Republic of Singapore)
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our auditof the financial statements of the current year. These matters were addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.

Valuation of investment properties, land and buildings and investment properties under development
Note 4 – Investment properties
Note 5 – Property, plant and equipment
Note 6 – Investment properties under development
Risk:
The Stapled Group has portfolios of investment properties, land and buildings, and investment properties underdevelopment which are stated at their fair values as at 31 December 2023 of $6,501.0 million, $930.3 million and$268.0 million (2022: $6,103.6 million, $875.6 million and $385.7 million) respectively.
The fair values of the investment properties, land and buildings and investment properties under development
are appraised by external property valuers. The valuation process involves significant judgement in determining
the appropriate valuation methodology to be used, and in estimating the underlying assumptions to be applied.
The valuations are highly sensitive to key assumptions applied, particularly those relating to discount rates,
terminal capitalisation rates, capitalisation rate, revenue per available unit and gross development costs.

Our response:
We assessed the Stapled Group’s process relating to the selection of the external property valuers, thedetermination of the scope of work of the external property valuers, and the review and acceptance of thevaluation reports issued by the external property valuers.
We evaluated the qualification and competence of the external property valuers. We also read the terms ofengagement of the external property valuers with the Stapled Group to ascertain whether there are matters thatmight have affected their objectivity or limited the scope of their work.
We considered the valuation methodologies adopted against those applied by other valuers for similar property
types. We evaluated the key assumptions and inputs used in the valuations, which included discount rates,
terminal capitalisation rates, capitalisation rate, revenue per available unit and gross development costs bycomparing them against historical rates and available industry data, taking into consideration comparability
and market factors. Where the rates were outside the expected range, we undertook further procedures tounderstand the effect of additional factors and, when necessary, held further discussions with the external
property valuers.
We considered the appropriateness of disclosures in the financial statements, in describing the inherent
degree of subjectivity and key assumptions in the estimates. This includes the relationships between the key
unobservable inputs and fair values, in conveying the uncertainties.

Our findings:
The Stapled Group has a structured process in appointing and instructing external property valuers, and inreviewing and accepting their valuations. The external property valuers are members of generally-recognised
professional bodies for valuers and have considered their own independence in carrying out the work. The
valuation methodologies used by the external property valuers were in line with generally accepted market
practices. The key assumptions and inputs used in the valuations, including the projected cash flows, discountrates, terminal capitalisation rates, capitalisation rate, revenue per available unit and gross development costs
were supported by the evidence available and are within the range of industry data. Where the assumptions
were outside the expected range, the additional factors considered by the external property valuers wereconsistent with other corroborative evidence.
We also found the related disclosures in the financial statements to be appropriate.

152

CAPITALAND ASCOTT TRUSTINDEPENDENT AUDITORS’ REPORT
Overview

Stapled Securityholders of CapitaLand Ascott Trust(Constituted under the Stapling Deed in the Republic of Singapore)
Other information

CapitaLand Ascott Trust Management Limited, the Manager of CapitaLand Ascott REIT (the “REIT Manager”)
and CapitaLand Ascott Business Trust Management Pte. Ltd., the Trustee-Manager of CapitaLand Ascott BT(the “BT Trustee-Manager”) (collectively, the “Managers”), are responsible for the other information containedin the annual report. Other information is defined as all information in the annual report other than the financial
statements and our auditors’ report thereon.
We have obtained all other information prior to the date of this auditors’ report.

In connection with our audit of the financial statements, our responsibility is to read the other information and,in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work wehave performed, we conclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.

Leadership

Our opinion on the financial statements does not cover the other information and we do not express any formof assurance conclusion thereon.

Responsibilities of the REIT Manager for the financial statements

In preparing the financial statements, the REIT Manager is responsible for assessing the ability of the CapitaLand
Ascott REIT Group and the Stapled Group to continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unless the REIT Manager either
intends to terminate the CapitaLand Ascott REIT Group and the Stapled Group or to cease operations of theCapitaLand Ascott REIT Group and the Stapled Group, or has no realistic alternative but to do so.
The REIT Manager’s responsibilities include overseeing the financial reporting process of the CapitaLand Ascott
REIT Group and the Stapled Group.

Portfolio & Performance

The REIT Manager is responsible for the preparation and fair presentation of the financial statements of theCapitaLand Ascott REIT Group and the Stapled Group in accordance with the recommendations of RAP 7
issued by the ISCA, and for such internal controls as the REIT Manager determines is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud or error.

Responsibilities of the BT Trustee-Manager for the financial statements

In preparing the financial statements, the BT Trustee-Manager is responsible for assessing the ability of theCapitaLand Ascott BT Group to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the BT Trustee-Manager either intends toterminate the CapitaLand Ascott BT Group or to cease the operations of the CapitaLand Ascott BT Group, or
has no realistic alternative but to do so.

Sustainability & Governance

The BT Trustee-Manager is responsible for the preparation of financial statements of the CapitaLand Ascott
BT Group that gives a true and fair view in accordance with the provisions of the BTA and SFRS(I)s, and fordevising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance
that assets that are part of the trust property of the registered business trust are safeguarded against loss fromunauthorised use or disposition; and transactions by the BT Trustee-Manager entered into on behalf of or
purported to be entered into on behalf of the registered business trust are properly authorised and that they
are recorded as necessary to permit the preparation of true and fair accounts and to maintain accountabilityof assets.

The BT Trustee-Manager’s responsibilities include overseeing the CapitaLand Ascott BT Group’s financial
reporting process.

153

Financial Statements andOther Information

ANNUAL REPORT 2023

INDEPENDENT AUDITORS’ REPORT
Stapled Securityholders of CapitaLand Ascott Trust(Constituted under the Stapling Deed in the Republic of Singapore)
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:•	Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
•	Obtain an understanding of internal controls relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the internal controls of the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT
Group and the Stapled Group.
•	
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Managers.
•	Conclude on the appropriateness of the use of the going concern basis of accounting by the Managers
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the ability of the CapitaLand Ascott REIT Group, theCapitaLand Ascott BT Group and the Stapled Group to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However,
future events or conditions may cause the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT
Group and the Stapled Group to cease to continue as a going concern.
•	
Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events in amanner that achieves fair presentation.
•	
Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and theStapled Group to express an opinion on the consolidated financial statements. We are responsible forthe direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the Managers regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal controls that we identify during
our audit.
We also provide the Managers with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Managers, we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors’ report unless the law or regulations preclude public disclosure about the matteror when, in extremely rare circumstances, we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.

154

CAPITALAND ASCOTT TRUSTINDEPENDENT AUDITORS’ REPORT
Overview

Stapled Securityholders of CapitaLand Ascott Trust(Constituted under the Stapling Deed in the Republic of Singapore)
Report on other legal and regulatory requirement

In our opinion, the accounting and other records required by the BTA to be kept by the BT Trustee-Manager onbehalf of CapitaLand Ascott BT have been properly kept in accordance with the provisions of the BTA.
The engagement partner on the audit resulting in this independent auditors’ report is Lim Pang Yew, Victor.

Leadership

KPMG LLP
Public Accountants andChartered Accountants
Singapore
8 March 2024

Portfolio & Performance
Sustainability & Governance

155

Financial Statements andOther Information

ANNUAL REPORT 2023

STATEMENTS OF FINANCIAL POSITION
As at 31 December 2023

Note

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

Non-current assets
Investment properties
Property, plant and equipment
Investment properties underdevelopment
Investment securities
Associate
Financial derivative assets
Deferred tax assets

4
5

6,498,182
47,3486,075,974
35,562424,990602,005

447,974
570,389

6,501,017
1,001,941

6,103,633
944,878

6
7
11
12
13

268,000
2,454
2,985
84,653
10,595
6,914,217

385,707
2,416
3,035
69,942
10,7386,583,374

–
–
–
209
3,983
1,031,187

–
–
–
–
4,137
1,022,500

268,000–
2,985
84,862
14,578
7,873,383

385,707–
3,035
69,942
14,875
7,522,070

Current assets
Inventories
Trade and other receivables
Assets held for saleFinancial derivative assets
Cash and cash equivalents

14
15
12
16

91
316,041
211,599
7,306
369,371904,40820
257,341
1,020
21,463299,251
579,095

456
13,714
95,628–63,435173,233275
15,804–
3,024
64,38383,486547
109,556
307,227
7,306
432,806
857,442

295
112,187
1,020
24,487
363,634
501,623

7,818,625

7,162,469

1,204,420

1,105,986

8,730,825

8,023,693

17
12
18
19
13
20

2,385,856
7,100
–
7,969
154,002
253,677
2,808,604

2,389,473
6,939
32
–
121,425
257,368
2,775,237

100,143
566
8,135
747
41,32364,412
215,326

83,407–8,624
876
39,45876,203
208,568

2,485,999
7,666
8,135
8,716
195,325
253,677
2,959,518

2,472,880
6,939
8,656
876
160,883
257,368
2,907,602

17
12
18
19

529,122–286,577425
15,207
10,288
841,619

226,2445
212,432–
11,5939,646
459,920

33,240–285,654
120
579
5,155
324,748

175,462810
192,769
135
3,158
5,185
377,519562,362–352,032545
15,786
10,288941,013401,706
815
244,243135
14,751
9,646
671,296

3,650,223
4,168,402

3,235,157
3,927,312

540,074
664,346

586,087
519,899

3,900,531
4,830,294

3,578,898
4,444,795

21
22
10

3,696,155
396,298
75,9494,168,402

3,449,568
396,298
81,446
3,927,312

660,198–
4,148
664,346

515,868–
4,031
519,899

4,356,353
396,298
77,6434,830,294

3,965,436
396,298
83,061
4,444,795

22

3,763,304

3,445,625

3,763,304

3,445,625

3,763,304

3,445,625

0.98

1.00

0.18

0.15

1.16

1.15

Total assets
Non-current liabilities
Financial liabilities
Financial derivative liabilities
Trade and other payables
Deferred income
Deferred tax liabilities
Lease liabilities
Current liabilities
Financial liabilities
Financial derivative liabilities
Trade and other payables
Deferred income
Current tax liabilities
Lease liabilities

20

Total liabilities
Net assets
Represented by:
Stapled Securityholders’ funds
Perpetual securities holders
Non-controlling interests
Stapled Securities in issue(’000)Net asset value per
Stapled Security ($)

The accompanying notes form an integral part of these financial statements.

156

CAPITALAND ASCOTT TRUSTSTATEMENTS OF TOTAL RETURN
Overview

Year ended 31 December 2023

Note

Gross revenue
Direct expenses
Gross profit

486,003(245,557)
240,446

171,683(113,188)
58,495

149,793(94,891)
54,902744,558(406,309)
338,249

621,242(338,424)
282,818

–
3,125
3,147
(80,795)(29,590)(749)(5,549)(3,211)
22,553(3,648)

–
1,176
1,111
(61,985)(25,866)(705)(4,418)(3,461)(12,985)(3,183)(19,904)
1,318–(12,433)(4,627)
(162)
(881)
(447)
3,616
(693)

(19,317)338
217(14,616)(4,553)
(162)
(707)
(449)
(11,409)(659)(24,620)
4,434
3,031
(86,830)(34,217)(911)(6,431)(3,658)26,169(5,589)(20,496)
1,468
1,308
(69,012)(30,419)(867)(5,125)(3,910)(24,394)(3,843)

196,316130,130

24,282

3,585

209,627

127,5287–
196,323(27)
3,918
134,021––
24,282

–
–
3,585

7
–
209,634(27)
3,918
131,419

109,405

138,850

1,746(4,534)

101,132

122,353(25,283)

597

956

–

(24,327)

597

–

–

–

5,393

–

5,393

38
16,016(1,478)

253
99
(78)

–
–
–

–
–
–

–
16,016
(230)

–
99
(78)

30

295,021(71,541)
223,480

273,742(29,168)
244,574

26,984(903)
26,081

4,444(4,395)49

302,225(72,444)229,781259,783(33,563)
226,22010

225,085(1,605)
223,480

241,7312,843
244,574

26,0783
26,081(3)
52
49

231,255(1,474)
229,781

223,305
2,915
226,220

6.10

6.28

6.07

6.25

25
25
26
27

11
28

29
4

31

DilutedThe accompanying notes form an integral part of these financial statements.
ANNUAL REPORT 2023

157

Financial Statements andOther Information

586,420(295,387)
291,033

Sustainability & Governance

Earnings per
Stapled Security (cents)
Basic

Stapled Group
2023
2022
$’000
$’000

Portfolio & Performance

Total return/(loss)
attributable to:Stapled Securityholders andperpetual securities holders
Non-controlling interests

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Leadership

Depreciation of buildings,
plant and machinery
Finance income
Other income
Finance costs
Managers’ management fees
Trustee’s fee
Professional fees
Audit fees
Foreign exchange gain/(loss)
Other operating expenses
Net income before share of
results of associate
and joint venture
Share of results (net of tax) of:– associate– joint venture
Net income
Net change in fair value ofinvestment properties,
investment properties
under development andassets held for sale
Net change in fair value offinancial derivatives
Revaluation surplus on landand buildings
Net change in fair value ofinvestment securities
Profit from divestments
Investment properties written off
Total return for the year
before income tax
Income tax expense
Total return for the year

23
24

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

STATEMENT OF COMPREHENSIVE INCOME OF
THE CAPITALAND ASCOTT BT GROUP
Year ended 31 December 2023

Profit for the year
Items that will not be reclassified subsequently to profit or loss:
Revaluation surplus on land and buildings (net of tax)
Items that may be reclassified subsequently to profit or loss:
Effective portion of change in fair values of cash flow hedges
Net change in fair value of cash flow hedge reclassified toStatement of Total Return
Exchange differences arising from translation offoreign operations and foreign currency loans forming
part of net investment in foreign operations
Total comprehensive income for the year

The accompanying notes form an integral part of these financial statements.

158

CAPITALAND ASCOTT TRUST

2023
$’000

2022
$’000

26,081

49

33,17433,17449,72749,727(1,022)

3,272(2,700)(1,292)(10,975)(14,697)(58,674)(56,694)

44,558(6,918)

DISTRIBUTION STATEMENTS
Overview

Year ended 31 December 2023

Note

Amount to be distributed to Stapled Securityholders at end of the year

223,305(13,495)(19,976)

237,009314,688

189,834
246,349–(56,554)–(76,648)–(35,468)(77,699)–(96,209)–(24,303)–(198,211)
116,477(168,670)
77,679(101,132)–
24,327(16,016)230(122,353)(5,393)
(597)
(99)
78

1,248
38,897
24,669158
15,2709,716(18,716)
33,723
14,105(7,617)–387
19,249–35,77321,757
175
53,821
10,379(18,276)
10,84514(2,215)(3,918)33(19,976)

Note A – Distribution adjustments
Distribution adjustment items:– Net change in fair value of investment properties, investment
properties under development and assets held for sale
– Revaluation surplus on land and buildings– Net change in fair value of financial derivatives– Profit from divestments– Investment properties written off– Property, plant and equipment written off from renovation at
The Robertson House by The Crest Collection– Depreciation expense– Managers’ management fees paid/payable in Stapled Securities– REIT Trustee’s fee– Foreign exchange loss – unrealised– Interest expense on lease liabilities– Lease payments for right-of-use assets– Deferred tax expense– Tax expense relating to the divestment– Non-controlling interests’ share of adjustments– Share of results (net of tax) of joint venture– Other adjustments
Net effect of distribution adjustments

The accompanying notes form an integral part of these financial statements.
ANNUAL REPORT 2023

159

Financial Statements andOther Information

231,255(13,495)
19,249Sustainability & Governance

56,515

Portfolio & Performance

Distributions to Stapled Securityholders during the year
– Distribution of 1.726 cents per Stapled Security for the period
from 20 September 2021 to 31 December 2021
– Distribution of 2.332 cents per Stapled Security for the period
from 1 January 2022 to 30 June 2022
– Distribution of 1.078 cents per Stapled Security for the period
from 1 July 2022 to 23 August 2022
– Distribution of 2.255 cents per Stapled Security for the period
from 24 August 2022 to 31 December 2022
– Distribution of 2.778 cents per Stapled Security for the period
from 1 January 2023 to 30 June 2023
– Distribution of 0.701 cents per Stapled Security for the period
from 1 July 2023 to 13 August 2023

A

77,679

Leadership

Amount to be distributed to Stapled Securityholders
at beginning of the year
Total return attributable to Stapled Securityholders andperpetual securities holders
Less: Total return attributable to perpetual securities holders
Distribution adjustments
Income available for distribution to Stapled Securityholders
for the year
Distribution to Stapled Securityholders

Stapled Group
2023
2022
$’000
$’000

160

CAPITALAND ASCOTT TRUST

19,458170,000(2,269)(72,169)––
115,020

Transactions with owners, recognised directly inequityContributions by and distributions to owners
REIT Manager’s management fee payable in
Stapled Securities
Issue of Stapled Securities under private placement
Issue expenses relating to private placement
Distribution to Stapled Securityholders
Distribution to perpetual securities holders
Distribution to non-controlling interests
Total contributions by and distributions to owners

The accompanying notes form an integral part of these financial statements.

–
–

–
–

–
–
–
(67,786)––(67,786)––

1,205,334
241,731(13,495)–

At 1 January 2022
Total return for the year
Total return attributable to perpetual securities holders–

2,313,749––

CapitaLand Ascott REIT Group

–
–
–
–
–
–
–

(202,347)(202,347)––(178,315)
–
–

–
–
–
–
–
–
–

–
–

–

–

724
–
–

–
–
–
–
–
–
–

–
34,006(1,095)35,101(42)––

Attributable to Stapled Securityholders
Foreigncurrency
Revenuetranslation
Capital
Hedging
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000

Other comprehensive income
Effective portion of change in fair values ofcash flow hedges
Net change in fair value of cash flow hedge
reclassified to Statement of Total Return
Exchange differences arising from translation offoreign operations and foreign currency loans
forming part of net investment in foreign operations
Total other comprehensive income

StapledSecurities
in issue$’000

Year ended 31 December 2023

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

19,458170,000(2,269)(139,955)––
47,234(202,347)(168,341)(1,095)35,101

3,341,450
241,731(13,495)

Total
$’000

–
–
–
–
(13,495)–(13,495)

–
–

–

–

396,298–
13,495Perpetualsecurities
$’000

–
–
–
–
–
(1,888)(1,888)(4,387)(4,387)––78,816
2,843–

Noncontrollinginterests$’000

19,458170,000(2,269)(139,955)(13,495)(1,888)31,851(206,734)(172,728)(1,095)35,101

3,816,564
244,574–

Total
equity$’000

Financial Statements andOther Information

161

Sustainability & Governance

(310)
–
(310)

–
–
–
1,365,474––

2,428,769

The accompanying notes form an integral part of these financial statements.

At 31 December 2022

Changes in ownership interests in subsidiaries
Acquisition of non-controlling interests
Change in ownership interests in subsidiaries withno change in control
Share of reserves of joint venture
Total changes in ownership interests in subsidiaries

CapitaLand Ascott REIT Group

StapledSecurities
in issue$’000(379,363)

–
1,299
1,299

–

724

–
–
–

–

33,964––––Attributable to Stapled Securityholders
Foreigncurrency
Revenuetranslation
Capital
Hedging
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000

Portfolio & PerformanceYear ended 31 December 2023

3,449,568

(310)
1,299
989

–

Total
$’000

Leadership

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

396,298––––

Perpetualsecurities$’000

81,446

310
–
6,062

5,752

Noncontrollinginterests$’000

3,927,312

–
1,299
7,051

5,752

Total
equity$’000

Overview

ANNUAL REPORT 2023

162

CAPITALAND ASCOTT TRUST––––(50,004)––(50,004)

2,982(111,362)––
76,641––––

22,340165,861(3,180)

The accompanying notes form an integral part of these financial statements.

Transactions with owners, recognised directly inequityContributions by and distributions to owners
REIT Manager’s management fee payable in
Stapled Securities
Issue of Stapled Securities under equity fund raising
Issue expenses relating to equity fund raising
REIT Manager’s acquisition fees payable in
Stapled Securities
Distribution to Stapled Securityholders
Distribution to perpetual securities holders
Distribution to non-controlling interests
Total contributions by and distributions to owners

–
–

–
–

1,365,474
225,085(13,495)–

At 1 January 2023
Total return/(loss) for the year
Total return attributable to perpetual securities holders

–
–
–
–
–

–
–
–

13,00721,009–8,002–(379,363)
–
–

–
–
–
–
–

–
–
–

–
–

–
–

–

724
–
–

–
–
–
–
–

–
–
–

–
(12,362)(15,369)–

3,007

33,964––Attributable to Stapled Securityholders
Foreigncurrency
Revenuetranslation
Capital
Hedging
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000

–

2,428,769––

CapitaLand Ascott REIT Group

Other comprehensive income
Effective portion of change in fair values ofcash flow hedges
Net change in fair value of cash flow hedge
reclassified to Statement of Total Return
Realisation of reserves upon divestment
Exchange differences arising from translation offoreign operations and foreign currency loans
forming part of net investment in foreign operations
Total other comprehensive income

StapledSecurities
in issue$’000

Year ended 31 December 2023

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

2,982(161,366)––
26,63722,340165,861(3,180)13,007
8,647(15,369)
8,002

3,007

3,449,568
225,085(13,495)

Total
$’000

–
–
(13,495)–(13,495)

–
–
–

–
–

–
–

–

396,298–
13,495Perpetualsecurities
$’000

–
–
–
(3,234)(3,234)

–
–
–

(945)
(945)

–
–

–

81,446(1,605)–

Noncontrollinginterests
$’000

2,982
(161,366)(13,495)(3,234)
9,908

22,340165,861(3,180)12,062
7,702(15,369)
8,002

3,007

3,927,312
223,480–

Total
equity$’000

Financial Statements andOther Information

163

Sustainability & Governance––2,505,410

The accompanying notes form an integral part of these financial statements.

At 31 December 2023

Changes in ownership interests in subsidiaries
Change in ownership interests in subsidiaries withno change in control
Total changes in ownership interests in subsidiaries

CapitaLand Ascott REIT Group

StapledSecurities
in issue$’000

1,526,773

(287)
(287)
(358,354)

–
–
724

–
–
21,602––Attributable to Stapled Securityholders
Foreigncurrency
Revenuetranslation
Capital
Hedging
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000

Portfolio & PerformanceYear ended 31 December 2023

3,696,155

(287)
(287)

Total
$’000

Leadership

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

396,298––

Perpetualsecurities$’000

75,949287
287

Noncontrollinginterests$’000

4,168,402

–
–

Total
equity$’000

Overview

ANNUAL REPORT 2023

164

CAPITALAND ASCOTT TRUSTThe accompanying notes form an integral part of these financial statements.

At 31 December 2022

Transactions with owners, recognised directly in equity
Contributions by and distributions to owners
BT Trustee-Manager’s management fee payable in
Stapled Securities
Distribution to Stapled Securityholders
Distribution to non-controlling interests
Total contributions by and distributions to owners

Total comprehensive income for the year
(Loss)/Profit for the year
Effective portion of change in fair values of cash flow hedges
Net change in fair value of cash flow hedge reclassified toStatement of Total Return
Revaluation surplus on land and buildings (net of tax)
Exchange differences arising from translation of foreign
operations and foreign currency loans forming part of net
investment in foreign operations
Total comprehensive income

At 1 January 2022

CapitaLand Ascott BT GroupYear ended 31 December 2023

–
(3)

–
–

646,292(134,362)–(24,406)–(24,406)

–
–

–
–

2,276
(4,309)–(2,033)(3)–(109,953)(52,399)––––(58,287)(58,287)

–
–

–
–

5,888

3,428

–
–
–
–

–
1,958

(1,292)
–

–
3,250

1,470

52,909–––––49,230–49,230––3,679

Attributable to Stapled Securityholders
Foreigncurrency
Asset
Revenuetranslation
Hedging revaluation
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000

–
–

648,325

StapledSecurities
in issue$’000

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

515,868

2,276(28,715)–(26,439)(58,287)(7,102)(1,292)
49,230(3)
3,250

549,409

Total
$’000

4,031

–
–
(61)
(61)

(387)
184

–
497

52
22

3,908

Noncontrollinginterests$’000

519,899

2,276(28,715)(61)(26,500)(58,674)(6,918)(1,292)
49,727

49
3,272

553,317

Total
equity$’000

Financial Statements andOther Information

165

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

745,527

At 31 December 2023–
26,078––(107,463)

–
–
–
821
–
821

–
–

–
–

2,329
137,192(2,620)(37,666)–
99,23526,078–(134,362)––

646,292

StapledSecurities
in issue$’000(63,369)

–
–
–
–
–
–

(10,970)(10,970)––––(52,399)

(264)

–
–
–
–
–
–

–
(3,692)(2,673)––(1,019)3,428

85,767

–
–
–
–
–
–

–
32,858–32,858––52,909Attributable to Stapled Securityholders
Foreigncurrency
Asset
Revenuetranslation
Hedging revaluation
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000

Portfolio & Performance

Transactions with owners, recognised directly in equity
Contributions by and distributions to owners
BT Trustee-Manager’s management fee payable in
Stapled Securities
Issue of Stapled Securities under equity fund raising
Issue expenses relating to equity fund raising
Distribution to Stapled Securityholders
Distribution to non-controlling interests
Total contributions by and distributions to owners

Total comprehensive income for the year
Profit for the year
Effective portion of change in fair values of cash flow hedges
Net change in fair value of cash flow hedge reclassified toStatement of Total Return
Revaluation surplus on land and buildings (net of tax)
Exchange differences arising from translation of foreign
operations and foreign currency loans forming part of net
investment in foreign operations
Total comprehensive income

At 1 January 2023

CapitaLand Ascott BT GroupYear ended 31 December 2023

Leadership

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

660,198

2,329
137,192(2,620)(36,845)–
100,056(10,970)
44,274(2,673)32,85826,078(1,019)515,868

Total
$’000

4,148

–
–
–
–
(167)
(167)

(5)
284

(27)
316

3
(3)

4,031

Noncontrollinginterests$’000

664,346

2,329
137,192(2,620)(36,845)(167)
99,889(10,975)
44,558(2,700)33,17426,081(1,022)519,899

Total
equity$’000

Overview

ANNUAL REPORT 2023

166

CAPITALAND ASCOTT TRUST––––(92,192)––(92,192)

2,276
170,000(2,269)(76,478)––
112,987––––

19,458The accompanying notes form an integral part of these financial statements.

Transactions with owners, recognised directly inequityContributions by and distributions to owners
REIT Manager’s management fee payable in
Stapled Securities
BT Trustee-Manager’s management fee payable in
Stapled Securities
Issue of Stapled Securities under private placement
Issue expenses relating to private placement
Distribution to Stapled Securityholders
Distribution to perpetual securities holders
Distribution to non-controlling interests
Total contributions by and distributions to owners

–
–

–
–

1,095,152
223,305(13,495)–

At 1 January 2022
Total return for the year
Total return attributable to perpetual securities holders

–
–
–
–
–
–
–

–

(260,862)(260,862)–––(172,250)
–
–

–
–
–
–
–
–
–

–

–
–

–
–

–

724
–
–

–
–
–
–
–
–
–

–

–
35,986(2,387)–38,373

1,444
–
–

–
–
–
–
–
–
–

–

–
67,858–67,858

–

3,716
–
–

Attributable to Stapled Securityholders
Foreigncurrency
Asset
Revenue translation
Capital Hedging revaluation
reserve
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000
$’000

–

2,962,074––

Stapled Group

Other comprehensive income
Effective portion of change in fair values ofcash flow hedges
Net change in fair value of cash flow hedge
reclassified to Statement of Total Return
Revaluation surplus on land and buildings (net of tax)
Exchange differences arising from translation offoreign operations and foreign currency loans
forming part of net investment in foreign operations
Total other comprehensive income

StapledSecurities
in issue$’000

Year ended 31 December 2023

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

2,276
170,000(2,269)(168,670)––
20,795

19,458(260,862)(157,018)(2,387)67,85838,3733,890,860
223,305(13,495)

Total
$’000

–
–
–
–
(13,495)–(13,495)

–

–
–

–
–

–

396,298–
13,495–––––(1,929)(1,929)–(4,548)(4,548)–––80,561
2,915–

NonPerpetual controllingsecurities
interests
$’000
$’000

2,276
170,000(2,269)(168,670)(13,495)(1,929)5,371

19,458(265,410)(161,566)(2,387)67,85838,373

4,367,719
226,220–

Total
equity$’000

Financial Statements andOther Information

167

Sustainability & Governance

(310)
–
(310)

–
–
–
1,212,460––

3,075,061

The accompanying notes form an integral part of these financial statements.

At 31 December 2022

Changes in ownership interests in subsidiaries
Acquisition of non-controlling interests
Change in ownership interests in subsidiaries withno change in control
Share of reserves of joint venture
Total changes in ownership interests in subsidiaries(431,813)

–
1,299
1,299

–

Portfolio & Performance

Stapled Group

StapledSecurities
in issue
$’000

724

–
–
–

–

37,430––––71,574––––Attributable to Stapled Securityholders
Foreigncurrency
Asset
Revenue translation
Capital Hedging revaluation
reserve
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000
$’000

(310)
1,299
989

–

Total
$’000

3,965,436

LeadershipYear ended 31 December 2023

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

396,298––––

83,061

310
–
6,062

5,752

NonPerpetual controllingsecurities
interests
$’000
$’000

4,444,795

–
1,299
7,051

5,752

Total
equity$’000

Overview

ANNUAL REPORT 2023

168

CAPITALAND ASCOTT TRUST

–
–
–
–
–
(49,183)––(49,183)

2,329
303,053(5,800)2,982(149,028)––
175,876––––

22,340

The accompanying notes form an integral part of these financial statements.

Transactions with owners, recognised directlyin equity
Contributions by and distributions to owners
REIT Manager’s management fee payable in
Stapled Securities
BT Trustee-Manager’s management fee payable in
Stapled Securities
Issue of Stapled Securities under equity fund raising
Issue expenses relating to equity fund raising
REIT Manager’s acquisition fees payable in
Stapled Securities
Distribution to Stapled Securityholders
Distribution to perpetual securities holders
Distribution to non-controlling interests
Total contributions by and distributions to owners

–
–
–

–
–
–

1,212,460
231,255(13,495)–

At 1 January 2023
Total return/(loss) for the year
Total return attributable to perpetual securities holders

–
–
–
–
–

–
–
–

–

2,034
10,036

–
8,002
–

–

(431,813)
–
–

–
–
–
–
–

–
–
–

–

–
–

–
–
–

–

724
–
–

–
–
–
–
–

–
–
–

–

–
(16,084)(18,069)
–
–

1,985

37,430
–
–

–
–
–
–
–

–
–
–

–

–
52,799––52,799–71,574––Attributable to Stapled Securityholders
Foreigncurrency
Asset
Revenue translation
Capital Hedging revaluation
reserve
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000
$’000

–

3,075,061––

Stapled Group

Other comprehensive income
Effective portion of change in fair values ofcash flow hedges
Net change in fair value of cash flow hedge
reclassified to Statement of Total Return
Realisation of reserves upon divestment
Revaluation surplus on land and buildings (net of tax)
Exchange differences arising from translation offoreign operations and foreign currency loans
forming part of net investment in foreign operations
Total other comprehensive income

StapledSecurities
in issue$’000

Year ended 31 December 2023

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

2,982(198,211)––
126,693

2,329
303,053(5,800)22,3402,034
46,751(18,069)
8,002
52,7991,985

3,965,436
231,255(13,495)

Total
$’000

–
–
(13,495)–(13,495)

–
–
–

–

–
–

–
–
–

–

396,298–
13,495Total
equity$’000–––(3,286)(3,286)

–
–
–

–

(945)
(945)

–
–
–

–

2,982
(198,211)(13,495)(3,286)109,9122,329
303,053(5,800)22,3401,089
45,806(18,069)
8,002
52,7991,985

83,061 4,444,795(1,474)
229,781––

NonPerpetual controllingsecurities
interests
$’000
$’000

Financial Statements andOther Information

169

Sustainability & Governance––
3,250,937

The accompanying notes form an integral part of these financial statements.

At 31 December 2023

Changes in ownership interests in subsidiaries
Change in ownership interests in subsidiaries withno change in control
Total changes in ownership interests in subsidiaries

Stapled Group

1,380,750

(287)
(287)
(421,777)––

Portfolio & Performance

StapledSecurities
in issue
$’000

724

–
–
21,346––124,373––

Attributable to Stapled Securityholders
Foreigncurrency
Asset
Revenue translation
Capital Hedging revaluation
reserve
reserve
reserve
reserve
reserve
$’000
$’000
$’000
$’000
$’000

(287)
(287)

Total
$’000

4,356,353

LeadershipYear ended 31 December 2023

STATEMENTS OF MOVEMENTS IN
STAPLED SECURITYHOLDERS’ FUNDS

396,298––

77,643287
287

NonPerpetual controllingsecurities
interests
$’000
$’000

4,830,294

–
–

Total
equity$’000

Overview

ANNUAL REPORT 2023

170

CAPITALAND ASCOTT TRUST

Location

Tenure ofLand

Freehold

1 Rennie Road, Woodbine,
NSW 2560

930 Wynnum Road,
Cannon Hill, Brisbane,
Queensland 4170

71 Epping Road, Macquarie
Park, NSW 2113

108-114 Robey Road, Mascot,
NSW 2020

6 Edwin Flack Avenue, Sydney Leasehold
Olympic Park, NSW 2127

Quest Campbelltown

Quest Cannon Hill(1)Quest Macquarie Park

Quest Mascot

Quest Sydney Olympic Park

99 years

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Term ofLease

88 years

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable89 years

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

376,914

41,38823,47540,001

28,41820,641

16,397

152,176

54,418376,249

40,541

23,34740,03028,348

21,107

16,350152,050

54,476

Stapled Group
2023
2022
$’000
$’000

376,914

41,38823,47540,001

28,41820,641

16,397

152,176

54,418376,249

40,541

23,34740,03028,348

21,107

16,350152,050

54,476

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

8.7

1.0

0.5

0.9

0.7

0.5

0.4

3.5

1.2

9.4

1.0

0.6

1.0

0.7

0.5

0.4

3.8

1.4

10.2

1.1

0.6

1.1

0.8

0.6

0.4

4.1

1.5

11.0

1.2

0.7

1.2

0.8

0.6

0.5

4.4

1.6

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

On 30 November 2022, the CapitaLand Ascott REIT Group acquired Quest Cannon Hill from Balsamine (Brisbane) Pty Ltd, a related corporation. The valuation was based on discounted cash flow method.

Freehold

Freehold

Freehold

The accompanying notes form an integral part of these financial statements.

(1)

Balance carried forward

Freehold

185 St Georges Terrace,
Perth WA 6000

Citadines St Georges
Terrace Perth

Freehold

131-135 Bourke Street,
Melbourne, Victoria 3000

Citadines on Bourke Melbourne

Freehold

113-121 Baxter Road, Mascot,
New South Wales, NSW 2020

Citadines Connect
Sydney Airport

Australia

Investment properties and investment properties under development

Description of Property

BY GEOGRAPHY

As at 31 December 2023

PORTFOLIO STATEMENTS

61-63 avenue de la Toisond’Or, 1060 Brussels

Citadines Toison d’Or Brussels

159 Dongfeng Avenue
Leasehold(Xianglong Business Centre
Zone C), Wuhan Economic andTechnological Development
Zone, Wuhan 430056

Citadines Zhuankou Wuhan

Financial Statements andOther Information

171

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

Balance carried forward

Block 27, Jiacheng Gardens,
Leasehold
58 Xinghai Street, Suzhou
Industrial Park, Suzhou 215021

Freehold

Freehold

Citadines Xinghai Suzhou

China

51 quai au Bois à Brûler,1000 Brussels

Location

Citadines Sainte-Catherine
Brussels

Belgium

Balance brought forward

Description of Property

Tenure ofLand

40 years

70 years

Not
applicableNot
applicable

Term ofLease

20 years

43 years

Not
applicableNot
applicable21 years

44 years

Not
applicableNot
applicable

Remaining
Term of Lease
2023
2022

Portfolio & Performance

As at 31 December 2023

502,374

30,13922,08032,80840,433376,914490,50235,49425,49924,90428,356376,249

Stapled Group
2023
2022
$’000
$’000

502,374

30,13922,08032,80840,433376,914490,50235,49425,49924,90428,356376,249

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

Leadership

PORTFOLIO STATEMENTS

11.7

0.8

0.5

0.8

0.9

8.7

12.3

1.0

0.6

0.6

0.7

9.4

13.6

0.8

0.6

0.9

1.1

10.2

14.2

1.0

0.7

0.7

0.8

11.0

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

Overview

ANNUAL REPORT 2023

172

CAPITALAND ASCOTT TRUST80 Taiyuan North Street,
Heping District, Shenyang
110000126 Chengdu Road, Heping
District, Tianjin 300051

Somerset Heping Shenyang

Somerset Olympic Tower
Property Tianjin

Leasehold

Leasehold

Leasehold

Tenure ofLand

The accompanying notes form an integral part of these financial statements.

Balance carried forward

No. 128-2 Jinma Road,
Dalian Development Area,
Dalian 116600

Location

Somerset Grand Central Dalian

China (continued)

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

70 years

40 years

50 years

Term ofLease

39 years

23 years

33 years

40 years

24 years

34 years

Remaining
Term of Lease
2023
2022

674,884

51,367

51,83569,308502,374

691,261

59,63560,60480,520490,502

Stapled Group
2023
2022
$’000
$’000

674,884

51,367

51,83569,308502,374

691,261

59,63560,60480,520490,502

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

15.7

1.2

1.2

1.6

11.7

17.3

1.5

1.5

2.0

12.3

18.3

1.4

1.4

1.9

13.6

20.0

1.7

1.8

2.3

14.2

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

Not
applicable

Freehold
Freehold

60 rue du Rouet, 13006
Marseille

Avenue Willy Brandt – Euralille,
59777 Lille

1 rue le Poussin, 06400 Cannes Freehold

Citadines Castellane
Marseille(2)(3)

Citadines City Centre Lille(2)(3)

Citadines Croisette Cannes(2)(3)Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

695,612–––

10,108

10,620674,884

744,026

7,376

12,624

9,787

10,496

12,482691,261

Stapled Group
2023
2022
$’000
$’000

695,612–––

10,108

10,620674,884

744,026

7,376

12,624

9,787

10,496

12,482691,261

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

Portfolio & Performance

Financial Statements andOther Information

173

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

Leadership

16.1

–

–

–

0.2

0.2

15.7

18.6

0.2

0.3

0.2

0.3

0.3

17.3

18.9

–

–

–

0.3

0.3

18.3

21.6

0.2

0.4

0.3

0.3

0.4

20.0

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

(2)	As at 31 December 2023, these 16 (31 December 2022: 20) investment properties are leased to related corporations under master lease arrangements.
(3)	In March 2023, these four investment properties were reclassified to "Assets held for sale" (Note 15), pursuant to the planned divestment of these properties to Extendam, an unrelated corporation, which was enteredinto on 3 April 2023 and completed on 22 September 2023.

Balance carried forward

Not
applicable

Freehold

27 rue Esquirol, 75013
Paris

Citadines Austerlitz Paris(2)Notapplicable

FreeholdNotapplicable

Term ofLease

588 boulevard d’Antigone,
34000 Montpellier

Location

Tenure ofLand

Citadines Antigone Montpellier(2)FranceBalance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

Overview

ANNUAL REPORT 2023

174

CAPITALAND ASCOTT TRUST
Freehold
Freehold
Freehold
Freehold

67 avenue du Maine,
75014 Paris

16 avenue Rachel,
75018 Paris

18 place d’ltalie,
75013 Paris

9-11 boulevard de Louvain,
13008 Marseille

Citadines Maine Montparnasse
Paris(2)

Citadines Montmartre Paris(2)Citadines Place d’ltalie Paris(2)Citadines Prado Chanot
Marseille(2)(3)Not
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Term of
Lease

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

885,603–51,56334,131

22,705

81,592

695,612935,084

8,964

49,36033,332

17,16382,239744,026

Stapled Group
2023
2022
$’000
$’000

885,603–51,56334,131

22,705

81,592

695,612935,084

8,964

49,36033,332

17,16382,239744,026

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

20.6

–

1.2

0.8

0.5

2.0

16.1

23.4

0.2

1.2

0.8

0.4

2.2

18.6

24.0

–

1.4

0.9

0.6

2.2

18.9

27.2

0.3

1.4

1.0

0.5

2.4

21.6

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

The accompanying notes form an integral part of these financial statements.

(2)	As at 31 December 2023, these 16 (31 December 2022: 20) investment properties are leased to related corporations under master lease arrangements.
(3)	In March 2023, these four investment properties were reclassified to "Assets held for sale" (Note 15), pursuant to the planned divestment of these properties to Extendam, an unrelated corporation, which was enteredinto on 3 April 2023 and completed on 22 September 2023.

Balance carried forward

Freehold

4 rue des Innocents,
75001 Paris

Location

Tenure ofLand

Citadines Les Halles Paris(2)France (continued)

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

FreeholdFreehold
Freehold
Freehold
Freehold

75 bis, avenue Parmentier,75011 Paris132 boulevard de Grenelle,
75015 Paris

29 bis, rue Saint-Didier, 75116
Paris

8 rue de Richelieu, 75001 Paris

83 avenue Kléber, 75016 Paris

Citadines République Paris(2)Citadines Tour Eiffel Paris(2)Citadines Trocadéro Paris(2)La Clef Louvre Paris(2)La Clef Tour Eiffel Paris(2)(4)Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Term of
Lease

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

1,242,637

145,656

53,14547,871

66,70925,04918,604

885,603

1,273,755

147,797

44,63745,72961,21821,27618,014

935,084

Stapled Group
2023
2022
$’000
$’000

1,242,637

145,656

53,14547,871

66,70925,04918,604

885,603

1,273,755

147,797

44,63745,72961,21821,27618,014

935,084

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

Portfolio & Performance

Financial Statements andOther Information

175

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

Leadership

28.7

3.3

1.2

1.1

1.5

0.6

0.4

20.6

31.9

3.7

1.1

1.2

1.5

0.5

0.5

23.4

33.6

3.9

1.4

1.3

1.8

0.7

0.5

24.0

37.0

4.3

1.3

1.3

1.8

0.6

0.5

27.2

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

(2)	As at 31 December 2023, these 16 (31 December 2022: 20) investment properties are leased to related corporations under master lease arrangements.
(4)	On 30 November 2022, the CapitaLand Ascott REIT Group acquired La Clef Tour Eiffel Paris from Ascott Holdings (Europe) N.V., a related corporation. The valuation was based on discounted cash flow method.

Balance carried forward

Freehold

2 rue Thomassin, 69002 Lyon

Location

Tenure ofLand

Citadines Presqu’île Lyon(2)France (continued)

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

Overview

ANNUAL REPORT 2023

176

CAPITALAND ASCOTT TRUST
Freehold

Olivaer Platz 1, 10707
Berlin-Wilmersdorf

Ludwig-Erhard-Straβe 7,20459 Hamburg

Schaarsteinweg 4, 20459
Hamburg

Citadines Kurfürstendamm
Berlin (2)Citadines Michel Hamburg(2)The Madison Hamburg

Leasehold

Jalan Prof Dr Satrio Kav. 1,
Jakarta 12940

Somerset Grand Citra Jakarta(5)21 years

3 years

30 years

Not
applicable87 years

Not
applicableNot
applicableNot
applicable2 years

Not
applicable1 yearNot
applicable88 years

Not
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

1,641,244

34,18855,63853,77187,35850,53722,41255,811

38,892

1,242,637

1,586,199

33,497–54,57070,77843,616

20,17054,60835,205

1,273,755

Stapled Group
2023
2022
$’000
$’000

1,641,244

34,18855,63853,77187,35850,53722,41255,811

38,892

1,242,637

1,586,199

33,497–54,57070,77843,616

20,17054,60835,205

1,273,755

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

37.9

0.8

1.3

1.2

2.0

1.2

0.5

1.3

0.9

28.7

39.8

0.8

–

1.4

1.8

1.1

0.5

1.4

0.9

31.9

44.5

0.9

1.5

1.5

2.4

1.4

0.6

1.5

1.1

33.6

46.2

1.0

–

1.6

2.1

1.3

0.6

1.6

1.0

37.0

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

As at 31 December 2023, these 16 (31 December 2022: 20) investment properties are leased to related corporations under master lease arrangements.
The valuations of the Indonesia properties as at 31 December 2022 were based on the assumption that the lease will be renewed upon their expiry.
On 30 November 2023, the CapitaLand Ascott REIT Group acquired Ascott Kuningan Jakarta from Piatra Pte Ltd, a related corporation. The valuation was based on discounted cashflow method. The valuation of theproperty as at 31 December 2023 was based on the assumption that the lease will be renewed upon its expiry.

The accompanying notes form an integral part of these financial statements.

(2)
(5)
(6)

Balance carried forward

30 years

LeaseholdCiputra World 1
Jalan Prof Dr Satrio
Kav. 3-5 Jakarta 12940

Ascott Kuningan Jakarta(6)20 years

30 years

Not
applicable

Jalan Kebon Kacang Raya No. Leasehold
2, Jakarta 10230

Freehold

99 years

Not
applicableNot
applicableNot
applicable

Term of
Lease

Ascott Jakarta(5)Indonesia

Freehold

Europa-Allee 23, 60327
Frankfurt am Main

Citadines City Centre Frankfurt(2)LeaseholdFreehold

Arnulfstrasse 51, 80636
MünchenLocation

Tenure ofLand

Citadines Arnulfpark Munich(2)Germany

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

FreeholdFreehold
Freehold
Freehold

1-28-13 Shinjuku, Shinjuku-ku,
Tokyo 1600022

4-4-10, Kitakyuhojimachi,
Chuo-ku, Osaka 541-0057

2-6-8, Awajicho,
Chuo-ku, Osaka 541-0047

3-2-7, Awajicho,
Chuo-ku, Osaka 541-0047

3-6-6 Ariake Koto-ku,
Tokyo 135-0063

Citadines Shinjuku Tokyo

Hotel WBF Honmachi(7)Hotel WBF Kitasemba East(7)Hotel WBF Kitasemba West(7)Sotetsu Grand Fresa Tokyo-Bay
AriakeNotapplicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Term of
Lease

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

2,137,169

261,240–––

82,672

41,102110,911

1,641,244

2,202,210

273,896

32,162

31,886

31,06986,64945,029115,320

1,586,199

Stapled Group
2023
2022
$’000
$’000

2,137,169

261,240–––

82,672

41,102110,911

1,641,244

2,202,210

273,896

32,162

31,886

31,06986,64945,029115,320

1,586,199

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

Portfolio & Performance

Financial Statements andOther Information

177

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

Leadership(7)	As at 31 December 2023, these three investment properties were reclassified to “Assets held for sale” (Note 15), pursuant to the divestment of these properties.

Balance carried forward

Freehold

432 Matsuya-cho, Gojo-doriKarasuma-Higashiiru,
Shimogyo-ku, Kyoto 600-8105

Citadines Karasuma-Gojo Kyoto

Freehold

Freehold

Location

Tenure ofLand

Citadines Central Shinjuku Tokyo 1-2-9, Kabuki-cho,Shinjuku-ku, Tokyo 1600021

Japan

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

49.2

6.0

–

–

–

1.9

0.9

2.5

37.9

55.3

6.9

0.8

0.8

0.8

2.2

1.1

2.9

39.8

57.9

7.1

–

–

–

2.2

1.1

3.0

44.5

63.9

7.9

0.9

0.9

0.9

2.5

1.3

3.3

46.2

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

Overview

ANNUAL REPORT 2023

178

CAPITALAND ASCOTT TRUST
Freehold

Freehold

Freehold

3-1, Minami 5 jo Nishi
8-chome, Chuo-ku,
Sapporo-shi, Hokkaido

6-3 Kita 1 jo Higashi 1-chome,
Chuo-ku, Sapporo-shi,
Hokkaido

19-28, 3-chome Kowakae,
Higashiosake-shi, Osaka
577-0818

15-44, Benten 5-chome,
Minato-ku, Osaka-shi, Osaka

Big Palace Minami 5 jo

City Court Kita 1 jo

Eslead College Gate
Kindaimae(8)Eslead Residence Bentencho
Grande(9)NotapplicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Term of
Lease

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

2,299,193

18,473

16,74523,467

23,605

17,634

21,83240,2682,137,169

2,376,898

20,18518,007

26,57225,55018,70324,324

41,3472,202,210

Stapled Group
2023
2022
$’000
$’000

2,299,193

18,473

16,74523,467

23,605

17,634

21,83240,2682,137,169

2,376,898

20,18518,007

26,57225,55018,70324,324

41,3472,202,210

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

52.8

0.4

0.4

0.5

0.5

0.4

0.5

0.9

49.2

59.7

0.5

0.5

0.7

0.6

0.5

0.6

1.0

55.3

62.3

0.5

0.5

0.6

0.6

0.5

0.6

1.1

57.9

68.9

0.6

0.5

0.8

0.7

0.5

0.7

1.2

63.9

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

On 18 March 2022, the CapitaLand Ascott REIT Group acquired Eslead College Gate Kindaimae from Eslead Corporation, an unrelated third party. The valuation was based on discounted cash flow method.
On 16 December 2022, the CapitaLand Ascott REIT Group acquired Eslead Residence Bentencho Grande from Eslead Corporation, an unrelated third party. The valuation was based on discounted cash flow method.

The accompanying notes form an integral part of these financial statements.

(8)
(9)

Balance carried forward

4-1-6 Kita 14 jo Nishi,
Freehold
Kita-ku, Sapporo-shi, Hokkaido

Big Palace Kita 14 jo
Freehold

2-5, Kita 15 jo Higashi
Freehold
1-chome, Higashi-ku, Sapporoshi, Hokkaido

Alpha Square Kita 15 jo

Freehold

3-15-10 Hakata Ekimae,
Hakata-ku, Fukuoka

Location

Tenure ofLand

Actus Hakata V-Tower

Japan (continued)

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

FreeholdFreehold
Freehold104-2, Sekijomachi, Hakata-ku,
Fukuoka

13-10, Kakomachi,Naka-ku, Hiroshima

2-1-9, Kokutaijimachi,Naka-ku, Hiroshima

8-38-10, Nishihara,
Asaminami-ku, Hiroshima

47-2, Kasaboko-cho,
Shimogyo-ku, Kyoto

3-2-2,3,4,5 KashiiTeriha,
Higashi-ku, Fukuoka

Granfore Hakata Waterfront(12)Gravis Court Kakomachi

Gravis Court Kokutaiji

Gravis Court Nishiharaekimae

House Saison Shijo-Dori(13)Infini Garden

NotapplicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable–Not
applicable–

Remaining
Term of Lease
2023
2022

2,488,730

76,121

27,337

3,769

4,544

6,111

40,492

11,943

19,2202,514,250

78,63829,945

4,098

4,926

6,449

–

13,296–

2,376,898

2,488,730

76,121

27,337

3,769

4,544

6,111

40,492

11,943

19,2202,299,193

2,514,250

78,63829,945

4,098

4,926

6,449

–

13,296–

2,376,898

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation
Stapled Group
2023
2022
$’000
$’000
2,299,193

Financial Statements andOther Information

179

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

Portfolio & Performance

57.1

1.7

0.6

0.1

0.1

0.1

0.9

0.4

0.4

52.8

63.3

2.0

0.8

0.1

0.1

0.2

–

0.4

–

59.7

67.4

2.1

0.7

0.1

0.1

0.2

1.1

0.3

0.5

62.3

72.9

2.3

0.9

0.1

0.1

0.2

–

0.4

–

68.9

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

On 5 April 2023, the CapitaLand Ascott REIT Group acquired Eslead Residence Osaka Fukushima East from Eslead Corporation, an unrelated third party. The valuation was based on discounted cashflow method.
On 16 December 2022, the CapitaLand Ascott REIT Group acquired Eslead Residence Umeda Grande from Eslead Corporation, an unrelated third party. The valuation was based on discounted cashflow method.
On 19 May 2023, the CapitaLand Ascott REIT Group acquired Granfore Hakata Waterfront from KOSE R.E. Co. Ltd., an unrelated third party. The valuation was based on discounted cashflow method.
On 30 November 2022, the CapitaLand Ascott REIT Group acquired the properties from ARC-CapitaLand Two TMK, a related corporation. The valuation was based on discounted cashflow method.

Freehold

FreeholdNotapplicableNot
applicableNot
applicableNot
applicable

Term of
Lease

Leadership

(10)
(11)
(12)
(13)

Balance carried forward

Freehold

9-3, Nakatsu 4-chome,
Kita-ku, Osaka-shi Osaka

Eslead Residence Umeda
Grande(11)Freehold

Freehold

8-7, Sagisu 5-chome,
Fukushima-ku, Osaka

Location

Tenure ofLand

Eslead Residence Osaka
Fukushima East(10)Japan (continued)

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

Overview

ANNUAL REPORT 2023

180

CAPITALAND ASCOTT TRUST
Freehold

Freehold
Freehold
Freehold

2-1-1 Shimodera, Naniwa-ku,
Osaka-shi, Osaka

2-3-6, Tokuicho, Chuo-ku,
Osaka

3-17-6, Nakamoto, Higashinariku, Osaka

3-9-1 Motomachi, Naniwa-ku,
Osaka-shi, Osaka

2-88 Kamizono-cho,Nishinomiya city, Hyogo

4-29, Ikutamamaemachi,
Tennoji-ku, Osaka

S-Residence Gakuenzaka(13)S-Residence Hommachi Marks

S-Residence Midoribashi Serio

S-Residence Namba Viale(13)S-Residence Shukugawa(13)S-Residence Tanimachi 9
chome

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Term of
Lease

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

2,646,552

17,8207,147

16,887

15,115

16,701

12,03630,49034,927

6,699

2,488,730

2,683,277

18,907

8,074

18,49815,637

17,681

13,18432,78936,9197,338

2,514,250

Stapled Group
2023
2022
$’000
$’000

2,646,552

17,8207,147

16,887

15,115

16,701

12,03630,49034,927

6,699

2,488,730

2,683,277

18,907

8,074

18,49815,637

17,681

13,18432,78936,9197,338

2,514,250

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

60.8

0.4

0.2

0.4

0.3

0.4

0.3

0.7

0.8

0.2

57.1

67.5

0.5

0.2

0.5

0.4

0.4

0.3

0.8

0.9

0.2

63.3

71.7

0.5

0.2

0.5

0.4

0.5

0.3

0.8

0.9

0.2

67.4

77.8

0.5

0.2

0.5

0.5

0.5

0.4

1.0

1.1

0.2

72.9

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

On 30 November 2022, the CapitaLand Ascott REIT Group acquired the properties from ARC-CapitaLand Two TMK, a related corporation. The valuation was based on discounted cash flow method.

Freehold

Freehold

The accompanying notes form an integral part of these financial statements.

(13)

Balance carried forward

Freehold

7-22-9, Fukushima, Fukushimaku, Osaka

S-Residence Fukushima Luxe

Freehold

3-4-31 Roppongi, Minato-ku,
Tokyo 106-0032

Roppongi Residences Tokyo

Freehold

3-23-6 Marunouchi, Naka-ku,
Nagoya city, Aichi

Location

Tenure ofLand

Marunouchi Central Heights(13)Japan (continued)

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

104 Aguirre Street, Legaspi
Village, Makati City 1229

Somerset Millennium Makati

99 years
82 years

55 years

81 years

89 years

Not
applicable20 years

Not
applicable83 years

56 years

82 years

90 years

Not
applicable21 years

Not
applicable

Remaining
Term of Lease
2023
2022

3,367,788–

144,365–434,266

13,145

94,40635,054

3,487,328–

127,031

123,693403,115

13,60496,26840,3402,683,277

3,720,376

352,588

144,365–434,266

13,145

94,40635,0542,646,552

3,826,255

338,927

127,031

123,693403,115

13,60496,26840,3402,683,277

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation
Stapled Group
2023
2022
$’000
$’000
2,646,552

Financial Statements andOther Information

181

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

Portfolio & Performance

77.5

–

3.3

–

10.0

0.4

2.2

0.8

60.8

87.8

–

3.2

3.1

10.2

0.4

2.4

1.0

67.5

100.7

9.5

3.9

–

11.7

0.4

2.6

0.9

71.7

111.0

9.8

3.7

3.6

11.7

0.4

2.8

1.2

77.8

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

As at 31 December 2023, the investment property was reclassified to “Assets held for sale” (Note 15), pursuant to the planned divestment of this property which was entered into and completed in the first quarterof 2024.

Leasehold60 years

96 years

99 years

Not
applicable

48 years

Not
applicable

Term of
Lease

Leadership(14)

Balance carried forward

1 Unity Street, Singapore
23798380 Nepal Park, Singapore
139409lyf one-north Singapore

The Robertson House by The
Crest Collection (formerly
known as Riverside Hotel
Robertson Quay)

Leasehold

8 Wilkie Road, #01-26 Wilkie
Edge, Singapore 228095

Citadines Mount Sophia
Property Singapore(14)Leasehold

Leasehold

11 Cairnhill Road,
Singapore 229724

Freehold

LeaseholdFreehold

Tenure ofLand

Ascott Orchard Singapore

Singapore

Glorietta 4, Ayala Center,
Makati City 1224

187, Jalan Ampang, 50450,
Kuala Lumpur

Location

Ascott Makati

Philippines

Somerset Kuala Lumpur

Malaysia

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

Overview

ANNUAL REPORT 2023

182

CAPITALAND ASCOTT TRUST
150 years

18/21 Northumberland Avenue, Freehold
London WC2N 5EA

81 Jermyn St, St. James’s,
London SW1Y 6JF

Citadines Trafalgar Square
LondonThe Cavendish London(15)Notapplicable

135 years

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicable97 years–

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicable98 years

Remaining
Term of Lease
2023
2022

4,592,243

366,269

192,70276,060165,257

84,83571,332

268,000

3,367,788

4,258,909–

164,628

71,108

155,990

69,65553,200257,000

3,487,328

Stapled Group
2023
2022
$’000
$’000

4,944,831

366,269

192,70276,060165,257

84,83571,332

268,000

3,720,376

4,597,836–

164,628

71,108

155,990

69,65553,200257,000

3,826,255

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

105.5

8.4

4.4

1.7

3.8

1.9

1.6

6.2

77.5

107.3

–

4.2

1.8

3.9

1.8

1.3

6.5

87.8

133.9

9.9

5.2

2.1

4.5

2.3

1.9

7.3

100.7

133.4

–

4.8

2.1

4.5

2.0

1.5

7.5

111.0

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

On 30 November 2023, the CapitaLand Ascott REIT Group acquired The Cavendish London from Ascott (Jersey) Limited, a related corporation. The valuation was based on discounted cashflow method.

LeaseholdFreehold

The accompanying notes form an integral part of these financial statements.

(15)

Balance carried forward

Not
applicable

35A Gloucester Road,
London SW7 4PL

Not
applicable

Citadines South Kensington
LondonFreehold

94-99 High Holborn,
London WC1V 6LF

Not
applicableNot
applicable99 years

Citadines Holborn-Covent
Garden London

Freehold

Freehold

Leasehold

Term ofLease

7-21 Goswell Road,
London EC1M 7AH

Ramblas 122, 08002 Barcelona

177B River Valley Road,
Singapore 179032

Location

Tenure ofLand

Citadines Barbican London

United Kingdom

Citadines Ramblas Barcelona

Spain

Somerset Liang Court Property
Singapore(under development)

Singapore (continued)

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

343 West 36th Street,
New York, New York
10018

1450 E Summit Street Kent,
OH 44240

5701 Hillsborough Street,
Raleigh, North Carolina
27606

3600 Lancaster Avenue,
Philadelphia, Pennsylvania
19104

800 Marietta Street NW,
Atlanta, Georgia, 30318

voco Times Square South

Paloma Kent(16)Paloma Raleigh

Paloma University City

Paloma West Midtown

NotapplicableNot
applicableNot
applicable99 years

Not
applicableNot
applicableNot
applicable94 years

Not
applicable89 years

89 years

Not
applicableNot
applicableNot
applicable95 years

Not
applicable

90 years

90 years

Remaining
Term of Lease
2023
2022

5,496,938

154,787

80,17689,08644,337

178,578

188,667

169,064

5,205,713

149,098

83,96187,302

43,687

175,514202,358

204,884

4,258,909

5,849,526

154,787

80,17689,08644,337

178,578

188,667

169,064

4,944,831

5,544,640

149,098

83,96187,302

43,687

175,514202,358

204,884

4,597,836

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation
Stapled Group
2023
2022
$’000
$’000
4,592,243

Financial Statements andOther Information

183

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

Portfolio & Performance

126.2

3.6

1.8

2.0

1.0

4.1

4.3

3.9

105.5

131.2

3.8

2.1

2.2

1.1

4.4

5.1

5.2

107.3

158.4

4.2

2.2

2.4

1.2

4.8

5.1

4.6

133.9

160.8

4.3

2.4

2.5

1.3

5.1

5.9

5.9

133.4

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

On 9 February 2022, the CapitaLand Ascott REIT Group acquired Paloma Kent from Residences at Kent State Property Owner, LLC, an unrelated third party. The valuation was based on direct capitalisation anddiscounted cash flow method.

Freehold

Freehold

Freehold

LeaseholdNotapplicable99 years

99 years

Term of
Lease

Leadership(16)

Balance carried forward

Leasehold

370 Canal Street, New York,New York 10013

Sheraton Tribeca New York
Hotel
Freehold

Leasehold

Location

Tenure ofLand

Element New York Times Square 311 West 39th Street,West
New York, New York
10018

United States of America

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

Overview

ANNUAL REPORT 2023

184

CAPITALAND ASCOTT TRUST

Location

2421 Playa Way, Wilmington,
North Carolina 28403

1701 N. Quaker Avenue,
Lubbock, Texas, 79416

Uncommon Wilmington

Wildwood Lubbock

Not
applicableNot
applicableNot
applicableNot
applicable

Term of
Lease

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

5,960,770

110,990

74,562

158,000

120,280

5,496,938

5,637,619

107,737

77,516

128,707

117,946

5,205,713

Stapled Group
2023
2022
$’000
$’000

6,313,358

110,990

74,562

158,000

120,280

5,849,526

5,976,546

107,737

77,516

128,707

117,9465,544,640

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

136.8

2.5

1.7

3.6

2.8

126.2

142.1

2.7

2.0

3.2

3.0

131.2

171.0

3.0

2.0

4.3

3.3

158.4

173.2

3.1

2.2

3.7

3.4

160.8

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

On 30 November 2022, the CapitaLand Ascott REIT Group acquired Standard at Columbia from TAHL PBSA Venture Pte Ltd, a related corporation. The valuation was based on direct capitalisation method.

Freehold

The accompanying notes form an integral part of these financial statements.

(17)

Balance carried forward

Freehold

1401 Assembly Street,
Columbia, South Carolina
29201

Standard at Columbia(17)Freehold

Freehold

707 South Fourth Street,Champaign, Illinois 61820

Tenure ofLand

Seven07

United States of America (continued)

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

21-23 Nguyen Thi Minh Khai
Street, District 1, Ho Chi MinhCity

49 Hai Ba Trung Street, Hanoi

8A Nguyen Binh Khiem Street, Leasehold
District 1, Ho Chi Minh City

106 Hoang Quoc Viet Street,
Cau Giay, Hanoi

Somerset Chancellor Court
Ho Chi Minh City

Somerset Grand Hanoi

Somerset Ho Chi Minh City

Somerset Hoa Binh Hanoi
18 years

16 years

14 years

18 years

52 years

19 years

17 years

15 years

19 years

53 years

Remaining
Term of Lease
2023
2022

6,502,217
263,965
6,766,182
6,766,182

6,122,754
6,413,594

25,99031,71870,51537,85822,7785,855,740
267,014
6,122,754

31,14836,17984,29343,29023,211

6,313,358

6,149,629
263,965
6,413,594

25,99031,71870,51537,85822,7785,637,619

6,461,681

6,194,667
267,014
6,461,681

31,14836,17984,29343,29023,211

5,976,546

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation
Stapled Group
2023
2022
$’000
$’000
5,960,770

Financial Statements andOther Information

185

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

Portfolio & Performance

147.3

141.2
6.1
147.3

0.7

0.7

1.6

0.9

0.5

136.8

154.4

147.7
6.7
154.4

0.9

0.9

2.1

1.1

0.6

142.1

183.1

176.0
7.1
183.1

0.7

0.9

1.8

1.0

0.6

171.0

187.4

179.7
7.7
187.4

1.0

1.0

2.5

1.3

0.7

173.2

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

On 30 November 2022, the CapitaLand Ascott REIT Group acquired Somerset Central TD Hai Phong City from Vibrant Coral Overseas Inc., a related corporation. The valuation was based on discounted cash flow
method.

36 years

45 years

45 years

48 years

64 years

Term of
Lease

Leadership(18)

Portfolio of investment properties and investment properties under development
Right-of-use assets
Investment properties and investment properties under development on theStatement of Financial Position of the CapitaLand Ascott REIT Group
Balance carried forward

Leasehold

Leasehold

LeaseholdTower A, TD Plaza,
LeaseholdLot 20A, New Urban Zone at 5Corner – Cat Bi Airport, Dong
Khe Ward, Ngo Quyen District,
Hai Phong City

Location

Tenure ofLand

Somerset Central TD Hai Phong
City(18)

Vietnam

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

Overview

ANNUAL REPORT 2023

186

CAPITALAND ASCOTT TRUST

Location

Freehold
81,146

81,146

193,131

The accompanying notes form an integral part of these financial statements.

6,769,017

NotapplicableNot
applicableNot
applicable

6,413,594

6,766,182

6,766,182

6,489,340
6,489,340–––

6,766,182

78,00081,120207,466

6,122,754

6,461,681

6,461,681–––

6,461,681

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation
Stapled Group
2023
2022
$’000
$’000

Balance carried forward

Not
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

6,769,017

NotapplicableNot
applicableNot
applicable

Term of
Lease

Investment properties and investment properties under development on theStatement of Financial Position of the Stapled Group226 Jangchoongdan-ro,
Gwanghui-dong, Jung-gu,
Seoul

Sotetsu Hotels The SplaisirSeoul Dongdaemun

Freehold

Freehold

1-1-13, Nipponbashi, Chuo-ku,
Osaka 542-0073

Tenure ofLand

ibis Ambassador Seoul Insadong 31 Samil-daero 30-gil, Ikseondong, Jongno-gu, Seoul

South Korea

Sotetsu Grand Fresa OsakaNamba

Japan

Investment properties of the CapitaLand Ascott BT Group

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

155.5

155.5

1.9

1.9

4.4

147.3

163.6

163.6

2.0

2.0

5.2

154.4

183.1

183.1

–

–

–

183.1

187.4

187.4

–

–

–

187.4

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

Location

Freehold
Freehold

Corner Ann and Roma Street,
Brisbane, QLD 4000

Pullman and Mercure Brisbane
King George Square

Pullman and Mercure Melbourne 65 Queens Road, Melbourne,
Albert Park
VIC 3004

Pullman Sydney Hyde Park

13-17 Fleet St, Temple Bar,
Dublin 2, D02 WD51

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Term of
Lease

Not
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicableNot
applicable

Remaining
Term of Lease
2023
2022

Financial Statements andOther Information

187

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.

Portfolio & Performance

536,625
7,025,965–

140,797

89,89073,191

38,954

144,847

48,946

6,489,340–
6,766,182

–

–

–

–

–

–

–

6,766,182–
6,461,681

–

–

–

–

–

–

–

6,461,681

13.2
168.7

2.6

3.3

2.1

1.9

–

3.3

–

155.5

13.6
177.2

–

3.6

2.3

1.8

1.0

3.7

1.2

163.6

–
183.1

–

–

–

–

–

–

–

183.1

–
187.4

–

–

–

–

–

–

–

187.4

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

On 31 December 2023, these two hotels were reclassified to “Assets held for sale” (Note 15), pursuant to the divestment of these properties.
On 30 November 2023, the CapitaLand Ascott BT Group acquired Temple Bar Hotel from Citadines Temple Bar Limited, a related corporation. The valuation was based on discounted cashflow method.

577,691
7,346,708

114,235

144,647

90,60582,644–

145,560–

6,769,017

Stapled Group
2023
2022
$’000
$’000

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

Leadership

(19)
(20)

Portfolio of freehold land and buildings of the CapitaLand Ascott BT Group
Total investment properties, investment properties under development and freehold land and buildings

Temple Bar Hotel(20)Freehold

Freehold

350 Church Street, Parramatta,
NSW 2150

Novotel Sydney Parramatta(19)IrelandFreehold

169-179 Thomas Street,
Sydney, NSW 2000

Novotel Sydney Central

36 College Street, Sydney,
NSW 2000

Freehold

7-11 Talavera Road, North
Ryde, NSW 2113

Freehold

Tenure ofLand

Courtyard by Marriott SydneyNorth Ryde(19)Australia

Freehold land and buildings of the CapitaLand Ascott BT Group

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

Overview

ANNUAL REPORT 2023

188

CAPITALAND ASCOTT TRUSTThe accompanying notes form an integral part of these financial statements.

8.1(65.9)
110.9
(9.1)
(1.8)
100.0

352,588338,927––(2,869,002) (2,920,097) (2,597,780) (2,534,369)
4,830,294 4,444,795 4,168,402 3,927,312(396,298)(396,298)(396,298)(396,298)(77,643)(83,061)(75,949)(81,446)
4,356,353 3,965,436 3,696,155 3,449,568

6,766,182

8.5(73.6)
112.1(10.0)
(2.1)
100.0

177.2

–
(70.3)
112.8(10.7)
(2.1)
100.0

183.1

–
(73.5)
113.9(11.5)
(2.4)
100.0

187.4

Percentage of Stapled Securityholders’ funds
CapitaLand
Stapled Group
Ascott REIT Group
2023
2022
2023
2022
%
%
%
%

Leasehold land and buildings – The Robertson House by The Crest Collection
Other assets and liabilities (net)Net assets
Perpetual securities holders
Non-controlling interests
Stapled Securityholders’ funds

7,025,965

Stapled Group
2023
2022
$’000
$’000

CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

At Valuation

168.7

Remaining
Term of Lease
2023
2022

6,461,681

Term ofLease

7,346,708

Location

Tenure ofLand

Balance brought forward

Description of Property

As at 31 December 2023

PORTFOLIO STATEMENTS

PORTFOLIO STATEMENTS
Overview

As at 31 December 2023

On 31 December 2023, Citadines Zhuankou Wuhan, Somerset Grand Central Dalian, Somerset Heping Shenyang, Somerset
Olympic Tower Property Tianjin, Citadines Central Shinjuku Tokyo, Citadines Karasuma-Gojo Kyoto, Citadines Shinjuku
Tokyo, Hotel WBF Honmachi, Hotel WBF Kitasemba East, Hotel WBF Kitasemba West, Sotetsu Grand Fresa Tokyo-Bay Ariake,
Actus Hakata V-Tower, Alpha Square Kita 15 jo, Big Palace Kita 14 jo, Big Palace Minami 5 jo, City Court Kita 1 jo, Eslead
College Gate Kindaimae, Eslead Residence Bentencho Grande, Eslead Residence Osaka Fukushima East, Eslead Residence
Umeda Grande, Granfore Hakata Waterfront, Gravis Court Kakomachi, Gravis Court Kokutaiji, Gravis Court Nishiharaekimae,
House Saison Shijo-Dori, Infini Garden, Marunouchi Central Heights, Roppongi Residences Tokyo, S-Residence FukushimaLuxe, S-Residence Gakuenzaka, S-Residence Hommachi Marks, S-Residence Midoribashi Serio, S-Residence Namba Viale,
S-Residence Shukugawa, S-Residence Tanimachi 9 chome, Element New York Times Square West, Sheraton Tribeca New York
Hotel, voco Times Square South, Paloma West Midtown, Seven07, Standard at Columbia, Sotetsu Grand Fresa Osaka-Namba
and Temple Bar Hotel, were pledged as securities to banks for banking facilities granted to certain subsidiaries (Note 17).
Leadership

On 31 December 2022, Citadines Zhuankou Wuhan, Somerset Grand Central Dalian, Somerset Heping Shenyang, Somerset
Olympic Tower Property Tianjin, Citadines Central Shinjuku Tokyo, Citadines Karasuma-Gojo Kyoto, Citadines Shinjuku Tokyo,
Hotel WBF Honmachi, Hotel WBF Kitasemba East, Hotel WBF Kitasemba West, Sotetsu Grand Fresa Tokyo-Bay Ariake, Actus
Hakata V-Tower, Alpha Square Kita 15 jo, Big Palace Kita 14 jo, Big Palace Minami 5 jo, City Court Kita 1 jo, Eslead College
Gate Kindaimae, Eslead Residence Bentencho Grande, Eslead Residence Umeda Grande, Gravis Court Kakomachi, Gravis
Court Kokutaiji, Gravis Court Nishiharaekimae, House Saison Shijo-Dori, Infini Garden, Marunouchi Central Heights, Roppongi
Residences Tokyo, S-Residence Fukushima Luxe, S-Residence Gakuenzaka, S-Residence Hommachi Marks, S-Residence
Midoribashi Serio, S-Residence Namba Viale, S-Residence Shukugawa, S-Residence Tanimachi 9 chome, Citadines Mount
Sophia Property Singapore, Element New York Times Square West, Sheraton Tribeca New York Hotel, voco Times SquareSouth, Paloma West Midtown, Seven07, Standard at Columbia, Somerset Chancellor Court Ho Chi Minh City, Somerset Grand
Hanoi, Somerset Ho Chi Minh City and Sotetsu Grand Fresa Osaka-Namba were pledged as securities to banks for banking
facilities granted to certain subsidiaries (Note 17).
As at 31 December 2023, the carrying amounts for most of the investment properties and Somerset Liang Court, investment
property under development, were based on independent valuations carried out by HVS. The valuation for the remaining
properties are conducted by the following valuers: ibis Ambassador Seoul Insadong and Sotetus Hotels The Splaisir Seoul
Dongdaemun conducted by CBRE; Paloma Kent, Paloma Raleigh, Paloma University City, Paloma West Midtown, Seven07,
Standard at Columbia, Uncommon Wilmington, Wildwood Lubbock conducted by JLL Valuation & Advisory Services, LLC;
Element New York Times Square West, Sheraton Tribeca New York Hotel and voco Times Square South conducted by Colliers.
The freehold land and buildings of the six Australia properties were stated at fair value based on valuations carried out by
Colliers. The leasehold land and buildings of The Robertson House by The Crest Collection (formerly known as Riverside
Hotel Robertson Quay) and the freehold land and buildings of Temple Bar Hotel were stated at fair value based on valuations
carried out by HVS. The Managers believe that the external property valuers have appropriate professional qualifications andrecent experience in the location and category of the properties being valued. The Stapled Group’s valuations include plantand equipment located in the investment properties. The valuations adopted in the portfolio table above were adjusted forvalues ascribed to plant and equipment.

Portfolio & Performance

As at 31 December 2022, the carrying amounts for most of the investment properties and Somerset Liang Court, investment
property under development, were based on independent valuations carried out by Colliers. The valuation for the remaining
properties are conducted by the following valuers: Quest Cannon Hill, La Clef Tour Eiffel Paris, House Saison Shijo-Dori,Marunouchi Central Heights, S-Residence Gakuenzaka, S-Residence Namba Viale, S-Residence Shukugawa and Somerset
Central TD Hai Phong City conducted by HVS; Eslead Residence Bentencho Grande and Eslead Residence Umeda Grande
conducted by Asset Valuation Partners; Standard at Columbia, property under development, conducted by JLL Valuation& Advisory Services, LLC; ibis Ambassador Seoul Insadong, Sotetus Hotels The Splaisir Seoul Dongdaemun, Element New
York Times Square West, Sheraton Tribeca New York Hotel and voco Times Square South conducted by CBRE. The freehold
land and buildings of the six Australia properties and leasehold land and buildings of The Robertson House by The Crest
Collection (formerly Riverside Hotel Robertson Quay) were stated at fair value based on valuations carried out by Colliers. The
Managers believe that the external property valuers have appropriate professional qualifications and recent experience in thelocation and category of the properties being valued. The Stapled Group’s valuations include plant and equipment locatedin the investment properties. The valuations adopted in the portfolio table above were adjusted for values ascribed to plantand equipment.

Sustainability & Governance

The accompanying notes form an integral part of these financial statements.
ANNUAL REPORT 2023

189

Financial Statements andOther Information

The fair values were derived based on the discounted cash flow, direct capitalisation and residual land value methods.
The specific risks inherent in each of the properties are taken into consideration in arriving at the valuations. The valuation
methods used in determining the fair value involve certain estimates and assumptions including those relating to discountrate, terminal capitalisation rate, capitalisation rate, revenue per available unit and gross development costs.

STATEMENTS OF CASH FLOWS
Year ended 31 December 2023

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Cash flows from operating activities
Total return for the year
before income tax
Adjustments for:
Depreciation of property,
plant and equipment
Amortisation of deferred income
Finance costs
Finance income
Foreign exchange loss/(gain) –unrealised
Loss on disposal of property,
plant and equipment
Managers’ management fees paid/
payable in Stapled Securities
Revaluation surplus on landand buildings
Net change in fair value ofinvestment properties,
investment properties underdevelopment and assets held
for sale
Net change in fair value offinancial derivatives
Net change in fair value ofinvestment securities
Profit from divestments
Investment properties written off
Impairment loss/write-off of tradeand other receivables
Share of results of associate(net of tax)
Share of results of joint venture(net of tax)
Operating income before
working capital changes
Changes in working capital:
Inventories
Trade and other receivables
Trade and other payables
Cash generated from operations
Income tax paid
Net cash generated fromoperating activities
Balance carried forward

CAPITALAND ASCOTT TRUST

Stapled Group
2023
2022
$’000
$’000

295,021273,742

26,984

4,444

302,225

259,783

12,025(106)
80,795(3,125)

12,514–
61,985(1,176)22,156–
12,433(1,318)22,080(786)
14,616(338)

38,897(106)
86,830(4,434)35,773(786)
69,012(1,468)17,36734,448(2,097)

19,373

15,27053,821

65

345

–

–

1,313

345

22,34019,481

2,329

2,276

24,66921,757–––(5,393)–(5,393)(109,405)(138,850)(1,746)

4,534(101,132)(122,353)

25,283

(597)

(956)

–

24,327(597)(38)(16,016)
1,478

(253)
(99)
78

–
–
–

–
–
–

–
(16,016)
230

–
(99)
78

439

665

15

27

454

692

(7)

27

–

–

(7)

27

–

(3,918)–––(3,918)326,116

258,392

57,80060,833

372,520

306,674(71)(57,669)(12,816)
255,560(30,498)

66(32,402)
14,848240,904(30,412)

(181)
8,878
21,52888,025(1,039)(27)(4,092)28,80085,514(1,134)(252)(28,730)(11,346)
332,192(31,537)

39(6,871)
14,025313,867(31,546)

225,062

210,492

86,98684,380300,655

282,321225,062

210,492

86,98684,380300,655

282,321

The accompanying notes form an integral part of these financial statements.

190

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

STATEMENTS OF CASH FLOWS
Overview

Year ended 31 December 2023

Note

Balance brought forward

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

86,98684,380300,655

282,321(238,136)(261,470)––(238,136)(261,470)––(72,193)–(72,193)–(38,956)
8,500(41,783)–

38,956–

41,783
–

–
8,500

–
–

(16,434)(10,349)

(511)

(507)

(16,945)(10,856)(38,657)(25,183)––(38,657)(25,183)––(10,058)(6,866)

–
–

–
–

–
–

(10,058)(6,866)

62,950–––62,950

–

–

(128)

–

–

–

(128)

300
3,175

530
1,130

–
1,193

–
198

300
4,308

530
1,328

998

–

–

–

998

–

23

11

–

–

23

11

(23,395)
24,925(10,847)–(10,899)
1,545(1,640)16,355(34,294)
26,470(12,487)
16,355(254,707)(365,013)(41,909)56,189(296,676)(308,824)

Balance carried forward(29,645)(154,521)

45,077140,569

3,979(26,503)

ANNUAL REPORT 2023

191

Financial Statements andOther Information

The accompanying notes form an integral part of these financial statements.

Sustainability & GovernanceCash flows from investing activities
Acquisition of investment
properties
38
Acquisition of property,
plant and equipment
38
Advance (to)/from related
corporations
Deferred income received
Capital expenditure on investment
properties
Capital expenditure on investment
properties under development
Deposit paid for acquisition of
investment properties
Loan to joint venture
Proceeds from disposal of assets
held for sale
Refund of purchase consideration
to buyer for disposal ofsubsidiary in prior year
Proceeds from disposal ofstrata units
Interest received
Deposit received for divestment ofinvestment properties
Proceeds from sale of property,
plant and equipment
Purchase of property,
plant and equipment
Settlement of hedging instruments
Net cash (used in)/generated frominvesting activities

Portfolio & Performance

210,492

Leadership

225,062

STATEMENTS OF CASH FLOWS
Year ended 31 December 2023

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Balance brought forward
Cash flows from financing activities
Distributions to Stapled
Securityholders
Distributions to perpetualsecurities holders
Dividends paid to
non-controlling interests
Proceeds from issue of
Stapled Securities
Payment of issue expenses on
issuance of Stapled Securities
Proceeds from borrowings andissuance of notes
Repayment of borrowings andnotes
Payment of transaction costs on
borrowings and notes
Payment of lease liabilities
Interest paid
Change in restricted cash deposits
Net cash generated from/(used in)financing activities
Net increase/(decrease) in cash
and cash equivalents
Cash and cash equivalents
at 1 January
Effect of exchange rate changes onbalances held in foreign currency
Cash and cash equivalents
at 31 December

CAPITALAND ASCOTT TRUST

Stapled Group
2023
2022
$’000
$’000

(29,645)(154,521)

45,077140,569

3,979(26,503)(161,366)(139,955)(36,845)(28,715)(198,211)(168,670)(13,495)(13,495)––(13,495)(13,495)(3,234)(1,888)

(167)

(61)

(3,286)(1,929)165,861

170,000

137,192–

303,053

170,000(2,340)(2,293)(2,095)–(4,435)(2,293)704,147

1,554,606

51,27092,243755,417

1,646,849(499,073) (1,319,220)(175,468)(161,770)(674,541) (1,480,990)(2,966)(9,000)(73,847)(6,084)(7,842)(7,897)(55,966)
(18)

(557)
(4,890)(12,970)(1,040)(231)(4,989)(14,101)
212(3,523)(9,000)(80,369)(7,124)(8,073)(7,897)(62,525)
194

98,603

176,032(45,570)(117,412)

64,486

71,171

68,95821,511(493)

23,157

68,46544,668298,862

300,792

62,30342,877361,165

343,669(4,922)(23,441)(1,495)(3,731)(6,417)(27,172)

362,898

298,862

60,31562,303423,213361,165

The accompanying notes form an integral part of these financial statements.

192

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

STATEMENTS OF CASH FLOWS
Overview

Year ended 31 December 2023

Significant non-cash transactions
CapitaLand Ascott REIT Group
During the year, the CapitaLand Ascott REIT Group has the following significant non-cash transactions:•	A total of 22,134,460 (2022: 18,634,723) Stapled Securities were issued or will be issued as payment of the
REIT Manager’s management fees amounting to $22,340,000 (2022: $19,481,000) in respect of the year
ended 31 December 2023.

•	
The CapitaLand Ascott REIT Group incurred capital expenditure on investment properties underdevelopment of $42,343,000 (2022: $25,217,000), of which $9,907,000 (2022: $6,221,000) was unpaid andincluded in trade and other payables.

Leadership•	The CapitaLand Ascott REIT Group incurred capital expenditure on investment properties of $20,577,000(2022: $12,925,000), of which $4,143,000 (2022: $2,576,000) was unpaid and included in trade and otherpayables. The $2,576,000 unpaid as at 31 December 2022 was settled via acquisition fees in Stapled
Securities to the REIT Manager during the year.

CapitaLand Ascott BT Group
During the year, the CapitaLand Ascott BT Group has the following significant non-cash transactions:•	The CapitaLand Ascott BT Group acquired property, plant and equipment with an aggregate cost of$11,925,000 (2022: $1,640,000) of which $1,026,000 (2022: $Nil) was unpaid and included in trade andother payables.
Stapled Group
During the year, the Stapled Group has the following significant non-cash transactions:Portfolio & Performance•	A total of 2,350,563 (2022: 2,169,590) Stapled Securities were issued or will be issued as payment of the
BT Trustee-Manager’s management fees amounting to $2,329,000 (2022: $2,276,000) in respect of theyear ended 31 December 2023.

•	A total of 22,134,460 (2022: 18,634,723) Stapled Securities were issued or will be issued as payment of the
REIT Manager’s management fees amounting to $22,340,000 (2022: $19,481,000) in respect of the year
ended 31 December 2023.

•	The Stapled Group incurred capital expenditure on investment properties of $21,088,000(2022: $13,432,000), of which $4,143,000 (2022: $2,576,000) was unpaid and included in trade and otherpayables. The $2,576,000 unpaid as at 31 December 2022 was settled via acquisition fees in Stapled
Securities to the REIT Manager during the year.
•	The Stapled Group incurred capital expenditure on investment properties under development of$42,343,000 (2022: $25,217,000), of which $9,907,000 (2022: $6,221,000) was unpaid and included in tradeand other payables.

Sustainability & Governance•	A total of 2,350,563 (2022: 2,169,590) Stapled Securities were issued or will be issued as payment of the
BT Trustee-Manager’s management fees amounting to $2,329,000 (2022: $2,276,000) in respect of theyear ended 31 December 2023.

•	The Stapled Group acquired property, plant and equipment with an aggregate cost of $35,320,000(2022: $12,487,000) of which $1,026,000 (2022: $Nil) was unpaid and included in trade and other payables.

ANNUAL REPORT 2023

193

Financial Statements andOther Information

The accompanying notes form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the REIT Manager, the BT Trustee-Manager and the REIT
Trustee on 8 March 2024.

1

GENERAL
CapitaLand Ascott Trust is a stapled group comprising CapitaLand Ascott Real Estate Investment Trust(“CapitaLand Ascott REIT”) and its subsidiaries (the “CapitaLand Ascott REIT Group”) and CapitaLand
Ascott Business Trust (“CapitaLand Ascott BT”) and its subsidiaries (the “CapitaLand Ascott BT Group”)(collectively, the “Stapled Group”).
CapitaLand Ascott REIT is a Singapore-domiciled unit trust constituted pursuant to the CapitaLand Ascott
REIT trust deed dated 19 January 2006 (as amended) (the “CapitaLand Ascott REIT Trust Deed”) between
CapitaLand Ascott Trust Management Limited (the “REIT Manager”) and DBS Trustee Limited (the “REIT
Trustee”). The CapitaLand Ascott REIT Trust Deed is governed by the laws of the Republic of Singapore.
The REIT Trustee is under a duty to take into custody and hold the assets of CapitaLand Ascott REIT heldby it or through its subsidiaries in trust for the holders of units in CapitaLand Ascott REIT.
CapitaLand Ascott BT is a business trust constituted by a trust deed dated 9 September 2019 (asamended) (the “CapitaLand Ascott BT Trust Deed”) and is managed by CapitaLand Ascott Business TrustManagement Pte. Ltd. (the “BT Trustee-Manager”).
A stapling deed dated 9 September 2019 and First Supplemental Stapling Deed dated 27 September
2022 was entered into between the REIT Manager, the REIT Trustee and the BT Trustee-Manager (the“Stapling Deed”).
On 31 December 2019, the units in each of CapitaLand Ascott REIT and CapitaLand Ascott BT arestapled together and cannot be traded separately. Each stapled security in CapitaLand Ascott Trust (the“Stapled Security”) comprises a unit in CapitaLand Ascott REIT (the “CapitaLand Ascott REIT Unit”) anda unit in CapitaLand Ascott BT (the “CapitaLand Ascott BT Unit”).
The principal activities of the significant subsidiaries of the Stapled Group are those relating to investment
in real estate and real estate related assets which are income-producing, and which are used or
predominantly used, as serviced residences, hotels, rental housing properties, student accommodation
properties and other hospitality assets in any country in the world.
For financial reporting purposes, the intermediate and ultimate holding companies of the Stapled Groupare CapitaLand Investment Limited and Temasek Holdings (Private) Limited. The intermediate andultimate holding companies are incorporated in the Republic of Singapore.
The consolidated financial statements of the CapitaLand Ascott REIT Group relate to CapitaLand
Ascott REIT, its subsidiaries and its interests in its associate. The consolidated financial statements of
the CapitaLand Ascott BT Group relate to CapitaLand Ascott BT and its subsidiaries. The consolidated
financial statements of the Stapled Group relate to the CapitaLand Ascott REIT Group and the CapitaLand
Ascott BT Group.

194

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
1

GENERAL (continued)

1.1

Service agreements

Overview

Year ended 31 December 2023

Several service agreements are in place in relation to the management of CapitaLand Ascott REIT and
CapitaLand Ascott BT and their property operations. The fee structures of these services are as follows:(i)

REIT Trustee’s fees(ii)

Leadership

Pursuant to Clause 16.2 of the CapitaLand Ascott REIT Trust Deed, the REIT Trustee’s fee shallnot exceed 0.1% per annum of the value of the assets of the CapitaLand Ascott REIT Group(the “CapitaLand Ascott REIT Deposited Property”), subject to a minimum of $10,000 per month,excluding out-of-pocket expenses and goods and services tax which is borne by CapitaLand Ascott
REIT. The REIT Trustee is also entitled to reimbursement of expenses incurred in the performanceof its duties under the CapitaLand Ascott REIT Trust Deed. The REIT Trustee’s fees are payablemonthly in arrears.
REIT Manager’s fees
Management fees
The REIT Manager is entitled under Clauses 15.1.1 and 15.1.2 of the CapitaLand Ascott REIT Trust
Deed to the following management fees:
a base fee of 0.3% per annum of the property values; and(b)an annual performance fee of:•	base performance fee of 4.0% per annum of the CapitaLand Ascott REIT Group’s
share of gross profit for each financial year; and•	in the event that the CapitaLand Ascott REIT Group’s share of gross profit increases bymore than 6.0% annually, an additional outperformance fee of 1.0% of the difference
between the CapitaLand Ascott REIT Group’s share of that financial year’s gross profit
and 106% of the CapitaLand Ascott REIT Group’s share of the preceding year’s grossprofit.

When management fees are payable in Stapled Securities, the REIT Manager shall be entitled toreceive such number of Stapled Securities as may be purchased for the relevant amount of the
management fees at the market price (as defined in the CapitaLand Ascott REIT Trust Deed).

195

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & GovernanceThe base management fees payable in cash and in the form of Stapled Securities shall be payable
quarterly in arrears. Performance fees shall be payable once a year, after the end of the financial
year.

Portfolio & Performance(a)NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

1

GENERAL (continued)

1.1

Service agreements (continued)(ii)

REIT Manager’s fees (continued)
Acquisition fee
Pursuant to Clause 15.2.1 of the CapitaLand Ascott REIT Trust Deed, the REIT Manager is entitled
to receive the following acquisition fees:(a)	an acquisition fee of 1.0% of the enterprise value (“Enterprise Value”) of any real estate orreal estate related asset acquired directly or indirectly by CapitaLand Ascott REIT, prorated
if applicable to the proportion of CapitaLand Ascott REIT’s interest; and(b)	in the event that there is payment to third party agents or brokers in connection with theacquisition, such payment shall be paid out of the CapitaLand Ascott REIT Deposited
Property, provided that the REIT Manager shall charge an acquisition fee of 0.5% instead of
1.0%.
Where assets acquired by CapitaLand Ascott REIT are shares in a company whose primary purpose
is to hold/own real estate (directly or indirectly), Enterprise Value shall mean the sum of the equity
value and the total debt attributable to the shares being acquired by CapitaLand Ascott REIT and
where the asset acquired by the CapitaLand Ascott REIT is a property, Enterprise Value shall mean
the value of the property.
The REIT Manager may opt to receive such acquisition fee in the form of cash or Stapled Securities
or a combination of cash and Stapled Securities as it may determine.
In the event that the REIT Manager receives an acquisition fee in connection with a transaction witha related party, any such acquisition fee shall be paid in the form of Stapled Securities to be issued
by CapitaLand Ascott REIT at the market price.
Divestment fee
The REIT Manager is entitled under Clause 15.2.1 of the CapitaLand Ascott REIT Trust Deed toreceive a divestment fee of 0.5% of the Enterprise Value of any real estate or real estate related
asset disposed directly or indirectly by CapitaLand Ascott REIT, prorated if applicable to the
proportion of CapitaLand Ascott REIT’s interest.
The divestment fee is payable to the REIT Manager in the form of cash. In the event that the REITManager receives a divestment fee in connection with a transaction with a related party, any suchdivestment fee shall be paid in the form of Stapled Securities to be issued by CapitaLand Ascott
REIT at the market price.

(iii)

BT Trustee-Manager’s fees
Trustee fee
Pursuant to Clause 14.4.2 of the CapitaLand Ascott BT Trust Deed, the BT Trustee-Manager’s fee
shall not exceed 0.015% per annum of the value of the assets of the CapitaLand Ascott BT Group(the “CapitaLand Ascott BT Deposited Property”), subject to a minimum of $13,500 per month,excluding out-of-pocket expenses and goods and services tax which is borne by CapitaLand
Ascott BT. The BT Trustee-Manager is also entitled to reimbursement of expenses incurred in theperformance of its duties under the CapitaLand Ascott BT Trust Deed. The BT Trustee-Manager’s
fees are payable monthly in arrears.

196

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
1

GENERAL (continued)

1.1

Service agreements (continued)(iii)

Overview

Year ended 31 December 2023

BT Trustee-Manager’s fees (continued)
Management fees
The BT Trustee-Manager is entitled under Clauses 14.1.1 and 14.1.2 of the CapitaLand Ascott BT
Trust Deed to the following management fees:
a base fee of 0.3% per annum of the property values; and(b)an annual performance fee of:•	base performance fee of 4.0% per annum of the CapitaLand Ascott BT Group’s shareof gross profit for each financial year; andLeadership(a)•	in the event that the CapitaLand Ascott BT Group’s share of gross profit increases bymore than 6.0% annually, an additional outperformance fee of 1.0% of the difference
between the CapitaLand Ascott BT Group’s share of that financial year’s gross profit
and 106% of the CapitaLand Ascott BT Group’s share of the preceding year’s grossprofit.

When management fees are payable in Stapled Securities, the BT Trustee-Manager shall be entitled
to receive such number of Stapled Securities as may be purchased for the relevant amount of the
management fees at the market price (as defined in the CapitaLand Ascott BT Trust Deed).
Acquisition fee
Pursuant to Clause 14.2.1 of the CapitaLand Ascott BT Trust Deed, the BT Trustee-Manager isentitled to receive the following acquisition fees:

Portfolio & Performance

The base management fees and performance fees payable in cash and in the form of Stapled
Securities shall be payable quarterly in arrears.

(a)	an acquisition fee of 1.0% of the Enterprise Value of any real estate or real estate related
asset acquired directly or indirectly by CapitaLand Ascott BT, prorated if applicable to the
proportion of CapitaLand Ascott BT’s interest; andWhere assets acquired by CapitaLand Ascott BT are shares in a company whose primary purpose
is to hold/own real estate (directly or indirectly), Enterprise Value shall mean the sum of the equity
value and the total debt attributable to the shares being acquired by CapitaLand Ascott BT and
where the asset acquired by CapitaLand Ascott BT is a property, Enterprise Value shall mean thevalue of the property.

Sustainability & Governance(b)	in the event that there is payment to third party agents or brokers in connection with theacquisition, such payment shall be paid out of the CapitaLand Ascott BT Deposited Property,
provided that the BT Trustee-Manager shall charge an acquisition fee of 0.5% instead of
1.0%.

The BT Trustee-Manager may opt to receive such acquisition fee in the form of cash or Stapled
Securities or a combination of cash and Stapled Securities as it may determine.

ANNUAL REPORT 2023

197

Financial Statements andOther Information

In the event that the BT Trustee-Manager receives an acquisition fee in connection with a transaction
with a related party, any such acquisition fee shall be paid in the form of Stapled Securities to beissued by CapitaLand Ascott BT at the market price.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

1

GENERAL (continued)

1.1

Service agreements (continued)(iii)

BT Trustee-Manager’s fees (continued)
Divestment fee
The BT Trustee-Manager is entitled under Clause 14.2.1 of the CapitaLand Ascott BT Trust Deedto receive a divestment fee of 0.5% of the Enterprise Value of any real estate or real estate
related asset disposed directly or indirectly by CapitaLand Ascott BT, prorated if applicable to the
proportion of the CapitaLand Ascott BT’s interest.
The divestment fee is payable to the BT Trustee-Manager in the form of cash. In the event thatthe BT Trustee-Manager receives a divestment fee in connection with a transaction with a related
party, any such divestment fee shall be paid in the form of Stapled Securities to be issued by
CapitaLand Ascott BT at the market price.

(iv)

Fees under serviced residence management agreements
The serviced residence management fee for each property is agreed between the Stapled Groupand the relevant serviced residence management company as follows:(a)	for management contracts, each property is charged management fees of between 1.0%
and 3.0% per annum of the total revenue of each property and up to 11.0% per annum ofgross operating profit of each property; and(b)	for management contracts with minimum guaranteed income, each property is charged
management fees of:•	1.5% to 3.0% per annum of the total revenue of each property; and•	up to 9.0% per annum of gross operating profit of each property and up to 13.0% perannum of adjusted gross operating profit of each property.
For one of the properties, if the adjusted gross operating profit exceeds the hurdle (asdefined in the management agreement), the operator will be entitled to share 50% of suchprofits exceeding the hurdle. The total profit share is subject to a cap for ten years after thecompletion of the renovation works.

2

BASIS OF PREPARATION

2.1

Statement of compliance
The financial statements of the CapitaLand Ascott REIT Group and the Stapled Group have been
prepared in accordance with the Statement of Recommended Accounting Practice (“RAP”) 7 “Reporting
Framework for Investment Funds” issued by the Institute of Singapore Chartered Accountants, and theapplicable requirements of the Code on Collective Investment Schemes (the “CIS Code”) issued by the
Monetary Authority of Singapore (“MAS”) and the provisions of the CapitaLand Ascott REIT Trust Deedand the Stapling Deed. RAP 7 requires that accounting policies adopted should generally comply withthe principles relating to recognition and measurement of the Singapore Financial Reporting Standards(“FRSs”).
The financial statements of the CapitaLand Ascott BT Group have been prepared in accordance with
Singapore Financial Reporting Standards (International) (“SFRS(I)s”), the applicable requirements of theBusiness Trusts Act 2004 and the provisions of the CapitaLand Ascott BT Trust Deed. The adoption of
new accounting standards and amendments are described in Note 2.5.

198

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
Overview

Year ended 31 December 2023

2

BASIS OF PREPARATION (continued)

2.2

Basis of measurement
The financial statements have been prepared on the historical cost basis, except as disclosed in thenotes below.

2.3

Functional and presentation currency

2.4

Use of estimates and judgements
The preparation of the financial statements requires management to make judgements, estimates andassumptions about the future, including climate-related risks and opportunities, that affect the applicationof accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.

Leadership

These financial statements are presented in Singapore Dollars, which is the functional currency of
CapitaLand Ascott REIT and CapitaLand Ascott BT. All financial information presented in Singapore
Dollars have been rounded to the nearest thousand, unless otherwise stated.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with theGroup’s risk management and climate-related commitments where appropriate. Revisions to accounting
estimates are recognised prospectively.

•	Note 3.3 and 4–classification of investment properties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in amaterial adjustment within the next financial year are included in the following notes:•	Note 4, 5 and 6–	determination of fair value of investment properties, land and buildings,
and investment properties under development

Portfolio & Performance

Information about critical judgements in applying accounting policies that have the most significant
effect on the amount recognised in the financial statements are described in the following notes:

Measurement of fair values
A number of the Stapled Group’s accounting policies and disclosures require the measurement of fairvalues, for both financial and non-financial assets and liabilities.

Management regularly reviews significant unobservable inputs and valuation adjustments. If third party
information, such as valuation of investment property by external property valuers, is used to measurefair values, then management assesses and documents the evidence obtained from the third parties tosupport the conclusion that such valuations meet the requirements of FRSs/SFRS(I)s, including the levelin the fair value hierarchy in which such valuations should be classified.

Sustainability & Governance

The CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group have an
established control framework with respect to the measurement of fair values. Significant fair value
measurements, including Level 3 fair values, will be reported directly to the Chief Executive Officer(“CEO”) of the Managers.

The valuation of significant assets and their financial impact are discussed by the ARC and Board of
Directors of the Managers.

199

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

2

BASIS OF PREPARATION (continued)

2.4

Use of estimates and judgements (continued)
When measuring the fair value of an asset or a liability, the CapitaLand Ascott REIT Group, the CapitaLand
Ascott BT Group and the Stapled Group use observable market data as far as possible. Fair values
are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:••

Level 1 :Level 2 :•Level 3 :quoted prices (unadjusted) in active markets for identical assets or liabilities.
inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value
hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement (with Level 3 being thelowest).
The CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group recognise
transfers between levels of the fair value hierarchy as of the end of the reporting period during which thechange has occurred.
Further information about the assumptions made in measuring fair values is included in Note 33 – financial
instruments.
2.5

Adoption of new accounting standards and amendments
The CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group have applied
the following FRSs or SFRS(I)s, amendments to and interpretations of FRSs/SFRS(I)s for the first time forthe annual period beginning on 1 January 2023:•	SFRS(I) 17/FRS 117: Insurance Contracts•	Amendments to SFRS(I) 1-12/FRS 12: Deferred tax related to Assets and Liabilities arising from aSingle Transaction•	Amendments to SFRS(I)1-12/FRS 12: International Tax Reform – Pillar Two Model Rules•	
Amendments to SFRS(I) 1-1/FRS 1 and FRS Practice Statement 2: Disclosure of Accounting
Policies•	Amendments to SFRS(I)1-8/FRS 8: Definition of Accounting Estimates
Other than the below, the application of these amendments to accounting standards and interpretations
does not have a material effect on the financial statements.
Global minimum top-up tax
The Stapled Group has adopted Amendments to SFRS(I) 1- 12/FRS 12: International Tax Reform - Pillar
Two Model Rules upon their release on 23 May 2023. The amendments provide a temporary mandatory
exception from deferred tax accounting for the top-up tax that may arise from the jurisdictional adoptionof the Pillar Two model rules published by OECD, and required new disclosures about the Pillar Two tax
exposure.
The mandatory exception is effective immediately and applies retrospectively. However, because no newlegislation to implement top-up tax was enacted or substantively enacted at 31 December 2022 in any
jurisdiction in which the Stapled Group operates and no related deferred tax was recognised as that date,
the retrospective application has no impact on the Stapled Group's consolidated financial statements.

200

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
2

BASIS OF PREPARATION (continued)

2.5

Adoption of new accounting standards and amendments (continued)

Overview

Year ended 31 December 2023

Material accounting policy information
The Stapled Group adopted Amendments to SFRS(I) 1-1/FRS 1 and FRS Practice Statement 2: Disclosureof Accounting Policies for the first time in 2023. Although the amendments did not result in any changes
to the accounting policies themselves, they impacted the accounting policy information disclosed in thefinancial statements.
Leadership

The amendments require the disclosure of ‘material’, rather than ‘significant’, accounting policies. The
amendments also provide guidance on the application of materiality to disclosure of accounting policies,
assisting entities to provide useful, entity-specific accounting policy information that users need tounderstand other information in the financial statements.
Management reviewed the accounting policies and made updates to the information disclosed in Note 3
Material accounting policies (2022: Significant accounting policies) in certain instances in line with theamendments.

3

MATERIAL ACCOUNTING POLICIESIn addition, the Stapled Group adopted the Amendments to SFRS(I) 1-1/FRS 1 and FRS Practice Statement
2 Disclosure of Accounting Policies from 1 January 2023. The amendments require the disclosureof ‘material’, rather than ‘significant’, accounting policies. Although the amendments did not result inany changes to the accounting policies themselves, they impacted the accounting policy information
disclosed in Note 3 in certain instances (see Note 2.5 for further information).
3.1

Portfolio & Performance

The accounting policies set out below have been applied by the CapitaLand Ascott REIT Group, theCapitaLand Ascott BT Group and the Stapled Group consistently to all periods presented in thesefinancial statements, except as explained in Note 2.5 which addresses changes in material accounting
policies.

Basis of consolidation(i)

Stapling(ii)

Business combinations
Business combinations are accounted for using the acquisition method when the acquired set of
activities and assets meets the definition of a business and control is transferred to the Stapled
Group. In determining whether a particular set of activities and assets is a business, the Stapled
Group assesses whether the set of assets and activities acquired includes, at a minimum, an input
and substantive process and whether the acquired set has the ability to produce outputs.
The Stapled Group has an option to apply a ‘concentration test’ that permits a simplified assessmentof whether an acquired set of activities and assets is not a business. The optional concentration
test is met if substantially all of the fair value of the gross assets acquired is concentrated in asingle identifiable asset or group of similar identifiable assets.

ANNUAL REPORT 2023

201

Financial Statements andOther Information

The Stapled Group measures goodwill at the acquisition date as:•	the fair value of the consideration transferred; plus
•	the recognised amount of any non-controlling interest (“NCI”) in the acquiree; plus•	if the business combination is achieved in stages, the fair value of the pre-existing equity
interest in the acquiree,over the net recognised amount (generally fair value) of the identifiable assets acquired andliabilities assumed. Any goodwill that arises is tested annually for impairment.

Sustainability & Governance

Where entities enter into a stapling arrangement, the stapling arrangement is accounted for as abusiness combination under the acquisition method.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

3

MATERIAL ACCOUNTING POLICIES (continued)

3.1

Basis of consolidation (continued)(ii)

Business combinations (continued)
NCI that are present ownership interests and entitle their holders to a proportionate share of theacquiree’s net assets in the event of liquidation are measured either at fair value or at the NCI’s
proportionate share of the recognised amounts of the acquiree’s identifiable net assets, at thedate of acquisition. The measurement basis taken is elected on a transaction-by-transaction basis.
All other NCI are measured at acquisition-date fair value, unless another measurement basis isrequired by FRS/SFRS(I)s. If the business combination is achieved in stages, the Stapled Group’s
previously held equity interest in the acquiree is re-measured to fair value at each acquisition date
and any changes are taken to the total return.
Costs related to the acquisition, other than those associated with the issue of debt or equity
securities, that the Stapled Group incurs in connection with a business combination are expensed
as incurred.

(iii)

Property acquisition and business combination
Where a property is acquired, via corporate acquisitions or otherwise, the Managers consider
whether the acquisition represents an acquisition of a business or an acquisition of an asset. The
Stapled Group accounts for an acquisition as business combination when an integrated set of
activities is acquired, in addition to the property.
In determining whether an integrated set of activities is acquired, the Managers consider whether
significant processes are acquired (e.g. strategic management and serviced residence operations,etc.). Where significant processes are acquired, the acquisition is considered an acquisition ofbusiness.
When acquisition of an asset or a group of assets does not constitute a business combination,
it is treated as property acquisition. In such cases, the individual identifiable assets acquired
and liabilities assumed are recognised. The acquisition cost shall be allocated to the individual
identifiable assets and liabilities on the basis of their relative fair values at the date of acquisition.
Such a transaction does not give rise to goodwill.

(iv)

Subsidiaries
Subsidiaries are entities controlled by the CapitaLand Ascott REIT Group or the CapitaLand Ascott
BT Group. The CapitaLand Ascott REIT Group and the CapitaLand Ascott BT Group control anentity when they are exposed to, or have rights to, variable returns from their involvement with theentity and have the ability to affect these returns through its power over the entity. 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 accounting policies of subsidiaries have been changed when necessary to align them withthe policies adopted by the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group andthe Stapled Group. Losses applicable to the non-controlling interests in a subsidiary are allocatedto the non-controlling interests even if this results in the non-controlling interests having a deficit
balance.
Changes in the interests of the CapitaLand Ascott REIT Group or the CapitaLand Ascott BT Group
in subsidiaries that do not result in a loss of control are accounted for as transactions with owners
and therefore no adjustments are made to goodwill and no gain or loss is recognised in theStatement of Total Return. Adjustments to non-controlling interests arising from transactions that
do not involve the loss of control are based on a proportionate amount of the net assets of thesubsidiary.

202

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
3

MATERIAL ACCOUNTING POLICIES (continued)

3.1

Basis of consolidation (continued)(iv)

Overview

Year ended 31 December 2023

Subsidiaries (continued)(v)

Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising fromintra-group transactions, are eliminated in preparing the consolidated financial statements of theCapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group. Unrealised
gains arising from transactions with associates are eliminated against the investment to the extent
of the CapitaLand Ascott REIT Group’s interest in the associate. Unrealised losses are eliminatedin the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

3.2

Leadership

Upon the loss of control of a subsidiary, the CapitaLand Ascott REIT Group and the CapitaLand
Ascott BT Group derecognise the assets and liabilities of the subsidiary, any non-controllinginterests and the other components of equity related to the subsidiary. Any surplus or deficit arisingfrom the loss of control is recognised in the Statement of Total Return. If the CapitaLand Ascott
REIT Group and the CapitaLand Ascott BT Group retain any interest in the previous subsidiary,
then such interest is measured at fair value at the date that control is lost.

Foreign currency
Foreign currency transactions
Items included in the financial statements of each entity in the CapitaLand Ascott REIT Group,
the CapitaLand Ascott BT Group, and the Stapled Group are measured using the currency thatbest reflects the economic substance of the underlying events and circumstances relevant to that
entity (the “functional currency”).
Transactions in foreign currencies are translated to the respective functional currencies of theStapled Group’s entities at the exchange rates at the dates of the transactions. Monetary assets
and liabilities denominated in foreign currencies at the end of the reporting date are translated to
the functional currency at the exchange rate prevailing at that date.

Foreign currency differences arising from translation are recognised in the Statement of Total
Return, except for differences arising from the translation of monetary items that in substance form
part of the CapitaLand Ascott REIT Group’s, the CapitaLand Ascott BT Group’s and the Stapled
Group’s net investment in a foreign operation, financial liabilities designated as hedges of net
investment in a foreign operation (see Note 3.6(vi)) or qualifying cash flow hedges, to the extent
such hedges are effective, which are recognised in Stapled Securityholders’ funds.
(ii)

Foreign operations

ANNUAL REPORT 2023

203

Financial Statements andOther Information

The assets and liabilities of foreign operations, excluding goodwill and fair value adjustments,
arising on acquisitions are translated to Singapore Dollars at exchange rates prevailing at the endof the reporting period. The income and expenses of foreign operations are translated to Singapore
Dollars at exchange rates at the dates of the transactions. Fair value adjustments arising from theacquisition of a foreign operation are treated as assets and liabilities of the foreign operation andtranslated at the exchange rates at the reporting date.

Sustainability & GovernanceNon-monetary assets and liabilities denominated in foreign currencies that are measured at fairvalue are translated to the functional currency at the exchange rate at the date on which the fairvalue was determined. Non-monetary items in a foreign currency that are measured in terms ofhistorical cost are translated using the exchange rate at the date of the transaction.

Portfolio & Performance(i)NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

3

MATERIAL ACCOUNTING POLICIES (continued)

3.2

Foreign currency (continued)(ii)

Foreign operations (continued)
Foreign currency differences are recognised in other comprehensive income (“OCI”) or Stapled
Securityholders’ funds, and presented in the foreign currency translation reserve. However, if theforeign operation is not a wholly-owned subsidiary, then the relevant proportionate share of thetranslation difference is allocated to the non-controlling interests. When a foreign operation is
disposed of such that control, significant influence or joint control is lost, the cumulative amountin the foreign currency translation reserve related to that foreign operation is transferred to total
return as part of the profit or loss on disposal. When the disposal is only part of its interest in a
subsidiary that includes a foreign operation while retaining control, the relevant proportion of
the cumulative amount is reattributed to non-controlling interests. When the CapitaLand Ascott
REIT Group, the CapitaLand Ascott BT Group and the Stapled Group dispose of only part of its
investment in an associate that includes a foreign operation while retaining significant influenceor joint control, the relevant proportion of the cumulative amount is transferred to Statement of
Total Return.

(iii)

Net investment in a foreign operation
When the settlement of a monetary item receivable from or payable to a foreign operation is neither
planned nor likely to occur in the foreseeable future, foreign exchange gains and losses arisingfrom such a monetary item are considered to form part of a net investment in a foreign operation.
These are recognised in Stapled Securityholders’ funds and are presented in the foreign currencytranslation reserve.

3.3

Investment properties and investment properties under development
Investment properties comprise serviced residences, hotels, rental housing properties, student
accommodation properties and other hospitality assets which are held either to earn rental or for capital
appreciation or both. Investment properties under development are properties being constructed ordeveloped for future use as investment properties. Certain of the Stapled Group’s investment properties
acquired through interests in subsidiaries, are accounted for as acquisition of assets.
Investment properties and investment properties under development are initially recognised at cost,
including transaction costs, and subsequently at fair value with any change therein recognised in the
total return. Cost includes expenditure that is directly attributable to the acquisition of the investment
property. The cost of self-constructed investment property includes the cost of materials and direct
labour, any other costs directly attributable to bringing the investment property to a working condition for
their intended use and capitalised borrowing costs.
Fair value is determined in accordance with the CapitaLand Ascott REIT Trust Deed and the CapitaLand
Ascott BT Trust Deed, which requires the investment properties to be valued by independent registeredvaluers in the following events:•	at least once in each period of 12 months following the acquisition of each parcel of real estate
property; and•	for acquisition and disposal of real estate property as required by the CIS Code issued by MAS.
Any increase or decrease on revaluation is credited or charged to the Statement of Total Return as a netchange in fair value of the investment properties and investment properties under development.
When an investment property or investment property under development is disposed of, the resulting
gain or loss recognised in the Statement of Total Return is the difference between the net disposal
proceeds and the carrying amount of the property.

204

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
Overview

Year ended 31 December 2023

3

MATERIAL ACCOUNTING POLICIES (continued)

3.3

Investment properties and investment properties under development (continued)

3.4

Property, plant and equipment(i)

Recognition and measurement

Leadership

Properties are classified either as investment properties or property, plant and equipment in theStatement of Financial Position. In assessing whether a property is classified as an investment property
or property, plant and equipment, the Stapled Group takes into consideration several factors including,but not limited to, the business model, the extent of ancillary services provided, the power that the
Stapled Group has to make significant operating and financing decisions regarding the operations of
the property and the significance of its exposure to variations in the net cash flows of the property. The
factors above are considered collectively, together with the facts and circumstances of each lease, in
determining the classification of a property.

Property, plant and equipment are measured at cost less accumulated depreciation andaccumulated impairment losses. Cost includes expenditure that is directly attributable to theacquisition of the asset. Certain of the Stapled Group’s property, plant and equipment acquired
through interests in subsidiaries, are accounted for as acquisition of assets.

Any surplus arising on the revaluation is recognised in OCI or Stapled Securityholders’ funds (asthe case may be), except to the extent that the surplus reverses a previous revaluation deficit on
the same asset recognised in the Statement of Total Return, in which case the credit to that extent
is recognised in the Statement of Total Return. Any deficit on revaluation is recognised in theStatement of Total Return except to the extent that it reverses a previous revaluation surplus on thesame asset, in which case the debit to that extent is recognised in OCI or Stapled Securityholders’funds (as the case may be).

Portfolio & Performance

Subsequent to recognition, land and buildings are measured at fair value less accumulated
depreciation and accumulated impairment losses while other plant and equipment are measured
at cost less accumulated depreciation and accumulated impairment losses.

The gain or loss on disposal of an item of property, plant and equipment (calculated as the difference
between the net proceeds from disposal and the carrying amount of the item) is recognised in theStatement of Total Return.
(ii)

Subsequent expenditure(iii)

Depreciation
Depreciation is recognised from the date that the property, plant and equipment are installed andare ready for use. Depreciation on property, plant and equipment is recognised in the Statement of
Total Return on a straight-line basis over the estimated useful lives of each component of an itemof property, plant and equipment as follows:
30 to 83 years
2 to 15 years
8 to 12 years
5 to 8 years
2 to 10 years

Freehold land and assets under construction are stated at cost and are not depreciated.
The assets’ residual values, useful lives and depreciation methods are reviewed at each reporting
date, and adjusted if appropriate.
ANNUAL REPORT 2023

205

Financial Statements andOther Information

Land and buildings 				–Plant and machinery				–Renovation 						–Motor vehicles					–Office equipment, computers and furniture –Sustainability & Governance

Subsequent expenditure relating to property, plant and equipment that has already beenrecognised is added to the carrying amount of the asset if it is probable that future economic
benefits, in excess of the originally assessed standard of performance of the existing asset, willflow to the Stapled Group and its cost can be measured reliably. All other subsequent expenditureis recognised as an expense in the period in which it is incurred.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

3

MATERIAL ACCOUNTING POLICIES (continued)

3.5

Intangible assets

Goodwill
For business combinations, the Stapled Group measures goodwill as at acquisition date based on thefair value of the consideration transferred (including the fair value of any pre-existing equity interestin the acquiree) and the recognised amount of any non-controlling interests in the acquiree, less the
net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
When the amount is negative, a gain on bargain purchase is recognised in the total return. Goodwill issubsequently measured at cost less accumulated impairment losses.
Goodwill arising from the acquisition of subsidiaries is included in intangible assets.
Goodwill is tested annually for impairment as described in Note 3.7.
3.6

Financial instruments(i)

Non-derivative financial assets

Classification and measurement
The Stapled Group classifies their financial assets as financial assets at amortised cost.
The classification depends on the Stapled Group’s business model for managing the financial
assets as well as the contractual terms of the cash flows of the financial asset.
The Stapled Group reclassifies financial assets when and only when its business model for
managing those assets changes.

At initial recognition
A financial asset is recognised if the Stapled Group becomes a party to the contractual provisionsof the financial asset.
At initial recognition, the Stapled Group measures a financial asset at its fair value plus, in thecase of a financial asset not at fair value through profit or loss, transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction costs of financial assets carried atfair value through profit or loss are expensed in the Statement of Total Return.

At subsequent measurement
Financial assets at amortised cost
Financial assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. Interest
income from these financial assets is included in interest income using the effective interest rate
method.
(ii)

Cash and cash equivalents
Cash and cash equivalents comprise cash balances and bank deposits. For the purpose of theStatement of Cash Flows, pledged deposits are excluded whilst bank overdrafts that are repayable
on demand and form an integral part of the Stapled Group’s cash management are included as acomponent of cash and cash equivalents.

206

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
3

MATERIAL ACCOUNTING POLICIES (continued)

3.6

Financial instruments (continued)(iii)

Overview

Year ended 31 December 2023

Non-derivative financial liabilities
The Stapled Group initially recognises debt securities issued on the date that they are originated.
Financial liabilities for contingent consideration payable in a business combination are recognised
at the acquisition date. All other financial liabilities (including liabilities designated at fair value
through profit or loss (“FVTPL")) are recognised initially on the trade date, which is the date that
the Stapled Group becomes a party to the contractual provisions of the instrument.
LeadershipA financial liability is classified as FVTPL if it is classified as held for trading or is designated assuch on initial recognition. Directly attributable transaction costs are recognised in total return as
incurred. Financial liabilities at FVTPL are measured at fair value and changes therein, including
any interest expense, are recognised in total return.
The Stapled Group classifies non-derivative financial liabilities under the other financial liabilities
category. Such financial liabilities are recognised initially at fair value plus any directly attributabletransaction costs. Subsequent to initial recognition, these financial liabilities are measured atamortised cost using the effective interest rate method. Other financial liabilities comprised loans
and borrowings, and trade and other payables (excluding advance rental and liability for employee
benefits).
Derecognition
Financial assets are derecognised if the Stapled Group’s contractual rights to the cash flows fromthe financial assets expire or if the Stapled Group transfers the financial assets to another party
without retaining control or transfers substantially all the risks and rewards of the assets. The
Stapled Group derecognises a financial liability when its contractual obligations are discharged,
cancelled or expired.
(v)

Offsetting

Portfolio & Performance(iv)

Financial assets and financial liabilities are offset and the net amount presented in the Statementof Financial Position when, and only when, the Stapled Group currently has a legally enforceable
right to set off the amounts and it intends either to settle them on a net basis or to realise the asset
and settle the liability simultaneously.
Derivative financial instruments and hedge accounting
The Stapled Group holds derivative financial instruments to hedge its foreign currency and interest
rate risk exposures. Embedded derivatives are separated from the host contract and accounted forseparately if the host contract is not a financial asset and the economic characteristics and risksof the host contract and the embedded derivative are not closely related, a separate instrumentwith the same terms as the embedded derivative would meet the definition of a derivative, and the
combined instrument is not measured at fair value through total return. The method of recognising
the resulting gain or loss depends on whether the derivative is designated as a hedging instrument,
and if so, the nature of the item being hedged. The Stapled Group designates each hedge as either:(a) cash flow hedge; or (b) net investment hedge.

ANNUAL REPORT 2023

207

Financial Statements andOther Information

On initial designation of the derivative as the hedging instrument, the Stapled Group formally
documents the economic relationship between the hedging instrument and hedged item,
including the risk management objectives and strategy in undertaking the hedge transaction andthe hedged risk, together with the methods that will be used to assess the effectiveness of thehedging relationship. The Stapled Group makes an assessment, both at the inception of the hedge
relationship as well as on an ongoing basis, of whether the hedging instruments are expected
to be highly effective in offsetting the changes in the fair value or cash flows of the respective
hedged items attributable to the hedged risk. For a cash flow hedge of a forecast transaction, thetransaction should be highly probable to occur and should present an exposure to variations incash flows that could ultimately affect reported total return.

Sustainability & Governance(vi)

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

3

MATERIAL ACCOUNTING POLICIES (continued)

3.6

Financial instruments (continued)(vi)

Derivative financial instruments and hedge accounting (continued)
Derivatives are recognised initially at fair value; attributable transaction costs are recognised in
the Statement of Total Return when incurred. Subsequent to initial recognition, derivatives aremeasured at fair value, and changes therein are accounted for as described below.

Cash flow hedges
The Stapled Group designates certain derivatives as hedging instruments to hedge the variability
in cash flows associated with highly probable forecast transactions arising from changes in foreignexchange rates and interest rates.
When a derivative is designated as a cash flow hedging instrument, the effective portion of changes
in the fair value of the derivative is recognised in the hedging reserve in Stapled Securityholders’funds. Any ineffective portion of changes in the fair value of the derivative is recognised immediately
in the Statement of Total Return.
When the hedged forecast transaction subsequently results in the recognition of a non-financial
item, such as inventory, the amounts recognised in the hedging reserve is included in the initialcost of the non-financial item.
If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold,
expires, is terminated or is exercised, then hedge accounting is discontinued prospectively. When
hedge accounting for cash flow hedges is discontinued, the amount that has been accumulated in
the hedging reserve remains in Stapled Securityholders’ funds until, for a hedge of a transaction
resulting in recognition of a non-financial item, it is included in the non-financial item’s cost on its
initial recognition or, for other cash flow hedges, it is reclassified to Statement of Total Return in thesame period or periods as the hedged expected future cash flows affect total return.

Net investment hedge
The Stapled Group designates certain derivatives and non-derivative financial liabilities as hedgesof foreign exchange risk on a net investment in a foreign operation.
When a derivative instrument or a non-derivative financial liability is designated as the hedging
instrument in a hedge of a net investment in a foreign operation, the effective portion of, for a
derivative, changes in the fair value of the hedging instrument or, for a non-derivative, foreignexchange gains and losses is recognised in the foreign currency translation reserve in Stapled
Securityholders’ funds. Any ineffective portion of the changes in the fair value of the derivative
or foreign exchange gains and losses on the non-derivative is recognised immediately in theStatement of Total Return. The amount recognised in the foreign currency translation reserve isreclassified to the Statement of Total Return on disposal of the foreign operation.

Other non-trading derivatives
When a derivative financial instrument is not designated in a hedge relationship that qualifies forhedge accounting, all changes in its fair value are recognised immediately in the Statement of Total
Return.

Sustainability-linked notes
The Stapled Group issued notes with contractual cash flows based on the Stapled Group meetingseveral sustainability performance targets. The Stapled Group has determined that the variability
in cash flows linked to the Stapled Group’s sustainability performance target is a non-financial
variable specific to the party to the contract and therefore in accordance to the accounting policyof the Stapled Group, the feature fails the definition of a derivative. Accordingly, the feature is notseparated. Instead, it is included in the calculation of the effective interest rate of the notes.

208

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
3

MATERIAL ACCOUNTING POLICIES (continued)

3.6

Financial instruments (continued)(vii)

Overview

Year ended 31 December 2023

Stapled Securityholders’ funds
Stapled Securityholders’ funds represent the Stapled Securityholders’ residual interest in the net
assets of the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled
Group upon termination and is classified as equity. Incremental costs directly attributable to theissue of Stapled Securities are recognised as a deduction from Stapled Securityholders’ funds.

The perpetual securities do not have a maturity date and distribution payment is optional at thediscretion of CapitaLand Ascott REIT. As CapitaLand Ascott REIT does not have a contractual
obligation to repay the principal nor make any distributions, perpetual securities are classified as
Stapled Securityholders’ funds.

Leadership(viii) Perpetual securities

Any distributions made are directly debited from Stapled Securityholders’ funds. Incremental costs
directly attributable to the issue of the perpetual securities are deducted against the proceedsfrom the issue.
3.7

Impairment
Financial assets
The Stapled Group assesses on a forward-looking basis, the expected credit losses (“ECL”)
associated with its financial assets carried at amortised cost and financial guarantee contracts.
For trade receivables, the Stapled Group applies the simplified approach permitted by FRS 109/
SFRS(I) 9, which requires expected lifetime losses to be recognised from initial recognition of thereceivables. The Stapled Group applies the general approach of 12-month ECL at initial recognition
for all other financial assets and financial guarantee contracts.
At each reporting date, the Stapled Group assesses whether financial assets carried at amortised
cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset have occurred.

Portfolio & Performance(i)

Evidence that a financial asset is credit-impaired includes the following observable data:

Presentation of allowance for ECLs in the statement of financial position
Loss allowances for financial assets measured at amortised cost and contract assets are deductedfrom the gross carrying amount of these assets.

Sustainability & Governance•	significant financial difficulty of the borrower or issuer;•	a breach of contract such as a default or being more than 90 days past due;•	the restructuring of a loan or advance by the Stapled Group on terms that the Stapled Groupwould not consider otherwise;•	it is probable that the borrower will enter bankruptcy or other financial reorganisation; or•	the disappearance of an active market for a security because of financial difficulties.

Write-off

ANNUAL REPORT 2023

209

Financial Statements andOther Information

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent
that there is no realistic prospect of recovery. This is generally the case when the Stapled Group
determines that the debtor does not have assets or sources of income that could generatesufficient cash flows to repay the amounts subject to the write-off. However, financial assets thatare written off could still be subject to enforcement activities in order to comply with the Stapled
Group’s procedures for recovery of amounts due.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

3

MATERIAL ACCOUNTING POLICIES (continued)

3.7

Impairment (continued)(ii)

Non-financial assets
The carrying amounts of the Stapled Group’s non-financial assets, other than investment properties,
investment properties under development and deferred tax assets, are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists, thenthe assets’ recoverable amounts are estimated. An impairment loss is recognised if the carrying
amount of an asset or its related cash-generating unit (“CGU”) exceeds its estimated recoverable
amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value lesscosts of disposal. In assessing value in use, the estimated future cash flows are discounted totheir present value using a pre-tax discount rate that reflects current market assessments of thetime value of money and the risks specific to the asset or CGU. For the purpose of impairment
testing, assets that cannot be tested individually are grouped together into the smallest group ofassets that generate cash inflows from continuing use that are largely independent of the cash
inflows of other assets or CGU. For the purposes of goodwill impairment testing, CGUs to which
goodwill has been allocated are aggregated so that the level at which impairment is tested reflects
the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired
in a business combination is allocated to groups of CGU that are expected to benefit from thesynergies of the combination.
Impairment losses are recognised in the Statement of Total Return. Impairment losses recognised
in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated tothe units and then to reduce the carrying amounts of the other assets in the CGU on a pro-ratabasis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment
losses recognised in prior periods are assessed at each reporting date for any indication that theloss has decreased or no longer exists. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An impairment loss is reversed only tothe extent that the asset’s carrying amount does not exceed the carrying amount that would havebeen determined, net of depreciation or amortisation, if no impairment loss had been recognised.

3.8

Assets and liabilities held for saleNon-current assets and liabilities, that are highly probable to be recovered primarily through sale rather
than through continuing use, are classified as held for sale. Immediately before classification as held
for sale, the assets are remeasured in accordance with applicable FRSs/SFRS(I)s. Thereafter, the assets
classified as held for sale are generally measured at the lower of their carrying amount and fair valueless costs to sell except for investment properties and land and buildings which are remeasured withreference to fair value or agreed sale proceeds.
Impairment losses on initial classification as held for sale and subsequent gains or losses on
remeasurement are recognised in the Statement of Total Return. Gains are not recognised in excess ofany cumulative impairment loss.

3.9

Provisions
A provision is recognised if, as a result of a past event, the Stapled Group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation.

210

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
3

MATERIAL ACCOUNTING POLICIES (continued)

3.10

Leases(i)

Overview

Year ended 31 December 2023

As a lessee
At commencement or on modification of a contract that contains a lease component, the Stapled
Group allocates the consideration in the contract to each lease component on the basis of its
relative stand-alone prices. However, for the leases of property, the Stapled Group has elected
not to separate non-lease components and account for the lease and non-lease components asa single lease component.

The right-of-use asset is subsequently stated at cost less accumulated depreciation and impairment
losses, except for right-of-use assets that meet the definition of investment property are carried atfair value in accordance with Note 3.3.
The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted using the interest rate implicit in the lease or, if that ratecannot be readily determined, the lessee’s incremental borrowing rate.

(ii)

As a lessor
To classify each lease, the Stapled Group makes an overall assessment of whether the leasetransfers substantially all of the risks and rewards incidental to ownership of the underlying asset.
If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part ofthis assessment, the Stapled Group considers certain indicators such as whether the lease is forthe major part of the economic life of the asset.

Sustainability & Governance

The lease liability is measured at amortised cost using the effective interest method. It isremeasured when there is a change in future lease payments arising from a change in an index or
rate, if there is a change in the Stapled Group’s estimate of the amount expected to be payable
under a residual value guarantee, if the Stapled Group changes its assessment of whether it will
exercise a purchase, extenuation or termination option or if there is a revised in-substance fixedlease payment.

Portfolio & Performance

The right-of-use assets is subsequently depreciated using the straight-line method from thecommencement date to the end of the lease term, unless the lease transfers ownership of theunderlying asset to the Stapled Group by the end of the lease term or the cost of the right-of-use
assets reflects that the Stapled Group will exercise a purchase option. In that case the right-of-use
asset will be depreciated over the useful life of the underlying asset, which is determined on thesame basis as those of property and equipment. In addition, the right-of-use asset is periodicallyreduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

Leadership

The Stapled Group recognises a right-of-use assets and a lease liability at the lease commitment
date. The right-of-use asset is initially measured at cost, which comprises the initial amount of thelease liability adjusted for any lease payments made at or before the commencement date, plus
any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located, less any lease incentives
received.

The Stapled Group leases out its investment property, including own property and right-of-use
assets. The Stapled Group has classified these leases as operating leases.

ANNUAL REPORT 2023

211

Financial Statements andOther Information

The Stapled Group recognises lease payments received from investment property under operatingleases as rental income on a straight-line basis over the lease term as part of ‘gross revenue’.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

3

MATERIAL ACCOUNTING POLICIES (continued)

3.11

Revenue(i)

Rental income from operating leases
Rental income receivable under operating leases is recognised on a straight-line basis over theterm of the lease, except where an alternative basis is more representative of the pattern of benefits
to be derived from the leased assets. Lease incentives granted are recognised as an integral partof the total rental income to be received. Contingent rentals are recognised as income in theaccounting period in which they are earned.

(ii)

Hotel revenue
Revenue from hotel operations is recognised when the accommodation and related services are
rendered.

(iii)

Hospitality income
Hospitality income from operations is recognised on an accrual basis, upon rendering of therelevant services. Hospitality income includes fees from usage of the business centres and laundry
facilities, recoveries from guests for utilities and telephone charges, income earned from the sales offood and beverages, service and maintenance fees, recoveries of property taxes and maintenancecosts from tenants and fees for managing public areas as well as other miscellaneous income.

(iv)

Car park income
For car parks which are leased to an external operator, car park income is recognised on a straightline basis over the term of the lease. For other car parks, car park income is recognised on an
accrual basis.

3.12

Expenses(i)

Direct expenses
Direct expenses consist of serviced residence management fees, property taxes, staff costs andother property outgoings where such expenses are the responsibility of the Stapled Group.

(ii)

Trustee’s fees
The REIT Trustee’s fee and BT Trustee-Manager’s trustee fee are recognised on an accrual basis
using the applicable formula as stipulated in Note 1.1(i) and Note 1.1(iii) respectively.

(iii)

REIT Manager’s management fees
REIT Manager’s management fees are recognised on an accrual basis using the applicable formula,
stipulated in Note 1.1(ii).

(iv)

BT Trustee-Manager’s management fees
BT Trustee-Manager’s management fees are recognised on an accrual basis using the applicableformula, stipulated in Note 1.1(iii).

(v)

Serviced residence management fees
The serviced residence management fees are recognised on an accrual basis using the applicableformula, stipulated in Note 1.1(iv).

212

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
3

MATERIAL ACCOUNTING POLICIES (continued)

3.13

Finance income and finance costs

Overview

Year ended 31 December 2023

Finance income comprises interest income and is recognised as it accrues, using the effective interest
method.
Finance costs comprise interest expense on loans and borrowings, and amortisation of loans andborrowings related costs. Finance costs are recognised in the Statement of Total Return using theeffective interest method.
Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in theStatement of Total Return except to the extent that it relates to a business combination, or items
recognised directly in Stapled Securityholders’ funds.

Leadership

3.14

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using
tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable inrespect of previous years. The amount of current tax payable or receivable is the best estimate of the tax
amount expected to be paid or received that reflects uncertainty related to income taxes, if any.
Current tax assets and liabilities are offset only if certain criteria are met.

•	temporary differences on the initial recognition of assets or liabilities in a transaction that is not abusiness combination and that affects neither accounting nor taxable profit or loss;•	temporary differences related to investments in subsidiaries and associates to the extent that the
Stapled Group is able to control the timing of the reversal of the temporary difference and it isprobable that they will not reverse in the foreseeable future; and•	taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basisor their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will beavailable against which temporary differences can be utilised. Deferred tax assets are reviewed at eachreporting date and are reduced to the extent that it is no longer probable that the related tax benefit will
be realised.

ANNUAL REPORT 2023

213

Financial Statements andOther Information

The Inland Revenue Authority of Singapore (the “IRAS”) has issued a tax ruling on the income tax
treatment of CapitaLand Ascott REIT. Subject to compliance with the terms and conditions of the tax
ruling, CapitaLand Ascott REIT is not subject to tax on the taxable income of CapitaLand Ascott REIT.
Instead, the distributions made by CapitaLand Ascott REIT out of such taxable income are distributed freeof tax deducted at source to individual Stapled Securityholders and qualifying Stapled Securityholders.
Qualifying Stapled Securityholders are companies incorporated and tax resident in Singapore, Singapore
branches of foreign companies that have obtained waiver from the IRAS from tax deducted at source inrespect of the distributions from CapitaLand Ascott REIT, and bodies of persons registered or constitutedin Singapore. This treatment is known as the tax transparency treatment.

Sustainability & Governance

The measurement of deferred taxes reflects the tax consequences that would follow the manner inwhich the Stapled Group expects, at the reporting date, to recover or settle the carrying amount of
its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied totemporary differences when they reverse, based on the tax rates and tax laws that have been enacted or
substantively enacted by the reporting date.

Portfolio & Performance

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax
is not recognised for:

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

3

MATERIAL ACCOUNTING POLICIES (continued)

3.14

Income tax (continued)
The REIT Trustee will deduct tax at the reduced rate of 10% from distributions made out of CapitaLand
Ascott REIT’s taxable income that is not taxed at CapitaLand Ascott REIT’s level to beneficial Stapled
Securityholders who are qualifying foreign non-individual investors. A qualifying foreign non-individual
investor is one who is not a resident of Singapore for income tax purposes and does not have a permanentestablishment in Singapore. Where the non-individual investor carries on any operation in Singapore
through a permanent establishment in Singapore, the funds used by that person to acquire the Stapled
Securities cannot be obtained from that operation to qualify for the reduced tax rate.
For other types of Stapled Securityholders, the REIT Trustee is required to withhold tax at the prevailing
corporate tax rate on the distributions made by CapitaLand Ascott REIT. Such Stapled Securityholders
are subject to tax on the regrossed amounts of the distributions received but may claim a credit for thetax deducted at source by the REIT Trustee.
CapitaLand Ascott REIT will distribute at least 90% of its taxable income, other than gains from the saleof real estate properties that are determined by the IRAS to be trading gains, and net overseas income.
Net overseas income refers to the net profits (excluding any gains from the sale of property or shares, as
the case may be) after applicable taxes and adjustment for non-cash items such as depreciation, derived
by CapitaLand Ascott REIT from its properties located outside Singapore.
Distributions for the Stapled Group are made on a semi-annual basis, with the amount calculated as
at 30 June and 31 December each year for the six-month period ending on each of the said dates. In
accordance with the provisions of the CapitaLand Ascott REIT Trust Deed and the CapitaLand Ascott
BT Trust Deed, the REIT Manager and the BT Trustee-Manager are required to pay distributions declared
within 60 days of the end of each distribution period. Distributions, when paid, will be in Singapore
Dollars.

3.15

Earnings per Stapled Security
The Stapled Group presents basic and diluted earnings per Stapled Security. Basic earnings per Stapled
Security is calculated by dividing the total return attributable to Stapled Securityholders by the weighted
average number of Stapled Securities outstanding during the year. Diluted earnings per Stapled Security
is determined by adjusting the total return attributable to Stapled Securityholders and the weighted
average number of Stapled Securities outstanding, adjusted for the effects of all dilutive potential Stapled
Securities.

3.16

Segment reporting
An operating segment is a component of the Stapled Group that engages in business activities fromwhich they may earn revenues and incur expenses, including revenues and expenses that relate totransactions with any of the Stapled Group’s other components. All operating segments’ operating results
are reviewed regularly by the REIT Manager’s and the BT Trustee-Manager’s CEO to make decisions
about resources to be allocated to the segment and to assess its performance, and for which discrete
financial information is available.
Segment results include items directly attributable to a segment as well as those that can be allocatedon a reasonable basis. Unallocated items mainly comprise finance costs, trust expenses and income tax
expense.
Segment capital expenditure is the total costs incurred on investment properties, property, plant andequipment and investment properties under development during the year.

214

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
Overview

Year ended 31 December 2023

3

MATERIAL ACCOUNTING POLICIES (continued)

3.17

New accounting standards and interpretations not adopted
A number of new standards, interpretations and amendments to standards are effective for annual
periods beginning after 1 January 2023 and earlier application is permitted; however, the CapitaLand
Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group have not early adopted thenew or amended standards and interpretations in preparing these financial statements.
i	
Amendments to SFRS(I) 1/FRS 1: Classification of Liabilities as Current or Non-current andNon‑current Liabilities with Covenants
Leadership

The amendments as issued in 2020 and 2022, aim to clarify the requirements on determining
whether a liability is current or non-current, and require new disclosures for non-current liabilities
that are subject to future covenants. The amendments apply for annual reporting periods beginningon or after 1 January 2024.
As disclosed in Note 17, the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group andthe Stapled Group have secured bank loan and notes that are subject to specific covenants. Whileboth liabilities are classified as non-current at 31 December 2023, a future breach of the related
covenants may require the Stapled Group to repay the liabilities earlier than the contractual maturity
dates. The Stapled Group is in the process of assessing the potential impact of the amendmentson the classification of these liabilities and the related disclosures.

The following amendments to FRSs/SFRS(I)s are not expected to have a significant impact on
the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group’s
consolidated financial statements:•	Amendments to SFRS(I) 1-7/FRS 7 and SFRS(I) 7/FRS 107: Supplier Finance Arrangements•	Amendments to SFRS(I) 16/FRS 116: Lease Liability in a Sale and Leaseback•	Amendments to SFRS(I) 1-21/FRS 21: Lack of Exchangeability

4

Portfolio & Performanceii.	Other accounting standards

INVESTMENT PROPERTIES
Stapled Group
2023
2022
$’000
$’000

6,075,974

5,882,709

447,974

515,117

6,103,633

6,297,854

476,999
20,577

344,623
12,925

–
511

–
507

476,999
21,088344,623
13,432

105,343(1,478)58,751
(78)

1,746
–

(4,534)–

97,070(230)

42,254(78)(250,507)–––(250,507)

–

(51)

111

–

–

(51)

(321,864)

162,223
125,908
7,635–(98,533) (348,975)
6,498,182 6,075,974––(25,241)
424,990–
162,223
125,908–
7,635–(63,116) (116,843) (398,496)
447,974 6,501,017 6,103,633

ANNUAL REPORT 2023

215

Financial Statements andOther Information

At 1 January
Acquisition of investment
properties (Note 38)
Capital expenditure
Net change in fair value ofinvestment properties
Investment properties written off
Transfer to assets held for sale(Note 15)
Transfer (to)/from property, plantand equipment (Note 5)
Transfer from investment
properties under development(Note 6)
Lease modification
Translation differences
At 31 December

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Sustainability & GovernanceCapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

4

INVESTMENT PROPERTIES (continued)
Certain investment properties of the Stapled Group with an aggregate carrying value of $2,370,464,000(2022: $2,678,052,000) are pledged as securities to banks for banking facilities granted to certain
subsidiaries (Note 17).
The master lease for Park Hotel Clarke Quay (currently known as The Robertson House by The Crest
Collection) was terminated and the Stapled Group took possession of the property in August 2021. It
was operated by Ascott International Management Pte Ltd under a short-term management agreement.
From 1 October 2022, the property is leased by CapitaLand Ascott REIT’s subsidiary to CapitaLand
Ascott BT’s subsidiary under a master lease arrangement. CapitaLand Ascott BT’s subsidiary has
separately entered into a hotel management agreement with Ascott International Management Pte Ltd
for the management of the property as well as the rebranding and renovation of the property. The hotelmanagement agreement is effective from 1 October 2022 and will continue for a period of 20 years fromcompletion of rebranding and renovation.
Upon the signing of the hotel management agreement, the property is classified as property, plantand equipment instead of investment property in the Stapled Group’s financial statements as it will be
operated as a full facility hotel and the proportion of ancillary income is deemed significant.
The Stapled Group assessed the classification of its investment properties as investment properties
or property, plant and equipment based on its business model, taking into consideration the quantumof other income derived from ancillary services rendered relative to total revenue and employment of
external property managers to operate the investment properties, amongst other factors.
The investment properties of CapitaLand Ascott BT Group included a right-of-use asset relating to theoperating lease for Sotetsu Grand Fresa Tokyo-Bay Ariake (“Ariake Hotel”) on adoption of FRS 116/
SFRS(I) 16. Ascendas Ariake Godo Kaisha (“AAGK”), a subsidiary of CapitaLand Ascott BT, leases Ariake
Hotel from Ascendas Hospitality Tokutei Mokuteki Kaisha, a subsidiary of CapitaLand Ascott REIT.
FRS 116/SFRS(I) 16 requires AAGK to recognise a right-of-use asset and lease liability relating to thisoperating lease. There is no impact for the Stapled Group as the intra-group transaction is eliminatedupon consolidation.

Measurement of fair value
Fair value hierarchy
The fair value of investment properties is determined by external property valuers, having appropriate
recognised professional qualifications and recent experience in the location and category of theproperties being valued.
The fair value measurement for the investment properties have been categorised as level 3 fair values
based on inputs to the valuation techniques used. The following table reconciles the net carrying valueof the investment properties to the fair value.
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Carrying value ofinvestment properties
Less: Carrying amount oflease liabilities
Fair value ofinvestment properties

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

6,498,182

6,075,974

424,990447,974

6,501,017

6,103,633(263,965)(267,014)(69,567)(81,388)(263,965)(267,014)

6,234,217

5,808,960

355,423

366,586

6,237,052

5,836,619

Level 3 fair values
Reconciliations from the beginning balances to the ending balances for fair value measurements of level
3 are set out in the table above.

216

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
4

Overview

Year ended 31 December 2023

INVESTMENT PROPERTIES (continued)

Valuation technique
The Stapled Group’s investment property portfolio is valued by external property valuers annually.
External valuations are also carried out on occurrence of acquisitions. The fair values are based on open
market values, being the estimated amount for which a property could be exchanged on the date of thevaluation between a willing buyer and a willing seller in an arm’s length transaction wherein the parties
had each acted knowledgeably and without compulsion.

Leadership

The valuers have adopted the income capitalisation approach and considered valuation techniques
including the discounted cash flow and direct capitalisation methods (2022: discounted cash flow anddirect capitalisation methods) in arriving at the fair value as at the reporting date. In determining the fairvalue, the valuers have used valuation techniques which involve certain estimates. The key assumptions
used to determine the fair value of investment properties include market-corroborated discount rate,terminal capitalisation rate, capitalisation rate and revenue per available unit.
The valuation of the Stapled Group’s investment property portfolio is discussed with the ARC and Boardof Directors in accordance with the Stapled Group’s reporting policies.

Significant unobservable inputs
The following table shows the valuation techniques used in measuring Level 3 fair values of investment
properties, as well as the significant unobservable inputs used.

Stapled Group•	Discount rate:
	South East Asia andAustralia:	5.81% – 10.26%(2022: 5.00% – 10.64%)

The estimated fair value
would increase (decrease) if:•	the discount rate werelower (higher); or•	the terminal capitalisation
rate were lower (higher).

	North Asia:	3.20% – 8.00%(2022: 3.30% – 6.00%)
Sustainability & GovernanceDiscounted cash flow method:
The valuation model considers thepresent value of net cash flows to
be generated from the property,
taking into account expected
rental growth rate and occupancy
rate. The expected net cash
flows are discounted using riskadjusted discount rates. Amongother factors, the discount rateestimation considers the qualityof a building and its location andlease terms.

Inter-relationship between key
unobservable inputs and fairvalue measurement

Portfolio & Performance

Valuation techniqueSignificant
unobservable inputs

	Europe and United Kingdom:	5.88% – 9.02%(2022: 5.90% – 8.50%)
	United States of America:	7.50% – 8.50%(2022: 8.00% – 8.75%)

217

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

4

INVESTMENT PROPERTIES (continued)

Significant unobservable inputs (continued)

Valuation techniqueSignificant
unobservable inputs

Inter-relationship between key
unobservable inputs and fairvalue measurement

Stapled Group•	Terminal capitalisation rate:
	South East Asia andAustralia:	3.75% – 7.50%(2022: 3.50% – 9.00%)
	North Asia:	3.60% – 6.25%(2022: 3.60% – 5.25%)
	Europe and United Kingdom:	4.25% – 7.50%(2022: 3.25% – 7.75%)
	United States of America:	5.75% – 6.50%(2022: 6.00% – 6.25%)
Direct capitalisation method:
The valuation method considers
the net present value of the
expected future operating incomeof the property and dividing themby the capitalisation rate. Thismethod is applied to the student
accommodation properties whichhave relatively stable operating
histories and expectations.

Stapled Group•	Capitalisation rate:	United States of America:	5.50% – 6.00%(2022: 4.50% – 5.50%)

The estimated fair value
would increase (decrease) if
the capitalisation rate werelower (higher).

Sensitivity analysis for key unobservable inputs
The significant unobservable inputs used in the fair value measurement of the Stapled Group’s
investment properties are discount rate, terminal capitalisation rate and capitalisation rate. Significant
decreases in the discount rate, terminal capitalisation rate and capitalisation rate in isolation would
result in a significantly higher fair value measurement. Conversely, a significant increase would result ina significantly lower fair value measurement.

218

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
5

Overview

Year ended 31 December 2023

PROPERTY, PLANT AND EQUIPMENT

CapitaLand Ascott REIT Group

Renovation
$’000

Motor
vehicles$’000

11,068
165
–

594
–
–

109,572
9,262(2,341)

1,548
1,420
–

122,782
10,847(2,341)

–

–

1,617

–

1,617

–
(127)
(874)
10,232

–
–
(42)
552

(111)
1,788
(6,601)
113,186–(1,661)
(66)
1,241

(111)
–
(7,583)
125,211

10,232
290
(1)

552
70
(30)

113,186
9,393(1,375)

1,241
13,642–

125,211
23,395(1,406)

–

–

1,234

–

1,234

Total
$’000

–

51

–

51

–
–
(49)
10,472

–
–
(19)
573

(3,069)(91)(671)
118,658–91
36
15,010(3,069)–(703)
144,713

Accumulated depreciation
At 1 January 2022
Charge for the year
Disposals/written off
Reclassifications
Translation differences
At 31 December 2022

7,101
726
–
(1)
(642)
7,184

489
42
–
–
(35)
496

78,003
11,746(1,985)1(5,796)
81,969

–
–
–
–
–
–

85,593
12,514(1,985)–(6,473)89,649

7,184
757
(1)

496
39
(27)

81,96911,229(1,290)–––89,64912,025(1,318)

–
1
(28)
7,913

–
–
(18)
490

(2,694)(1)(251)
88,962––––(2,694)–(297)
97,365Carrying amounts
At 1 January 2022
At 31 December 2022
At 31 December 2023

3,967
3,048
2,559

105
56
83

31,56931,217
29,6961,548
1,241
15,01037,18935,562
47,348ANNUAL REPORT 2023

219

Financial Statements andOther Information

At 1 January 2023
Charge for the year
Disposals/written off
Transfer to assets held for sale(Note 15)
Reclassifications
Translation differences
At 31 December 2023

Sustainability & Governance–

Portfolio & Performance

At 1 January 2023
Additions
Disposals/written off
Acquisition of investment
properties (Note 38)
Transfer from investment
properties (Note 4)
Transfer to assets held for sale(Note 15)
Reclassifications
Translation differences
At 31 December 2023

Leadership

Cost
At 1 January 2022
Additions
Disposals/written off
Acquisition of investment
properties (Note 38)
Transfer to investment
properties (Note 4)
Reclassifications
Translation differences
At 31 December 2022

Officeequipment,
Assetscomputers
underand furniture construction
$’000
$’000

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

5

PROPERTY, PLANT AND EQUIPMENT (continued)
At Valuation

CapitaLand Ascott BT GroupAt valuation/cost
At 1 January 2022
Additions
Net change in revaluation
recognised in Statement of
Total Return
Net change in revaluation
recognised in Stapled
Securityholders’ funds
Reclassifications
Translation differences
Elimination of accumulated
depreciation on revaluation
At 31 December 2022
At 1 January 2023
Additions
Net change in revaluation
recognised in Stapled
Securityholders’ funds
Acquisition of hotel (Note 38)
Transfer to assets held for sale(Note 15)
Translation differences
Elimination of accumulated
depreciation on revaluation
At 31 December 2023
Accumulated depreciation
At 1 January 2022
Charge for the year
Translation differences
Elimination of accumulated
depreciation on revaluation
At 31 December 2022
At 1 January 2023
Charge for the year
Transfer to assets held for sale(Note 15)
Translation differences
Elimination of accumulated
depreciation on revaluation
At 31 December 2023
Carrying amounts
At 1 January 2022
At 31 December 2022
At 31 December 2023

220

CAPITALAND ASCOTT TRUSTLand andbuildings$’000

Plant andmachinery$’000

At Cost
Officeequipment,
computers
and furniture$’000

541,981
1,075

42,186226

18,359
92

1,224
247

603,750
1,640

5,393

–

–

–

5,393

54,0881,318(55,914)––(3,877)–33(1,690)–(1,351)(113)

54,088–(61,594)(11,316)
536,625–
38,535–
16,794–
7(11,316)
591,961

536,625
10,70638,535832

16,794143

7244

591,961
11,92535,234
101,567

–
–

–
731

–
–

35,234102,298(101,369)
82(7,843)(31)(2,472)
(10)

(251)
–

(111,935)
41(5,154)
577,691–
31,493–
15,186––(5,154)624,370–
14,760(3,444)

10,395
4,557(1,225)

5,777
2,763
(695)

–
–
–

16,17222,080(5,364)(11,316)––
13,727

–
7,845

–
–

(11,316)
21,572–
15,977

13,727
3,927

7,845
2,252

–
–

21,572
22,156(10,895)
72(3,583)16(1,829)10––(16,307)98(5,154)––
14,087

–
8,278

–
–

(5,154)22,365541,981536,625
577,691

31,79124,80817,406

12,582
8,949
6,908

1,224
7
–

587,578
570,389
602,005

Assetsunderconstruction
$’000

Total
$’000

Sustainability & Governance

221

Financial Statements andOther Information

At 1 January 2023
Additions
Disposals/written off
Net change in revaluation recognised in Stapled
Securityholders’ funds
Reclassifications
Acquisition of investment properties (Note 38)
Acquisition of hotel (Note 38)
Transfer from investment properties (Note 4)
Transfer to assets held for sale (Note 15)
Translation differences
Elimination of accumulated depreciation on revaluation
At 31 December 2023

At valuation/cost
At 1 January 2022
Additions
Disposals/written off
Net change in revaluation recognised in Statement of
Total Return
Net change in revaluation recognised in Stapled
Securityholders’ funds
Reclassifications
Acquisition of investment properties (Note 38)
Transfer from/(to) investment properties (Note 4)
Translation differences
Elimination of accumulated depreciation on revaluation
At 31 December 2022

Stapled Group

–
–
–
–
–
(7,843)(31)–
31,49354,859––101,567–(101,369)82(9,870)930,279––––(3,877)–38,53572,2191,318–
321,975(55,914)(12,495)
875,552
38,535
832
–

–

5,393

875,552
10,706(1,248)42,186
226
–

–
–
–
–
–
–
(49)
–
10,472

10,232
290
(1)

–
(127)
–
–
(874)
–
10,232–

11,068165–

Plant andmachinery Renovation
$’000
$’000

541,9811,075–

Land andbuildings$’000

At Valuation

Portfolio & Performance

ANNUAL REPORT 2023

–
–
–
–
–
–
(19)
–
573

552
70
(30)

–
–
–
–
(42)
–
552

–

–

594

–
(91)
1,234
731
51
(5,541)(683)–
133,842

129,980
9,536(1,375)

–
1,821
1,617
(111)
(8,291)–
129,980–

127,9319,354(2,341)

5,393

726,532
12,487(2,341)

Total
$’000

1,056,099
35,320(2,654)–54,859
91
–
–
1,234
–
102,298–51(251) (115,004)
36
(664)
–
(9,870)15,010 1,121,669

1,248
13,886––
72,219(3,012)––
1,617–
321,864(179)(69,177)–(12,495)
1,248 1,056,099

–

2,772
1,667
–

Officeequipment,
AssetsMotorcomputers
undervehicles and furniture construction
$’000
$’000
$’000

At CostLeadership

PROPERTY, PLANT AND EQUIPMENT (continued)
Year ended 31 December 2023
Overview

5

NOTES TO THE FINANCIAL STATEMENTS

5

222
–
15,939––(3,444)(12,495)––
20,693–(10,895)–
72(9,870)–541,981875,552
930,279

At 1 January 2023
Charge for the year
Disposals/written off
Transfer to assets held for sale (Note 15)
Reclassifications
Translation differences
Elimination of accumulated depreciation on revaluation
At 31 December 2023

Carrying amounts
At 1 January 2022
At 31 December 2022
At 31 December 2023

Land andbuildings$’000

At Valuation

Accumulated depreciation
At 1 January 2022
Charge for the year
Disposals/written off
Reclassifications
Translation differences
Elimination of accumulated depreciation on revaluation
At 31 December 2022

Stapled GroupPROPERTY, PLANT AND EQUIPMENT (continued)

CAPITALAND ASCOTT TRUST

31,79124,80817,406

13,727
3,927–(3,583)–16–
14,087

10,395
4,557––(1,225)–
13,727

3,967
3,048
2,559

7,184
757
(1)
–
1
(28)
–
7,913

7,101
726
–
(1)
(642)
–
7,184

Plant andmachinery Renovation
$’000
$’000

105
56
83

496
39
(27)
–
–
(18)
–
490

489
42
–
–
(35)
–
496

44,15140,16636,60489,814
13,481(1,290)(4,523)(1)(243)–
97,23883,78014,509(1,985)
1(6,491)–89,814

2,772
1,248
15,010

–
–
–
–
–
–
–
–

–
–
–
–
–
–
–

Officeequipment,
AssetsMotorcomputers
undervehicles and furniture construction
$’000
$’000
$’000

At Cost624,767
944,878
1,001,941

111,22138,897(1,318)(19,001)–(201)(9,870)119,728

101,765
35,773(1,985)–(11,837)(12,495)
111,221

Total
$’000

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

NOTES TO THE FINANCIAL STATEMENTS
5

Overview

Year ended 31 December 2023

PROPERTY, PLANT AND EQUIPMENT (continued)
For each revalued class of property, plant and equipment, the carrying amount that would have beenrecognised had the assets been carried under the cost model is as follows:
CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

508,623

508,198

823,455

828,994

As at 31 December 2023, land and buildings are revalued to their fair values. The fair value of the land andbuildings is determined by external property valuers having appropriate professional qualifications andrecent experience in the location and category of the properties being valued.

LeadershipLand and buildings
Carrying amount at cost

Stapled Group
2023
2022
$’000
$’000

Fair value hierarchy
The fair value measurement for the land and buildings have been categorised as level 3 fair values basedon inputs to the valuation techniques used.

Valuation technique and significant unobservable inputs

The valuation of the Stapled Group’s land and buildings is discussed with the ARC and Board of Directors
in accordance with the Stapled Group’s reporting policies.

Portfolio & Performance

Land and buildings are stated at fair value based on valuation performed by external property valuers.
The fair values were derived based on the discounted cash flow method (2022: discounted cash flow
method). In determining the fair value, the valuers have used valuation techniques which involve certain
estimates. The key assumptions used to determine the fair value of land and buildings include marketcorroborated discount rate, terminal capitalisation rate and revenue per available unit.

Sustainability & Governance

223

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

5

PROPERTY, PLANT AND EQUIPMENT (continued)
The following table shows the significant unobservable inputs used in the valuation models:

Valuation technique

Discounted cash flow method

Significant
unobservable inputs

Stapled Group•	Discount rate:	Australia:	7.50% - 9.00%(2022: 7.50% - 8.60%)•	Terminal capitalisation rate:	Australia:	5.75% - 7.00%(2022: 5.25% - 6.25%)

Inter-relationship between key
unobservable inputs and fairvalue measurement

The estimated fair value would
increase (decrease) if:•	the discount rate werelower (higher); or•	the terminal capitalisation
rate were lower (higher).

•	Discount rate:	Singapore:	5.82% (2022: 5.00%)•	Terminal capitalisation rate:	Singapore:	3.75% (2022: 3.50%)•	Discount rate:	Ireland:	8.70% (2022: Nil)•	Terminal capitalisation rate:	Ireland:	6.00% (2022: Nil)
Sensitivity analysis for key unobservable inputs
The significant unobservable inputs used in the fair value measurement of the Stapled Group’s land andbuildings are discount rate and terminal capitalisation rate. Significant decreases in the discount rate
and terminal capitalisation rate in isolation would result in a significantly higher fair value measurement.
Conversely, a significant increase would result in a significantly lower fair value measurement.

224

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
6

Overview

Year ended 31 December 2023

INVESTMENT PROPERTIES UNDER DEVELOPMENT
CapitaLand
Ascott REIT Groupand Stapled Group
2023
2022
$’000
$’000

385,707–42,343(162,223)
4,075(1,902)
268,000

302,863
103,735
25,217(125,908)
80,082(282)
385,707

Leadership

At 1 January
Acquisition of investment properties under development (Note 38)
Development costs and interest capitalised(1)Transfer to investment properties (Note 4)
Net change in fair value of investment properties under development
Translation differences
At 31 December(1) Capitalised costs included $160,000 (31 December 2022: $1,640,000) paid/payable to related corporations and borrowing costs of$4,402,000 (31 December 2022: $68,000).

As at 31 December 2022, Standard at Columbia, with a carrying value of $128,707,000 is pledged as
security to the bank (Note 17). Standard at Columbia was transferred to investment properties after it
obtained its Temporary Certificate of Occupancy on 30 June 2023.

Fair value hierarchy
The fair value of investment properties under development is determined by external property valuers,
having appropriate recognised professional qualifications and recent experience in the location andcategory of properties being valued.

Portfolio & Performance

Somerset Liang Court Property Singapore, with a gross floor area of about 13,000 square metres, iscurrently under development into a serviced residence with hotel licence. The Stapled Group owns a
100% interest in the property. Site works commenced in mid-July 2021 and foundation piling works werecompleted in 2022. Substructure works are ongoing and targeted to be competed in 2024. The property
is on track to be completed in the second half of 2025.

The fair value measurement for the investment properties under development have been categorised aslevel 3 fair values based on inputs to the valuation techniques used.

Level 3 fair values

Valuation technique and significant unobservable inputs
Investment properties under development is stated at fair value based on valuation performed by external
property valuers. In determining the fair value, the valuers have adopted the residual land value method.
The key assumptions used to determine the fair value of investment properties under development
include market-corroborated discount rate, terminal capitalisation rate, capitalisation rate and grossdevelopment costs.

Sustainability & Governance

Reconciliations from the beginning balances to the ending balances for fair value measurements of level
3 are set out in the table above.

The valuation of the Stapled Group’s investment property under development portfolio is discussed with
the ARC and Board of Directors in accordance with the Stapled Group’s reporting policies.

225

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

6

INVESTMENT PROPERTIES UNDER DEVELOPMENT (continued)
The following table shows the significant unobservable inputs used in the valuation models:

Valuation technique

Under the residual land
value method, the total grossdevelopment costs anddeveloper’s profit are deductedfrom the gross development value
to arrive at the residual value ofland. The gross development
value is the estimated value of theproperty assuming satisfactorycompletion of the development as
at the date of the valuation.

Significant
unobservable inputs

Stapled Group•	Discount rates:	Singapore	5.57% (2022: 4.80%)•	Terminal capitalisation rates:	Singapore
	3.50% (2022: 3.25%)•	Gross development costs:	Singapore
	$143,730,000(2022: $134,167,000)

Inter-relationship between key
unobservable inputs and fairvalue measurement

The estimated fair value
would increase (decrease) if:•	the discount rates werelower (higher);•	the terminal capitalisation
rates were lower (higher);or•	the gross development
costs decrease (increase).

•	Capitalisation rates:
	United States of America
	Nil (2022: 4.75%)•	Gross development costs:
	United States of America Nil(2022: $131,281,000)

Sensitivity analysis for key unobservable inputs
The significant unobservable inputs used in the fair value measurement of the Stapled Group’s investment
properties under development are discount rate, terminal capitalisation rate, capitalisation rate and grossdevelopment costs. Significant decreases in the discount rate, terminal capitalisation rate, capitalisation
rate and gross development costs in isolation would result in a significantly higher fair value measurement.
Conversely, a significant increase would result in a significantly lower fair value measurement.

7

INVESTMENT SECURITIESCapitaLand Ascott REIT Group holds 1% interest in Ascendas Hospitality Australia Investment Fund
No. 1 (“AHAIF1”). The CapitaLand Ascott REIT Group’s ownership in AHAIF1 enables AHAIF1 to meet
the Australian corporate law requirement for a Managed Investment Scheme and certain requirements
to qualify as a Managed Investment Trust under the Australian tax law. AHAIF1 owns 100% equity interest
in Ascendas Australia Hotel Trust, which owns the hotel properties in Australia. Investments in unquoted
investment securities are measured at fair value with change in fair value recognised in the Statement of
Total Return.
As at 31 December 2023, the fair value of the CapitaLand Ascott REIT Group’s 1% interest in AHAIF1
is $2,454,000 (2022: $2,416,000). The effective interest held by the Stapled Group is 100%. Upon
consolidation, the investment securities will be adjusted against the non-controlling interests of theCapitaLand Ascott BT Group.

226

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
8

Overview

Year ended 31 December 2023

GOODWILL
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Goodwill arising from businesscombination
Less: Impairment loss

60,866(60,866)–

60,866(60,866)–

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

79,233(79,233)–

79,233(79,233)–

Stapled Group
2023
2022
$’000
$’000

140,099(140,099)–

140,099(140,099)–

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

A-HREIT GroupA-HBT Group

60,866–60,86660,866–60,866

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

–
79,233
79,233–
79,233
79,233

Stapled Group
2023
2022
$’000
$’000

60,866
79,233140,099

Leadership

For the purposes of impairment testing, goodwill has been allocated to the CGUs as follows:

60,866
79,233140,099

Portfolio & Performance

In 2019, the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Groupassessed the carrying amount of the CGUs (inclusive of goodwill allocated) for indicators of impairment.
The recoverable amount of each CGU is determined based on their respective fair value less costs tosell, which is estimated to approximate the fair value of net assets of Ascendas Hospitality Real Estate
Investment Trust (“A-HREIT”) and its subsidiaries (the “A-HREIT Group”) and Ascendas Hospitality
Business Trust (“A-HBT”) and its subsidiaries (the “A-HBT Group”) acquired on 31 December 2019. Basedon the CapitaLand Ascott REIT Group’s, the CapitaLand Ascott BT Group’s and the Stapled Group’s
assessment, the carrying amounts of the CGUs (inclusive of goodwill allocated) were determined to behigher than its recoverable amount, and impairment loss of $60,866,000, $79,233,000 and $140,099,000(2022: $60,866,000, $79,233,000 and $140,099,000) were recognised respectively.

Sustainability & Governance

227

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

9

SUBSIDIARIESThe CapitaLand Ascott REIT Group and the CapitaLand Ascott BT Group have equity investments in
subsidiaries.
Details of the significant subsidiaries are as follows:

228

Name of subsidiaries

Principal place ofbusiness/Countryof incorporation

Held by CapitaLand Ascott REIT
Ascott REIT MTN Pte. Ltd.
Ascott REIT MTN (Euro) Pte. Ltd.
Ascendas Hospitality Real Estate Investment TrustSingapore
Singapore
Singapore

100
100
100

100
100
100

Held through CapitaLand Ascott REIT subsidiaries
Ascendas Hospitality MTN Pte. Ltd.
Ascott REIT Cannon Hill Trust(a)Ascott REIT Seven Campbelltown Trust(a)Ascott REIT Eight Mascot Trust(a)Ascott REIT Nine SOP Trust(a)Ascott REIT Fourteen MP Unit Trust(a)Citadines Melbourne on Bourke Unit Trust(a)Citadines St Georges Terrace (Perth) Unit Trust(a)Citadines Connect Sydney Airport Unit Trust(a)Somerset Heping (Shenyang) Property Co., Ltd.(a)Suzhou Chong Rui Xin Shi Ji Real Estate Co., Ltd.(a)Tianjin Consco Property Development Co., Ltd.(a)Wangze (Dalian) Enterprise Co., Limited(a)Wuhan Citadines Property Development Co., Ltd.(a)Ascott Kleber SNC(a)Oriville SAS(a)Citadines Munich Arnulfpark GmbH & Co. KG(b)Citadines Europaviertel (Frankfurt) GmbH & Co., KG(b)Citadines Hamburg Michel GmbH & Co., KG(b)PT Bumi Perkasa Andhika(a)PT Ciputra Liang Court(a)PT Menara Aspen Persada(a), (c)ARC-CapitaLand Three TMK(a)ARC-CapitaLand Four TMK(a)Ascendas Hospitality Honmachi Tokutei Mokuteki Kaisha(a)Ascendas Hospitality Tokutei Mokuteki Kaisha(a)Citadines Central Shinjuku TMK(a)Citadines Kyoto Gojo TMK(a)Citadines Shinjuku TMK(a)Crystal Residence TMK(a)Infini Garden TMK(a)Singapore
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
China
China
China
China
China
FranceFranceGermany
Germany
Germany
Indonesia
Indonesia
Indonesia
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
93
93
100
57
100
100
100
100
100
100
100
100
100
100

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
93
93
100
57
–
100
100
100
100
100
100
100
100
100

CAPITALAND ASCOTT TRUST

Effective equity
interest held by
the Stapled Group
2023
2022
%
%

NOTES TO THE FINANCIAL STATEMENTS
9

Overview

Year ended 31 December 2023

SUBSIDIARIES (continued)

Name of subsidiaries

Principal place ofbusiness/Countryof incorporation

100
100
100
100
100
63
97
100

–
100
100
100
100
63
97
100

100

100

100

100

90

90

100

100

100

100

100

100

100

100

100

100

100

100

100

100

76
58
67
90
100

76
59
67
90
100

229

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

100
100
100

Portfolio & Performance

100
100
100

Leadership

Held through CapitaLand Ascott REIT subsidiaries (continued)
Japan
Sapphire Residence TMK(a)Japan
Somerset Roppongi TMK(a)United Kingdom/
Ascott REIT (Jersey) Limited(b)JerseyThe Cavendish Hotel (London) Limited(a), (c)United Kingdom
Malaysia
Somerset Ampang (Malaysia) Sdn. Bhd.(a)Netherlands
Ascott Baumwall (Hamburg) BV(b)Philippines
Ascott Hospitality Holdings Philippines, Inc(a)Philippines
Ascott Makati, Inc(a)Philippines
SQ Resources, Inc(a)Philippines
SN Resources, Inc(a)United States ofBarrydale SM LLC(b)America
SM Ascott LLC(b)United States ofAmerica
Tribeca Ascott LLC(b)United States ofAmerica
Columbia Student Property Owner, LLC(b)United States ofAmerica
GT Student SM LLC(b)United States ofAmerica
Kent ST SM LLC(b)United States ofAmerica
NCST LP(b)United States ofAmericaPHL UC SM LLC(b)United States ofAmericaTTU Student SM LLC(b)United States ofAmerica
UIUC 707 Student SM LLC(b)United States ofAmerica
UNCW LP(b)United States ofAmericaHanoi Tower Center Company Limited(a)VietnamVietnamMekong-Hacota Joint Venture Company Limited(a)Vietnam
Saigon Office and Serviced Apartment Company Limited(a)VietnamSomerset Hoa Binh Joint Venture Company Limited(a)VietnamSomerset Central TD Company Limited(a)Effective equity
interest held by
the Stapled Group
2023
2022
%
%

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

9

SUBSIDIARIES (continued)

Name of subsidiaries

Principal place ofbusiness/Countryof incorporation

Held through CapitaLand Ascott BT
Ascendas Hospitality Business TrustSingapore

100

100

Australia
Australia
Australia
Australia
Australia
IrelandJapanSouth Korea

100
100
100
100
100
100
100
99

100
100
100
100
100
–
100
99

South Korea

99

99

Held through CapitaLand Ascott BT subsidiaries
Ascendas Australia Hotel Trust(a)Ascendas Hospitality Australia Investment Fund No.1(b)Ascendas Hospitality Australia Investment Fund No.2(b)Ascendas Hospitality Operations Pty Ltd(a)Ascendas Hotel Investment Company Pty Limited(a)TUC T Bar Hotel (Dublin) Limited(b), (c)Ascendas Japan Namba Tokutei Mokuteki Kaisha(a)CapitaLand Korea Hospitality No.6 Qualified Private Real
Estate Investment LLC(b)CapitaLand Korea Hospitality Qualified Private Real
Estate Investment Trust No.7(b)Effective equity
interest held by
the Stapled Group
2023
2022
%
%

All significant subsidiaries are audited by KPMG LLP Singapore except for the following:
(a)
(b)
(c)

10

Audited by other member firms of KPMG International.
Not required to be audited by laws of country of incorporation.
The subsidiaries were incorporated/acquired during the year.

NON-CONTROLLING INTERESTS
The following subsidiaries have material non-controlling interests (“NCI”) and operate investment
properties.
Name

Principal place ofbusiness/Countryof incorporation

Ownership interests
held by NCI
2023
2022
%
%

Held by CapitaLand Ascott REIT
PT Ciputra Liang Court

Indonesia

42.6

42.6

Columbia Student Venture LLC Group

United Statesof America

10.0

10.0

Hanoi Tower Center Company Limited

Vietnam

24.0

24.0

Mekong-Hacota Joint Venture Company Limited

Vietnam

41.3

40.5

Saigon Office and Serviced Apartment Company Limited

Vietnam

33.0

33.0

Somerset Hoa Binh Joint Venture Company Limited

Vietnam

10.0

10.0

The CapitaLand Ascott REIT Group’s interests in its subsidiaries in Vietnam are held under the termsof joint venture arrangements with unrelated third parties. Under the terms of these joint venturearrangements, the net profits of each of the subsidiaries in Vietnam, upon fulfilment of certain statutoryfinancial obligations and the payment of other amounts due, are to be distributed to the shareholdersof these subsidiaries in certain proportions during different periods in accordance with the terms of
the relevant joint venture arrangements and/or the applicable investment license under which thesesubsidiaries operate.

230

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
10

Overview

Year ended 31 December 2023

NON-CONTROLLING INTERESTS (continued)
Under the investment license of Hanoi Tower Center Company Limited, Burton Engineering Pte Ltd isentitled to 76%, 70% and 50% of the distributed profits for each year during the first 25 years, thefollowing ten years and the subsequent ten years, respectively, from the commencement of operations ofHanoi Tower Center Company Limited. From 9 February 2018, profits attributable to NCI of Hanoi Tower
Center Company Limited increased from 24% to 30%.

The following summarises the financial information of each of the CapitaLand Ascott REIT Group’s
subsidiaries with material NCI, based on their respective financial statements prepared in accordancewith FRSs/SFRS(I)s, modified for fair value adjustments on acquisition and differences in the Stapled
Group’s accounting policies.

2023
Revenue
Profit/(Loss)
Attributable to NCI:
– Profit/(Loss)

4,997(7,101)

14,024(4,212)

7,598
(709)

8,133
(1,153)

3,704(4,342)

877

(710)

(1,264)

(287)

(461)

(434)

39,731 157,344
3,700
2,242
(892)
(7,499)(1,871) (89,701)
40,66862,386

69,291
3,399(1,300)(2,758)68,632

32,077
2,290
–
(984)
33,38340,61825,779
4,570
2,456
–
–
(2,177) (10,319)
43,011
17,916

17,313

6,239

16,472

13,794

14,194

1,792

913(2,681)

7,173

3,132

3,670

1,216

119

(36,616)

(590)

(236)

(462)

(153)

(1,605)

6,145

75,949ANNUAL REPORT 2023

231

Cash flows from/(usedin) operating activities
Cash flows from/(usedin) investing activities
Cash flows from/(usedin) financing activities
Net increase in
cash and cash
equivalents–

40,827(5,879)(1,859)(2,102)

–

1,032

1,530

704

1,037

1,106

1,063

Dividends paid to NCI––(1,764)

(523)

(843)

–
Financial Statements andOther Information

674

Sustainability & GovernanceNon-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Net assets
attributable to NCI

5,315
2,061

Total
$’000

Portfolio & Performance

CapitaLand Ascott
REIT Group

MekongSaigon Somerset
Columbia
Hanoi
Hacota Office and Hoa Binh
PT Student
Tower
Joint
Serviced
Joint
Other
Ciputra Venture
Center Venture Apartment Venture individually
Liang
LLC Company Company Company Company immaterial
CourtGroup Limited Limited
Limited Limited subsidiaries
$’000
$’000
$’000
$’000
$’000
$’000
$’000

Leadership

Under the investment license of Saigon Office and Serviced Apartment Company Limited, East Australia
Trading Company (S) Pte Ltd is entitled to 67%, 60% and 40% of the distributed profits for each year
prior to the repayment of its capital bank loan, after the repayment of its capital bank loan and after 31
years from the commencement of operations of Saigon Office and Serviced Apartment Company Limited
respectively. From 28 February 2022, profits attributable to NCI of Saigon Office and Serviced Apartment
Company Limited increased from 33% to 40%.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

10

NON-CONTROLLING INTERESTS (continued)

CapitaLand Ascott
REIT Group2022
Revenue
Profit/(Loss)
Attributable to NCI:
– Profit/(Loss)
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Net assets
attributable to NCI

232

MekongSaigon Somerset
Columbia
Hanoi
Hacota Office and Hoa Binh
PT Student
Tower
Joint
Serviced
Joint
Other
Ciputra Venture
Center Venture Apartment Venture individually
Liang
LLC Company Company Company Company immaterial
CourtGroup Limited Limited
Limited Limited subsidiaries
$’000
$’000
$’000
$’000
$’000
$’000
$’000

5,490
1,963

–
13,226

11,108
(747)

6,509
883

7,123
1,465

2,584
(2,889)

836

1,323

(224)

350

579

(289)

39,065 128,167
3,098
1,030
(882) (45,089)(2,262) (13,547)
39,01970,56185,721
2,778(3,503)(2,457)
82,53936,423
1,308–(1,751)
35,98046,456
3,483–(2,240)47,69930,856
1,448–(9,717)
22,587

16,611

7,056

19,80914,55815,741

2,259

1,024

98

6,353

3,118

3,834

645

27

(5,901)

(100)

(52)

41

(111)

Cash flows fromoperating activities
Cash flows from/(usedin) investing activities
Cash flows from/(usedin) financing activities
Net increase/(decrease) incash and cash
equivalents

–

5,901

(5,125)(2,608)(8,055)

(336)

1,051

98

1,128

458

(4,180)198

Dividends paid to NCI

–

–

(947)

(139)

(706)

–

CAPITALAND ASCOTT TRUST

Total
$’000

268

2,843

5,412

81,446

NOTES TO THE FINANCIAL STATEMENTS
10

Overview

Year ended 31 December 2023

NON-CONTROLLING INTERESTS (continued)
The NCI of the CapitaLand Ascott BT Group is immaterial as at 31 December 2023 and 2022, and therefore,
the financial information is not presented.
The following summarises the financial information of each of the Stapled Group’s subsidiaries withmaterial NCI, based on their respective financial statements prepared in accordance with FRSs/SFRS(I)s,modified for fair value adjustments on acquisition and differences in the Stapled Group’s accounting
policies.

2023
Revenue
Profit/(Loss)
Attributable to NCI:
– Profit/(Loss)

4,997(7,101)

14,024(4,212)

7,598
(709)

8,133
(1,153)

3,704(4,342)

877

(710)

(1,264)

(287)

(461)

(434)

39,731 157,344
3,700
2,242
(892)
(7,499)(1,871) (89,701)
40,66862,386

69,291
3,399(1,300)(2,758)68,632

32,077
2,290
–
(984)
33,38340,61825,779
4,570
2,456
–
–
(2,177) (10,319)
43,011
17,916

17,313

6,239

16,472

13,794

14,194

1,792

913(2,681)

7,173

3,132

3,670

1,216

119

(36,616)

(590)

(236)

(462)

(153)

(1,474)

7,839

77,643

ANNUAL REPORT 2023

233

Cash flows from/(usedin) operating activities
Cash flows from/(usedin) investing activities
Cash flows from/(usedin) financing activities
Net increase in
cash and cash
equivalents–

40,827(5,879)(1,859)(2,102)

–

1,032

1,530

704

1,037

1,106

1,063

Dividends paid to NCI––(1,764)

(523)

(843)

–

Sustainability & Governance

805

Portfolio & PerformanceNon-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Net assets
attributable to NCI

5,315
2,061

Total
$’000

Leadership

Stapled Group

MekongSaigon Somerset
Columbia
Hanoi
Hacota Office and Hoa Binh
PT Student
Tower
Joint
Serviced
Joint
Other
Ciputra Venture
Center Venture Apartment Venture individually
Liang
LLC Company Company Company Company immaterial
CourtGroup Limited Limited
Limited Limited subsidiaries
$’000
$’000
$’000
$’000
$’000
$’000
$’000

Financial Statements andOther Information

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

10

NON-CONTROLLING INTERESTS (continued)

Stapled Group2022
Revenue
Profit/(Loss)
Attributable to NCI:
– Profit/(Loss)
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Net assets
attributable to NCI

234

MekongSaigon Somerset
Columbia
Hanoi
Hacota Office and Hoa Binh
PT Student
Tower
Joint
Serviced
Joint
Other
Ciputra Venture
Center Venture Apartment Venture individually
Liang
LLC Company Company Company Company immaterial
CourtGroup Limited Limited
Limited Limited subsidiaries
$’000
$’000
$’000
$’000
$’000
$’000
$’000

5,490
1,963

–
13,226

11,108
(747)

6,509
883

7,123
1,465

2,584
(2,889)

836

1,323

(224)

350

579

(289)

39,065 128,167
3,098
1,030
(882) (45,089)(2,262) (13,547)
39,01970,56185,721
2,778(3,503)(2,457)
82,53936,423
1,308–(1,751)
35,98046,456
3,483–(2,240)47,69930,856
1,448–(9,717)
22,587

16,611

7,056

19,80914,55815,741

2,259

1,024

98

6,353

3,118

3,834

645

27

(5,901)

(100)

(52)

41

(111)

Cash flows fromoperating activities
Cash flows from/(usedin) investing activities
Cash flows from/(usedin) financing activities
Net increase/(decrease) incash and cash
equivalents

–

5,901

(5,125)(2,608)(8,055)

(336)

1,051

98

1,128

458

(4,180)198

Dividends paid to NCI

–

–

(947)

(139)

(706)

–

CAPITALAND ASCOTT TRUST

Total
$’000

340

2,915

7,027

83,061NOTES TO THE FINANCIAL STATEMENTS
11

Overview

Year ended 31 December 2023

ASSOCIATE
CapitaLand
Ascott REIT Groupand Stapled Group
2023
2022
$’000
$’000

Unquoted equity shares, at costLess: Share of associate post-acquisition revenue reserve

*

–*
(550)
(550)
3,838
(253)
3,035

Less than $1,000

Leadership

Loan receivable
Less: Allowance for impairment loss

–*
(543)
(543)
3,781
(253)
2,985

The loan to associate is unsecured, interest-free and repayable on demand with a notice period of twelve
months. The loan to associate is not expected to be recalled in the next twelve months.
Movement in allowance for impairment loss is as follows:

At 1 January and 31 December

253

253

During the year, there was no additional allowance for impairment loss arising from the loan receivableas the ECL is not material. The recoverable amount for the loan to associate was estimated based on
the higher of the value in use calculation using cash flow projection and the fair value of the net assets
of associate at the reporting date. The fair value measurement was estimated based on net assets of theassociate with maturity of less than one year.

Portfolio & Performance

CapitaLand
Ascott REIT Groupand Stapled Group
2023
2022
$’000
$’000

Details of the associate are as follows:
East Australia Trading Company Limited
Investment holding company held by the
CapitaLand Ascott REIT Group
Hong Kong
40% (2022: 40%)

The associate is immaterial to the CapitaLand Ascott REIT Group and the Stapled Group. A member
firm of KPMG International is the auditor of the associate. In 2023 and 2022, the CapitaLand Ascott REIT
Group did not receive any dividends from the associate.
The following table summarises the financial information for the interest in the associate, based on theamounts reported in the CapitaLand Ascott REIT Group’s and the Stapled Group’s Statement of Total
Return:
2022
$’000

7

(27)

ANNUAL REPORT 2023

235

Financial Statements andOther Information

Profit/(loss) after taxation

2023
$’000

Sustainability & Governance

Company nameNature of relationship with theCapitaLand Ascott REIT GroupCountry of incorporation
Ownership interest/Voting rights held

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

12

FINANCIAL DERIVATIVES
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

Financial derivative assets
Non-current
Interest rate swaps
Cross currency interest
rate swaps
Current
Interest rate swaps
Currency forwards
Cross currency interest
rate swaps

21,68430,933––

21,68430,93362,96984,65339,00969,942

209
209

–
–

63,17884,86239,00969,942

1,376
69

1,001
–

–
–

3,024
–

1,376
69

4,025
–

5,861
7,306

20,462
21,463

–
–

–
3,024

5,861
7,306

20,462
24,487(5,923)

–

(566)

–

(6,489)–(1,177)(7,100)(6,939)(6,939)

–
(566)

–
–

(1,177)(7,666)(6,939)(6,939)

–

(5)

–

–

–

(5)

–
–

–
(5)

–
–

(810)
(810)

–
–

(810)
(815)

Financial derivative liabilities
Non-current
Interest rate swaps
Cross currency interest
rate swaps
Current
Interest rate swaps
Cross currency interest
rate swaps

At the reporting date, the notional principal amounts of the financial instruments were as follows:
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Interest rate swaps
Cross currency interest
rate swaps
Currency forwards

236

CAPITALAND ASCOTT TRUSTCapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

799,304

456,560

32,813130,906

832,117

587,466

776,964
7,019
1,583,287

745,039–
1,201,599

34,302–
67,11534,817–
165,723

811,266
7,019
1,650,402

779,856–
1,367,322

237

Financial Statements andOther Information

Net deferred tax(liabilities)/assets

Set-off of tax

71
2,917
(15,445)(2,917)(18,362)(133)(86,415)(197,870)
86,415(111,455)(10,122)–(1,288)(108,284)(19,678)
1,245

4,173
(2,917)
5,323
2,917
8,240

98
86,41589,586(86,415)
3,171(108,556)(1,478)

379
3,668
20

38
2,936
99

Sustainability & GovernanceDeferred tax liabilities
Investment properties
Property, plant and equipment
Revaluation gain from businesscombinations
Accrued income and interest
receivable
Right-of-use assets

Set-off of tax

Deferred tax assets
Unutilised capital allowances
Unutilised tax losses
Provisions and accruals
Unrealised foreign exchange loss
– tradeLease liabilities

CapitaLand Ascott REIT GroupAt
1 January
2022
$’000
Restated

Credited/(Charged) toStatement of
Total Return(Note 30)$’000
Restated

Movements in deferred tax assets and liabilities are as follows:

7,719

(4)
(689)
7,703
689
8,392

–

8,306
90

(272)
689
16
(689)
(673)

(23)
(366)
(12)

Translationdifferences$’000
Restated(110,687)(66)(84,187)(205,612)
84,187(121,425)(1,288)(119,928)
(143)

3,999
84,187
94,925(84,187)
10,738

394
6,238
107

At
31 December
2022
$’000
Restated

Portfolio & Performance

ANNUAL REPORT 2023

(33,209)28
510(32,318)(510)(32,828)–(32,856)
–

(647)
(510)
(891)
510
(381)

2
233
31

–

–
(678)
(678)
678
–

–

–
–

–
678
678
(678)
–

–
–
–

Credited/(Charged) toStatement of
Total Return Acquisition of(Note 30)
subsidiary
$’000
$’000

Leadership

DEFERRED TAX

489

3
1,304
1,555
(1,304)
251

–

252
(4)

40
(1,304)(1,066)
1,304
238

12
186
–

Translationdifferences$’000(143,407)(35)(83,051)(237,053)
83,051(154,002)(1,288)(152,532)
(147)

3,392
83,051
93,646(83,051)
10,595

408
6,657
138

At
31 December
2023
$’000

Year ended 31 December 2023
Overview

13

NOTES TO THE FINANCIAL STATEMENTS

13

238

CAPITALAND ASCOTT TRUSTNet deferred tax(liabilities)/assets

Set-off of tax

Deferred tax liabilities
Investment properties
Property, plant and equipment
Revaluation gain frombusiness combinations
Unremitted earnings
Right-of-use assets

Set-off of tax

Deferred tax assets
Deferred income
Unutilised capital allowances
Provisions and accruals
Lease liabilities

CapitaLand Ascott BT Group

DEFERRED TAX (continued)

(723)

–
268
250
(618)
(250)
(868)

(2,780)(795)(4,999)(43,329)
4,999(38,330)(33,925)

(545)
(591)

–
–
145
(250)
(105)
250
145

(7,315)(27,440)

154
210
4,041
4,999
9,404
(4,999)4,405

At
1 January
2022
$’000
Restated

Credited/(Charged) toStatement of
Total
Return(Note 30)$’000
Restated(4,361)–––(4,361)–(4,361)–(4,361)

–
–
–
–
–
–
–

Chargedto Stapled
Securityholders’
funds
$’000
Restated

3,688

–
1
680
4,781
(680)
4,101

1,029
3,071

(14)
(19)
(380)
(680)
(1,093)680(413)(35,321)(2,780)(526)(4,069)(43,527)
4,069(39,458)(6,831)(29,321)

140
191
3,806
4,069
8,206
(4,069)4,137

AtTranslation 31 December
differences
2022
$’000
$’000
Restated
Restated

(514)

–
(796)
245
(119)
(245)
(364)

432
–

(139)
(88)
77
(245)
(395)
245
(150)

(2,060)–––(2,060)–(2,060)–(2,060)

–
–
–
–
–
–
–

Credited/(Charged) to
ChargedStatement of to Stapled
Total
SecurityReturnholders’(Note 30)
funds
$’000
$’000

555

–
1
346
905
(346)
559

550
8

(1)
(1)
(2)
(346)
(350)
346
(4)

(37,340)(2,780)(1,321)(3,478)(44,801)
3,478(41,323)(5,849)(31,373)

–
102
3,881
3,478
7,461
(3,478)3,983

AtTranslation 31 December
differences
2023
$’000
$’000

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

239

Financial Statements andOther Information(4,361)––––(4,361)–(4,361)(4,361)

–
268
71
3,167
(16,063)(3,167)(19,230)(10,845)

–
–
–
–
–

654

4,173
(3,167)
5,218
3,167
8,385

98
91,414
98,990(91,414)
7,576

–
–
–

–

379
3,668
165

248
2,936
4,140

–

(20,223)–

154

Deferred tax liabilities
Investment properties(115,871)
Property, plant andequipment(28,918)
Revaluation gain frombusiness combinations(4,068)
Unremitted earnings(795)
Accrued income andinterest receivable(133)
Right-of-use assets(91,414)(241,199)
Set-off of tax
91,414(149,785)
Net deferred tax(liabilities)/assets(142,209)

Set-off of tax

Deferred tax assets
Deferred income
Unutilised capitalallowances
Unutilised tax losses
Provisions and accruals
Unrealised foreignexchange loss – trade
Lease liabilities

Stapled Group

Sustainability & Governance

ANNUAL REPORT 2023

11,407(4)(9)
12,484
912,493

–
1

3,161

9,335

(272)
9
(1,077)(9)(1,086)

(42)
(366)
(392)

(14)

(146,008)(66)(88,256)(249,139)
88,256(160,883)(4,068)(526)(29,464)(126,759)

3,999
88,256103,131(88,256)
14,875

585
6,238
3,913

140

Portfolio & PerformanceAt
1 January
2022
$’000
Restated(33,723)28
755(32,437)(755)(33,192)

–
(796)

–

(32,424)

(647)
(755)
(1,286)
755
(531)

(86)
233
108

(139)

(2,060)––(2,060)–(2,060)––(2,060)

–

–
–
–
–
–

–
–
–

–

–

–
(678)
(678)
678
–

–
–

–

–

–
678
678
(678)
–

–
–
–

–

Credited/
Credited/(Charged) to
Charged(Charged) to
ChargedStatement to Stapled
Statement to Stapledof Total
SecurityAtof Total
SecurityReturnholders’ Translation 31 December
Returnholders’ Acquisition(Note 30)
funds differences
2022(Note 30)
funds of subsidiary
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Restated
Restated
Restated
Restated

Leadership

DEFERRED TAX (continued)

1,044

3
1,650
2,460
(1,650)
810

–
1

4

802

40
(1,650)(1,416)
1,650
234

11
186
(2)

(1)

(180,747)(35)(86,529)(281,854)
86,529(195,325)(4,068)(1,321)(31,520)(158,381)

3,392
86,529101,107(86,529)
14,578

510
6,657
4,019

–

At
Translation 31 December
differences
2023
$’000
$’000

Year ended 31 December 2023
Overview

13

NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

13

DEFERRED TAX (continued)
Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax
liabilities and when the deferred taxes relate to the same tax authority. The amounts determined after
appropriate offsetting are included in the Statements of Financial Position as follows:
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Deferred tax assets
Deferred tax liabilities

10,595(154,002)

10,738(121,425)

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

3,983
(41,323)

4,137(39,458)

Stapled Group
2023
2022
$’000
$’000

14,578(195,325)

14,875(160,883)

As at 31 December 2023, deferred tax liabilities amounting to $8,180,000 (2022: $7,981,000) had not beenrecognised for taxes that would be payable on the undistributed earnings of certain subsidiaries as theseearnings would not be distributed in the foreseeable future.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will beavailable against which temporary differences can be utilised. Deferred tax assets are reviewed at eachreporting date and are reduced to the extent that it is no longer probable that the related tax benefit will
be realised.
Deferred tax assets have not been recognised in respect of the following items because it is not probablethat future taxable profit will be available against which the CapitaLand Ascott REIT Group, the CapitaLand
Ascott BT Group and the Stapled Group can utilise the benefits therefrom:
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Tax losses
Deductible temporary differences

208,892
4,576
213,468

195,5115,974
201,485

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

15,932–
15,932

36,246–36,246

Stapled Group
2023
2022
$’000
$’000

224,824
4,576
229,400

231,757
5,974
237,731

Tax losses are subject to agreement by the tax authorities and compliance with tax regulations in therespective countries in which the subsidiaries operate. The deductible temporary differences do not
expire under the current tax legislation.
Unrecognised tax losses brought forward of the Stapled Group amounting to $3,495,000 (2022:$7,345,000) expired during the year. In addition, $46,511,000 (2022: $20,900,000) of the losses brought
forward were utilised to set off against current year’s taxable profit. The remaining balance of$181,751,000 (2022: $200,197,000) and unrecognised tax losses arising during the year of $43,073,000(2022: $31,560,000) have been carried forward. Tax losses that have been carried forward and are subject
to expiration as follows:
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Expiry dates– No expiry– Within 1 to 5 years– After 5 years

240

CAPITALAND ASCOTT TRUST

166,833
24,983
17,076
208,892

148,733
25,124
21,654
195,511

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

15,932––
15,932

36,246––36,246

Stapled Group
2023
2022
$’000
$’000

182,765
24,983
17,076
224,824

184,979
25,124
21,654
231,757

NOTES TO THE FINANCIAL STATEMENTS
14

Overview

Year ended 31 December 2023

TRADE AND OTHER RECEIVABLES

Note

Trade receivables
Impairment loss

33

Stapled Group
2023
2022
$’000
$’000

41,422(7,913)33,50936,168(7,297)28,871

7,933
(110)
7,823

7,416
(118)
7,298

49,355(8,023)
41,332

43,584(7,415)36,16916,58070,397
5,127

29,97147,144
2,257

1,203
797
–

2,231
2,118
–

15,0352,243–

26,193
3,857–

143,373
1,854

107,287
1,395

–
231

–
–

–
2,085

–
1,395

7,455
20,098(4)
20,094
298,389
17,652
316,041

10,05816,291(4)
16,287
243,270
14,071
257,341

–
2,556
–
2,556
12,6101,104
13,714

–
2,444
–
2,444
14,091
1,713
15,804

7,455
22,654(4)
22,65090,80018,756
109,556

10,05818,735(4)
18,731
96,403
15,784112,187

The non-trade amounts due from related parties mainly pertain to payments made on behalf of these
entities. The non-trade amounts and loans due from related parties are unsecured, interest-free andrepayable on demand except for an interest-bearing loan due from a related party at 5.41% (2022: 1.90%)
per annum.

15

Portfolio & Performance

Prepayments

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Leadership

Amounts due from
related parties:– trade– non-trade– loan (interest-bearing)
Loans due from CapitaLand
Ascott BT Group
Deposits
Deposit paid for acquisitionof investment property
Other receivables
Impairment loss

33

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

ASSETS HELD FOR SALE

Note

Property, plant andequipment
2 properties in Australia

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

737
86,862

1,020
–

–
–

–
–

737
86,862

1,020
–

(d)

124,000–––

124,000–

211,599

1,020

–

–

211,599

1,020

–

–

95,628–95,628–211,599

1,020

95,628–307,227

1,020

(e)

ANNUAL REPORT 2023

241

Financial Statements andOther Information

(a)
(c)

Sustainability & Governance

Investment properties
Somerset Grand Citra
Jakarta
3 properties in Japan
Citadines Mount Sophia
Property Singapore

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

15

ASSETS HELD FOR SALE (continued)(a)	In 2021, pursuant to the planned divestment of nine strata units in Somerset Grand Citra Jakarta(a serviced residence), the investment property pertaining to these nine units have been reclassified
to assets held for sale.
	During the year ended 31 December 2023, one strata unit (31 December 2022: two strata units) was
divested. As at 31 December 2023, there are six remaining strata units. The Stapled Group owns a
100% interest in all six strata units, which have a combined gross floor area of about 490 square
metres.
(b)	On 3 April 2023, the CapitaLand Ascott REIT Group entered into a sale and purchase agreementwith Extendam, an unrelated third party, to divest four serviced residences in regional France
for a total consideration of EUR44.4 million ($64.7 million). The consideration of EUR44.4 million($64.7 million) is approximately 63% above the properties’ carrying value as at 31 December 2022
which was appraised based on the discounted cash flow method. The four properties are Citadines
Croisette Cannes, Citadines Prado Chanot Marseille, Citadines Castellane Marseille and Citadines
City Centre Lille. Accordingly, they were reclassified from “investment properties”. Divestment of
the four serviced residences was completed on 22 September 2023.
(c)	On 16 December 2023, the CapitaLand Ascott REIT Group entered into a sale and purchaseagreement with TMK 7C, an unrelated third party, to divest Hotel WBF Honmachi, Hotel WBF
Kitasemba East and Hotel WBF Kitasemba West for a total consideration of JPY10.7 billion($99.8 million). The Stapled Group owns a 100% interest in all three properties, which have grossfloor areas of about 3,600 square metres, 3,100 square metres and 3,000 square metres respectively.
The combined consideration of JPY10.7 billion ($99.8 million) is approximately 14.9% above theproperties’ carrying value as at 31 December 2022 which was appraised based on the discounted
cash flow method.
(d)	Pursuant to the planned divestment of Citadines Mount Sophia Property Singapore which wasentered into and completed in the first quarter of 2024, the investment property and property, plantand equipment relating to Citadines Mount Sophia Property Singapore was reclassified to assets
held for sale as at 31 December 2023.
(e)	
On 3 November 2023, the CapitaLand Ascott BT Group entered into two sale and purchaseagreements with Silversea Investment Pty Ltd and Oceanfront Capital Pty Ltd, unrelated third
parties, to divest Courtyard by Marriott Sydney-North Ryde for the consideration of AUD55.2
million ($48.4 million) and two sale and purchase agreements with Silversea Investment Pty Ltd
and Silverworld Business Pty Ltd, unrelated third parties, to divest Novotel Sydney Parramatta forthe consideration of AUD53.8 million ($47.2 million). The combined consideration of AUD109.0
million ($95.6 million) is approximately 4.9% above the properties’ carrying value as at 27 October
2023 which was appraised based on the discounted cash flow method. The Stapled Group owns a
100% interest in Novotel Sydney Parramatta, which has a gross floor area of about 18,700 square
metres.

Fair value hierarchy
On 31 December 2023, the Stapled Group’s assets held for sale are valued based on independentvaluation conducted by HVS using the discounted cash flow method, except for the two properties inAustralia which were valued by Colliers using the discounted cash flow method.
The fair value measurement for assets held for sale for the Stapled Group have been categorised as level3 fair values.

242

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
15

Overview

Year ended 31 December 2023

ASSETS HELD FOR SALE (continued)

Reconciliation of Level 3 fair value
The following table presents the reconciliation of the assets held for sale from the beginning balances tothe ending balances for Level 3 fair values.
CapitaLand
Ascott REIT Group
2023
2022
$’000
$’000

1,020
(40,059)

1,519
(431)

–
–

–
–

1,020
(40,059)

1,519
(431)

250,507–––

250,507–375–

95,628–96,003

–

(13)
(231)
211,599

17
(85)
1,020

–
–
95,628

–
–
–

(13)
(231)
307,227

17
(85)
1,020

CASH AND CASH EQUIVALENTS
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Note

(a)

Stapled Group
2023
2022
$’000
$’000

321,844282,275

60,31862,303382,162

344,578

47,527369,371(6,473)

16,976299,251
(389)

3,117
63,435(3,120)2,080
64,383(2,080)50,644432,806(9,593)19,056363,634(2,469)362,898

298,862

60,31562,303423,213361,165

As at 31 December 2023, the interest rates per annum for cash and cash equivalent of the CapitaLand
Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group ranged from 0.00% to 6.00%(2022: 0.00% to 8.20%), 0.00% to 3.42% (2022: 0.00% to 1.66%) and 0.00% to 6.00% (2022: 0.00% to8.20%) respectively.
(a)

The restricted cash comprise:•	bank balances of certain subsidiaries pledged as collateral for certain borrowings of$6,476,000 (2022: $389,000); andSustainability & GovernanceCash at bank and in hand
Fixed deposits withfinancial institutions
Cash and cash equivalents
Restricted cash
Cash and cash equivalentsin the Statements ofCash Flows

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Portfolio & Performance

16

Stapled Group
2023
2022
$’000
$’000
Leadership

Balance at 1 January
Disposal of assets held for saleTransfer from investment
properties (Note 4)
Transfer from property, plant andequipment (Note 5)
Net change in fair value
recognised in Statement of
Total Return
Translation difference
Balance at 31 December

CapitaLand
Ascott BT Group
2023
2022
$’000
$’000

•	security deposit of $3,117,000 (2022: $2,080,000) from a tenant which can only be drawn
down as rental payment upon tenant’s default or refunded to tenant upon lease expiry.

243

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

17

FINANCIAL LIABILITIESCapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Non-current liabilities
Secured bank loans
Unsecured bank loans
Medium term notes
Sustainability-linked notes
Current liabilities
Secured bank loans
Unsecured bank loans
Medium term notes

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

879,165
722,565
430,755
353,371
2,385,856

1,029,575
543,069
448,930
367,899
2,389,473

51,626
48,517––100,143

983
82,424––
83,407930,791
771,082
430,755
353,371
2,485,999

1,030,558
625,493448,930
367,8992,472,880

174,441
117,571
237,110529,1222,914,97873,47652,781
99,987226,2442,615,717–
33,240–33,240133,383–
175,462–
175,462
258,869

174,441
150,811
237,110562,3623,048,361

73,476228,243
99,987401,706
2,874,586

The weighted average effective interest rates per annum relating to bank loans, medium term notes andsustainability-linked notes at the reporting date for the CapitaLand Ascott REIT Group, the CapitaLand
Ascott BT Group and the Stapled Group are 4.34% (2022: 3.33%), 5.29% (2022: 4.45%) and 4.38%(2022: 3.43%) respectively.
Included in the CapitaLand Ascott REIT Group’s, the CapitaLand Ascott BT Group’s and the Stapled
Group’s bank loans, medium term notes and sustainability-linked notes is an amount of $11,384,000(2022: $12,332,000), $683,000 (2022: $372,000) and $12,067,000 (2022: $12,704,000) respectively, relating
to unamortised transaction costs.

Secured bank loans
The CapitaLand Ascott REIT Group’s secured bank loans are secured on certain investment properties(Note 4), pledge of shares of certain subsidiaries, pledge over certain bank deposits (Note 17), assignmentof rental proceeds from the properties, assignment of insurance policies on the properties and corporate
guarantee from CapitaLand Ascott REIT.
The CapitaLand Ascott BT Group’s secured bank loan is secured on an investment property (Note 4) anda hotel (Note 5).

Medium term notes
On 9 September 2009, a subsidiary of the CapitaLand Ascott REIT Group, Ascott REIT MTN Pte. Ltd.,launched a $1.0 billion Multi-currency Medium Term Note Programme (“MTN Programme”). On 9 July
2020, the MTN Programme was amended to add the REIT Trustee and the BT Trustee-Manager as issuers
and perpetual securities was added as a security which may be issued by the REIT Trustee and the BT
Trustee-Manager (“Amended MTN Programme”). The Amended MTN Programme limit was increased to$2.0 billion. Under this Amended MTN Programme, the Ascott REIT MTN Pte. Ltd., the REIT Trustee andBT Trustee-Manager may, subject to compliance with all relevant laws, regulations and directives, fromtime to time issue fixed or floating interest rate notes and perpetual securities with aggregate principal
amounts of $2.0 billion.
On 30 November 2011, a subsidiary of the CapitaLand Ascott REIT Group, Ascott REIT MTN (Euro) Pte.
Ltd., established a US$2.0 billion Euro-Medium Term Note Programme (“EMTN Programme”). Under thisEMTN Programme, Ascott REIT MTN (Euro) Pte. Ltd. may, subject to any applicable legal or regulatory
restrictions, from time to time issue fixed or floating interest rate notes in series or tranches in Euro,
Sterling Pound, US Dollar, Singapore Dollar, Chinese Renminbi or any other currency agreed between
Ascott REIT MTN (Euro) Pte. Ltd. and the relevant dealer of the programme.

244

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
17

Overview

Year ended 31 December 2023

FINANCIAL LIABILITIES (continued)

Medium term notes (continued)
On 15 October 2014, a subsidiary of the A-HREIT Group, Ascendas Hospitality MTN Pte. Ltd., and
A-HBT (jointly known as “Issuers”), established a $1.0 billion Multi-currency Stapled Medium Term Note
Programme (“Stapled MTN Programme”). Under this Stapled MTN Programme, the Issuers may, subject
to any applicable legal or regulatory restrictions, from time to time issue fixed or floating interest rate
notes in series or tranches in Euro, Sterling Pound, US Dollar, Singapore Dollar, Chinese Renminbi or any
other currency agreed between the Issuers and the relevant dealer of the programme.

On 20 April 2022, the CapitaLand Ascott REIT Group issued $200.0 million of sustainability-linked notes.
Under the conditions of the notes, there is a sustainability performance target of having at least 50% of thetotal gross floor area of the Stapled Group’s portfolio being awarded with regional, national or internallyrecognised green building standards or certifications by a recognised third party by 31 December 2025.

Leadership

Sustainability-linked notes

On 7 November 2022, the CapitaLand Ascott REIT Group issued JPY16.5 billion of sustainability-linked
notes. Under the conditions of the notes, there are sustainability performance targets of (i) achieving a
40.5% reduction in electricity consumption as a proxy for Scope 1 and 2 Carbon Emissions Intensity fromthe base year of 2019 for the eligible projects and (ii) achieving EDGE Greenbuilding Certifications for theeligible projects by 31 December 2028.

Sustainability-linked cross currency swap
On 6 September 2023, the CapitaLand Ascott REIT Group issued $120.0 million of fixed rate notes. At
the same time, a cross currency swap was entered into to convert part of the Singapore dollar proceeds
into Japanese Yen amounting to JPY11.0 billion at a fixed interest rate of 1.09% per annum. Under theconditions of the cross currency swap, there is sustainability performance target of having:Portfolio & Performance

Subject to the conditions stipulated in the sustainability-linked notes, if the Stapled Group fails to satisfy
any of the performance targets on the respective observation dates, the issuer shall pay in respect ofeach note an amount equal to the interest premium of 0.25% on the nominal value of the notes.

(i)	at least 50% of the total gross floor area of the Stapled Group’s portfolio being awarded with
regional, national or internally recognised green building standards or certifications by a recognised
third party by 31 December 2025; andThe Japanese Yen interest can be reduced slightly if the sustainability performance target is met by therespective sustainability performance target dates.
As at 31 December 2023, notes issued by the Stapled Group comprises:•

under the Amended MTN Programme:$505.0 million (2022: $385.0 million) of fixed rate notes maturing between 2024 and 2028;(ii)$200.0 million (2022: $200.0 million) of fixed rate sustainability-linked notes maturing in 2027;(iii)

JPY5.0 billion (2022: JPY5.0 billion) of fixed rate notes maturing in 2025; and(iv)	JPY16.5 billion (2022: JPY16.5 billion) of fixed rate sustainability-linked notes maturing in2029.
•	under the EMTN Programme, EUR80.0 million (2022: EUR80.0 million) of fixed rate notes maturing
in 2024.

ANNUAL REPORT 2023

245

Financial Statements andOther Information(i)

Sustainability & Governance(ii)	at least 60% of the total gross floor area of the Stapled Group’s portfolio being awarded with
regional, national or internally recognised green building standards or certifications by a recognised
third party by 31 December 2026.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

17

FINANCIAL LIABILITIES (continued)
Currency

Nominalinterest rate%

Year ofmaturity

Face
value
$’000

Carrying
amount$’000

2023
Medium term notes
Medium term notes
Medium term notes
Secured fixed rate loans
Secured fixed rate loans
Secured floating rate loans
Secured floating rate loans
Secured floating rate loans
Sustainability-linked notes
Sustainability-linked notes
Unsecured fixed rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans

EUR
JPY
SGD
JPY
USD
JPY
RMB
USD
JPY
SGD
USD
EUR
GBP
JPY
SGD
USD

2.75
0.97
4.00 – 5.00
0.25 – 1.39
2.70 – 2.90
0.17 – 1.02
4.45 – 4.70
7.18 – 8.16
1.05
3.63
1.00
4.98 – 5.28
6.20 – 6.84
1.31
4.65 – 5.28
6.95 – 8.15

2024
2025
2024 – 2028
2024 – 2029
2028
2024 – 2029
2026 – 2032
2024 – 2032
2029
2027
2025
2024 – 2027
2024 – 2028
2024
2024 – 2028
2026 – 2029

117,188
46,650505,000
413,160
108,440
95,27815,933
426,441
153,945
200,00091
161,866
307,567
10,263
152,454
212,086
2,926,362

117,123
46,645504,097410,010
107,846
94,715
15,917425,118
153,812
199,559
91
161,434
305,542
10,246
151,974
210,849
2,914,9782022
Medium term notes
Medium term notes
Medium term notes
Secured fixed rate loans
Secured fixed rate loans
Secured floating rate loans
Secured floating rate loans
Secured floating rate loans
Secured floating rate loans
Sustainability-linked notes
Sustainability-linked notes
Unsecured fixed rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans

EUR
JPY
SGD
JPY
USD
JPY
RMB
USD
VND
JPY
SGD
USD
AUD
EUR
GBP
JPY
SGD
USD

2.75
0.97
3.52 – 5.00
0.25 – 1.39
2.70 – 2.90
0.16 – 1.01
4.70 – 4.80
2.30 – 6.99
4.00 – 4.50
1.05
3.63
1.00
3.92 – 4.35
1.69 – 3.92
2.28 – 3.49
0.58 – 1.30
3.97 – 5.86
3.54 – 6.91

2024
2025
2023 – 2026
2024 – 2029
2028
2024 – 2029
2026 – 2032
2023 – 2032
2023
2029
2027
2025
2024
2024
2024
2023 – 2024
2025 – 2026
2026 – 2029

113,472
51,100385,000
398,958
110,066
100,718
17,487483,341560
168,630
200,000
160
46,391
92,90535,13763,364
137,270
223,4902,628,049

113,339
51,092
384,486
395,852
109,333
98,48017,487481,339560
168,474
199,425160
46,27992,77135,052
63,273
136,369
221,946
2,615,717

CapitaLand Ascott REIT Group246

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
17

Overview

Year ended 31 December 2023

FINANCIAL LIABILITIES (continued)
Currency

Nominalinterest rate%

Year ofmaturity

Face
value
$’000

Carrying
amount$’000

2023
Secured fixed rate loans
Secured floating rate loans
Unsecured fixed rate loans
Unsecured floating rate loans*

JPY
EUR
KRW
USD

1.39
5.22
3.55
6.63

2027
2028
2024
2025

933
51,27033,24848,615134,066

906
50,72033,24048,517
133,383

2022
Secured fixed rate loans
Unsecured fixed rate loans
Unsecured floating rate loans
Unsecured floating rate loans*

JPY
KRW
AUD
USD

1.39
3.55
4.56
3.39

2027
2024
2023
2025

1,022
33,280175,595
49,344259,241983
33,236
175,462
49,188258,869

EUR
JPY
SGD
JPY
USD
JPY
EUR
RMB
USD
JPY
SGD
KRW
USD
EUR
GBP
JPY
SGD
USD

2.75
0.97
4.00 – 5.00
0.25 – 1.39
2.70 – 2.90
0.17 – 1.02
5.22
4.45 – 4.70
7.18 – 8.16
1.05
3.63
3.55
1.00
4.98 – 5.28
6.20 – 6.84
1.31
4.65 – 5.28
6.63 – 8.15

2024
2025
2024 – 2028
2024 – 2029
2028
2024 – 2029
2028
2026 – 2032
2024 – 2032
2029
2027
2024
2025
2024 – 2027
2024 – 2028
2024
2024 – 2028
2025 – 2029

117,188
46,650505,000
414,093
108,440
95,27851,27015,933
426,441
153,945
200,000
33,24891
161,866
307,567
10,263
152,454
260,701
3,060,428

117,123
46,645504,097
410,916
107,846
94,71550,72015,917425,118
153,812
199,559
33,24091
161,434
305,542
10,246
151,974
259,366
3,048,361

CapitaLand Ascott BT Group

Leadership

Stapled Group247

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance*	In 2022, the CapitaLand Ascott BT Group has drawn down a USD36.0 million unsecured floating rate loan. The margin for theloan has been reduced after 12 months from the first utilisation date as no event of default has occurred and Global Real Estate
Sustainability Benchmark rating achievement has been met.

Portfolio & Performance

2023
Medium term notes
Medium term notes
Medium term notes
Secured fixed rate loans
Secured fixed rate loans
Secured floating rate loans
Secured floating rate loans
Secured floating rate loans
Secured floating rate loans
Sustainability-linked notes
Sustainability-linked notes
Unsecured fixed rate loans
Unsecured fixed rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

17

FINANCIAL LIABILITIES (continued)
Currency

Nominalinterest rate%

Year ofmaturity

EUR
JPY
SGD
JPY
USD
JPY
RMB
USD
VND
JPY
SGD
KRW
USD
AUD
EUR
GBP
JPY
SGD
USD

2.75
0.97
3.52 – 5.00
0.25 – 1.39
2.70 – 2.90
0.16 – 1.01
4.70 – 4.80
2.30 – 6.99
4.00 – 4.50
1.05
3.63
3.55
1.00
3.92 – 4.56
1.69 – 3.92
2.28 – 3.49
0.58 – 1.30
3.97 – 5.86
3.39 – 6.91

2024
2025
2023 – 2026
2024 – 2029
2028
2024 – 2029
2026 – 2032
2023 – 2032
2023
2029
2027
2024
2025
2023 – 2024
2024
2024
2023 – 2024
2025 – 2026
2025 – 2029

Face
value
$’000

Carrying
amount$’000

113,472
51,100385,000
399,980
110,066
100,718
17,487483,341560
168,630
200,000
33,280160
221,986
92,90535,13763,364
137,270
272,834
2,887,290

113,339
51,092
384,486
396,835
109,333
98,48017,487481,339560
168,474
199,425
33,236160
221,741
92,77135,052
63,273
136,369
271,134
2,874,586

Stapled Group2022
Medium term notes
Medium term notes
Medium term notes
Secured fixed rate loans
Secured fixed rate loans
Secured floating rate loans
Secured floating rate loans
Secured floating rate loans
Secured floating rate loans
Sustainability-linked notes
Sustainability-linked notes
Unsecured fixed rate loans
Unsecured fixed rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans
Unsecured floating rate loans

Guarantees
The CapitaLand Ascott REIT Group has provided corporate guarantees to banks amounting to $558,279,000(2022: $401,213,000) for bank loans undertaken by its subsidiaries which expire in 2025, 2026, 2028, 2029
and 2032. The CapitaLand Ascott BT Group has provided corporate guarantees to banks amounting to$33,248,000 (2022: $208,475,000) for unsecured bank loans undertaken by its subsidiaries which expire
in 2024.
The earliest period that the guarantees could be called is within one year (2022: one year) from thereporting date.
At the reporting date, the CapitaLand Ascott REIT Group and the CapitaLand Ascott BT Group do notconsider it probable that a claim will be made under these guarantees.

Loan covenant
As at 31 December 2023, the Stapled Group has complied with all debt covenants or obtained waivers todefer testing of debt covenant compliance to after the year end.

248

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
17

Overview

Year ended 31 December 2023

FINANCIAL LIABILITIES (continued)

Reconciliation of movements of liabilities to cash flows arising from financing activities

CapitaLand Ascott REIT Group

Other changes
Finance costs
Effect of changes in foreign exchange rates
Acquisition of investment properties (Note 38)
Balance as at 31 December 2022

Total
$’000

2,379,714

5,455

275,879

2,661,048

1,554,606(1,319,220)

–
–

–
–

1,554,606(1,319,220)(7,842)––
227,544––(45,587)(45,587)–(7,897)(10,379)(18,276)(7,842)(7,897)(55,966)
163,681

3,498(108,393)
113,3542,615,717

48,108
(12)
–
7,964

10,379(968)–
267,01461,985(109,373)
113,354
2,890,695

2,615,717

7,964

267,0142,890,695

704,147(499,073)

–
–

–
–

704,147(499,073)(2,966)––202,108––(64,131)(64,131)–(9,000)(9,716)(18,716)(2,966)(9,000)(73,847)
119,261

3,291(73,219)–
167,0812,914,97867,788(57)––
11,5649,716(4,395)
7,635
2,711
263,965

80,795(77,671)
7,635
169,792
3,190,507(1) Net of interest receivables of $7,522,000 (2022: $6,212,000) from cross currency interest rate swaps.

249

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

Other changes
Finance costs
Effect of changes in foreign exchange rates
Modification of lease liability
Acquisition of investment properties (Note 38)
Balance as at 31 December 2023

Leaseliabilities(Note 20)$’000

Portfolio & Performance

Balance as at 1 January 2023
Changes from financing cash flows
Proceeds from borrowings and issuance of notes
Repayment of borrowings and notes
Payment of transaction costs on borrowingsand notes
Payment of lease liabilities
Interest paid
Total changes from financing cash flows

Interest
payable(1)(Note 18)$’000

Leadership

Balance as at 1 January 2022
Changes from financing cash flows
Proceeds from borrowings and issuance of notes
Repayment of borrowings and notes
Payment of transaction costs on borrowingsand notes
Payment of lease liabilities
Interest paid
Total changes from financing cash flows

Bank loans
and notes$’000

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

17

FINANCIAL LIABILITIES (continued)

Reconciliation of movements of liabilities to cash flows arising from financing activities (continued)

CapitaLand Ascott BT GroupBank loans
and notes$’000

Interest
payable(1)(Note 18)
$’000

Lease
liabilities(Note 20)
$’000

Total
$’000

Balance as at 1 January 2022
Changes from financing cash flows
Proceeds from borrowings
Repayment of borrowings and notes
Payment of transaction costs on borrowings
Payment of lease liabilities
Interest paid
Total changes from financing cash flows

349,210

1,152

99,972

450,334

92,243(161,770)(231)––(69,758)––––(6,559)(6,559)–––(4,989)(7,542)(12,531)

92,243(161,770)(231)(4,989)(14,101)(88,848)

Other changes
Finance costs
Effect of changes in foreign exchange rates
Balance as at 31 December 2022

294
(20,877)
258,869

6,640
(136)
1,097

7,542
(13,595)
81,38814,476(2)(34,608)341,354

Balance as at 1 January 2023
Changes from financing cash flows
Proceeds from borrowings
Repayment of borrowings
Payment of transaction costs on borrowings
Payment of lease liabilities
Interest paid
Total changes from financing cash flows

258,869

1,097

81,388341,354

51,270(175,468)(557)––(124,755)––––(6,582)(6,582)–––(4,890)(6,388)(11,278)

51,270(175,468)(557)(4,890)(12,970)(142,615)

Other changes
Finance costs
Effect of changes in foreign exchange rates
Balance as at 31 December 2023

242
(973)
133,383

5,678
73
266

6,388
(6,931)
69,567

12,308(2)(7,831)
203,216(1) Net of interest receivables of $38,000 (2022: $789,000) from cross currency interest rate swaps and including interest payable to
CapitaLand Ascott REIT Group of $Nil (2022: $51,000) from interest bearing loan due to related parties.
(2) Excludes financial expenses from remeasuring the security deposits of $125,000 (2022: $140,000).

250

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
17

Overview

Year ended 31 December 2023

FINANCIAL LIABILITIES (continued)

Reconciliation of movements of liabilities to cash flows arising from financing activities (continued)

Stapled Group

Other changes
Finance costs
Effect of changes in foreign exchange rates
Acquisition of investment properties (Note 38)
Balance as at 31 December 2022

Total
$’000

2,728,924

6,542

275,879

3,011,345

1,646,849(1,480,990)

–
–

–
–

1,646,849(1,480,990)(8,073)––
157,786––(52,146)(52,146)–(7,897)(10,379)(18,276)(8,073)(7,897)(62,525)
87,364

3,792(129,270)
113,3542,874,586

54,701
(87)
–
9,010

10,379(968)–
267,01468,872(2)(130,325)
113,354
3,150,610

2,874,586

9,010

267,0143,150,610

755,417(674,541)

–
–

–
–

755,417(674,541)(3,523)––77,353––(70,653)(70,653)–(9,000)(9,716)(18,716)(3,523)(9,000)(80,369)(12,016)

3,533(74,192)–
167,0813,048,361

73,456
17––
11,8309,716(4,395)
7,635
2,711
263,965

86,705(2)(78,570)
7,635
169,792
3,324,156(1) Net of interest receivables of $7,560,000 (2022: $7,001,000) from cross currency interest rate swaps.
(2) Excludes financial expenses from remeasuring the security deposits of $125,000 (2022: $140,000).

251

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

Other changes
Finance costs
Effect of changes in foreign exchange rates
Modification of lease liability
Acquisition of investment properties (Note 38)
Balance as at 31 December 2023

Leaseliabilities(Note 20)$’000

Portfolio & Performance

Balance as at 1 January 2023
Changes from financing cash flows
Proceeds from borrowings and issuance of notes
Repayment of borrowings and notes
Payment of transaction costs on borrowingsand notes
Payment of lease liabilities
Interest paid
Total changes from financing cash flows

Interest
payable(1)(Note 18)$’000

Leadership

Balance as at 1 January 2022
Changes from financing cash flows
Proceeds from borrowings and issuance of notes
Repayment of borrowings and notes
Payment of transaction costs on borrowingsand notes
Payment of lease liabilities
Interest paid
Total changes from financing cash flows

Bank loans
and notes$’000

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

18

TRADE AND OTHER PAYABLES
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Trade payables and accrued
operating expenses
Amounts due toassociate (non-trade)Amounts due to related parties:– trade– non-trade– milestone payment for
acquisition of investment
properties– milestone payment for
acquisition of a hotel– loan (interest-bearing)Amounts due to the
REIT Manager
Amounts due to the
BT Trustee-Manager
Amounts due to the REIT Trustee
Amounts due to non-controllinginterests (non-trade)
Loans due to CapitaLand
Ascott REIT GroupInterest payable
Rental deposits andadvance rental
Trade and other payables(current)
Other payables
Rental deposits
Trade and other payables(non-current)

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

100,646

93,935

26,20625,251

126,852

119,186

1,876

1,884

–

–

1,876

1,884

18,816
2,612

22,292
3,734

5,485
68,225

7,776
43,294

21,553
1,886

24,0591,623

91,87928,428––91,87928,428

–
3,921

–
3,919

30,105
5,127

–
2,257

30,105
3,921

–
3,919

7,623

5,976

–

–

7,623

5,976

–
254

–
235

1,156
–

255
–

1,156
254

255
235

652

686

–

–

652

686

–
19,086–
14,176

143,373304

107,287
1,835–
19,390–16,011

39,212

37,167

5,673

4,814

44,88541,981

286,577

212,432

285,654

192,769

352,032

244,243

–
–

–
32

309
7,826

409
8,215

309
7,826

409
8,247

–

32

8,135

8,624

8,135

8,656

The non-trade amounts due to associate and related parties mainly pertain to payments made on behalfby these entities. These amounts and loans due to the CapitaLand Ascott REIT Group are unsecured,interest-free and repayable on demand. The effective interest rate for the interest-bearing loan to relatedparties in the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group are
2.33% (2022: 2.27%), 5.41% (2022: 1.90%) and 2.33% (2022: 2.27%) per annum respectively.
The non-trade amounts due to non-controlling interests mainly pertain to interest-bearing loans extended
to the Stapled Group with an effective interest rate of 7.20% (2022: 3.97%) per annum.
Milestone payment for acquisition of investment properties will be paid to the vendor by the CapitaLand
Ascott REIT Group when:(i)

70% of the renovation works have been completed by the master lessee of La Clef Tour Eiffel Paris;
and

(ii)

70% of the renovation works have been completed for The Cavendish London.

Milestone payment for acquisition of a hotel will be paid to the vendor by the CapitaLand Ascott BT
Group when 70% of the renovation works have been completed for Temple Bar Hotel.
The non-current rental deposits are refundable to tenant upon the lease expiry ranging from
December 2025 to June 2038.

252

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
19

Overview

Year ended 31 December 2023

DEFERRED INCOME
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

425
7,969
8,394

–
–
–

120
747
867

135
876
1,011

545
8,716
9,261

135
876
1,011

At 1 January
Additions during the year
Amount amortised during
the year– Gross revenue (Note 23)– Finance income (Note 25)
Translation differences

–
8,500

–
–

1,011
–

2,097
–

1,011
8,500

2,097
–

(106)
–
–
8,394

–
–
–
–

–
(125)
(19)
867

(786)
(140)
(160)
1,011

(106)
(125)
(19)
9,261

(786)
(140)
(160)
1,011

Leadership

Current
Non-current
Total

Deferred income relates to the following:(ii)	Difference between the considerations received for rental deposits arising from the master leases
and its fair value on initial recognition. Deferred income is credited to the Statement of Total Return
as finance income.

253

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance(iii)	Key money contribution of $8.5 million received from Ascott International Management Pte Ltd(“AIMPL”) for the rebranding and renovation of the property during the year, upon rebranding of theproperty to The Robertson House by The Crest Collection in 2023. In the event of termination of
the hotel management agreement signed between AHBT and AIMPL on 30 September 2022, AHBT
will return a percentage of the key money contributed by AIMPL based on the remaining durationof the hotel management agreement from the date the property is rebranded as The Robertson
House by The Crest Collection. Deferred income is credited to the Statement of Total Return as
rental income on a straight-line basis.

Portfolio & Performance(i)	Cash reimbursement received from Accor for its 50% share of the $30.0 million capital expenditure
incurred by the Accor Australia hotels for refurbishment works which was completed in 2013.
The reimbursement by Accor is conditional upon the non-termination of the hotel managementagreement signed between Ascendas Hotel Investment Company Pty Limited and Accor prior
to 30 June 2017 and on a pro-rata basis if the termination occurs after 30 June 2017 but before
30 June 2022. Deferred income is credited to the Statement of Total Return as rental income on astraight-line basis. The deferred income was fully amortised during the year ended 31 December
2022.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

20

LEASE LIABILITIESCapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Current
Non-current
Total

10,288
253,677
263,965

9,646
257,368
267,014

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

5,155
64,412
69,567

5,185
76,20381,388Stapled Group
2023
2022
$’000
$’000

10,288
253,677
263,965

9,646
257,368
267,014

The investment properties of the CapitaLand Ascott BT Group included a right-of-use asset relating tothe operating lease for Ariake Hotel on adoption of FRS 116/SFRS(I) 16. AAGK, a subsidiary of CapitaLand
Ascott BT, leases Ariake Hotel from Ascendas Hospitality Tokutei Mokuteki Kaisha, a subsidiary of
CapitaLand Ascott REIT. FRS 116/SFRS(I) 16 requires AAGK to recognise a right-of-use asset and leaseliability relating to this operating lease. There is no impact for the Stapled Group as the intra-grouptransaction will be eliminated upon consolidation.

Leases as lessee (FRS 116/SFRS(I) 16)
The CapitaLand Ascott REIT Group leases the land on which three (2022: three) of the investment
properties were constructed. The leases have initial tenures ranging from 25 to 48 years (2022: 25 to 48
years).
The CapitaLand Ascott REIT Group also leases the commercial podium under a 33-year master leasein Somerset Olympic Tower Property Tianjin. The operating lease payables are based on the fixedcomponent of the rent payable under the lease agreement, adjusted for incremental rent which havebeen provided for in the agreement.
Information about leases for which the CapitaLand Ascott REIT Group is a lessee is presented below.
Amounts recognised in the Statement of Total Return
CapitaLand
Ascott REIT Groupand Stapled Group
2023
2022
$’000
$’000

Lease under FRS 116/SFRS(I) 16
Interest expense on lease liabilities
Change in fair value of right-of-use assets
Variable lease payments not capitalised in lease liabilities
Variable lease payments which do not depend on an index or rate(1)

9,716
9,471

10,379
9,059

374

351

(1) The CapitaLand Ascott REIT Group manages certain units at one of the investment properties on behalf of third-party unit owners.
The variable lease payments paid to these unit owners are based on a percentage of the net operational profit derived from theinvestment property. Such variable lease payments are recognised in the Statement of Total Return when incurred and amounted
to $374,000 (2022: $351,000) for the year ended 31 December 2023.

254

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
20

Overview

Year ended 31 December 2023

LEASE LIABILITIES (continued)
Amounts recognised in Statement of Cash Flows
CapitaLand
Ascott REIT Groupand Stapled Group
2023
2022
$’000
$’000

21

9,000
9,716
18,716

7,897
10,37918,276

STAPLED SECURITYHOLDERS’ FUNDS

Leadership

Payment of lease liabilities
Interest paid
Total cash outflow for leases

Foreign currency translation reserve
The foreign currency translation reserve comprises foreign exchange differences arising from thetranslation of the financial statements of foreign entities, effective portion of the hedging instrument
which is used to hedge against the Stapled Group’s net investment in foreign currencies as well asfrom the translation of foreign currency loans used to hedge or form part of the Stapled Group’s net
investments in foreign entities.

The subsidiaries incorporated in China are required to transfer 10% of their profits after taxation, as
determined under the accounting principles and relevant financial regulations of China, to a generalreserve until the reserve balance reaches 50% of the subsidiary’s registered capital. The transfer to thisreserve must be made before the distribution of dividends to shareholders.
The capital reserve of the subsidiary can be used to make good previous years’ losses, if any, and may
be converted to paid-in capital of the subsidiary in proportion to the existing interests of equity owners,
provided that the balance after such conversion is not less than 25% of the registered capital.

Portfolio & Performance

Capital reserve

Hedging reserve

Asset revaluation reserve
The revaluation reserve relates to the revaluation of land and buildings, net of deferred tax.

Capital management
The Managers review the Stapled Group’s capital structure regularly, which the Stapled Group defines as
total Stapled Securityholders’ funds (excluding non-controlling interests) and the level of distribution to
Stapled Securityholders. The Stapled Group uses a combination of debt and equity to fund acquisition
and asset enhancement projects.

255

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash
flow hedging instruments relating to forecast hedged transactions.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

21

STAPLED SECURITYHOLDERS’ FUNDS (continued)

Capital management (continued)
The objectives of the Managers are to:(a)maintain a strong balance sheet by adopting and maintaining a target gearing range;(b)

secure diversified funding sources from financial institutions and/or capital markets;(c)	
adopt a proactive interest rate management strategy to manage risks related to interest rate
fluctuations; and(d)	manage the foreign currency exposure of income and capital values of overseas assets throughhedging, where appropriate.
The Managers seek to maintain a combination of debt and equity in order to balance the cost of capitaland the returns to Stapled Securityholders. The Managers also monitor the externally imposed capitalrequirements closely and ensures that the capital structure adopted complies with the requirements.
CapitaLand Ascott REIT is subject to the Aggregate Leverage limit as defined in the Property Funds
Appendix of the CIS Code. The CIS Code stipulates that the total borrowings and deferred payments(the “Aggregate Leverage”) of a property fund should not exceed 50.0% of the fund’s Deposited Property
before 1 January 2022. It was announced that after 1 January 2022, the Aggregate Leverage limit isrevised to 45% with the exception that the Aggregate Leverage limit may exceed 45% of the fund’s
deposited property (up to a maximum of 50%) only if the property fund has a minimum adjusted interest
coverage ratio of 2.5 times after taking into account the interest payment obligations arising from the newborrowings.
As at the reporting date, CapitaLand Ascott REIT has a credit rating of BBB from Fitch Ratings (2022: BBBfrom Fitch Ratings). The Aggregate Leverage of the CapitaLand Ascott REIT Group as at 31 December
2023 was 40.3% (2022: 39.7%) of the CapitaLand Ascott REIT Group’s Deposited Property. This compliedwith the Aggregate Leverage limit.
The aggregate leverage of the Stapled Group as at 31 December 2023 was 37.9% (2022: 38.0%).
There were no changes in the Stapled Group’s approach to capital management during the year.

22

STAPLED SECURITIES IN ISSUE AND PERPETUAL SECURITIES(a)Stapled Securities in issue
CapitaLand Ascott
REIT Units
2023
2022
’000
’000

At 1 January
Issue of new Stapled Securities:– Equity fund raising– Management fees paid in
Stapled Securities– Acquisition fees paid in
Stapled Securities
At 31 December

256

CAPITALAND ASCOTT TRUSTCapitaLand Ascott
BT Units
2023
2022
’000
’000

Stapled Securities
2023
2022
’000
’000

3,445,625

3,276,547

3,445,625

3,276,547

3,445,625

3,276,547

292,293

151,786

292,293

151,786

292,293

151,786

22,234

17,292

22,234

17,292

22,234

17,292

3,152
3,763,304–
3,445,625

3,152
3,763,304–
3,445,625

3,152
3,763,304–
3,445,625

NOTES TO THE FINANCIAL STATEMENTS
Overview

Year ended 31 December 2023

22

STAPLED SECURITIES IN ISSUE AND PERPETUAL SECURITIES (continued)(a)Stapled Securities in issue (continued)
During the financial year ended 31 December 2023, the REIT Manager and the BT Trustee-Manager
issued Stapled Securities as follows:(a)	191,755,000 Stapled Securities at an issue price of $1.043 per Stapled Security amounting to$200,000,465 by way of a private placement to institutional and other investors.

(c)	19,903,216 Stapled Securities at issue prices ranging from $0.9719 to $1.097 per Stapled Security,
amounting to $23,479,000, as payment of the REIT Manager’s base management fees for theperiod from 1 October 2022 to 30 September 2023 and the REIT Manager’s performance fees forthe period from 1 January 2022 to 31 December 2022.

Leadership(b)	100,538,407 Stapled Securities by way of a non-renounceable preferential offering at an issue
price of $1.025 per Stapled Security based on 29 new Stapled Securities for every 1,000 existing
Stapled Securities amounting to $103,051,867.

(d)	2,330,636 Stapled Securities at issue prices ranging from $0.9719 to $1.097 per Stapled Security,
amounting to $2,385,000 as payment of the BT Trustee-Manager’s base management fees andperformance fees for the period from 1 October 2022 to 30 September 2023.

(a)	151,786,000 Stapled Securities at an issue price of $1.120 per Stapled Security amounting to$170,000,320 by way of a private placement to institutional and other investors.
(b)	15,300,375 Stapled Securities at issue prices ranging from $1.0144 to $1.1354 per Stapled Security,
amounting to $16,135,000, as payment of the REIT Manager’s base management fees for the period
from 1 October 2021 to 30 September 2022 and the REIT Manager’s performance fees for theperiod from 1 January 2021 to 31 December 2021.

Portfolio & Performance

During the financial year ended 31 December 2022, the REIT Manager and the BT Trustee-Manager
issued Stapled Securities as follows:(c)	1,991,954 Stapled Securities at issue prices ranging from $1.0144 to $1.1354 per Stapled Security,
amounting to $2,123,000 as payment of the BT Trustee-Manager’s base management fees andperformance fees for the period from 1 October 2021 to 30 September 2022.

A holder of the Stapled Security has no equitable or proprietary interest in the underlying assets of theStapled Group and is not entitled to the transfer to it of any asset (or any part thereof) or of any real estate,
any interest in any asset and real estate-related assets (or any part thereof) of the Stapled Group.
The holders of the Stapled Securities are entitled to receive distributions as and when declared by the
Stapled Group.

Sustainability & Governance

Each CapitaLand Ascott BT Unit was stapled to one CapitaLand Ascott REIT Unit to form one Stapled
Security in accordance with the Stapling Deed entered into between the REIT Manager, the REIT Trustee
and the BT Trustee-Manager and cannot be traded separately. Each Stapled Security represents anundivided interest in the Stapled Group.

A Stapled Securityholder’s liability is limited to the amount paid or payable for any Stapled Securities in
the Stapled Group.
Each CapitaLand Ascott REIT Unit and CapitaLand Ascott BT Unit carry the same voting rights.

257

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

22

STAPLED SECURITIES IN ISSUE AND PERPETUAL SECURITIES (continued)(b)

Perpetual securities
On 30 June 2015, CapitaLand Ascott REIT issued $250.0 million of fixed rate perpetual securities with an
initial distribution rate of 4.68% per annum with the first distribution rate reset falling on 30 June 2020 and
subsequent resets occurring every five years thereafter. As announced on 29 May 2020, the $250.0 million
perpetual securities would not be redeemed. The distribution rate applicable to the perpetual securities
was reset to 3.07% per annum on 30 June 2020.
On 4 September 2019, CapitaLand Ascott REIT issued $150.0 million of fixed rate perpetual securities withan initial distribution rate of 3.88% per annum with the first distribution rate reset falling on 4 September
2024 and subsequent resets occurring every five years thereafter.
The perpetual securities have no fixed redemption date and redemption is at the option of CapitaLand
Ascott REIT in accordance with the terms of issue of the securities. The distribution will be payable semiannually at the discretion of CapitaLand Ascott REIT and will be non-cumulative.
In terms of distribution payments or in the event of winding-up of CapitaLand Ascott REIT:•	These perpetual securities rank pari passu with the holders of preferred Units (if any) and rankahead of the Stapled Securityholders of CLAS, but junior to the claims of all other present andfuture creditors of CapitaLand Ascott REIT.
•	CapitaLand Ascott REIT shall not declare or pay any distributions to the Stapled Securityholders,or make redemptions, unless CapitaLand Ascott REIT declares or pays any distributions to theholders of the perpetual securities.
These perpetual securities are classified as equity instruments and recorded within the Statements ofMovements in Stapled Securityholders’ Funds. The $396,298,000 (2022: $396,298,000) presented on theStatements of Financial Position represents the $400,000,000 (2022: $400,000,000) perpetual securities
net of issue costs and include total return attributable to perpetual securities holders from issue date.

23

GROSS REVENUE
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Gross rental income
Hospitality income
Hotel revenue
Amortisation of deferredincome (Note 19)
Car park income

258

CAPITALAND ASCOTT TRUSTCapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

560,935
20,257–468,203
14,931–

27,907–
143,776

25,928–123,079

575,297
20,257
143,776

479,577
14,931
123,079

106
5,122
586,420–2,869
486,003––
171,683786–
149,793

1065,122
744,558

786
2,869
621,242NOTES TO THE FINANCIAL STATEMENTS
24

Overview

Year ended 31 December 2023

DIRECT EXPENSES
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Contributions to defined
contribution plansincluded in staff costs

60,802
66,02051,31455,391

17,45350,244

14,381
40,48678,255116,264

65,69595,87725,80933,194

17,29931,471

477
6,135

307
6,005

26,28639,32917,60637,476

12,02538,944

12,51428,301

2,252
13,8482,763
10,598

14,277
52,792

15,27738,89938,244
20,349295,387

32,95816,309245,557

11,533
11,246113,188

10,727
9,624
94,891

49,777
29,329406,30943,68523,909338,424

4,516

3,959

4,208

3,098

8,724

7,057

FINANCE INCOME AND COSTS
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Finance income
Interest income froma related party
Financial income arising fromremeasuring the deferredincome (Note 19)
Bank deposits

Stapled Group
2023
2022
$’000
$’000

46

–

–

–

–

–
3,116
3,125

–
1,130
1,176

125
1,193
1,318

140
198
338

125
4,309
4,434

140
1,328
1,468

(3,291)(105,685)(3,498)(64,236)(242)(10,266)(294)(9,690)(3,533)(115,951)(3,792)(73,926)

15,369

1,095

2,700

1,292

18,0692,387

23,857

16,497

1,925

1,846

25,782

18,343(9,716)(10,379)––(9,716)(10,379)––(6,388)(7,542)

–

–

(90)

(91)

(9)

(46)

(90)

(91)

–
(1,239)(80,795)–(1,373)(61,985)

(125)
(28)
(12,433)

(140)
(42)
(14,616)(125)(1,266)(86,830)(140)(1,414)(69,012)(1) Interest income arising from cross currency interest rate swaps are classified within finance costs as these financial derivatives
were entered into by the Stapled Group as cash flow hedging instruments for certain bank loans.
ANNUAL REPORT 2023

259

Financial Statements andOther Information

9

Sustainability & Governance

Finance costs
Amortisation of transaction costs
Interest on bank loans
Cash flow hedges, reclassified
from hedging reserve
Cross currency interest
rate swaps(1)Interest expense on
lease liabilities
Interest expense on leaseliabilities paid/payable to theCapitaLand Ascott REIT GroupInterest paid/payable toa related corporation
Financial expense fromremeasuring thesecurity deposits
OthersCapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Portfolio & Performance25

Stapled Group
2023
2022
$’000
$’000

Leadership

Operations andmaintenance expenses
Staff costs
Serviced residence
management fees
Property tax
Depreciation of property, plantand equipment
Marketing and selling expenses
Administrative andgeneral expenses
Other direct expenses

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

26

MANAGERS’ MANAGEMENT FEES
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

REIT Manager’s fees(1)– Base fee– Performance fee
BT Trustee-Manager’s fees(1)– Base fee– Performance fee
Onshore fees paid/payable torelated entities ofthe Managers(2)CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

18,176
11,142
29,31817,0538,534
25,587

–
–
–

–
–
–

18,176
11,142
29,31817,0538,534
25,587

–
–
–

–
–
–

830
1,851
2,681

956
1,713
2,669

830
1,851
2,681

956
1,713
2,669

272
29,590279
25,866

1,946
4,627

1,884
4,553

2,218
34,2172,163
30,419(1)

A total of 22,134,460 (2022: 18,634,723) Stapled Securities and 2,350,563 (2022: 2,169,590) Stapled
Securities were issued or will be issued as payment of the REIT Manager’s management fees andthe BT Trustee-Manager’s management fees amounting to $22,340,000 (2022: $19,481,000) and$2,329,000 (2022: $2,276,000) respectively in respect of the year ended 31 December 2023. The
cash portion is derived after deducting the onshore fees payable to the other appointed asset
managers.

(2)This relates to management fees paid/payable to related entities for asset management services
for some of the properties in Australia, Japan and South Korea.
Under the CapitaLand Ascott REIT Trust Deed and the CapitaLand Ascott BT Trust Deed, part of
the fees payable to the Managers can be paid by certain subsidiaries of the CapitaLand Ascott
REIT Group and the CapitaLand Ascott BT Group to certain nominated entities of the Managers
in certain jurisdictions outside Singapore in which the Stapled Group has a presence (namely,
Australia, Japan and South Korea).
The onshore fees form part of, are and not in addition to, the fees payable to the REIT Manager andthe BT Trustee-Manager.

27

PROFESSIONAL FEES
Professional fees of the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled
Group include valuation fees of $652,000, $142,000 and $794,000 respectively (2022: $720,000, $138,000
and $858,000 respectively).

260

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
28

Overview

Year ended 31 December 2023

NET INCOME
The following items have been included in arriving at net income for the year:
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

3,211

3,461

447

449

3,658

3,910

123

62

–

–

123

62

65

345

–

–

1,313

345

35

389

(8)

27

27

416

404

276

23

–

427

276

29

PROFIT FROM DIVESTMENTS
Divestment of assets held for sale
On 22 September 2023, the CapitaLand Ascott REIT Group completed the divestment of four serviced
residence properties in France for a total consideration of $64.7 million. The four properties are Citadines
Croisette Cannes, Citadines Prado Chanot Marseille, Citadines Castellane Marseille and Citadines City
Centre Lille. The disposed serviced residence properties contributed profit after tax of $1,979,000 from
1 January 2023 to the date of disposal.

Gain on divestment of assets held for sale

99

ANNUAL REPORT 2023

261

Financial Statements andOther Information

16,016

Sustainability & GovernanceCapitaLand
Ascott REIT Groupand Stapled Group
2023
2022
$’000
$’000

Portfolio & Performance(1) Total non-audit fees amounted to $204,000 (2022: $143,000), of which audit-related services of $81,000 (2022: $81,000) has been
capitalised as capital expenditure.

Leadership

Audit fees paid to:– auditors of the Stapled Groupand other firms affiliated with
KPMG International Limited
Non-audit fees(1) paid to:– auditors of the Stapled Groupand other firms affiliated with
KPMG International Limited
Loss on disposal of property,
plant and equipment
Impairment loss on trade andother receivables recognised/(written back)Write-off of trade andother receivables

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

30

INCOME TAX EXPENSE
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Current tax expense
Current year
Under/(Over) provided inprior years
Withholding tax
Deferred tax expense
Origination and reversal of
temporary differences(Over)/Under provided inprior years
Income tax expense

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

33,553

15,507489

2,673

34,042

18,180672
4,107
38,332(219)
3,758
19,046(1,961)
1,861
389

(18)
1,017
3,672

(1,289)5,968
38,721(237)
4,775
22,71833,327

11,797514

699

33,841

12,496(118)
33,209(1,675)
10,122

–
514

24
723

(118)
33,723(1,651)
10,84571,541

29,168903

4,395

72,44433,563

295,021273,742

26,984

4,444

302,225

259,783

50,15446,536

4,587

755

51,37844,16325,386(211)(88,299)
13,41522,337(58)(101,039)
10,699460–(9,298)–581–(5,910)–25,846(211)(94,241)
13,41522,918(58)(103,864)
10,69978,66856,473

11,301

9,338

89,97665,854(6,516)(5,717)(1,067)(6,577)(6,047)–(1,392)–(12,563)(5,717)(2,459)(6,577)554
4,107
71,541(1,894)
3,758
29,168(1,961)
1,861
903

6
1,017
4,395

(1,407)
5,968
72,444(1,888)
4,775
33,563

Reconciliation of effective tax rate
Total return before income tax
Income tax using the Singapore
tax rate of 17% (2022: 17%)
Effect of different tax rates inforeign jurisdictions
Tax rebate/relief/exemption
Income not subject to tax
Tax benefits not recognised
Expenses not deductible
for tax purposes
Utilisation of previously
unrecognised tax losses
Tax transparency
Under/(Over) provision inprior years
Withholding tax

No income tax effects have been recognised for those items recognised directly in Stapled Securityholders’funds.

262

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
30

Overview

Year ended 31 December 2023

INCOME TAX EXPENSE (continued)
Global minimum tax under Pillar Two
To address concerns about uneven profit distribution and tax contributions of large multinational
corporations, various agreements have been reached at the global level, including an agreement by over
140 jurisdictions to introduce a global minimum tax rate of 15%. In December 2021, the Organisation for
Economic Co-operation and Development (OECD) released a set of model rules, followed by detailed
commentary and administrative guidance in 2022 and 2023, that are expected to be used by individual
jurisdictions that signed the agreement to amend their local tax laws.

31

Leadership

In 2023, various jurisdictions in which the Stapled Group operates in have started the process of enacting
tax legislations to implement the Pillar Two model rules. Management is closely monitoring the progressof the legislative process in each jurisdiction that the Stapled Group operates in, and has engaged
tax consultants to assist the Stapled Group in calculating the impact of the top-up tax arising fromthe enacted/substantively enacted legislation. However, due to the complex nature of the legislations
and calculations to determine the adjustments required for Pillar Two, the Stapled Group did not havesufficient information to reasonably determine the potential quantitative impact as at the balance sheet
date. As at 31 December 2023, the Stapled Group did not have subsidiaries with significant operations
in countries where the statutory tax rate is less than 15%. Accordingly, any top-up tax is not expected tohave a significant impact to the Stapled Group.

EARNINGS PER STAPLED SECURITY

The calculation of basic earnings per Stapled Security for the Stapled Group was based on the total
return for the year attributable to Stapled Securityholders and a weighted average number of Stapled
Securities outstanding.
Stapled Group
2023
2022
$’000
$’000

223,305(13,495)
209,810231,255(13,495)
217,760

Stapled Group
2023
2022
’000
’000

Issued Stapled Securities at the beginning of the year
Effect of issue of new Stapled Securities:– Equity fund raising– Management fees paid in Stapled Securities– Acquisition fees paid in Stapled Securities
Weighted average number of Stapled Securities outstanding
during the year

3,445,625

3,276,547

106,328
13,5352,141

54,061
9,954–

3,567,629

3,340,562

263

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & GovernanceTotal return attributable to Stapled Securityholders andperpetual securities holders
Less: Total return attributable to perpetual securities holders
Total return attributable to Stapled Securityholders

Portfolio & Performance

Basic earnings per Stapled Security

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

31

EARNINGS PER STAPLED SECURITY (continued)
Diluted earnings per Stapled Security
The calculation of diluted earnings per Stapled Security for the Stapled Group was based on the total
return for the year attributable to Stapled Securityholders and a weighted average number of Stapled
Securities outstanding after adjustment for the effects of all dilutive potential Stapled Securities.
Stapled Group
2023
2022
’000
’000

Weighted average number of Stapled Securities used in calculation ofbasic earnings per Stapled Security
Weighted average number of unissued Stapled Securities for base andperformance fees
Weighted average number of Stapled Securities outstanding (diluted)
during the year32

3,567,629

3,340,562

21,371

17,502

3,589,000

3,358,064

ISSUE EXPENSES
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Underwriting fees andselling commission
Professional fees
Other expenses

1,713
245
1,222
3,180

1,870
179
244
2,293

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

1,417
183
1,020
2,620

–
–
–
–

Stapled Group
2023
2022
$’000
$’000

3,130
428
2,242
5,800

1,870
179
244
2,293

These expenses were deducted/(credited) directly against Stapled Securityholders’ funds:– issue expenses relating toequity fund raising– reversal of over provision ofissue expenses

264

CAPITALAND ASCOTT TRUST

3,180

2,293

2,620

–

5,800

2,293

–
3,180

(24)
2,269

–
2,620

–
–

–
5,800

(24)
2,269

NOTES TO THE FINANCIAL STATEMENTS
33

Overview

Year ended 31 December 2023

FINANCIAL INSTRUMENTS
Financial risk management

Overview
The Stapled Group has exposure to the following risks from its use of financial instruments:•••

credit risk
liquidity risk
market risk
LeadershipThis note presents information about the Stapled Group’s exposure to each of the above risks, theStapled Group’s objectives, policies and processes for measuring and managing risk, and the Stapled
Group’s management of capital. Further quantitative disclosures are included throughout these financial
statements. There were no changes in the Stapled Group’s approach to financial risk management during
the year.

Risk management framework

The ARC oversees how management monitors compliance with the Stapled Group’s risk management
policies and procedures and reviews the adequacy of the risk management framework in relation to therisks faced by the Stapled Group. The ARC is assisted in its oversight role by Internal Audit. Internal Audit
undertakes both regular and ad hoc reviews of risk management controls and procedures, the results ofwhich are reported to the ARC.
Credit risk

Portfolio & Performance

Risk management is integral to the whole business of the Stapled Group. The Stapled Group has a systemof controls in place to create an acceptable balance between the cost of risks occurring and the cost of
managing the risks. The Managers continually monitor the Stapled Group’s risk management process toensure that an appropriate balance between risk and control is achieved. Risk management policies andsystems are reviewed regularly to reflect changes in market conditions and the Stapled Group’s activities.

Credit risk is the potential financial loss resulting from the failure of a customer or a counterparty to settle
its financial and contractual obligations to the Stapled Group as and when they fall due.

Exposure to credit risk

The Managers have established credit limits for customers and monitors their balances on an ongoingbasis. Credit evaluations are performed by the serviced residence management companies before
lease agreements are entered into with customers. Cash and fixed deposits are placed with financial
institutions which are regulated. Transactions involving derivative financial instruments are allowed onlywith counterparties that are of high quality.
As at 31 December 2023 and 31 December 2022, there were no significant concentrations of credit risk.
The maximum exposure to credit risk is represented by the carrying value of each financial asset on theStatements of Financial Position.

ANNUAL REPORT 2023

265

Financial Statements andOther Information

Concentration of credit risk relating to trade receivables is limited due to the CapitaLand Ascott REIT
Group’s, the CapitaLand Ascott BT Group’s and the Stapled Group’s varied tenants and a credit policy ofcollecting rental deposits on certain leases. These tenants are from a wide range of nationalities and areengaged in a wide spectrum of business activities.

Sustainability & GovernanceTrade receivables

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

33

FINANCIAL INSTRUMENTS (continued)
Credit risk (continued)
The maximum exposure to credit risk for trade receivables at the reporting date by geographic region
was:CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Singapore
Australia
China
Europe (excluding
United Kingdom)Indonesia
IrelandJapan
Malaysia
Philippines
South Korea
United Kingdom
United States of America
Vietnam

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

3,030
4,106
1,070

3,515
4,149
1,740

311
3,178
–

614
5,301
–

3,341
7,284
1,070

4,129
9,450
1,740

4,071
399
–
4,126
33
4,023
–
2,616
9,283
752
33,509

3,477
355
–
1,412
39
2,617
–
3,189
7,663
715
28,871

–
–
329
1,152
–
–
2,853
–
–
–
7,823

–
–
–
1
–
–
1,382
–
–
–
7,298

4,071
399
329
5,278
33
4,023
2,853
2,616
9,283
752
41,332

3,477
355
–
1,413
39
2,617
1,382
3,189
7,663
715
36,169A summary of the Stapled Group’s exposures to credit risk for trade receivables is as follows:

CapitaLand Ascott REIT Group
Current
Within 30 days
30 to 60 days
More than 60 days
Total gross carrying amount
Loss allowance
CapitaLand Ascott BT Group
Current
Within 30 days
30 to 60 days
More than 60 days
Total gross carrying amount
Loss allowance
Stapled Group
Current
Within 30 days
30 to 60 days
More than 60 days
Total gross carrying amount
Loss allowance

266

CAPITALAND ASCOTT TRUST

Not credit
impaired
2023
$’000

Creditimpaired
2023
$’000

Total
2023
$’000

Not credit
impaired
2022
$’000

Creditimpaired
2022
$’000

Total
2022
$’000

23,302
5,449
1,426
3,925
34,102(593)
33,509

8
3
–
7,309
7,320
(7,320)–23,3105,452
1,426
11,234
41,422(7,913)33,50919,624
3,601
1,374
4,844
29,443(572)
28,871

11
–
–
6,714
6,725
(6,725)–

19,635
3,601
1,374
11,55836,168(7,297)28,871

4,357
2,683
193
666
7,899
(76)
7,823

–
–
–
34
34
(34)
–

4,357
2,683
193
700
7,933
(110)
7,823

5,143
929
272
1,052
7,396
(98)
7,298

–
20
–
–
20
(20)
–

5,143
949
272
1,052
7,416
(118)
7,298

27,659
8,132
1,619
4,591
42,001(669)
41,332

8
3
–
7,343
7,354
(7,354)–

27,667
8,135
1,619
11,93449,355(8,023)
41,332

24,767
4,530
1,646
5,896
36,839(670)
36,169

11
20
–
6,714
6,745
(6,745)–

24,7784,550
1,646
12,61043,584(7,415)36,169NOTES TO THE FINANCIAL STATEMENTS
33

Overview

Year ended 31 December 2023

FINANCIAL INSTRUMENTS (continued)
Credit risk (continued)
There is an increase in credit-impaired balances for specific customers with liquidity constraints arisingfrom the COVID-19 pandemic which contributed to the change in impairment allowances of $456,000(2022: $628,000).
The movement in impairment losses in respect of trade and other receivables during the year is asfollows:

At 1 January
Impairment losses
recognised/(reversed)
Acquired from acquisition of
investment properties
Utilised during the year
Translation differences
At 31 December

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

7,301

6,585

118

100

7,419

6,685

35

389

(8)

27

27

416

590
(34)
25
7,917

808
(335)
(146)
7,301

–
–
–
110

–
–
(9)
118

590
(34)
25
8,027

808
(335)
(155)
7,419

Impairment losses
Expected credit loss assessment for customers of the Stapled Group

Past due
30 to 60
days
$’000

More than
60 days
$’000

Total
$’000

2023
CapitaLand Ascott REIT Group
Expected loss rate
Trade receivables
Loss allowance

0.48%
23,310
113

1.30%
5,452
71

1.40%
1,426
20

68.62%
11,234
7,709

41,422
7,913

CapitaLand Ascott BT Group
Expected loss rate
Trade receivables
Loss allowance

1.72%
4,357
75

0.04%
2,683
1

0.00%
193
–

4.86%
700
34

7,933
110

Stapled Group
Expected loss rate
Trade receivables
Loss allowance

0.68%
27,667
188

0.89%
8,135
72

1.24%
1,619
20

64.88%
11,934
7,743

49,355
8,023

ANNUAL REPORT 2023

267

Financial Statements andOther Information

Current$’000

Within30 days$’000

Sustainability & GovernanceThe credit quality of trade receivables of the CapitaLand Ascott REIT Group, the CapitaLand Ascott
BT Group and the Stapled Group is assessed based on credit policies established by the CapitaLand
Ascott REIT Group and the CapitaLand Ascott BT Group. Trade and other receivables with high credit
risk will be identified and monitored by the respective property. The CapitaLand Ascott REIT Group’s,
the CapitaLand Ascott BT Group’s and the Stapled Group’s credit risk exposure in relation to tradereceivables are set out in the provision matrix as follows:

Portfolio & Performance

Based on historical default rates, the Stapled Group believes that, except for those recognised, no
additional impairment is necessary in respect of trade and other receivables not past due. These
receivables relate to customers that have a good credit record with the Stapled Group and/or rental
deposits held.

Leadership

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

33

FINANCIAL INSTRUMENTS (continued)
Credit risk (continued)
Expected credit loss assessment for customers of the Stapled Group (continued)

Current$’000

Within30 days$’000

Past due
30 to 60
days
$’000

More than
60 days
$’000

Total
$’000

2022
CapitaLand Ascott REIT Group
Expected loss rate
Trade receivables
Loss allowance

0.88%
19,635
172

1.69%
3,601
61

1.24%
1,374
17

60.97%
11,558
7,047

36,168
7,297

CapitaLand Ascott BT Group
Expected loss rate
Trade receivables
Loss allowance

1.44%
5,143
74

3.69%
949
35

1.84%
272
5

0.38%
1,052
4

7,416
118

Stapled Group
Expected loss rate
Trade receivables
Loss allowance

0.99%
24,778
246

2.11%
4,550
96

1.34%
1,646
22

55.92%
12,6107,051

43,584
7,415

No ageing analysis of other receivables is presented as majority of the outstanding balances as at 31
December 2023 is current.
Non-trade amounts due from related parties
Expected credit losses associated with the non-trade amounts due from related parties are assessedfrom estimated cash flows recoverable from the related parties based on the review of their financial
strength (i.e. fair value of underlying net assets) and cash flow projections of their operations as at thereporting date.
The Stapled Group did not recognise any impairment arising from the amounts due from related parties
as the ECL is not material.
Financial derivatives
The financial derivatives are entered into with banks and financial institution counterparties, which are
regulated.
Cash and cash equivalents
The Stapled Group held cash and cash equivalents of $432,806,000 at 31 December 2023
(2022: $363,634,000). The cash and cash equivalents are held with banks and financial institution
counterparties which are rated AA- to BBB-, based on Standard & Poor’s ratings.
Impairment on cash and cash equivalents has been measured on the 1-day expected loss basis andreflects the short maturities of the exposures. The Stapled Group considers that its cash and cash
equivalents have low credit risk based on the external credit ratings of the counterparties. The amount of
the allowance on cash and cash equivalents was negligible.

268

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
33

Overview

Year ended 31 December 2023

FINANCIAL INSTRUMENTS (continued)
Liquidity risk

The Managers monitor and maintain a level of cash and cash equivalents deemed adequate bymanagement to finance the Stapled Group’s operations and to mitigate the effects of fluctuations incash flows. Typically, the Stapled Group ensures that it has sufficient cash on demand to meet expected
operational expenses for a period of 90 days, including the servicing of financial obligations; this excludes
the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural
disasters.

Notes issued by the Stapled Group as at 31 December 2023 are as follows: (a) $905.6 million(2022: $804.7 million) under the $2.0 billion (2022: $2.0 billion) Amended MTN Programme; (b) $117.2 million(2022: $113.5 million) under the US$2.0 billion (2022: US$2.0 billion) EMTN Programme.

Portfolio & Performance

As at 31 December 2023, the Stapled Group is in a net current liabilities position of $83.6 million(2022: $169.7 million) and has current financial liabilities of $562.4 million (2022: $401.7 million) due
in the next 12‑months. The Managers are in discussions with various financial institutions to refinancethese financial liabilities. The Managers do not expect any issue in refinancing these financial
liabilities. In‑addition, the Stapled Group has unutilised credit facilities of approximately $894.8 million(2022: $1,065.0 million) expiring between February 2024 and June 2028, that can be drawn down tomeet short‑term financing needs. The Stapled Group also holds investment properties amounting to$4.1 billion (2022: $3.4 billion) which are not pledged as securities to banks for banking facilities as atyear end.

Leadership

Liquidity risk is the risk that the Stapled Group will encounter difficulty in meeting the obligations associatedwith its financial liabilities that are settled by delivering cash or another financial asset. Typically, theStapled Group’s approach to managing liquidity is to ensure, as far as possible, that it will always havesufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Stapled Group’s reputation. The Managers also
monitor and observe the CIS Code issued by MAS concerning limits on total borrowings. As at year
end, the Stapled Group maintained several lines of credit and has complied with all debt covenants or
obtained waivers to defer testing of debt covenant compliance to after the year end.

Sustainability & Governance

269

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

33

FINANCIAL INSTRUMENTS (continued)
Liquidity risk (continued)
The following are the contractual maturities of financial liabilities. The amounts are gross and undiscounted,
and include contractual interest payments and exclude the impact of netting agreements:

CapitaLand Ascott REIT Group2023
Non-derivative financial liabilities
Floating rate loans
Fixed rate loans
Fixed rate notes
Lease liabilities
Trade and other payables(1)Derivative financial instruments
Interest rate swaps– assets– liabilities
Cross currency interest rate swaps– assets– liabilities
Currency forwards– assets2022
Non-derivative financial liabilities
Floating rate loans
Fixed rate loans
Fixed rate notes
Lease liabilities
Trade and other payables(1)Derivative financial instruments
Interest rate swaps– assets– liabilities
Cross currency interest rate swaps– assets– liabilities

Cash flows
WithinWithin1 year 2 to 5 years
$’000
$’000

Carrying
amount$’000

Contractual
cash flows$’000

1,375,795
517,947
1,021,236
263,965279,6703,458,613(1,664,831)(551,057)(1,122,894)(369,919)(279,670)(3,988,371)(303,660)(74,836)(268,308)(20,342)(279,670)(946,816)(1,129,482)(270,656)(699,264)(84,806)–(2,184,208)(231,689)(205,565)(155,322)(264,771)–(857,347)(23,060)
5,923

26,808(6,364)

14,708390

11,367(6,764)733
10(68,830)
1,177

121,951(396)

26,898143

95,053
(539)

–
–

(69)
(84,859)
3,373,754(138)
141,861(3,846,510)(138)
42,001(904,815)–
99,117(2,085,091)–
743(856,604)

1,193,556
505,345916,816
267,014207,874
3,090,605(1,377,767)(545,402)(1,005,888)(364,230)(207,957)(3,501,244)(177,613)(6,663)(128,718)(19,522)(207,842)(540,358)(960,401)(225,326)(705,256)(81,919)(115)(1,973,017)(239,753)(313,413)(171,914)(262,789)–(987,869)(31,934)
5

35,485(6)

12,792(6)

20,489–2,204–(59,471)
6,939(84,461)
3,006,144

101,426
11,049147,954(3,353,290)

36,044
6,394
55,224(485,134)

65,382
4,655
90,526(1,882,491)

–
–
2,204
(985,665)

More than
5 years$’000(1) Excluding advance rental, liability for employee benefits and effect of the offsetting of financial assets and financial liabilities underenforceable master netting arrangement.

270

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
33

Overview

Year ended 31 December 2023

FINANCIAL INSTRUMENTS (continued)
Liquidity risk (continued)

CapitaLand Ascott BT Group

Derivative financial instruments
Interest rate swaps– liabilities
Cross currency interest rate swaps– assets

Derivative financial instruments
Interest rate swaps– assets
Cross currency interest rate swaps– liabilities

99,23734,146
69,567283,789486,739(117,844)(34,495)(100,974)(284,656)(537,969)(5,917)(33,526)(10,916)(275,964)(326,323)(111,927)(969)(43,664)(910)(157,470)––(46,394)(7,782)(54,176)

566

(593)

206

(799)

–

(209)
357
487,096

3,435
2,842
(535,127)

1,835
2,041
(324,282)

1,600
801
(156,669)––(54,176)

224,650
34,21981,388
193,982
534,239(236,358)(35,816)(122,563)(194,992)(589,729)(183,535)(1,195)(11,957)(185,766)(382,453)(52,823)(34,621)(47,830)(996)(136,270)––(62,776)(8,230)(71,006)(3,024)

3,821

3,821

–

–

810
(2,214)532,025786
4,607(585,122)

786
4,607
(377,846)––(136,270)––(71,006)

More than
5 years$’000

271

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance(1) Excluding advance rental, liability for employee benefits and effect of the offsetting of financial assets and financial liabilities underenforceable master netting arrangement.

Portfolio & Performance2022
Non-derivative financial liabilities
Floating rate loans
Fixed rate loans
Lease liabilities
Trade and other payables(1)Contractual
cash flows$’000

Leadership2023
Non-derivative financial liabilities
Floating rate loans
Fixed rate loans
Lease liabilities
Trade and other payables(1)Cash flows
WithinWithin1 year 2 to 5 years
$’000
$’000

Carrying
amount$’000

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

33

FINANCIAL INSTRUMENTS (continued)
Liquidity risk (continued)

Stapled Group2023
Non-derivative financial liabilities
Floating rate loans
Fixed rate loans
Fixed rate notes
Lease liabilities
Trade and other payables(1)Derivative financial instruments
Interest rate swaps– assets– liabilities
Cross currency interest rate swaps– assets– liabilities
Currency forwards– assets2022
Non-derivative financial liabilities
Floating rate loans
Fixed rate loans
Fixed rate notes
Lease liabilities
Trade and other payables(1)Derivative financial instruments
Interest rate swaps– assets– liabilities
Cross currency interest rate swaps– assets– liabilities

Cash flows
WithinWithin1 year 2 to 5 years
$’000
$’000

Carrying
amount$’000

Contractual
cash flows$’000

1,475,032
552,093
1,021,236
263,965
343,259
3,655,585(1,782,675)(585,552)(1,122,894)(369,919)(344,127)(4,205,167)(309,577)(108,362)(268,308)(20,342)(335,435)(1,042,024)(1,241,409)(271,625)(699,264)(84,806)(910)(2,298,014)(231,689)(205,565)(155,322)(264,771)(7,782)(865,129)(23,060)
6,489

26,808(6,957)

14,708596

11,367(7,563)733
10(69,039)
1,177

125,386(396)

28,733143

96,653
(539)

–
–

(69)
(84,502)3,571,083(138)
144,703(4,060,464)(138)
44,042(997,982)–
99,918(2,198,096)–
743(864,386)

1,418,206
539,564
916,816
267,014240,896
3,382,496(1,614,125)(581,218)(1,005,888)(364,230)(241,991)(3,807,452)(361,148)(7,858)(128,718)(19,522)(232,650)(749,896)(1,013,224)(259,947)(705,256)(81,919)(1,111)(2,061,457)(239,753)(313,413)(171,914)(262,789)(8,230)(996,099)(34,958)5

39,306(6)

16,613(6)

20,489–2,204–(59,471)
7,749(86,675)
3,295,821

101,426
11,835
152,561(3,654,891)

36,044
7,180
59,831(690,065)

65,382
4,655
90,526(1,970,931)

–
–
2,204
(993,895)

More than
5 years$’000(1) Excluding advance rental, liability for employee benefits and effect of the offsetting of financial assets and financial liabilities underenforceable master netting arrangement.

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, orat significantly different amounts.
The interest payments on the Stapled Group’s sustainability-linked notes take into consideration the
Stapled Group’s expectation of its ability to meet the sustainability-linked performance targets, and maychange if the Stapled Group expects that it can no longer meet this target.

272

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
33

Overview

Year ended 31 December 2023

FINANCIAL INSTRUMENTS (continued)
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates andequity prices will affect the income of the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT
Group and the Stapled Group and their holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while
optimising the return on risk. Market risk is managed through established investment policies andguidelines. These policies and guidelines are reviewed regularly taking into consideration changes in theoverall market environment.

The CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group have
exposure to foreign currency risk as a result of its operations in several countries. The currencies giving
rise to this risk are Singapore Dollar (“SGD”), Australian Dollar (“AUD”), Chinese Renminbi (“RMB”), Euro(“EUR”), Sterling Pound (“GBP”), Hong Kong Dollar (“HKD”), Indonesian Rupiah (“IDR”), Korean Won(“KRW”), Japanese Yen (“JPY”), Malaysian Ringgit (“MYR”), Philippine Peso (“PHP”), US Dollar (“USD”)
and Vietnam Dong (“VND”).

Leadership

Foreign currency risk

In order to manage the foreign currency risk, the Managers adopt foreign currency risk management
strategies that include:•	the use of certain foreign currency denominated borrowings to match the capital values of theoverseas assets as a natural hedge, whenever possible; and•	the use of certain foreign currency denominated borrowings, which include bank loans andmedium term notes, and cross currency interest rate swaps to hedge against the currency risk
arising from the Stapled Group’s net investments in certain subsidiaries.

Portfolio & Performance•	entering into foreign currency forward contracts to hedge the foreign currency income from theoverseas assets;

Sustainability & Governance

273

Financial Statements andOther Information

ANNUAL REPORT 2023

33

274

CAPITALAND ASCOTT TRUST––– 279,054(8,072) 241,634–
47,608141,176
147,502(46,419) 135,677

6,107–(13,407)8–––(13,415)–––(13,415)

–

–

–
(105)

(417)

210,858
99,867412,391659
13,146–
106,365
4,045
85,510(4,392)(12,820)––– (715,583)––
312 (523,382)––
10,252(386)

167
10,445
1,009
(983)
–
–
–
10,638

–

3,528

US
Dollar
$’000

–
249

–
(36,229)(101) 908,193

5,846
11,476525(8)13,85949,468(4,294) (29,652)
(524)
(70)
– (743,903)(15,062) (235,261)
350 (944,422)–

Sterling Hong Kong Indonesian Japanese Malaysian Philippine
Pound
DollarRupiahYen
Ringgit
Peso
$’000
$’000
$’000
$’000
$’000
$’000

1,362
25,471
3,694
5,431 240,057 213,017
13,864
81,95944,595(7,964) (59,499) (81,226)–––(15,917) (278,989) (306,744)(10,955)–(2,687)(14,179)
8,999 (129,351)

–

Euro
$’000

(26,104)

4,559
36,012
43,771(10,620)(10)––
73,712–(1) Excluding prepayments.
(2) Excluding advance rental and liability for employee benefits.
(3) Stated at face value (excluding unamortised transaction costs).

Loan receivables –associate–
Trade and other
12,506
receivables(1)Intra-group receivables
47
Cash and cash equivalents
19,979(35,368)
Trade and other payables(2)Intra-group payables(1,792)Financial liabilities(853,842)
Lease liabilities–
Gross currency exposure(858,470)
Add/(less): Net exposure
denominated in therespective entities’functional currencies
856,774
Add: Loan designated for–net investment hedge(3)Net exposure(1,696)31 December 2023

Singapore Australian Chinese
Dollar
Dollar Renminbi
CapitaLand Ascott REIT Group
$’000
$’000
$’000

–
–

(6,548)1,304
3
11,312(6,071)
–
–
–
6,548

–

631,088
487,6032,239,175

80,190611,894369,371(266,304)(2,396)(2,914,978)(263,965)(2,382,660)

3,528

Vietnam Total foreignDongcurrencies
$’000
$’000

The exposures to foreign currencies risk (excluding cross currency interest rate swaps that are designated as a hedge of net investments in foreign
operations) as reported to the management of the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group were as
follows:

Foreign currency risk (continued)

FINANCIAL INSTRUMENTS (continued)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

–
–
2,679

–
(12,702)–
256,897

206,377–
123,384

35,137(32,892)–(15,184)

17,917–(14,588)–1,920
31,012
4,374
5,088 257,798 121,154
15,15544,75042,713(8,190) (61,602) (11,965)–––(17,487) (206,254) (35,137)(11,724)––(15,238)
65,704 121,139

–

Euro
$’000

–
(13,585)

–

12

–
–
1
(13,598)–––(13,597)

–

–

–
–

–

(1,504)–
110,691

283,094

412,357

750
12,786–114,257
3,125
77,671(2,371)(12,047)––– (777,427)––
1,504 (584,760)––
10,301

–

(400)

144
10,456
838
(737)
–
–
–
10,701

–

3,585

US
Dollar
$’000

–
348

–

3,691

69,739(32,502)–909,428

3,254
11,586444
267
17,38853,380(8,931)(27,468)
(266)
(67)
–
(812,894)(15,232) (240,058)(3,343) (1,011,669)–

Sterling Hong Kong Indonesian Japanese Malaysian Philippine
Pound
DollarRupiahYen
Ringgit
Peso
$’000
$’000
$’000
$’000
$’000
$’000

4,521
34,09919,142(9,475)(10)(46,391)
–
1,886

–

Sustainability & Governance

ANNUAL REPORT 2023

275

Financial Statements andOther Information(1) Excluding prepayments.
(2) Excluding advance rental and liability for employee benefits.
(3) Stated at face value (excluding unamortised transaction costs).

Loan receivables –associate–
Trade and other
14,845receivables(1)Intra-group receivables
47
Cash and cash equivalents
17,341(29,751)
Trade and other payables(2)Intra-group payables(2,414)
Financial liabilities(719,567)
Lease liabilities–
Gross currency exposure(719,499)
Add/(less): Net exposure
denominated in therespective entities’functional currencies
716,771
Add: Loan designated for–net investment hedge(3)Add: Cross currencyinterest rate swap–
Net exposure(2,728)31 December 2022

Singapore Australian Chinese
Dollar
Dollar Renminbi
CapitaLand Ascott REIT Group
$’000
$’000
$’000

Portfolio & Performance

Foreign currency risk (continued)

Leadership

FINANCIAL INSTRUMENTS (continued)

3,585

Total
foreigncurrencies
$’000

–
–

–

69,739442,783

524,608(2,804) 1,992,804

1,469
86,661
2543,612
7,747
299,251(5,854)(191,989)–(2,757)(560) (2,615,717)–(267,014)
2,804 (2,144,368)–

Vietnam
Dong$’000

Year ended 31 December 2023
Overview

33

NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

33

FINANCIAL INSTRUMENTS (continued)

Foreign currency risk (continued)

CapitaLand Ascott BT Group

Singapore Australian
Dollar
Dollar$’000$’000

Japanese
Euro
Yen
$’000
$’000

Korean
Won
$’000

Total
US
foreign
Dollar currencies
$’000
$’000

31 December 2023
Trade and other receivables(1)Intra-group receivables
Cash and cash equivalents
Trade and other payables(2)Financial liabilities
Gross currency exposureAdd/(less): Net exposure
denominated in the respective
entities’ functional currencies
Add: Cross currency interest rate
swap
Net exposure

593
–
5,842
(8,153)
753
(965)

5,152
370
151,659–
16,504
7,693(11,454) (34,455)– (50,720)
161,861 (77,112)

1,498
2,959
38
34,382––
19,676 13,619
101(6,327) (5,148)(54)(905) (33,240) (49,271)
48,324 (21,810) (49,186)

10,610186,041
63,435(65,591)(133,383)
61,112965(4,550)77,112(13,464)

29,067–

89,130–––157,311–––34,860–7,257

34,302(14,884)

34,302
184,544

617
–
3,618
327
34
4,596

7,293
141,715
33,462(26,762)(175,462)(19,754)

–
–
–
–
–
–

376
1,414
42
36,995105–
17,9059,185
213(6,454) (4,370)(113)(983) (33,236) (49,222)
47,839 (26,902) (49,080)

9,742
178,815
64,383(37,372)(258,869)(43,301)(4,596)–

166,139
146,385––(9,934)37,905

182,342
139,041

31 December 2022
Trade and other receivables(1)Intra-group receivables
Cash and cash equivalents
Trade and other payables(2)Financial liabilities
Gross currency exposureAdd/(less): Net exposure
denominated in the respective
entities’ functional currencies
Net exposure(1) Excluding prepayments.
(2) Excluding advance rental and liability for employee benefits.

276

CAPITALAND ASCOTT TRUST

30,733
3,831–(49,080)

–
9,711
187,671
60,275(22,074)(10)––
235,573(30,654)––
204,919–
13,09947
25,821(43,521)(1,792)(853,089)–(859,435)

857,739––(1,696)

Euro
$’000

279,054

30,693––(8,072) 241,634

–

6,107

–
–
1,362
25,841
5,431 240,057
13,86489,652(7,964) (93,954)––(15,917) (329,709)(10,955)–(14,179) (68,113)

Sustainability & Governance

ANNUAL REPORT 2023

277

Financial Statements andOther Information(1) Excluding prepayments.
(2) Excluding advance rental and liability for employee benefits.
(3) Stated at face value (excluding unamortised transaction costs).

Loan receivables – associate
Trade and other receivables(1)Intra-group receivables
Cash and cash equivalents
Trade and other payables(2)Intra-group payables
Financial liabilities
Lease liabilities
Gross currency exposureAdd/(less): Net exposure
denominated in therespective entities’functional currencies
Add: Loan designated fornet investment hedge(3)Add: Cross currencyinterest rate swap
Net exposure

31 December 2023

Stapled Group

Singapore Australian Chinese
Dollar
Dollar Renminbi
$’000
$’000
$’000

–
147,502

141,176

135,677–
3,694
213,01744,595(81,226)–(306,744)(2,687)(129,351)–(13,407)

–

8

–
–
–
–
(13,415)–––(13,415)

–
(105)

–

(417)

–
659
–
4,045
(4,392)–––
312

Sterling Hong Kong Indonesian
Pound
DollarRupiah
$’000
$’000
$’000

–
134,727

210,858

398,927–
14,644
140,747
105,186(19,147)–(716,488)–(475,058)–
10,252

–

(386)

–
167
10,445
1,009
(983)
–
–
–
10,638

–
249

–

(101)

–
5,846
525
13,859(4,294)(524)–(15,062)350

Japanese Malaysian Philippine
Yen
Ringgit
Peso
$’000
$’000
$’000

Portfolio & Performance

Foreign currency risk (continued)
US
Dollar
$’000

–
7,257

–

29,06734,302(51,113)–908,193

–
3,528
2,959
11,514–(8)
13,61949,569(5,148) (29,706)–(70)(33,240) (793,174)– (235,261)(21,810) (993,608)

Korean
Won$’000

Leadership

FINANCIAL INSTRUMENTS (continued)–––(6,548)34,302
672,147

631,0882,328,305

–
3,528
1,304
90,8003
797,935
11,312432,806(6,071)(331,895)–(2,396)– (3,048,361)–(263,965)
6,548 (2,321,548)

Total
Vietnamforeign
Dong currencies
$’000
$’000

Year ended 31 December 2023
Overview

33

NOTES TO THE FINANCIAL STATEMENTS

33

278

CAPITALAND ASCOTT TRUST–
11,814
175,81452,604(36,237)(10)(221,853)–(17,868)

151,551––
133,683–
15,462
47
20,959(29,424)(2,414)(719,533)–(714,903)

712,175––(2,728)

–
2,679

–

17,917–
256,897

206,377(15,184)––
1,920
31,012
5,088 257,798
15,15544,750(8,190) (61,602)––(17,487) (206,254)(11,724)–(15,238) 65,704

Euro
$’000

–
123,384

35,137(32,892)–
4,374
121,154
42,713(11,965)–(35,137)–
121,139–(13,585)

–

12

–
–
–
1
(13,598)–––(13,597)–––(1,504)

–
750
–
3,125
(2,371)
–
–
–
1,504

Sterling Hong Kong Indonesian
Pound
DollarRupiah
$’000
$’000
$’000

–
148,596

283,094

402,423–
13,162
151,252
95,576(18,501)–(778,410)–(536,921)–
10,301

–

(400)

–
144
10,456
838
(737)
–
–
–
10,701

–
348

–

3,691

–
3,254
444
17,388(8,931)(266)–(15,232)(3,343)

Japanese Malaysian Philippine
Yen
Ringgit
Peso
$’000
$’000
$’000

US
Dollar
$’000

–
3,831

–

30,73369,739(81,582)–

909,428

–
3,585
1,414
11,628
105
267
9,185
53,593(4,370) (27,581)–(67)(33,236) (862,116)– (240,058)(26,902) (1,060,749)

Korean
Won
$’000

–
–

–

(2,804)69,739581,824524,6082,175,146

–
3,585
1,469
96,403
2
722,427
7,747
363,634(5,854)(229,361)–(2,757)(560) (2,874,586)–(267,014)
2,804 (2,187,669)

Total
Vietnamforeign
Dong currencies
$’000
$’000

Results of the analysis as presented in the above table represent an aggregation of the effects on each of the Stapled Group entities’ Statements ofFinancial Position measured in the respective functional currencies, translated into Singapore dollars at the exchange rate at the reporting date forpresentation purposes.

(1) Excluding prepayments.
(2) Excluding advance rental and liability for employee benefits.
(3) Stated at face value (excluding unamortised transaction costs).

Loan receivables – associate
Trade and other receivables(1)Intra-group receivables
Cash and cash equivalents
Trade and other payables(2)Intra-group payables
Financial liabilities
Lease liabilities
Gross currency exposureAdd/(less): Net exposure
denominated in therespective entities’functional currencies
Add: Loan designated fornet investment hedge(3)Add: Cross currencyinterest rate swap
Net exposure

31 December 2022

Stapled Group

Singapore Australian Chinese
Dollar
Dollar Renminbi
$’000
$’000
$’000

Foreign currency risk (continued)

FINANCIAL INSTRUMENTS (continued)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

NOTES TO THE FINANCIAL STATEMENTS
33

Overview

Year ended 31 December 2023

FINANCIAL INSTRUMENTS (continued)

Foreign currency risk (continued)
Sensitivity analysis

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

(1)
(2)
(3)
(4)

(170)
4,761
(807)
24,163
14,750(1,341)
(11)
9,987
1,025
25
–
(3,623)(273)(1,270)268
25,69012,338(1,359)–11,0691,030
35–(3,250)–15,731
–
–
–
–
–
3,486
–
–
726
(1,488)–
14,639
–
–
–
–
–
3,791
–
–
383
(4,908)Stapled Group
2023
2022
$’000
$’000

(170)
20,492(807)
24,163
14,750(1,341)(11)
13,473
1,025
25
726(5,111)(273)
13,369268
25,69012,338(1,359)–14,8601,030
35
383(8,158)

As compared to functional currencies of Chinese Renminbi and US Dollar.
As compared to functional currency of Singapore Dollar.
As compared to functional currencies of Singapore Dollar and Chinese Renminbi.
As compared to functional currencies of Singapore Dollar, Chinese Renminbi, Indonesian Rupiah, Philippine Peso, Hong Kong
Dollar and Vietnam Dong.

279

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & GovernanceA decrease in foreign exchange rates to which the CapitaLand Ascott REIT Group, the CapitaLand Ascott
BT Group and the Stapled Group have significant exposure at the reporting date as compared to thefunctional currencies of the respective entities would have had the equal but opposite effect on theabove currencies to the amounts shown above. The analysis assumed that all other variables, in particularinterest rates, remain constant and does not take into account the translation related risk, associated tax
effects and share of non-controlling interests.

Portfolio & Performance

Singapore Dollar(1)Australian Dollar(2)Chinese Renminbi(2)Euro(2)
Sterling Pound(2)Hong Kong Dollar(2)Indonesian Rupiah(4)Japanese Yen(3)Malaysian Ringgit(2)Philippine Peso(2)Korean Won(2)US Dollar(4)CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Leadership

The following table indicates the approximate increase/(decrease) in the Statement of Total Return of theCapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group in response toa 10% increase in foreign exchange rates to which the CapitaLand Ascott REIT Group, the CapitaLand
Ascott BT Group and the Stapled Group has significant exposure at the reporting date as compared to
the functional currencies of the respective entities. The sensitivity analysis includes balances in groupcompanies where the denomination of the balances is in a currency other than the functional currenciesof the lender or the borrower.

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

33

FINANCIAL INSTRUMENTS (continued)

Interest rate risk
The Stapled Group’s exposure to changes in interest rates relates primarily to interest-earning financial
assets and interest-bearing financial liabilities. The CapitaLand Ascott REIT Group and the CapitaLand
Ascott BT Group adopt a policy of ensuring that up to 80% of its interest rate risk exposure is at a fixed
rate. This is achieved partly by entering into fixed-rate instruments and partly by borrowing at a floating
rate and using interest rate swaps as hedges of the variability in cash flows attributable to interest raterisk.
At 31 December 2023, the Stapled Group has interest rate swaps classified as cash flow hedges with
notional contractual amount of $832.1 million (2022: $587.5 million) which pay fixed interest rates
averaging 2.45% to 2.78% (2022: 0.30% to 1.21%) per annum and receive variable rates on the notionalamount and cross currency interest rate swaps classified as cash flow hedge with notional contractual
amount of $124.6 million (2022: $194.9 million) which pay fixed interest rates and receive variable rates.
The Stapled Group determines the existence of an economic relationship between the hedging instrument
and hedged item based on the reference interest rates, tenors, repricing dates and maturities and thenotional or par amounts. If a hedging relationship is directly affected by uncertainty arising from interest
rate benchmark reform, then the Stapled Group assumes for this purpose that the benchmark interest
rate is not altered as a result of interest rate benchmark reform.
The Stapled Group assesses whether the derivative designated in each hedging relationship is expected
to be effective in offsetting changes in cash flows of the hedged item using the critical terms method. When
all critical terms match, the economic relationship is considered 100% effective. Hedge ineffectivenessmay occur due to changes in the critical terms of either the interest rate swaps or borrowings.
At the reporting date, the interest rate profile of the interest-bearing financial instruments was as follows:
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Carrying amount
CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

Fixed rate instruments
Financial liabilities(1,539,183) (1,422,161)(34,146)(34,219) (1,573,329) (1,456,380)

Variable rate instruments
Financial liabilities(1,375,795) (1,193,556)(99,237)(224,650) (1,475,032) (1,418,206)

To manage its exposure to interest rate movements on its variable rate financial liabilities, the CapitaLand
Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group enter into interest rate swaps
and cross currency interest rate swaps. The following cross currency interest rate swaps are used to
exchange:a)	floating rate interest on USD loan of USD25.4 million (2022: USD76.3 million) for fixed rate JPY
interest; andb)	floating rate interest on SGD loan of SGD90.3 million (2022: SGD90.3 million) for fixed rate JPY
interest.
The hedge relationships for which hedge accounting have been adopted are effective in the financial
year ended 31 December 2023 and 31 December 2022.
Fair value sensitivity analysis for fixed rate instruments
The CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group do notaccount for any fixed rate financial liabilities at fair value through total return, and the CapitaLand Ascott
REIT Group, the CapitaLand Ascott BT Group and the Stapled Group do not designate derivatives (interest
rate swaps) as hedging instruments under a fair value hedge accounting model. Therefore, a change ininterest rate at the reporting date would not affect the Statement of Total Return.

280

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
33

Overview

Year ended 31 December 2023

FINANCIAL INSTRUMENTS (continued)

Interest rate risk (continued)
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points (“bp”) in interest rate at the reporting date would increase/(decrease)
Stapled Securityholders’ funds and Statement of Total Return by the amounts shown below. This analysis
assumes that all other variables, in particular foreign currency rates, remain constant. The analysis isperformed on the same basis for 2022.
StapledSecurityholders’ funds
100 bp100 bpincreasedecrease
$’000
$’000

LeadershipStatement of
Total Return100 bp100 bpincreasedecrease
$’000
$’000

CapitaLand Ascott REIT Group
31 December 2023
Variable rate financial liabilities
Interest rate swaps/Cross currencyinterest rate swaps
Cash flow sensitivity (net)13,819––8,224(5,595)(8,224)
5,595

1,762
1,762

(1,762)(1,762)(12,007)

12,007––

6,166(5,841)(6,166)
5,841

1,328
1,328

(1,328)(1,328)

(999)

999

–

–

671
(328)

(671)
328

164
164

(164)
(164)

(2,249)

2,249

–

–

1,657
(592)

(1,657)
592

409
409

(409)
(409)

(14,818)

14,818––

8,895(5,923)(8,895)
5,923

1,926
1,926

(1,926)(1,926)(14,256)

14,256––

7,823(6,433)(7,823)
6,433

1,737
1,737

(1,737)(1,737)31 December 2022
Variable rate financial liabilities
Interest rate swaps/Cross currencyinterest rate swaps
Cash flow sensitivity (net)
CapitaLand Ascott BT Group

Portfolio & Performance(13,819)31 December 2023

31 December 2022
Variable rate financial liabilities
Interest rate swaps/Cross currencyinterest rate swaps
Cash flow sensitivity (net)Stapled Group

Sustainability & Governance

Variable rate financial liabilities
Interest rate swaps/Cross currencyinterest rate swaps
Cash flow sensitivity (net)

31 December 2023

31 December 2022
Variable rate financial liabilities
Interest rate swaps/Cross currencyinterest rate swaps
Cash flow sensitivity (net)

ANNUAL REPORT 2023

281

Financial Statements andOther Information

Variable rate financial liabilities
Interest rate swaps/Cross currencyinterest rate swaps
Cash flow sensitivity (net)

33

282

CAPITALAND ASCOTT TRUST

Derivative financial
instruments

Financialstatement
line item

–(1)

913

Borrowings

Derivative financial
instruments–(1) Derivative financial
instruments

17,137

Assets/(Liabilities)
$’000

2,503

(1,127)860

771(2,503)

1,127

(860)

(771)

–

–

–

–

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectivenessrecognised in
Hedging
HedgedStatement of
instrument
item
Total Return
$’000
$’000
$’000

(1) During the year, the USD/JPY cross currency interest rate swap has matured, and the USD floating rate loan was repaid.

–

90,300– SGD/JPY cross currencyinterest rate swap to swap
SGD floating rate interest for
JPY fixed rate interest

Foreign exchange risk
– USD floating rate loan
designated under the
USD/JPY cross currencyinterest rate swap–

799,304– USD/JPY cross currencyinterest rate swap to swap
USD floating rate interest for
JPY fixed rate interest

Cash flow hedges
Interest rate risk
– Interest rate swaps to hedge
floating rate borrowings

Contractual
notional
amountCapitaLand Ascott REIT Group$’000

Carrying amount

–

5.41%

–

2.45%

Weighted
averagehedge rate

–

2025

–

2024 – 2029

Maturitydate

At 31 December 2023, the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group held the following instruments tohedge exposures to changes in foreign currency and interest rates.

Hedge accounting

FINANCIAL INSTRUMENTS (continued)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

24,890

Derivative financial
instruments

Derivative financial
instruments

Derivative financial
instruments

Borrowings

Financialstatement
line item

6,279

5,548

29,214

10,391(6,279)(5,548)(29,214)(10,391)

–

–

–

–

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectivenessrecognised in
Hedging
HedgedStatement of
instrument
item
Total Return
$’000
$’000
$’000

Portfolio & Performance

Sustainability & Governance

ANNUAL REPORT 2023

283

Financial Statements andOther Information(2) Contractual notional amount of the SGD/JPY cross currency interest rate swap is disclosed under “Cash flow hedges”.

–(2)– SGD/JPY cross currencyinterest rate swap to hedge
JPY net investments–

41,850686,664–(629,235)

Assets/(Liabilities)$’000

Carrying amount–– USD/JPY cross currencyinterest rate swap to hedge
JPY net investments– Cross currency interest
rate swaps to hedge net
investments in foreign
operations

Net investment hedges
Foreign exchange risk
– Borrowings to hedge net
investments in foreign
operations

Contractual
notional
amountCapitaLand Ascott REIT Group$’000

Hedge accounting (continued)–

Weighted
averagehedge rate

JPY77.52:$1–

EUR 1:$1.49
JPY100.07:$1

Leadership

FINANCIAL INSTRUMENTS (continued)

2025

–

2024 - 2028

2024 - 2029

MaturitydateYear ended 31 December 2023
Overview

33

NOTES TO THE FINANCIAL STATEMENTS

33

284

CAPITALAND ASCOTT TRUST

126

83

34,302

–(1)

(566)

32,813

Assets/(Liabilities)$’000

Financialstatement
line item

Derivative financial
instruments

Derivative financial
instruments

Derivative financial
instruments

Carrying amount

412

232

(1,251)

(412)

(232)

1,251

–

–

–

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectivenessrecognised in
Hedging
HedgedStatement of
instrument
item
Total Return
$’000
$’000
$’000

(1) Contractual notional amount of the USD/JPY cross currency interest rate swap is disclosed under “Cash flow hedges”.

Net investment hedges
Foreign exchange risk
– USD/JPY cross currencyinterest rate swap to hedge
JPY net investments– USD/JPY cross currencyinterest rate swap to swap
USD floating rate interest for
JPY fixed rate interest

Cash flow hedges
Interest rate risk
– Interest rate swaps to hedge
floating rate borrowings

CapitaLand Ascott BT Group

Contractual
notional
amount$’000

Hedge accounting (continued)

FINANCIAL INSTRUMENTS (continued)

JPY141:USD1

3.54%

2.78%

Weighted
averagehedge rate

2025

2025

2026 - 2028

Maturitydate

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

ANNUAL REPORT 2023

Sustainability & Governance

285

Financial Statements andOther Information(1) During the year, the USD floating rate loan was repaid.

–(1)

913

90,300– SGD/JPY cross currencyinterest rate swap to swap
SGD floating rate interest for
JPY fixed rate interest–

83

34,302– USD/JPY cross currencyinterest rate swap to swap
USD floating rate interest for
JPY fixed rate interest

Foreign exchange risk
– USD floating rate loan
designated under the
USD/JPY cross currencyinterest rate swap

16,571

Assets/(Liabilities)$’000

832,117

Cash flow hedges
Interest rate risk
– Interest rate swaps to hedge
floating rate borrowings

Stapled Group

Contractual
notional
amount$’000
Financialstatement
line item

Borrowings

Derivative financial
instruments

Derivative financial
instruments

Derivative financial
instruments

Carrying amount

2,503(1,127)

1,092

(483)

(2,503)

1,127(1,092)

483

–

–

–

–

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectivenessrecognised in
Hedging
HedgedStatement of
instrument
item
Total Return
$’000
$’000
$’000

Portfolio & Performance

Hedge accounting (continued)

Leadership

FINANCIAL INSTRUMENTS (continued)

–

5.41%

3.54%

2.45%
to 2.78%

Weighted
averagehedge rate

–

2025

2025

2024 - 2029

MaturitydateYear ended 31 December 2023
Overview

33

NOTES TO THE FINANCIAL STATEMENTS

33

286

CAPITALAND ASCOTT TRUST

24,890Derivative financial
instruments

Derivative financial
instruments

Derivative financial
instruments

Borrowings

Financialstatement
line item

6,279

5,960

29,214

10,391(6,279)(5,960)(29,214)(10,391)

–

–

–

–

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectivenessrecognised in
Hedging
HedgedStatement of
instrument
item
Total Return
$’000
$’000
$’000

(2) Contractual notional amount of the USD/JPY and SGD/JPY cross currency interest rate swap is disclosed under “Cash flow hedges”.

–(2)– SGD/JPY cross currencyinterest rate swap to hedge
JPY net investments

126

41,850686,664–(2)(629,235)

Assets/(Liabilities)$’000

Carrying amount–– USD/JPY cross currencyinterest rate swap to hedge
JPY net investments– Cross currency interest
rate swaps to hedge net
investments in foreign
operations

Net investment hedges
Foreign exchange risk
– Borrowings to hedge net
investments in foreign
operations

Stapled Group

Contractual
notional
amount$’000

Hedge accounting (continued)

FINANCIAL INSTRUMENTS (continued)

JPY77.52:$1

JPY141:USD1

EUR 1:$1.49
JPY100.07:$1–

Weighted
averagehedge rate

2025

2025

2024 - 2028

2024 - 2029

Maturitydate

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

(69,629)

2,040

90,300– SGD/JPY cross currencyinterest rate swap to swap
SGD floating rate interest for
JPY fixed rate interest–

488

69,739– USD/JPY cross currencyinterest rate swap to swap
USD floating rate interest for
JPY fixed rate interest

Sustainability & Governance

287

Financial Statements andOther Information

Foreign exchange risk
– USD floating rate loan
designated under the
USD/JPY cross currencyinterest rate swap

31,929Assets/(Liabilities)$’000

456,560

Cash flow hedges
Interest rate risk
– Interest rate swaps to hedge
floating rate borrowings

Contractual
notional
amountCapitaLand Ascott REIT Group$’000

Borrowings

Derivative financial
instruments

Derivative financial
instruments

Derivative financial
instruments

Financialstatement
line item

(884)

1,229

1,644

33,112884(1,229)(1,644)(33,112)

–

–

–

–

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectivenessrecognised in
Hedging
HedgedStatement of
instrument
item
Total Return
$’000
$’000
$’000

Portfolio & Performance

ANNUAL REPORT 2023

Leadership

Carrying amount

–

2.37%

2.91%

1.21%

Weighted
averagehedge rate

2023

2025

2023

2023 – 2029

Maturitydate

At 31 December 2022, the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group held the following instruments tohedge exposures to changes in foreign currency and interest rates.

Hedge accounting (continued)

FINANCIAL INSTRUMENTS (continued)
Year ended 31 December 2023
Overview

33

NOTES TO THE FINANCIAL STATEMENTS

33

288

CAPITALAND ASCOTT TRUST

18,610Derivative financial
instruments

Derivative financial
instruments

Derivative financial
instruments

Borrowings

Financialstatement
line item

10,516

7,068

26,848

9,283(10,516)(7,068)(26,848)(9,283)

–

–

–

–

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectivenessrecognised in
Hedging
HedgedStatement of
instrument
item
Total Return
$’000
$’000
$’000

(1) Contractual notional amount of the USD/JPY and SGD/JPY cross currency interest rate swap is disclosed under “Cash flow hedges”.

– (1)– SGD/JPY cross currencyinterest rate swap to hedge
JPY net investments

10,701

20,693585,000– (1)(524,001)

Assets/(Liabilities)$’000

Carrying amount–– USD/JPY cross currencyinterest rate swap to hedge
JPY net investments– Cross currency interest
rate swaps to hedge net
investments in foreign
operations

Net investment hedges
Foreign exchange risk
– Borrowings to hedge net
investments in foreign
operations

Contractual
notional
amountCapitaLand Ascott REIT Group$’000

Hedge accounting (continued)

FINANCIAL INSTRUMENTS (continued)

JPY77.52:$1

JPY83.20:$1

EUR 1:$1.54
JPY97.80:$1–

Weighted
averagehedge rate

2025

2023

2023 – 2027

2023 – 2029

Maturitydate

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

(644)(166)

34,817

–(1)

3,024

130,906

Assets/(Liabilities)$’000

Financialstatement
line item

Derivative financial
instruments

Derivative financial
instruments

Derivative financial
instruments

Carrying amount

(644)

(175)

3,425

644

175

(3,425)–––

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectivenessrecognised in
Hedging
HedgedStatement of
instrument
item
Total Return
$’000
$’000
$’000

Portfolio & Performance

Sustainability & Governance

ANNUAL REPORT 2023

289

Financial Statements andOther Information(1) Contractual notional amount of the USD/JPY cross currency interest rate swap is disclosed under “Cash flow hedges”.

Net investment hedges
Foreign exchange risk
– USD/JPY cross currencyinterest rate swap to hedge
JPY net investments– USD/JPY cross currencyinterest rate swap to swap
USD floating rate interest for
JPY fixed rate interest

Cash flow hedges
Interest rate risk
– Interest rate swaps to hedge
floating rate borrowings

CapitaLand Ascott BT Group

Contractual
notional
amount$’000

Hedge accounting (continued)

2.20%

0.30%

Weighted
averagehedge rate

JPY135:USD1

Leadership

FINANCIAL INSTRUMENTS (continued)

2023

2023

2023

MaturitydateYear ended 31 December 2023
Overview

33

NOTES TO THE FINANCIAL STATEMENTS

33

290

CAPITALAND ASCOTT TRUST(69,629)

2,040

90,300– SGD/JPY cross currencyinterest rate swap to swap
SGD floating rate interest for
JPY fixed rate interest–

322

104,556– USD/JPY cross currencyinterest rate swap to swap
USD floating rate interest for
JPY fixed rate interest

Foreign exchange risk
– USD floating rate loan
designated under the
USD/JPY cross currencyinterest rate swap

34,953

Assets/(Liabilities)$’000

Financialstatement
line item

Borrowings

Derivative financial
instruments

Derivative financial
instruments

Derivative financial
instruments

Carrying amount

587,466

Cash flow hedges
Interest rate risk
– Interest rate swaps to hedge
floating rate borrowings

Stapled Group

Contractual
notional
amount$’000

Hedge accounting (continued)

FINANCIAL INSTRUMENTS (continued)

(884)

1,229

1,469

36,559884(1,229)(1,469)(36,559)

–

–

–

–

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectivenessrecognised in
Hedging
HedgedStatement of
instrument
item
Total Return
$’000
$’000
$’000

–

2.37%

2.20%
to 2.91%0.30%
to 1.21%Weighted
averagehedge rate

2023

2025

2023

2023 – 2029

Maturitydate

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

18,610

Derivative financial
instruments

Derivative financial
instruments

Derivative financial
instruments

Borrowings

10,516

6,424

26,848

9,283(10,516)(6,424)(26,848)(9,283)

–

–

–

–

Changes in fair value used for calculatinghedge ineffectivenessHedge
ineffectiveness
Financialrecognised instatement
Hedging
HedgedStatement ofline item instrument
item
Total Return
$’000
$’000
$’000

Portfolio & Performance

Sustainability & Governance

ANNUAL REPORT 2023

291

Financial Statements andOther Information(1) Contractual notional amount of the USD/JPY and SGD/JPY cross currency interest rate swap is disclosed under “Cash flow hedges”.

–(1)– SGD/JPY cross currencyinterest rate swap to hedge
JPY net investments

10,057

20,693585,000–(1)(524,001)

Assets/(Liabilities)$’000

Carrying amount–Contractual
notional
amount$’000– USD/JPY cross currencyinterest rate swap to hedge
JPY net investments– Cross currency interest
rate swaps to hedge net
investments in foreign
operations

Net investment hedges
Foreign exchange risk
– Borrowings to hedge net
investments in foreign
operations

Stapled Group

Hedge accounting (continued)

EUR 1:$1.54
JPY97.80:$1–

Weighted
averagehedge rate

JPY77.52:$1

JPY83.20:$1
JPY135:USD1

Leadership

FINANCIAL INSTRUMENTS (continued)

2025

2023

2023 – 2027

2023 - 2029

MaturitydateYear ended 31 December 2023
Overview

33

NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

33

FINANCIAL INSTRUMENTS (continued)
Hedge accounting (continued)
The following table provides a reconciliation by risk category of components of Stapled Securityholders’funds resulting from cash flow hedge accounting.

Hedging reserve

Balance as at 1 January
Cash flow hedges
Change in fair value– Interest rate risk
– Foreign exchange risk
Amounts reclassified toStatement of Total Return– Interest rate risk
Balance as at 31 December

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

33,964

(42)

3,428

1,470

37,430

1,444

504
2,503

35,985(884)(1,019)
–

3,250
–

(518)
2,503

39,257(884)(15,369)
21,602(1,095)33,964(2,673)(264)(1,292)
3,428(18,069)
21,346(2,387)37,430Net investment hedge
A foreign currency exposure arises from the Stapled Group’s net investment in its subsidiaries in Europe
and Japan that has a EUR, GBP and JPY functional currency respectively. The risk arises from thefluctuation in spot exchange rates between the EUR, GBP, JPY and SGD, which causes the amount of the
net investment to vary.
The hedged risk in the net investment hedges are the risk of a weakening EUR, GBP and JPY against
the SGD that will result in a reduction in the carrying amount of the Stapled Group’s net investment in its
subsidiaries in Europe and Japan.
Part of the Stapled Group’s net investments in certain subsidiaries in Europe and Japan are hedged
through the use of EUR, GBP and JPY denominated borrowings.
The Stapled Group also entered into cross currency interest rate swaps to swap fixed rate SGD medium
term notes for fixed rate EUR and JPY obligations. The SGD medium term notes, which together with thecross currency interest rate swap arrangement, have been used to hedge the Stapled Group’s foreign
currency risk on the net investment in the subsidiaries in Europe and Japan.
The Stapled Group has also designated USD and SGD denominated borrowings, together with certain
cross currency interest rate swaps, to hedge its net investment in the subsidiaries in Japan.
Cross currency interest rate swaps were entered into to swap floating rate USD loan and floating rate
SGD loan for fixed rate JPY obligations. The JPY portion of this cross currency interest rate swap havebeen designated as a hedge of the Stapled Group’s foreign currency risk on the net investment in thesubsidiaries in Japan. The USD floating rate loan and SGD floating rate loan, together with the swap of
the floating USD interest and floating SGD interest for fixed JPY interest under the cross currency interest
rate swap, is designated as a cash flow hedge. During the year, the USD/JPY cross currency interest rate
swap has matured, and the USD floating rate loan was repaid.

292

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
33

Overview

Year ended 31 December 2023

FINANCIAL INSTRUMENTS (continued)

Net investment hedge (continued)
As at the reporting date, the carrying amount of these borrowings was $629,235,000 (2022: $524,001,000)
and the fair value of the borrowings was $634,785,000 (2022: $529,983,000). The net investment hedges
were effective during the year. The Stapled Group’s investments in other subsidiaries are not hedged.

Offsetting financial assets and financial liabilities

Leadership

The Stapled Group determines the existence of an economic relationship between the hedging instrument
and hedged item based on the currency and amount. The Stapled Group assess the effectiveness ofeach hedging relationship by comparing changes in the carrying amount of the debt that is attributable
to a change in the spot rate with changes in the investment in the foreign operation due to movementsin the spot rate (the offset method).

The disclosures set out in the tables below include financial assets and financial liabilities that:•	are offset in the Stapled Group’s Statement of Financial Position; or•	are subject to an enforceable master netting arrangement, irrespective of whether they are offset
in the Statement of Financial Position.

The Stapled Group’s derivative transactions that are not transacted on an exchange are entered into
under ISDA Master Netting Agreements. In general, under such agreements, the amounts owed by eachcounterparty that are due on a single day in respect of all transactions outstanding in the same currency
under the agreement are aggregated into a single net amount being payable by one party to the other.
In certain circumstances, for example when a credit event such as a default occurs, all outstandingtransactions under the agreement are terminated, the termination value is assessed and only a single net
amount is due or payable in settlement of all transactions.

Portfolio & Performance

Financial instruments such as loans and receivables and financial liabilities are not disclosed in thetables below unless they are offset in the Statement of Financial Position.

The above ISDA agreements do not meet the criteria for offsetting in the Statement of Financial Position.
This is because they create a right of set-off of recognised amounts that is enforceable only following
an event of default, insolvency or bankruptcy of the Stapled Group or the counterparties. In addition, theStapled Group and its counterparties do not intend to settle on a net basis or to realise the assets andsettle the liabilities simultaneously.
Sustainability & Governance

293

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

33

FINANCIAL INSTRUMENTS (continued)

Financial assets and financial liabilities subject to offsetting and enforceable master netting
arrangement

CapitaLand Ascott REIT GroupGross
amount of Net amountrecognised of financial
financialassets/RelatedGrossassets/(liabilities)
amountamount of(liabilities)
presented
not offset
recognised offset in thein thein thefinancial
Statement
Statement
Statement
assets/ of Financial of Financial of Financial(liabilities)
Position
Position
Position
$’000
$’000
$’000
$’000

Net
amount$’000

31 December 2023
Financial assets
Interest rate swaps
Cross currency interest rate swaps
Currency forwards
Trade and other receivables

23,06068,83069
11,366–––(11,366)

23,06068,830
69
–

–
–
–
–

23,06068,83069–

Financial liabilities
Interest rate swaps
Cross currency interest rate swaps
Trade and other payables(5,923)(1,177)(13,242)––
11,366(5,923)(1,177)(1,876)–––(5,923)(1,177)(1,876)

Financial assets
Interest rate swaps
Cross currency interest rate swaps
Trade and other receivables

31,93459,471
11,536––(11,536)

31,93459,471––––

31,93459,471–

Financial liabilities
Interest rate swaps
Cross currency interest rate swaps
Trade and other payables(5)(6,939)(13,420)––
11,536(5)(6,939)(1,884)–––(5)(6,939)(1,884)31 December 2022

294

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
33

Overview

Year ended 31 December 2023

FINANCIAL INSTRUMENTS (continued)

Financial assets and financial liabilities subject to offsetting and enforceable master netting
arrangement (continued)

Netamount$’000

Leadership

CapitaLand Ascott BT GroupGross
amount of Net amountrecognised of financial
financialassets/RelatedGrossassets/(liabilities)
amountamount of(liabilities)
presented
not offset
recognised offset in thein thein thefinancial
Statement
Statement
Statement
assets/ of Financial of Financial of Financial(liabilities)
Position
Position
Position
$’000
$’000
$’000
$’000

31 December 2023
209

–

209

–

209

Financial liabilities
Interest rate swaps

(566)

–

(566)

–

(566)

Financial assets
Interest rate swaps

3,024

–

3,024

–

3,024

Financial liabilities
Cross currency interest rate swaps

(810)

–

(810)

–

(810)

31 December 2022

Portfolio & Performance

Financial assets
Cross currency interest rate swaps

Sustainability & Governance

295

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

33

FINANCIAL INSTRUMENTS (continued)

Financial assets and financial liabilities subject to offsetting and enforceable master netting
arrangement (continued)

Stapled GroupGross
amount of Net amountrecognised of financial
financialassets/RelatedGrossassets/(liabilities)
amountamount of(liabilities)
presented
not offset
recognised offset in thein thein thefinancial
Statement
Statement
Statement
assets/ of Financial of Financial of Financial(liabilities)
Position
Position
Position
$’000
$’000
$’000
$’000

Net
amount$’000

31 December 2023
Financial assets
Interest rate swaps
Cross currency interest rate swaps
Currency forwards
Trade and other receivables

23,06069,03969
11,366–––(11,366)

23,06069,039
69
–

–
–
–
–

23,06069,03969–

Financial liabilities
Interest rate swaps
Cross currency interest rate swaps
Trade and other payables(6,489)(1,177)(13,242)––
11,366(6,489)(1,177)(1,876)–––(6,489)(1,177)(1,876)

Financial assets
Interest rate swaps
Cross currency interest rate swaps
Trade and other receivables

34,95859,471
11,536––(11,536)

34,95859,471––––

34,95859,471–

Financial liabilities
Interest rate swaps
Cross currency interest rate swaps
Trade and other payables(5)(7,749)(13,420)––
11,536(5)(7,749)(1,884)–––(5)(7,749)(1,884)31 December 2022

The gross amounts of financial assets and financial liabilities and their net amounts as presented in theStatements of Financial Position that are disclosed in the above tables are measured in the Statementsof Financial Position on the following basis:
•
•

296

cross currency interest rate swaps, currency forwards and interest rate swaps – fair value; andtrade and other receivables and trade and other payables – amortised cost.

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
34

Overview

Year ended 31 December 2023

RELATED PARTIESIn the normal course of the operations of the CapitaLand Ascott REIT Group, the REIT Manager’s
management fees and the REIT Trustee’s fees have been paid or are payable to the REIT Manager andthe REIT Trustee, respectively.
In the normal course of the operations of the CapitaLand Ascott BT Group, the BT Trustee-Manager’s
management fees and the BT Trustee-Manager’s trustee fees have been paid or are payable to the BT
Trustee-Manager.

CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

3,524

–

–

4,469

3,524

–
(106)

–
–

1,023
–

–
–

1,023
(106)

–
–

325

6

–

–

325

6

(2,915)(3,259)(680)–(3,595)(3,259)(39,069)(51,566)––(39,069)(51,566)(13,545)(14,554)

–

–

–

–

19,102

12,861376

215

19,47813,07622,154

18,298708

506

22,86218,804297

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & Governance

4,469

Portfolio & Performance

Acquisition fees paid/payable to
the REIT Manager
Acquisition fees paid/payable to
the BT Trustee-Manager
Amortisation of deferred income
Divestment fees paid/payable to
the REIT Manager
Rental income received/
receivable from related
corporations
Rental income received/
receivable from master leasearrangements with related
corporations
Rental income received/
receivable from master
lease arrangements with theCapitaLand Ascott BT Group
Serviced residence management
fees paid/payable to related
corporations
Service fee paid/payable torelated corporations

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

Leadership

During the financial year, other than those disclosed elsewhere in the financial statements, there were thefollowing significant related party transactions, which were carried out in the normal course of businesson arm’s length commercial terms:

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

35

FINANCIAL RATIOSCapitaLand Ascott
REIT Group
2023
2022
%
%

Ratio of expenses to average net asset value(1)– including performance component of the
REIT Manager’s management fees
– excluding performance component of the
REIT Manager’s management fees
Portfolio turnover rate(2)Stapled Group
2023
2022
%
%

1.07

0.98

1.11

1.01

0.79
1.58

0.76
0.01

0.83
1.39

0.78
0.01

(1) The annualised ratio is computed in accordance with guidelines of Investment Management Association of Singapore. The
expenses used in the computation relate to expenses at the CapitaLand Ascott REIT Group and the Stapled Group level, excluding
property related expenses, borrowing costs and foreign exchange gains/(losses).
(2) The annualised ratio is computed based on the lesser of purchases or sales of underlying properties of the CapitaLand Ascott REIT
Group and the Stapled Group expressed as a percentage of weighted average net asset value.

36

OPERATING SEGMENTS
Segment information is presented in respect of the geographical segments of the Stapled Group. The
operations of each of the Stapled Group’s geographical segments are separately managed because of
the different economic environments in which they operate in. For each of the reportable segments, theCEO of the Managers review internal management reports on a monthly basis, at minimum, for strategic
decision making, performance assessment and resource allocation purpose.
Performance measurement based on segment gross profit and non-financial assets as well as financial
assets attributable to each segment is used as the Managers believe that such information is most relevantin evaluating the results of certain segments relative to other entities that operate within these industries.
Segment results, assets and liabilities include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis. Unallocated items comprise mainly finance costs,
corporate assets and expenses, and income tax expense. Segment capital expenditure is the total cost
incurred during the year to acquire segment assets that are expected to be used for more than one year.
Information regarding the reportable segments of the Stapled Group is presented in the following tables.

298

CAPITALAND ASCOTT TRUSTANNUAL REPORT 2023

299

52,404(4,716)

Net change in fair value ofinvestment properties,
investment properties underdevelopment and assets
held for sale

Depreciation of buildings,
plant and machinery

Financial Statements andOther Information

53,452
12,3892,705
68,546(39,767)
28,779(19,788)773

39,094
129,796
2,350
171,240(121,223)
50,017$’000

Australia

Sustainability & GovernanceYear ended 31 December 2023
Gross rental income
Hotel revenue
Other income
Gross revenue
Direct expenses
Segment gross profit$’000

Singapore–

17,82916,621–803
17,424(11,712)
5,712

$’000

Belgium–(27,295)

23,377–723
24,100(18,573)
5,527

$’000

China

–

5,161

30,410–2,716
33,126(3,296)
29,830$’000

FrancePortfolio & Performance

Stapled GroupThe principal business of the Stapled Group are investing in investment properties.

Geographical segments

Information about reportable segments–

22,70815,937–664
16,601(1,803)
14,798$’000

Germany–

1,810

13,906–211
14,117(9,352)
4,765

$’000

Indonesia

(116)

–

–
1,591
–
1,591
(1,084)507$’000

Ireland

Leadership

OPERATING SEGMENTS–

35,17574,850–4,135
78,985(26,714)52,271

$’000

Japan

(24,620)

108,565

267,647
143,776
14,307425,730(233,524)
192,206$’000

SubtotalYear ended 31 December 2023
Overview

36

NOTES TO THE FINANCIAL STATEMENTS

36

300

CAPITALAND ASCOTT TRUST(3,787)––

20,735–
1,582
22,317(14,871)
7,446(3,633)

3,666
–
80
3,746
(3,055)
691

Malaysia Philippines
$’000
$’000

Finance income
Finance costs
Profit from divestments
Unallocated net expense
Reportable segment profit before income tax
Income tax expense
Total return for the year

Net change in fair value ofinvestment properties,
investment properties underdevelopment and assets
held for sale
Depreciation of buildings,
plant and machineryYear ended 31 December 2023
Gross rental income
Hotel revenue
Other income
Gross revenue
Direct expenses
Segment gross profit

Stapled Group

Geographical segments (continued)

Information about reportable segments (continued)

OPERATING SEGMENTS (continued)

–

3,234

8,450
–
–
8,450
(529)
7,921

South
Korea
$’000

–

16,116

9,833–
493
10,326(5,405)
4,921

Spain
$’000

–

43,81761,443–927
62,370(35,127)
27,243

UnitedKingdom$’000–(37,536)

168,598–
6,525
175,123(95,257)
79,866

UnitedStates ofAmerica$’000–(25,644)

34,925–
1,571
36,496(18,541)
17,955

Vietnam$’000–(7,433)

307,650–
11,178318,828(172,785)
146,043

Subtotal
$’000

4,434
(86,830)
16,016(46,156)
302,225(72,444)229,781(24,620)

101,132

575,297
143,776
25,485744,558(406,309)
338,249

Total
$’000

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

ANNUAL REPORT 2023

301

6,867
(19,317)
5,393(1,179)–34,491
118,568
2,799
155,858(108,554)
47,304Australia$’000

68,165

Financial Statements andOther Information

Net change in fair value ofinvestment properties,
investment properties underdevelopment and assets
held for sale
Depreciation of buildings,
plant and machinery
Revaluation surplus on landand buildings

Sustainability & Governance

46,3804,511
484
51,375(22,172)
29,203Singapore
$’000

–

–

(3,368)

11,259–702
11,961(8,587)
3,374

Belgium
$’000

–

–

(14,364)

22,336–678
23,014(18,118)
4,896

China
$’000

Portfolio & PerformanceYear ended 31 December 2022
Gross rental income
Hotel revenue
Other income
Gross revenue
Direct expenses
Segment gross profit

Stapled Group

Geographical segments (continued)

Information about reportable segments (continued)––(3,188)25,167–
2,078
27,245(2,247)
24,998

France$’000––(1,968)12,783–589
13,372(1,135)
12,237

Germany
$’000

–

–

1,794

13,601–155
13,756(8,543)
5,213

Indonesia$’000

Leadership

OPERATING SEGMENTS (continued)

–

–

5,745

54,613–
2,956
57,569(20,401)
37,168

Japan
$’000

5,393

(20,496)

59,683

220,630
123,079
10,441
354,150(189,757)
164,393

Subtotal$’000

Year ended 31 December 2023
Overview

36

NOTES TO THE FINANCIAL STATEMENTS

36

302

CAPITALAND ASCOTT TRUST

–
–

–
–

Finance income
Finance costs
Profit from divestments
Unallocated net expense
Reportable segment profit before income tax
Income tax expense
Total return for the year

1,024

37

Net change in fair value ofinvestment properties,
investment properties underdevelopment and assets
held for sale
Depreciation of buildings,
plant and machinery
Revaluation surplus on landand buildings

18,531–
1,033
19,564(14,072)
5,492

3,608
–
108
3,716
(2,753)
963

Malaysia Philippines
$’000
$’000

Year ended 31 December 2022
Gross rental income
Hotel revenue
Other income
Gross revenue
Direct expenses
Segment gross profit

Stapled Group

Geographical segments (continued)

Information about reportable segments (continued)

OPERATING SEGMENTS (continued)

–

–

2,964

5,471
–
–
5,471
(509)
4,962

South
Korea
$’000

–

–

(3,562)

7,073
–
391
7,464
(3,976)
3,488

Spain
$’000

–

–

16,01951,645–743
52,388(29,524)
22,864

UnitedKingdom
$’000

–

–

57,223

146,235–
4,651
150,886(84,249)
66,637

UnitedStates ofAmerica
$’000

–

–

(11,035)

26,384–
1,219
27,603(13,584)
14,019Vietnam
$’000

–

–

62,670258,947–
8,145
267,092(148,667)
118,425

Subtotal
$’000

1,468
(69,012)99(62,840)
259,783(33,563)
226,220

5,393(20,496)

122,353

479,577
123,079
18,586621,242(338,424)
282,818

Total
$’000

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

–22,589

6,925
6,632

2,159
2,362
–
22,713966

18,5793,194

296,05860

90,082

1,018,501

3,218

7,823

1,369,143

159

65,581

1,023,004

Australia
$’000

110

135,462

1,476,508

Singapore$’000

Sustainability & Governance

303

Financial Statements andOther Information

Other Segmental Information
Capital expenditure:– investment properties– property, plant andequipment– investment properties underdevelopment
Depreciation

Reportable segment liabilities

Assets and liabilities
Reportable segment assets

2022

Other Segmental Information
Capital expenditure:– investment properties– property, plant andequipment– investment properties underdevelopment
Depreciation

Reportable segment liabilities

Assets and liabilities
Reportable segment assets

2023

Stapled Group

Geographical segments (continued)

Information about reportable segments (continued)

–
156

770

350

39,70061,586

–
130

658

260

52,41380,315

Belgium
$’000

–
640

509

72

87,719294,934

–
631

1,032

72

82,941

255,519

China
$’000

–
–

–

4,742

332,658

633,664

–
–

228

1,129

375,867

661,014

France$’000

Portfolio & Performance

ANNUAL REPORT 2023

–
–

–

28

125,672

242,631

–
–

–

387

151,963

264,557

Germany
$’000

–
357

216

–

7,079

94,245

–
348

460

1,032

10,741150,820

Indonesia
$’000

–
–

–

–

–

–

–
238

9,888

–

87,138123,137

Ireland$’000

Leadership

OPERATING SEGMENTS (continued)

–
283

443

8,523

1,372,505

1,408,562

–
386

795

8,372

1,354,445

1,403,488

Japan
$’000

18,57927,343

5,266

15,934

2,351,473

5,123,266

6,925
30,954

24,102

11,5212,316,551

5,438,362

Subtotal$’000

Year ended 31 December 2023
Overview

36

NOTES TO THE FINANCIAL STATEMENTS

36

304

CAPITALAND ASCOTT TRUST

*

–
63

–
19

702

–
1,604

(38)*
601

31,088156,101

Negative due to reversal of over-provision of prior year’s capital expenditure

Other Segmental Information
Capital expenditure:– investment properties– property, plant and equipment– investment properties underdevelopment
Depreciation

Reportable segment liabilities

Assets and liabilities
Reportable segment assets
41,510

–
1,286

–
71

2022

3
680

–
169

Other Segmental Information
Capital expenditure:– investment properties– property, plant and equipment– investment properties underdevelopment
Depreciation

31,223150,040

Philippines
$’000

913

36,528

Malaysia$’000

Reportable segment liabilities

Assets and liabilities
Reportable segment assets

2023

Stapled Group

Geographical segments (continued)

Information about reportable segments (continued)

OPERATING SEGMENTS (continued)

–
–

156
–

37,292

165,575––

72–

36,647

171,070

South
Korea
$’000

–
81

59
95

26,56857,858

–
81

139
214

41,087

74,232

Spain
$’000

–
1,133

236
874

57,589510,850

–
1,063

5,982
4,454

419,127

942,584

UnitedKingdom
$’000

6,638
4,220

(3,273)*5,293

1,050,345

1,733,712

35,418
4,022

3,583
3,859

1,034,608

1,708,742

UnitedStates ofAmerica
$’000

–
1,329

358
339

23,841

234,821–1,420(212)*
1,842

20,375

209,267

Vietnam
$’000

6,638
8,430

(2,502)
7,221

1,227,425

2,900,427

35,418
7,943

9,567
11,218

1,583,980

3,292,463

Subtotal$’000

25,21735,773

13,432
12,487

3,578,898

8,023,693

42,34338,89721,08835,3203,900,531

8,730,825

Total
$’000

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

NOTES TO THE FINANCIAL STATEMENTS
36

Overview

Year ended 31 December 2023

OPERATING SEGMENTS (continued)

Major customers
Revenue from related corporations accounted for approximately $39,069,000 (2022: $51,566,000) of thegross revenue of the Stapled Group. Such revenue is attributable to the France segment and Germany
segment (2022: France segment, Germany segment and Singapore segment).

FAIR VALUE OF ASSETS AND LIABILITIES(a)Determining fair value
A number of the Stapled Group’s accounting policies and disclosures require the determination offair value, for both financial and non-financial assets and liabilities. Fair values have been determined
for measurement and/or disclosure purposes based on the following methods and processes. Where
applicable, further information about the assumptions made in determining fair values is disclosed in thenotes specific to that asset or liability.
(i)

Financial derivatives

Non-derivative financial liabilities
The fair value of quoted interest-bearing borrowings is their quoted ask price at the reporting date.
Fair value for unquoted interest-bearing borrowings is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting
date.

(iii)

Other financial assets and liabilities

Where discounted cash flow techniques are used, estimated future cash flows are based on
management’s best estimates and the discount rate is a market-related rate for a similar instrument
at the reporting date.

305

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & GovernanceThe carrying amounts of financial assets and liabilities with a maturity of less than one year(including trade and other receivables, cash and cash equivalents, and trade and other payables)
are assumed to approximate their fair values because of the short period to maturity. All otherfinancial assets and liabilities are discounted to determine their fair values.

Portfolio & Performance

The fair values of cross currency interest rate swaps, currency forwards and interest rate swaps
are based on broker quotes. These quotes are tested for reasonableness by discounting estimatedfuture cash flows based on terms and maturity of each contract and using market interest rates
or exchange rates, where applicable, for a similar financial instrument at the measurement date.
(ii)

Leadership

37

306

Accounting classifications and fair values(b)

CAPITALAND ASCOTT TRUST

11
14
16

12
12

17
17
17
18

Financial assets not measured at fair value
Loan to associate
Trade and other receivables(1)Cash and cash equivalents

Financial liabilities measured at fair value
Interest rate swaps used for hedging
Cross currency interest rate swaps used for hedging

Financial liabilities not measured at fair value
Bank loans
Medium term notes
Sustainability-linked notes
Trade and other payables(2)
–
–
–
–
–

–
–
–

–
–
–
–

2,454
–
–
69
2,523

Mandatorily
at FVTPL
$’000

–
–
–
–
–

(5,923)(1,177)(7,100)–––––23,06068,830–91,890(1)	Excluding prepayments.
(2)	Excluding advance rental, liability for employee benefits and rental deposits (non-current).

7
12
12
12

Financial assets measured at fair value
Investment securities
Interest rate swaps used for hedging
Cross currency interest rate swaps used for hedging
Currency forwards

31 December 2023

CapitaLand Ascott REIT Group

Note

–
–
–

–
–
–
–

–
–
–
–
–

(5,923)(1,177)(7,100)3,528
298,389
369,371
671,288

2,454
23,06068,83069
94,413

Total
$’000

– (1,893,742) (1,893,742)–(667,865) (667,865)–(353,371) (353,371)–(268,303) (268,303)– (3,183,281) (3,183,281)

–
–
–

3,528
298,389
369,371
671,288–––––

Carrying amount
Fair value
Other– hedging Amortised
financial
instruments
costliabilities
$’000
$’000
$’000

(5,923)(1,177)–23,06068,83069

Level 2$’000

– (1,883,921)– (671,988)– (354,908)

–
–

–
–
–
–

Level 1$’000

(5,923)(1,177)2,454
23,06068,830
69

Total
$’000

– (1,883,921)– (671,988)– (354,908)

–
–

2,454
–
–
–

Level 3$’000

Fair value

The carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are as follows. It
does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonableapproximation of fair value.

FAIR VALUE OF ASSETS AND LIABILITIES (continued)

37

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

11
14
16

12
12

17
17
17
18
18

Financial assets not measured at fair value
Loan to associate
Trade and other receivables(1)Cash and cash equivalents

Financial liabilities measured at fair value
Interest rate swaps used for hedging
Cross currency interest rate swaps used for hedging

Financial liabilities not measured at fair value
Bank loans
Medium term notes
Sustainability-linked notes
Trade and other payables(2)Rental deposits (non-current)

Sustainability & Governance

ANNUAL REPORT 2023

–
–
–
–
–
–

–
–
–

–
–
–
–

2,416
–
–
2,416

Mandatorily
at FVTPL
$’000

–
–
–
–
–
–

(5)
(6,939)(6,944)–––––31,93459,471
91,405

–
–
–

–
–
–
–

–
–
–
–

(5)
(6,939)(6,944)

3,585
243,270299,251
546,106

2,416
31,93459,471
93,821

Total
$’000

– (1,698,901) (1,698,901)–(548,917) (548,917)–(367,899) (367,899)–(196,306) (196,306)
–
(32)
(32)
– (2,812,055) (2,812,055)

–
–
–

3,585
243,270299,251
546,106––––

Carrying amount
Fair value
Other– hedging Amortised
financial
instruments
costliabilities
$’000
$’000
$’000

Portfolio & Performance

307

Financial Statements andOther Information(1) Excluding prepayments.
(2) Excluding advance rental, liability for employee benefits and rental deposits (non-current).

7
12
12

Financial assets measured at fair value
Investment securities
Interest rate swaps used for hedging
Cross currency interest rate swaps used for hedging

31 December 2022

CapitaLand Ascott REIT GroupNote

Accounting classifications and fair values (continued)

(b)

(31)

(31)

–

(5)
(6,939)2,416
31,93459,471

Total
$’000

–

–
–

2,416
–
–

Level 3$’000

– (1,683,254)–(551,309)–(361,347)(5)(6,939)–31,93459,471

Level 2$’000

Fair value– (1,683,254)–(551,309)–(361,347)

–
–

–
–
–

Level 1$’000

Leadership

FAIR VALUE OF ASSETS AND LIABILITIES (continued)
Year ended 31 December 2023
Overview

37

NOTES TO THE FINANCIAL STATEMENTS

308

Accounting classifications and fair values (continued)(b)

CAPITALAND ASCOTT TRUST

14
16

12
17
18
18

Financial assets not measured at fair value
Trade and other receivables(1)Cash and cash equivalents

Financial liabilities measured at fair value
Interest rate swaps used for hedging

Financial liabilities not measured at fair value
Bank loans
Trade and other payables(2)Rental deposits (non-current)
–
–
–
–

(566)

–
–
–

209

(1) Excluding prepayments.
(2) Excluding advance rental, liability for employee benefits and rental deposits (non-current).

12

Fair value– hedging
Note instruments$’000

Financial assets measured at fair value
Cross currency interest rate swaps used for hedging

31 December 2023

CapitaLand Ascott BT GroupFAIR VALUE OF ASSETS AND LIABILITIES (continued)

37

–
–
–
–

–

12,61063,43576,045–(133,383)(275,963)(7,826)(417,172)

–

–
–
–

–

Carrying amount
Other
Amortisedfinancialcostliabilities
$’000
$’000

(133,383)(275,963)(7,826)(417,172)(566)

12,61063,43576,045

209

Total
$’000

(133,656)(6,930)

–

(566)

209

Level 2
$’000

–

–

–

Level 1
$’000

–

–

–

–

Level 3$’000

Fair value(6,930)(133,656)

(566)

209

Total
$’000

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

14
16

12
17
18
18

Financial assets not measured at fair value
Trade and other receivables(1)Cash and cash equivalents

Financial liabilities measured at fair value
Cross currency interest rate swaps used for hedging

Financial liabilities not measured at fair value
Bank loans
Trade and other payables(2)Rental deposits (non-current)
–
–
–
–

(810)

–
–
–

3,024

–
–
–
–

–

14,09164,38378,474–(258,869)(185,767)(8,215)(452,851)

–

–
–
–

–

Carrying amount
Other
Amortisedfinancialcostliabilities
$’000
$’000

Portfolio & Performance

Sustainability & Governance

ANNUAL REPORT 2023

309

Financial Statements andOther Information(1) Excluding prepayments.
(2) Excluding advance rental, liability for employee benefits and rental deposits (non-current).

12

Fair value– hedging
Note instruments$’000

Financial assets measured at fair value
Interest rate swaps used for hedging

31 December 2022

CapitaLand Ascott BT GroupAccounting classifications and fair values (continued)(b)(258,869)(185,767)(8,215)(452,851)(810)

14,09164,38378,474

3,024

Total
$’000

(258,673)(7,109)

–

(810)

3,024

Level 2
$’000

–

–

–

–

Level 3$’000

Fair value

–

–

–

Level 1$’000

Leadership

FAIR VALUE OF ASSETS AND LIABILITIES (continued)(7,109)(258,673)

(810)

3,024

Total
$’000

Year ended 31 December 2023
Overview

37

NOTES TO THE FINANCIAL STATEMENTS310

CAPITALAND ASCOTT TRUST

11
14
16

12
12

17
17
17
18
18

Financial assets not measured at fair value
Loan to associate
Trade and other receivables(1)Cash and cash equivalents

Financial liabilities measured at fair value
Interest rate swaps used for hedging
Cross currency interest rate swaps used for hedging

Financial liabilities not measured at fair value
Bank loans
Medium term notes
Sustainability-linked notes
Trade and other payables(2)Rental deposits (non-current)
–
–
–
–
–
–

–
–
–

–
–
–
–

–
–
69
69

–
–
–
–
–
–

(6,489)(1,177)(7,666)––––23,06069,039–92,099

–
–
–

–
–
–
–

–
–
–
–

(6,489)(1,177)(7,666)

3,528
90,800432,806
527,134

23,06069,03969
92,168

Total
$’000

– (2,027,125) (2,027,125)–(667,865) (667,865)–(353,371) (353,371)–(324,067) (324,067)–(7,826)(7,826)– (3,380,254) (3,380,254)

–
–
–

3,528
90,800432,806
527,134––––

Carrying amount
Fair value
Other– hedging Amortised
financial
instruments
costliabilities
$’000
$’000
$’000

(1) Excluding prepayments.
(2) Excluding advance rental, liability for employee benefits and rental deposits (non-current).

12
12
12

Financial assets measured at fair value
Interest rate swaps used for hedging
Cross currency interest rate swaps used for hedging
Currency forwards

31 December 2023

Stapled Group

Mandatorily
at FVTPL$’000

Accounting classifications and fair values (continued)

(b)

Note

FAIR VALUE OF ASSETS AND LIABILITIES (continued)

37(6,930)(6,930)–(6,489)(1,177)23,06069,039
69

Total
$’000

–

–
–

–
–
–

Level 3$’000

– (2,017,577)–(671,988)–(354,908)(6,489)(1,177)23,06069,03969

Level 2$’000

– (2,017,577)–(671,988)–(354,908)

–
–

–
–
–

Level 1$’000

Fair value

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 December 2023

Accounting classifications and fair values (continued)

(b)

12
12

17
17
17
18
18

Financial liabilities measured at fair value
Interest rate swaps used for hedging
Cross currency interest rate swaps used for hedging

Financial liabilities not measured at fair value
Bank loans
Medium term notes
Sustainability-linked notes
Trade and other payables(2)Rental deposits (non-current)

–
–
–

–
–
–
–

–
–
–

(5)
(7,749)(7,754)

3,585
96,403363,634
463,622

34,95859,471
94,429

Total
$’000

–(1,957,770) (1,957,770)– (548,917) (548,917)– (367,899) (367,899)– (221,113) (221,113)–(8,247)(8,247)–(3,103,946) (3,103,946)

–
–
–

3,585
96,403363,634
463,622–––

Carrying amount
Other
Amortised financial
cost liabilities
$’000
$’000

Portfolio & Performance

Sustainability & Governance

ANNUAL REPORT 2023

(7,140)(7,140)–(5)(7,749)34,95859,471

Total
$’000

–

–
–

–
–

Level 3$’000

– (1,941,927)–(551,309)–(361,347)(5)(7,749)34,95859,471

Level 2$’000

Fair value– (1,941,927)–(551,309)–(361,347)

–
–

–
–

Level 1$’000

Leadership

311

Financial Statements andOther Information

During the years ended 31 December 2023 and 2022, there were no transfers between Level 1 and 2 of the fair value hierarchy.

(1) Excluding prepayments.
(2) Excluding advance rental, liability for employee benefits and rental deposits (non-current).

(5)(7,749)(7,754)11
14
16

Financial assets not measured at fair value
Loan to associate
Trade and other receivables(1)Cash and cash equivalents

–
–
–
–
–
–

–
–
–
–

12
12

34,95859,471
94,429Fair value– hedging
Note instruments$’000

Financial assets measured at fair value
Interest rate swaps used for hedging
Cross currency interest rate swaps used for hedging

31 December 2022

Stapled GroupFAIR VALUE OF ASSETS AND LIABILITIES (continued)
Year ended 31 December 2023
Overview

37

NOTES TO THE FINANCIAL STATEMENTSNOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

38

ACQUISITION OF INVESTMENT PROPERTIES AND HOTEL
During the year ended 31 December 2023, the CapitaLand Ascott REIT Group acquired two properties,
namely Eslead Residence Osaka Fukushima East and Granfore Hakata Waterfront, from unrelated third
parties.
On 30 November 2023, the CapitaLand Ascott REIT Group acquired the following from related corporations:•	a 100% effective interest in the property, The Cavendish London, through the acquisition of 100%
issued shares in Ascott St James (Jersey) Limited; and•	a 100% effective interest in the property, Ascott Kuningan Jakarta, through the acquisition of 100%
issued shares in Ascott Kuningan (S) Pte. Ltd. and 100% issued shares in Ascott Tower (S) Pte. Ltd..
On 30 November 2023, the CapitaLand Ascott BT Group acquired Temple Bar Hotel from a related
corporation.
The assets in the acquired entities largely consist of investment properties and property, plant andequipment without substantive processes. Substantially all of the fair value of the gross assets acquired
is concentrated in the portfolio of the investment properties and hotel, which represents a group ofsimilar identifiable assets. The Stapled Group applied the concentration test and the acquisition of theentities has been assessed and accounted for as an acquisition of assets in the financial statements.
During the year ended 31 December 2022, the CapitaLand Ascott REIT Group acquired four properties,
namely Eslead College Gate Kindaimae, Eslead Residence Bentencho Grande, Eslead Residence Umeda
Grande and Paloma Kent, from unrelated third parties.
On 30 November 2022, the CapitaLand Ascott REIT Group acquired the following from related corporations:•	a 100% effective interest in the property, La Clef Tour Eiffel Paris, through the acquisition of 100%
issued shares in Ascott Holdings (France) SAS and 0.01% issued shares in Ascott Kleber SNC; and•	a 100% effective interest in the property, Somerset Central TD Hai Phong City, through theacquisition of 100% issued shares in Somerset Central TD Company Limited; and•	additional 45% effective interest in the property, Standard at Columbia, through the acquisition of
50% of the issued shares in Columbia PBSA Venture Pte. Ltd.; and•	100% of the trust beneficial interests in a portfolio of five rental housing properties in Japan
comprising House Saison Shijo-Dori, Marunouchi Central Heights, S-Residence Gakuenzaka,
S-Residence Namba Viale and S-Residence Shukugawa; and•	Quest Cannon Hill.
The assets in the acquired entities largely consist of investment properties, property, plant and equipment,
and investment properties under development without substantive processes. Substantially all of thefair value of the gross assets acquired is concentrated in the portfolio of the investment properties,
which represents a group of similar identifiable assets. The CapitaLand Ascott REIT Group applied
the concentration test and the acquisition of the entities has been assessed and accounted for as an
acquisition of assets in the financial statements.

312

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
38

Overview

Year ended 31 December 2023

ACQUISITION OF INVESTMENT PROPERTIES AND HOTEL (continued)
Asset acquisition: identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at
the date of acquisition.
CapitaLand Ascott REIT Group

Property, plant and equipment
Less: Milestone payment
Net cash outflow on acquisition

476,999
1,234
–
1,939
6,543
(167,081)(7,534)(253)(2,711)–
309,136

344,623
1,617
103,735
2,030
1,287(113,354)(18,860)
98–(5,752)
315,424–
309,136–
309,136(1,875)(62,582)–(6,543)
238,136(24,584)
290,840(1,299)289,541(798)(28,428)
2,442(1,287)
261,470

Note

2023
$’000

2022
$’000

5

102,298(30,105)
72,193–––

ANNUAL REPORT 2023

313

4
5
6

Sustainability & Governance

2022
$’000

Portfolio & Performance

CapitaLand Ascott BT Group

2023
$’000

Leadership

Investment properties
Property, plant and equipment
Investment properties under development
Trade and other receivables
Cash and cash equivalents
Financial liabilities
Trade and other payables
Current tax liabilities
Lease liabilities
Non-controlling interests
Total identifiable assets
Less: amount previously accounted for as joint venture, remeasured
at fair value
Net identifiable assets acquired
Realisation of reserves previously accounted for as a joint venture
Total consideration
Less: Deposit paid in prior year
Less: Milestone payment
Add: Consideration to be refunded from vendor
Less: Cash and cash equivalents acquired
Net cash outflow on acquisition

Note

Financial Statements andOther Information

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

38

ACQUISITION OF INVESTMENT PROPERTIES AND HOTEL (continued)
Stapled Group

Note

Investment properties
Property, plant and equipment
Investment properties under development
Trade and other receivables
Cash and cash equivalents
Financial liabilities
Trade and other payables
Current tax liabilities
Lease liabilities
Non-controlling interests
Total identifiable assets
Less: amount previously accounted for as joint venture, remeasured
at fair value
Net identifiable assets acquired
Realisation of reserves previously accounted for as a joint venture
Total consideration
Less: Deposit paid in prior year
Less: Milestone payment
Add: Consideration to be refunded from vendor
Less: Cash and cash equivalents acquired
Net cash outflow on acquisition

39

4
5
6

2023
$’000

2022
$’000

476,999
103,532
–
1,939
6,543
(167,081)(7,534)(253)(2,711)–
411,434

344,623
1,617
103,735
2,030
1,287(113,354)(18,860)
98–(5,752)
315,424–
411,434–
411,434(1,875)(92,687)–(6,543)
310,329(24,584)
290,840(1,299)289,541(798)(28,428)
2,442(1,287)
261,470

COMMITMENTS

Leases as lessor
The Stapled Group leases out some of its investment properties on long term arrangements. All leases
are classified as operating leases from a lessor perspective. The leases have initial tenure ranging fromthree to 25 years, with options to renew for some of the leases. The operating lease receivables are
based on the fixed component of the rent receivable under the lease agreements, adjusted for increases
in rent where such increases have been provided for in the agreements.
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease
payments to be received after the reporting date.
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Less than one year
One to two years
Two to three years
Three to four years
Four to five years
More than five years
Total

314

CAPITALAND ASCOTT TRUST

57,11456,90455,41952,62449,431
238,416
509,908

54,806
50,681
46,77345,082
42,230231,294
470,866

CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

27,061
25,95918,33018,137
18,137
67,622
175,246

29,22928,77027,667
19,37819,18591,254215,483

Stapled Group
2023
2022
$’000
$’000

73,25971,947
62,833
59,84556,652259,645584,181

72,07767,49362,48352,50349,458259,772
563,786

NOTES TO THE FINANCIAL STATEMENTS
39

Overview

Year ended 31 December 2023

COMMITMENTS (continued)

Capital commitments
As at the reporting date, the Stapled Group had the following capital commitments:
CapitaLand Ascott
REIT Group
2023
2022
$’000
$’000

Stapled Group
2023
2022
$’000
$’000

117,955

146,102

14,763

2,431

132,718

148,533

67,092

131,388––

67,092

131,388

Leadership

Capital expenditurecommitments:– contracted but notprovided for– acquisition of investment
properties(1)CapitaLand Ascott
BT Group
2023
2022
$’000
$’000

(1)	As at 31 December 2023, commitment for acquisition of investment properties relate to the acquisition of the trust beneficial
interest in a turnkey rental housing property in Fukuoka from Sekisui House, Ltd. and Fukuoka Shoji, Co., Ltd., unrelated third parties
for the purchase consideration of JPY8.0 billion (equivalent to $74.5 million) derived based on the independent valuation of theproperty of JPY8.3 billion (equivalent to $77.4 million) using the discounted cash flow method (completed on 24 January 2024).

For the property, Standard at Columbia, there is a 10% stake held by an unrelated third party.
There is a call option for the remaining 10% stake exercisable by CLAS after the property achievescertain performance conditions within 24 months after completion of the development. There is a put
option for the remaining 10% stake exercisable by the third party when CLAS does not exercise its call
option by the end of 24 months after completion of the development.

Portfolio & Performance	As at 31 December 2022, commitment for acquisition of investment properties relate to the total purchase consideration of
JPY13.9 billion (equivalent to $141.5 million) for the acquisition of the trust beneficial interest in (a) one turnkey rental housing
property in Osaka for the purchase consideration of JPY1.9 billion (equivalent to $18.9 million) (completed in the second quarterof 2023); (b) one turnkey rental housing property in Fukuoka for the purchase consideration of JPY4.0 billion (equivalent to$40.9 million) (completed in the second quarter of 2023); and (c) one turnkey rental housing property in Fukuoka for the purchaseconsideration of JPY8.0 billion (equivalent to $81.7 million) (completed on 24 January 2024).

This commitment has not been recognised in the Stapled Group’s consolidated financial statements until
the stabilisation conditions are fulfilled.

Sustainability & Governance

315

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2023

40

SUBSEQUENT EVENTSThe acquisition of the turnkey rental housing property in Fukuoka known as Teriha Ocean Stage (which
had been entered into in FY2022), was completed on 24 January 2024.
On 29 January 2024, the REIT Manager and BT Trustee-Manager declared a distribution of 3.095 cents
per Stapled Security amounting to $116,497,000 in respect of the period from 14 August 2023 to
31 December 2023.
On 31 January 2024, the Stapled Group completed the divestment of Courtyard by Marriott Sydney-North
Ryde in Australia.
On 31 January 2024, the CapitaLand Ascott REIT Group entered into a conditional sale and purchaseagreement with an unrelated third party to divest Citadines Mount Sophia Property Singapore for$148.0 million. The divestment was completed on 1 March 2024.
On 27 February 2024, the REIT Manager and BT Trustee-Manager issued 12,052,564 Stapled Securities at
an issue price of $0.9766 per Stapled Security to the REIT Manager. These Stapled Securities were issued
as partial payment of the base fee (as defined in the CapitaLand Ascott REIT Trust Deed) for the period
from 1 October 2023 to 31 December 2023 and the performance fee for the period from 1 January 2023
to 31 December 2023.
On 27 February 2024, the REIT Manager and BT Trustee-Manager issued 695,489 Stapled Securities at
an issue price of $0.9766 per Stapled Security to the BT Trustee-Manager. These Stapled Securities were
issued to the BT Trustee-Manager as partial payment of the base fee and performance fee (as definedin the CapitaLand Ascott BT Trust Deed) for the period from 1 October 2023 to 31 December 2023 andadditional outperformance fee for the period from 1 January 2023 to 31 December 2023.

316

CAPITALAND ASCOTT TRUSTOverview
Leadership

CONTENTS
CapitaLand AscottBusiness Trust Management Pte. Ltd.
Financial Statements
Directors’ Statement324

Independent Auditors’
Report326

Statement of Financial
Position

327

Statement of Profit or Loss
and Other Comprehensive
Income328

Statement of Changes in
Equity329

Statement of Cash Flows330

Notes to the Financial
Statements

Portfolio & Performance

318

Sustainability & Governance

317

Financial Statements andOther Information

ANNUAL REPORT 2023

DIRECTORS’ STATEMENT
We are pleased to submit this annual report to the member of the Company, together with the audited financial
statements for the financial year ended 31 December 2023.
In our opinion:(a)	the financial statements set out on pages 326 to 343 are drawn up so as to give a true and fair viewof the financial position of the Company as at 31 December 2023 and the financial performance,changes in equity of the Company, and the cash flows of the Company for the year ended on that date inaccordance with the provisions of the Companies Act 1967 and Singapore Financial Reporting Standards(International); and(b)	at the date of this statement, having regard to the financial support of the immediate holding company,
CapitaLand Investment Limited, there are reasonable grounds to believe that the Company will be able
to pay its debts as and when they fall due.
The Board of Directors has, on the date of this statement, authorised these financial statements for issue.

DIRECTORSThe directors in office at the date of this statement are as follows:
Mr Tan Beng Hai, Bob
Ms Teo Joo Ling, Serena
Mr Sim Juat Quee Michael Gabriel
Mr Chia Kim Huat
Ms Deborah Lee Siew Yin
Mr Max Loh Khum Whai 			Mr Lui Chong Chee 			
Mr Goh Soon Keat Kevin
Ms Beh Siew Kim(Appointed on 23 November 2023)(Appointed on 1 February 2024)

DIRECTORS’ INTERESTS IN SHARES OR DEBENTURES
According to the register kept by the Company for the purposes of Section 164 of the Companies Act 1967
(the Act), particulars of interests of directors who held office at the end of the financial year (including those
held by spouses and children) in shares, debentures, warrants and share options in the Company and in related
corporations are as follows:
Holdings in the name ofthe director, spouse and/or
infant children
At beginningof the year/date
At endof appointmentof the year

Intermediate Holding Company
CapitaLand Investment Limited (CLI)

Ordinary shares
Mr Chia Kim Huat
Mr Goh Soon Keat Kevin
Ms Beh Siew Kim

33,100708,640
248,929

33,100989,953
248,929

333,359–Award of CLI Performance shares1, 3 to be delivered after 2022
Mr Goh Soon Keat Kevin

During the year, 333,359 shares were released, of which 83,340
shares were settled in cash.

318

CAPITALAND ASCOTT TRUSTDIRECTORS’ STATEMENT
Overview

DIRECTORS’ INTERESTS IN SHARES OR DEBENTURES (continued)
Holdings in the name ofthe director, spouse and/or
infant children
At beginningof the year/date
At endof appointmentof the year

Intermediate Holding Company
CapitaLand Investment Limited (CLI) (continued)

Mr Goh Soon Keat Kevin379,714379,7140 to 250,352

0 to 250,352––

0 to 540,039
0 to 153,420

0 to 318,807
0 to 1,487,778
0 to 531,348

0 to 318,807
0 to 1,487,778
0 to 531,348

0 to 187,764

62,588

S$5,000–

S$6,000

S$6,000

S$16,000

S$16,000

S$12,000

S$12,000

LeadershipAward of CLI Performance shares1, 3 to be delivered after 2023

Contingent award of CLI Performance shares1, 7
to be delivered after 2024
Mr Goh Soon Keat Kevin				(125,176 shares)

Contingent award of CLI Performance shares1, 6
to be delivered after 2025
(180,013 shares)(51,140 shares)

Contingent award of CLI Performance shares1, 7 under Founder
Share Award to be delivered after 2025
Ms Teo Joo Ling, Serena				
Mr Goh Soon Keat Kevin				
Ms Beh Siew Kim				(106,269 shares)(495,926 shares)(177,116 shares)

Portfolio & Performance

Mr Goh Soon Keat Kevin				
Ms Beh Siew Kim				Unvested CLI Restricted shares2, 5 to be delivered after 2022
Mr Goh Soon Keat Kevin

Astrea IV Pte. Ltd.

S$242 million 4.35% Class A-1 Secured Fixed Rate Bonds due 2028
Mr Goh Soon Keat Kevin
Astrea V Pte. Ltd.

S$315 million 3.85% Class A-1 Secured Fixed Rate Bonds due 2029
Mr Goh Soon Keat Kevin

Sustainability & Governance

Related Corporations

Astrea VI Pte. Ltd.

Astrea 7 Pte. Ltd.

S$526 million 4.125% Class A-1 Bonds due 27 May 2032
Ms Teo Joo Ling, Serena

ANNUAL REPORT 2023

319

Financial Statements andOther Information

S$382 million 3.0% Class A-1 Bonds due 18 March 2031
Ms Teo Joo Ling, Serena

DIRECTORS’ STATEMENTDIRECTORS’ INTERESTS IN SHARES OR DEBENTURES (continued)
Holdings in the name ofthe director, spouse and/or
infant children
At beginningof the year/date
At endof appointmentof the year

Related Corporations (continued)
CapitaLand Treasury Limited

S$500 million 3.80% Fixed Rate Notes due 2024
Mr Chia Kim Huat

S$250,000

S$250,000

S$500 million 3.65% Fixed Rate Subordinated Perpetual Notes
Mr Max Loh Khum Whai

S$500,000

S$500,000

S$250,000–

S$250,000
S$250,000

S$6,000
S$9,000––

S$400,000,000 2.45% Fixed Rate Notes due 9 June 2031
Ms Deborah Lee Siew Yin

S$250,000

S$250,000

S$350,000,000 4.6% Fixed Rate Notes due 15 March 2030
Ms Deborah Lee Siew Yin

S$250,000

S$250,000

4,537,200–

50,00050,000

CLI Treasury Limited

S$425 million 4.20% Fixed Rate Notes due 2030
Ms Deborah Lee Siew Yin
Ms Teo Joo Ling, Serena
Temasek Financial (IV) Private Limited

S$500 million 2.70% Coupon Temasek Bond due 2023
Mr Goh Soon Keat Kevin
Ms Beh Siew Kim
Sembcorp Financial Services Pte Ltd

Seatrium Limited (formerly known as Sembcorp Marine Ltd)

Ordinary Shares
Mr Tan Beng Hai, Bob
SIA Engineering Company Limited

Ordinary Shares
Ms Deborah Lee Siew Yin

320

CAPITALAND ASCOTT TRUSTDIRECTORS’ STATEMENT
Overview

DIRECTORS’ INTERESTS IN SHARES OR DEBENTURES (continued)
Holdings in the name ofthe director, spouse and/or
infant children
At beginningof the year/date
At endof appointmentof the year

Related Corporations (continued)

Ordinary Shares
Mr Chia Kim Huat

3,000

3,000

S$500,000–

30,00050,00030,00050,0005,800
101,800
360
100,000

5,800
101,800
360
100,000

S$500,000

S$500,000

2,000

2,000

S$250,000

S$250,000

S$700 million 3.95% Subordinated Perpetual Securities
Mr Max Loh Khum Whai

S$2,000,000

S$2,000,000

S$600 million 3.7% Perpetual Securities
Mr Max Loh Khum Whai

S$1,500,000

S$1,500,000

S$600 million 3.16% Fixed Rate Notes due 2023
Ms Deborah Lee Siew Yin

Leadership

Singapore Airlines Limited

Singapore Technologies Engineering Ltd

Ordinary Shares
Ms Deborah Lee Siew Yin
Mr Max Loh Khum Whai

Ordinary Shares
Mr Chia Kim Huat
Ms Deborah Lee Siew Yin
Mr Goh Soon Keat KevinMr Max Loh Khum Whai
S$1,000,000,000 3.3% Perpetual Securities
Mr Max Loh Khum WhaiPortfolio & Performance

Singapore Telecommunications Limited

Starhub Ltd

Surbana Jurong Private Limited

S$350 million 4.11% Notes due 2025
Ms Deborah Lee Siew Yin
Mapletree Treasury Services Limited

321

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & GovernanceOrdinary Shares
Mr Chia Kim Huat

DIRECTORS’ STATEMENTDIRECTORS’ INTERESTS IN SHARES OR DEBENTURES (continued)
Notes:
1

Awards made pursuant to the CapitaLand Investment Performance Share Plan 2021 (PSP 2021).

2

Awards made pursuant to the CapitaLand Investment Restricted Share Plan 2021 (RSP 2021).

3

Following the completion of the strategic restructuring of the investment management business of CapitaLand Limited (CL) and as further
described in CLI introductory document dated 17 July 2021, the awards granted under CL’s CapitaLand Performance Share Plan 2010 and
CapitaLand Performance Share Plan 2020 (collectively, the CL PSP Awards) to certain employees of CLI and CL group companies havebeen replaced with shares under the CapitaLand Investment Performance Share Plan 2021 (CLI PSP 2021), which will vest progressively
over three years in accordance with the original vesting schedule of the CL PSP Awards.

4

The final number of shares to be released will depend on the achievement of pre-determined targets over a three-year performance period.
No share will be released if the threshold targets are not met at the end of the performance period. On the other hand, if superior targets
are met, more shares than the baseline award could be delivered up to a maximum of 200% of the baseline award. The Executive Resource
and Compensation Committee of CLI has the discretion to adjust the number of shares released taking into consideration other relevant
quantitative and qualitative factors.

5

The final number of shares to be released will depend on the achievement of pre-determined targets at the end of a one-year performance
period and the release will be over a vesting period of three years. Depending on the extent of the achievement of the pre-determinedtargets at the end of the performance period, the Executive Resource & Compensation Committee of CLI has the discretion to release thefinal number of shares ranging from between 0% to 150% of the baseline award. On the final vesting, an additional number of shares of a
total value equal to the value of the accumulated dividends which are declared during each of the vesting periods and deemed foregone
due to the vesting mechanism of the restricted share plan will also be released.

6

The final number of shares to be released will depend on the achievement of pre-determined targets over a three-year performance period.
No share will be released if the threshold targets are not met at the end of the performance period. On the other hand, if superior targets
are exceeded, more shares than the baseline award could be delivered up to a maximum of 300% of the baseline award. The Executive
Resource and Compensation Committee has the absolute discretion to adjust the number of shares released taking into consideration
other relevant quantitative and qualitative factors. The release will be made partly in the form of shares and partly in the form of cash

7

This is a one-time special contingent award linked specifically to Price/NAV targets granted to selected key executives in the Company
and/or its group companies who joined the Company and/or its group companies on a date after 1 October 2021. Such one-time special
contingent award may (at the absolute discretion of the Executive Resource and Compensation Committee) also be extended to key
executives joining the Company and/or its group companies on a date after 1 October 2021 but not later than 19 September 2022.
This is a long-term share-based award which will vest after the end of a 5-year performance period, subject to the achievement of thetargets approved by the Executive Resource and Compensation Committee. The number of shares to be released as soon as practicable
upon vesting will be determined based on, inter alia, the award multiplied by an achievement factor. If the minimum performance levelis achieved, the achievement factor will be 0.2. If the performance level exceeds minimum but is below superior, the achievement factor
will be adjusted accordingly within the range of 0.2 to 3.0. If the performance level is superior and above, the achievement factor willbe 3.0. Conversely, if the performance level is below minimum, the achievement factor will be zero and no share will be released. In theevent of early achievement of the targets within the first three years of the performance period, a maximum of 20% to 50% of the baselineaward can be released after the third year, with any balance in excess of 50% of the baseline award to be released only after the fifth year.
The Executive Resource and Compensation Committee has the absolute discretion to adjust the number of Shares released taking into
consideration other relevant quantitative and qualitative factors.

8

Ceased to be related corporation of CapitaLand Investment Limited with effect from 28 February 2023.

Except as disclosed in this statement, no director who held office at the end of the financial year had interests inshares, debentures, warrants or share options of the Company or of related corporations, either at the beginningof the financial year, or date of appointment if later, or at the end of the financial year.

ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE SHARES AND DEBENTURES
Except as disclosed under the Directors’ Interests in Shares or Debentures and Share Plans sections of thisstatement, neither at the end of nor at any time during the financial year was the Company a party to any
arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire
benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.

322

CAPITALAND ASCOTT TRUSTDIRECTORS’ STATEMENT
Overview

SHARE OPTIONS
During the financial year, there were:(i)no options granted by the Company to any person to take up unissued shares in the Company; and(ii)

no shares issued by virtue of any exercise of option to take up unissued shares of the Company.

As at the end of the financial year, there were no unissued shares of the Company under options.

The retiring auditors, KPMG LLP, will not be seeking re-appointment at the forthcoming Annual General Meeting.
Deloitte & Touche LLP has expressed its willingness to accept appointment as the independent external auditors
of CapitaLand Ascott Business Trust Management Pte. Ltd..

Leadership

INDEPENDENT AUDITOR

On behalf of the Board of Directors:

Portfolio & Performance

Tan Beng Hai, Bob
Director

Teo Joo Leng, Serena
Director
8 March 2024

Sustainability & Governance

323

Financial Statements andOther Information

ANNUAL REPORT 2023

INDEPENDENT AUDITORS’ REPORTMember of the Company
CapitaLand Ascott Business Trust Management Pte. Ltd.

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
OpinionWe have audited the financial statements of CapitaLand Ascott Business Trust Management Pte. Ltd. (the“Company”), which comprise the statement of financial position as at 31 December 2023, the statement of profit
or loss and other comprehensive income, statement of changes in equity and statement of cash flows for theyear then ended, and notes to the financial statements, including a summary of significant accounting policies,
as set out on pages 326 to 343.
In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisionsof the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)s”)
so as to give a true and fair view of the financial position of the Company as at 31 December 2023 and of thefinancial performance, changes in equity and cash flows of the Company for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities underthose standards are further described in the ‘Auditors’ responsibilities for the audit of the financial statements’section of our report. We are independent of the Company in accordance with the Accounting and Corporate
Regulatory Authority Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities(“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements
in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements andthe ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Other information
Management is responsible for the other information contained in the annual report. Other information is definedas all information in the annual report other than the financial statements and our auditors’ report thereon.
We have obtained all other information prior to the date of this auditors’ report.
Our opinion on the financial statements does not cover the other information and we do not express any formof assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and,in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work wehave performed, we conclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.
Responsibilities of management and directors for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordancewith the provisions of the Act and SFRS(I)s, and for devising and maintaining a system of internal accounting
controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthoriseduse or disposition; and transactions are properly authorised and that they are recorded as necessary to permit
the preparation of true and fair financial statements and to maintain accountability of assets.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has
no realistic alternative but to do so.
The directors’ responsibilities include overseeing the Company’s financial reporting process.

324

CAPITALAND ASCOTT TRUSTINDEPENDENT AUDITORS’ REPORT
Overview

Member of the Company
CapitaLand Ascott Business Trust Management Pte. Ltd.

Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
Leadership•	Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
•	Obtain an understanding of internal controls relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company’s internal controls.
•	
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

•	
Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In our opinion, the accounting and other records required by the Act to be kept by the Company have been
properly kept in accordance with the provisions of the Act.

Singapore
8 March 2024

ANNUAL REPORT 2023

325

Financial Statements andOther Information

KPMG LLP
Public Accountants andChartered Accountants

Sustainability & GovernanceWe communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal controls that we identify during
our audit.

Portfolio & Performance•	Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report.
However, future events or conditions may cause the Company to cease to continue as a going concern.

STATEMENT OF FINANCIAL POSITION
As at 31 December 2023

Note

2023
$

2022
$

7
3

23,4438,108,062
8,131,505–
5,970,165
5,970,165

4

2,125,980
650,125
2,776,105

1,287,076
486,848
1,773,924

10,907,610

7,744,089

5
6
6

1
2,034,093(114,459)
1,919,635

1
235,548
273,498
509,047

7–

56,0188
91,631,305
7,065,090
291,580
8,987,975

7,115,038–
63,986
7,179,024

Total liabilities

8,987,975

7,235,042

Total equity and liabilities

10,907,610

7,744,089

Non-current asset
Deferred tax assets
Other investments
Current assets
Trade and other receivables
Cash and cash equivalents
Total assets
EquityShare capital
Retained earnings
Fair value reserve
Total equity
Non-current liability
Deferred tax liabilities
Current liabilities
Trade and other payables
Loan from a related corporation
Current tax payable

The accompanying notes form an integral part of these financial statements.

326

CAPITALAND ASCOTT TRUSTOverview

STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For the financial year ended 31 December 2023

2022$

Revenue
Direct expenses
Gross profit
Other income
Administrative expenses
Profit from operations

10

3,866,496(1,968,896)
1,897,600
372,975(106,811)
2,163,764

2,831,384(2,338,849)
492,535
226,325(106,840)
612,020

Finance costs
Profit before tax
Income tax expense
Profit for the year11

(86,508)2,077,256(278,711)
1,798,545–
612,020(67,967)
544,053(467,418)
79,461
79,461

42,665(7,253)(7,253)(387,957)

35,412

1,410,588

579,465

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity investment at FVOCITax on net change in fair value of equity investment at FVOCITax on other comprehensive income
Other comprehensive income for the year,
net of income tax
Total comprehensive income for the year

12

7

Portfolio & Performance

2023$

Leadership

Note

Sustainability & Governance

ANNUAL REPORT 2023

327

Financial Statements andOther Information

The accompanying notes form an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 December 2023

Sharecapital$Retainedearnings$

Fair value
reserve$

Total$

At 1 January 2023

1

235,548

273,498

509,047

Profit for the year–

1,798,545–

1,798,545

Other comprehensive income– Net change in fair value of equity investment at
FVOCI (net of tax)
Total comprehensive income for the year–––
1,798,545(387,957)(387,957)(387,957)
1,410,588

At 31 December 2023

12,034,093(114,459)

1,919,635

At 1 January 2022

1(308,505)

238,086(70,418)

Profit for the year–

544,053–544,053

Other comprehensive income– Net change in fair value of equity investment at
FVOCI (net of tax)
Total comprehensive income for the year–––
544,053

35,41235,41235,412579,465

At 31 December 2022

1

235,548

273,498

509,047

The accompanying notes form an integral part of these financial statements.

328

CAPITALAND ASCOTT TRUSTSTATEMENT OF CASH FLOWS
Overview

For the financial year ended 31 December 2023

Note

Cash flows from operating activities
Profit for the year
Adjustment for:Management fee income received/receivable in stapled securities
Finance costs
Tax expense

11

Cash flows from investing activities
Subscription of preferential offering in stapled securities
Net cash used in investing activities

Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December

9

1,798,545

544,053(2,360,461)
86,508
278,711(196,697)(2,321,332)–
67,967(1,709,312)(863,355)(5,505,152)(6,565,204)(51,117)(6,616,321)(402,157)
2,445,641
334,172(27,271)306,901(220,402)(220,402)––

7,065,090(65,090)
7,000,000–––

163,277
486,848
650,125

306,901
179,947
486,848

Significant non-cash transactions
During the year ended 31 December 2023, the Company received 2,330,636 stapled securities (2022: 1,991,954
stapled securities) in CapitaLand Ascott Trust (“CLAS”), amounting to $2.4 million (2022: $2.1 million) as paymentof manager’s base fees and performance fees for the period from 1 October 2022 to 30 September 2023 (2022:
1 October 2021 to 30 September 2022).

Portfolio & Performance

Cash flows from financing activities
Loan from related corporation
Interest paid
Net cash generated from financing activities

2022$

Leadership

Changes in working capital:
Trade and other receivables
Trade and other payables
Cash (used in)/generated from operations
Tax paid
Net cash (used in)/generated from operating activities

2023$

Sustainability & Governance

ANNUAL REPORT 2023

329

Financial Statements andOther Information

The accompanying notes form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023

These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Board of Directors on 8 March 2024.

1

DOMICILE AND ACTIVITIESCapitaLand Ascott Business Trust Management Pte. Ltd. (the “Company”), is incorporated in Singapore
and has its registered office at 168 Robinson Road #30-01 Capital Tower, Singapore 068912.
The principal activities of the Company are those relating to investment advisory and property fundmanagement. The Company is the trustee-manager of CapitaLand Ascott Business Trust, part of thestapled trust, CapitaLand Ascott Trust (“CLAS”), listed on the Singapore Exchange Securities Trading
Limited (“SGX-ST“).
For financial reporting purposes, the immediate, intermediate and ultimate holding companies of theCompany are CapitaLand Investment Limited (“CLI”), CapitaLand Group Pte. Ltd. and Temasek Holdings(Private) Limited respectively for the financial year ended 31 December 2023. All companies areincorporated in Singapore.

2

MATERIAL ACCOUNTING POLICIES

2.1

Statement of compliance
The financial statements have been prepared in accordance with the Singapore Financial ReportingStandards (International) (“SFRS(I)“).

2.2

Basis of measurement
The financial statements have been prepared on the historical cost basis except as disclosed in theaccounting policies below.

2.3

Functional and presentation currency
These financial statements are presented in Singapore Dollars, which is the Company’s functional
currency. All financial information presented in Singapore Dollars have been rounded to the nearest
dollar, unless otherwise stated.

2.4

Going concern
The financial statements have been prepared on a going concern basis, notwithstanding the Company’s
net current liabilities of $6,211,870 (2022: $5,405,100) as at 31 December 2023 as the immediate holding
company has confirmed that it will provide financial support as is necessary to enable the Company tocontinue its operations and meet its obligations as and when they fall due.

2.5

Use of estimates and judgements
The preparation of the financial statements in conformity with SFRS(I) requires management to makejudgements, estimates and assumptions about the future including climate-related risks and opportunities,
that affect the application of accounting policies and the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with
the Company’s risk management and climate-related commitments where appropriate. Revisions toaccounting estimates are recognised prospectively.
The accounting policies set out below have been applied consistently by the Company to all periods
presented in these financial statements, except as explained in note 16, which address changes inaccounting policies.

330

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
2

MATERIAL ACCOUNTING POLICIES (continued)

2.5

Use of estimates and judgements (continued)

Overview

For the financial year ended 31 December 2023

In addition, the Company adopted the Amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2
Disclosure of Accounting Policies from 1 January 2023. The amendments require the disclosure of‘material’, rather than significant’ accounting policies. Although the amendments did not result in any
changes to the accounting policies themselves, they impacted the accounting policy information
disclosed in note 2 in certain instances.

2.6

Financial instruments(a)		

Non-derivative financial assets

LeadershipManagement is of the opinion that there are no critical judgements made in applying the entity’s
accounting policies.

Classification and measurement
The Company classifies its financial assets in the following measurement categories:••

Amortised cost; andFair value through other comprehensive income (“FVOCI”).

The Company reclassifies financial assets when and only when its business model for managing
those assets changes.

		At initial recognition
A financial asset is recognised if the Company becomes a party to the contractual provisions of
the financial asset.

Portfolio & Performance

The classification depends on the Company’s business model for managing the financial assets aswell as the contractual terms of the cash flows of the financial asset.

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of afinancial asset not at fair value through profit or loss, transaction costs that are directly attributable
to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value
through profit or loss are expensed in profit or loss.

At subsequent measurement

		

(i)

Financial assets at amortised cost
Financial assets that are held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest are measured at amortised cost.
Interest income from these financial assets is included in interest income using the effective
interest rate method.

		

(ii)

Financial assets at FVOCIANNUAL REPORT 2023

331

Financial Statements andOther Information

The Company has elected to recognise changes in fair value of equity securities not held
for trading in OCI as these are strategic investments and the Company considers thisto be more relevant. Movements in fair values of equity investments classified as FVOCI
are presented as “fair value gains/losses” in OCI. Dividends from equity investments arerecognised in profit or loss as dividend income. On disposal of an equity investment, any
difference between the carrying amount and sales proceed amount would be recognisedin other comprehensive income and transferred to retained profits along with the amountpreviously recognised in OCI relating to that asset.

Sustainability & Governance		NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023

2

MATERIAL ACCOUNTING POLICIES (continued)

2.6

Financial instruments (continued)(b)Cash and cash equivalents
Cash and cash equivalents comprise cash balances and bank deposits.

(c)Non-derivative financial liabilities
The Company classifies non-derivative financial liabilities under the other financial liabilities
category. Such financial liabilities are recognised initially at fair value plus any directly attributabletransaction costs. Subsequent to initial recognition, these financial liabilities are measured atamortised cost using the effective interest rate method. Other financial liabilities comprise tradeand other payables.

(d)Derecognition

		Financial assets
Financial assets are derecognised if the Company’s contractual rights to the cash flows from thefinancial assets expire or if the Company transfers the financial assets to another party without
retaining control or transfers substantially all the risks and rewards of the assets. The Company
derecognises a financial liability when its contractual obligations are discharged, cancelled or
expired.

(e)Offsetting
Financial assets and liabilities are offset and the net amount presented in the statement of financial
position when, and only when, the Company 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.

(f)Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses (“ECL”) associatedwith its financial assets carried at amortised cost. For trade receivables, the Company applies
the simplified approach permitted by the SFRS(I) 9, which requires expected lifetime losses to berecognised from initial recognition of the receivables. The Company applies the general approachof 12-month ECL at initial recognition for all other financial assets.
At each reporting date, the Company assesses whether financial assets carried at amortised costare credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:•
significant financial difficulty of the borrower or issuer;•a breach of contract such as a default;•	the restructuring of a loan or advance by the Company on terms that the Company would
not consider otherwise;•
it is probable that the borrower will enter bankruptcy or other financial reorganisation; or•the disappearance of an active market for a security because of financial difficulties.

Presentation of allowance for ECLs in the statement of financial position
Loss allowance for financial assets measured at amortised cost are deducted from the grosscarrying amount of these assets.

332

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
2

MATERIAL ACCOUNTING POLICIES (continued)

2.6

Financial instruments (continued)(g)

Overview

For the financial year ended 31 December 2023

Write-off

2.7

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares and options are recognised as a deduction from equity, net of any tax effects.

2.8

Leadership

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that
there is no realistic prospect of recovery. This is generally the case when the Company determinesthat the debtor does not have assets or sources of income that could generate sufficient cash
flows to repay the amounts subject to the write-off. However, financial assets that are written off
could still be subject to enforcement activities in order to comply with the Company’s procedures
for recovery of amounts due.

Impairment of non-financial assets
The carrying amounts of the Company’s non-financial assets are reviewed at each reporting dateto determine whether there is any indication of impairment. If any such indication exists, the assets’recoverable amounts are estimated.

An impairment loss is recognised if the carrying amount of an asset or its related CGU exceeds its
estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses
recognised in respect of CGUs are allocated to reduce the carrying amounts of the assets in the CGU on
a pro-rata basis.

2.9

Provision
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation.

2.10

Revenue(i)Sustainability & GovernanceImpairment losses recognised in prior periods are assessed at each reporting date for any indication thatthe loss has decreased or no longer exists. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An impairment loss is reversed only to theextent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Portfolio & Performance

The recoverable amount of an asset or cash-generating unit (“CGU”) is the greater of its value in use andits fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the timevalue of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assetsthat cannot be tested individually are grouped together into the smallest group of assets that generatecash inflows from continuing use that are largely independent of the cash inflows of other assets or CGU.

Management and trustee fees
Management and trustee fees are recognised in profit or loss as and when services are rendered.

Distribution income
Distribution income is recognised in profit or loss on the date that the Company’s right to receive
payment is established.

ANNUAL REPORT 2023

333

Financial Statements andOther Information(ii)

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023

2

MATERIAL ACCOUNTING POLICIES (continued)

2.11

Finance costs
Finance costs mainly comprise interest expense. Interest expense is recognised in the profit or loss
using the effective interest rate method.

2.12

Tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised
in profit or loss except to the extent that it relates to items recognised directly in equity or in othercomprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using
tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable inrespect of previous years. The amount of current tax payable or receivable is the best estimate of the tax
amount expected to be paid or received that reflects uncertainty related to income taxes, if any.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax
is not recognised for temporary differences on the initial recognition of assets or liabilities in a transactionthat is not a business combination and that affects neither accounting nor taxable profit or loss.
The measurement of deferred taxes reflects the tax consequences that would follow the manner inwhich the Company expects, at the end of the reporting period, to recover or settle the carrying amountof its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied totemporary differences when they reverse, based on the laws that have been enacted or substantively
enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basisor their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will beavailable against which temporary differences can be utilised. Deferred tax assets are reviewed at eachreporting date and are reduced to the extent that it is no longer probable that the related tax benefit will
be realised.
In determining the amount of current and deferred tax, the Company takes into account the impact of
uncertain tax positions and whether additional taxes and interest may be due. The Company believes thatits accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors,
including interpretations of tax law and prior experience.
This assessment relies on estimates and assumptions and may involve a series of judgements about
future events. New information may become available that causes the Company to change its judgement
regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in
the year that such a determination is made.

334

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
3

Overview

For the financial year ended 31 December 2023

OTHER INVESTMENTS

Equity investments – at FVOCI

2023
$

2022
$

8,108,062

5,970,165

During the year ended 31 December 2023, the Company subscribed 215,026 preferential offering stapled
securities (2022: nil) in CapitaLand Ascott Trust (“CLAS”), amounting to $220,402 (2022: nil) as part of
CLAS fund raising activities.

The Company designated the investments shown below as equity investments as at FVOCI because
these equity investments represent investments that the Company intends to hold for the long-term forstrategic purposes.
Distribution
incomerecognised
during 2023$

Fair value at
31 December
2022$

Distribution
incomerecognised
during 2022$

8,108,062

372,975

5,970,165

226,325

Fair value hierarchy
The fair value of quoted securities is determined by reference to their quoted bid price in an active
market at the reporting date (Level 1 in the fair value hierarchy).
There was no transfer between levels in the fair value hierarchy during the year.

4

Portfolio & Performance

Quoted stapled securities in
CapitaLand Ascott Trust

Fair value at
31 December
2023$

Leadership

Equity investments designated as at FVOCITRADE AND OTHER RECEIVABLES

GST receivable2022$

12,466
1,757,755
1,770,221
355,759
2,125,980

127,002915,073
1,042,075
245,001
1,287,076

Accrued fee income is non-interest bearing and is to be settled in the form of cash and/or stapled
securities from CLAS as the Company elects. As at 31 December 2023, accrued fee income arising from
CLAS amounting to $679,215 (2022: $703,665) are arranged to be settled via the issuance of stapled
securities by CLAS.

Sustainability & GovernanceAmounts due from related corporation:– non-trade
Accrued fee income

2023$

There is no allowance for doubtful debts arising from these outstanding balances as the ECL is immaterial.

335

Financial Statements andOther Information

ANNUAL REPORT 2023

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023

5

SHARE CAPITALThe Company’s share capital comprises fully-paid up 1 (2022: 1) ordinary share with no par value,amounting to a total of $1 (2022: $1).
The holders of ordinary shares are entitled to receive dividends as declared from time to time, and areentitled to one vote per share at meetings of the Company. All shares rank equally with regard to theCompany’s residual assets.

Capital management
The Company’s policy on capital management follows that of its immediate holding company, CapitaLand
Investment Limited. CapitaLand Investment Limited’s policy is to maintain a strong capital base so as
to maintain investor, creditor and market confidence and to sustain future development of the business.
The Company defines ‘capital’ as including all components of equity. There were no changes in the
Company’s approach to capital management during the year.
The Company is not subject to externally imposed capital requirements.

6

RESERVES

Retained earnings
Fair value reserve

2023
$

2022
$

2,034,093(114,459)
1,919,634

235,548
273,498
509,046

The fair value reserve includes the cumulative net change in the fair value of equity investments designatedat FVOCI.

7DEFERRED TAX LIABILITIES/(ASSETS)
Movement in deferred tax liabilities/(assets) of the Company during the year are as follows:At
1 January
2022$

Equityinstrument
at FVOCI

336

Recognised
Recognised
Recognised
Recognised
in profit
in otherAt
in profit
in otherAtor loss comprehensive 31 December
or loss comprehensive 31 December
income2022
income
2023
$
$
$
$
$
$

48,765

CAPITALAND ASCOTT TRUST

–

7,253

56,018–(79,461)(23,443)

NOTES TO THE FINANCIAL STATEMENTS
8

Overview

For the financial year ended 31 December 2023

TRADE AND OTHER PAYABLES
2022
$

–
4,430

4,032
4,209

200

2,918,516

1,594,257–
21,41811,0001,631,305

4,177,167
114–
11,0007,115,038

Leadership

Trade payables
Accrued operating expenses
Amount due to immediate holding company:– tradeAmount due to related companies:– trade– non-trade– interest payable
Advance from immediate holding company

2023$

The advance from immediate holding company and non-trade amount due to related companies are
unsecured, interest-free and repayable on demand.

9

LOAN FROM A RELATED CORPORATION
The loan from a related corporation is unsecured and bears interest rate range of 3.730% to 3.952%(2022: nil) per annum at the reporting date and is repayable on demand. Interest is repriced quarterly.

Note

2023
Loan from a related corporation
Amount due to related corporation –interest payable

Financing
cashflows$–

7,065,090–

7,065,090–(65,090)

86,50821,418At
31 December$

REVENUEManagement fee income
Acquisition fee income
Trustee fee income

2023
$

2022
$

2,681,516
1,022,980
162,000
3,866,496

2,669,190–
162,194
2,831,384

Sustainability & Governance

10

8

At
1 January$

Non-cashchangesInterest
expense$Portfolio & Performance

The reconciliation of liabilities arising from financing activities:

Management, acquisition and trustee fee income are derived from related entities.

11

FINANCE COSTS
2022$

86,508–ANNUAL REPORT 2023

337

Financial Statements andOther Information

Interest paid/payable to related corporation

2023$

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023

12

INCOME TAX EXPENSE

Current income tax
Current year

2023
$

2022
$

278,71167,9672,077,256

612,020

353,134(74,423)
278,711104,043(36,076)
67,967

Reconciliation of effective tax rate
Profit before tax
Tax calculated using Singapore tax rate of 17% (2022: 17%)
Tax exempt income

13

FINANCIAL RISK MANAGEMENT
Overview
Exposure to market risk (including equity price), credit risk and liquidity risk arises in the normal courseof the Company’s business. The Company’s approach to financial risk management seeks to minimise
the potential material adverse effects from these exposures.
Risk management framework
The Company adopts the risk management policies and guidelines of its immediate holding company,
CapitaLand Investment Limited, which has a system of controls in place to create an acceptable balance
between the cost of risks occurring and the cost of managing the risks. Risk management policies andguidelines are reviewed regularly to reflect changes in market conditions and the Company’s activities.
(a)Market risk
Market risk is the risk that changes in the market prices such as equity price will have on thecompany’s income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return on risk.

		

(i)

Interest rate risk
The Company’s exposure to market risk for changes in interest rates relates primarily to its
interest-bearing loan from a related corporation.
The Company’s policy on interest rate management follows that of its immediate holding
company, CapitaLand Investment Limited. CapitaLand Investment Limited manages theinterest rate exposure by maintaining a prudent mix of fixed and floating rate borrowings.
It actively reviews its debt portfolio, taking into account the investment holding period andnature of its assets.

			

Exposure to interest rate risk
At the reporting date, the interest rate profile of the Company’s interest-bearing financial
instruments, as reported to the management, was as follows:
Nominal amount
2023
2022
$
$

Variable rate instruments
Loan from a related corporation

338

CAPITALAND ASCOTT TRUST(7,065,090)–

NOTES TO THE FINANCIAL STATEMENTS
13

Overview

For the financial year ended 31 December 2023

FINANCIAL RISK MANAGEMENT (continued)(a)		Market risk (continued)

(i)

			

Interest rate risk (continued)
Cash flow sensitivity analysis for variable rate instruments
A change of 30 basis points in interest rates as the reporting date would have increase/(decrease) profit or loss by the amounts shown below. The analysis assumed that all othervariables remain constant.

31 December 2023
Variable rate instruments
Loan from a related corporation

		

(ii)

(21,195)

Leadership

Profit or loss
30 bp increase 30 bp decrease$$

21,195Equity price risk
The Company has investments in equity securities at FVOCI and is exposed to equity pricerisk. These securities are listed on the Singapore Stock Exchange.

If prices for the equity securities listed in Singapore change by the percentage indicatedbelow with all other variables including tax rate being held constant, the impact on the fairvalue reserve will be as follows:
20% priceincrease$

Quoted stapled securities
in CapitaLand Ascott
Trust

20% pricedecrease$

30% priceincrease$(1,621,612)

1,791,050

2022

30% pricedecrease$(1,791,050)

Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations.
At the reporting date, there was no significant concentration of credit risk. The maximum exposure
to credit risk is represented by the carrying amount of each financial asset in the statement offinancial position.

The Company assesses on a forward-looking basis the expected credit losses associated withfinancial assets at amortised cost. The impairment methodology applied depends on whether
there has been a significant increase in credit risk.
No ageing analysis are presented as the outstanding balances as at 31 December 2023 are current.
The credit loss on these balances is subject to immaterial credit loss.
ANNUAL REPORT 2023

339

Financial Statements andOther Information

The Company held cash and cash equivalents of $650,125 at 31 December 2023 (2022: $486,848).
The cash and cash equivalents are placed with banks and financial institutions which are regulated.
Impairment on cash and cash equivalents has been measured on the 12-month expected loss
basis and reflects the short maturities of the exposures. The Company considers that its cash andcash equivalents have low credit risk based on the external credit ratings of the counterparties.
The amount of the allowance on cash and cash equivalents is negligible.

Sustainability & Governance(b)

1,621,612

2023

Portfolio & Performance

Sensitivity analysis

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023

13

FINANCIAL RISK MANAGEMENT (continued)(b)Credit risk (continued)
The Company has guidelines governing the process of granting credit as a service or productprovider in its respective segments of business. Investments and financial transactions are
restricted with counterparties that meet the appropriate credit criteria and of high credit standing.

(c)Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as theyfall due.
The Company’s policy on liquidity risk management follows that of its immediate holding company,
CapitaLand Investment Limited. CapitaLand Investment Limited actively manages the debt maturity
profile, operating cash flows and the availability of funding so as to ensure that all refinancing,
repayment and funding needs are met.
The Company has received an undertaking from the immediate holding company to provide
continuing financial support, for the next twelve months period commencing from the date of thisreport, to enable the Company to operate as a going concern.

		

Exposure to liquidity risk
The following are the expected contractual maturities of financial liabilities, interest payments:

31 December 2023
Non-derivative financial
liabilities
Trade and other payables
Loan from a related corporation
31 December 2022
Non-derivative financial
liabilities
Trade and other payables

Contractual cash flows(including interest payments)

Carrying
amount$Total$

Within 1 year$

Within2 to 5 years$

1,631,305
7,065,090
8,696,395

1,631,305
7,365,712
8,997,017

1,631,305
7,365,712
8,997,017–––

7,115,038

7,115,038

7,115,038–

It is not expected that the cash flows included in the maturity analysis could occur significantly
earlier, or at significantly different amounts.

14

FAIR VALUE OF ASSETS AND LIABILITIES(a)Determination of fair value
The following valuation methods and assumptions are used to estimate the fair values of thefollowing significant classes of assets and liabilities:

		

(i)

Equity investment at FVOCIThe fair value of quoted securities is their quoted bid price at the reporting date.

340

CAPITALAND ASCOTT TRUSTNOTES TO THE FINANCIAL STATEMENTS
14

Overview

For the financial year ended 31 December 2023

FAIR VALUE OF ASSETS AND LIABILITIES (continued)(a)		

Determination of fair value (continued)(ii)

Loan from a related corporation

	The carrying amount of loan from a related corporation, which is repriced within one year, isassumed to approximate the fair value because of the short repricing frequency.
		

(iii)

Other financial assets and liabilities
Leadership

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, and trade and otherpayables) are assumed to approximate their fair values because of the short period tomaturity.
Where discounted cash flow techniques are used, estimated future cash flows are basedon management’s best estimates and the discount rate is a market-related rate for a similar
instrument at the reporting date.

(b)

Accounting classifications and fair values

Equity ininvestment
Note at FVOCI$

31 December 2023
Financial asset measured
at fair value
Equity investment at FVOCI

8,108,062

4

–
–
–
–
–

8
9

–

–

Fair value
Total$

Level 1$

8,108,062

8,108,062

Sustainability & Governance

Financial assets and liabilities
not measured at fair value
Trade and other receivables#
Cash and cash equivalents
Trade and other payables
Loan from a related corporation

3

Carrying amount
Other
Amortisedfinancialcosts
liabilities$$

1,770,221– 1,770,221
650,125–
650,125– (1,631,305) (1,631,305)– (7,065,090) (7,065,090)
2,420,346 (8,696,395) (6,276,049)

341

Financial Statements andOther Information

ANNUAL REPORT 2023

Portfolio & Performance

The carrying amounts and fair values of financial assets and financial liabilities, including theirlevels in the fair value hierarchy are as follows. It does not include fair value information for financial
assets and financial liabilities not measured at fair value if the carrying amount is a reasonableapproximation of fair value.

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023

14

FAIR VALUE OF ASSETS AND LIABILITIES (continued)(b)

Accounting classifications and fair values (continued)
Equity ininvestment
Note at FVOCI$

31 December 2022
Financial asset measured
at fair value
Equity investment at FVOCIFinancial assets and liabilities
not measured at fair value
Trade and other receivables#
Cash and cash equivalents
Trade and other payables#

3

5,970,165

4

–
–
–
–

8

Carrying amount
Other
Amortisedfinancialcosts
liabilities
$
$

–

–

Fair value
Total$

Level 1$5,970,165

5,970,165

1,042,075– 1,042,075
486,848–
486,848– (7,115,038) (7,115,038)
1,528,923 (7,115,038) (5,586,115)

Excludes GST receivable

There was no transfer between levels of the fair value hierarchy during the year (2022: nil).

15

RELATED PARTY TRANSACTIONS
For the purposes of these financial statements, parties are considered to be related to the Company if
the Company has the ability, directly or indirectly, to control the party or exercise significant influence
over the party in making financial and operating decisions, or vice versa, or where the Company and theparty are subject to common control or common significant influence. Related parties may be individuals
or other entities.
In addition to the related party information disclosed elsewhere in the financial statements, these are
the following significant transactions which were carried out in the normal course of business on terms
agreed between the parties during the financial year:

Related companies
Management fee expenses

342

CAPITALAND ASCOTT TRUST

2023
$

2022
$

2,032,798

2,440,538

NOTES TO THE FINANCIAL STATEMENTS
16

Overview

For the financial year ended 31 December 2023

ADOPTION OF NEW ACCOUNTING STANDARDSThe Company has applied the following SFRS(I)s, amendments to and interpretations of SFRS(I) for the
first time for the annual period beginning on 1 January 2023:–	Amendments to SFRS(I) 1-12: Deferred tax related to Assets and Liabilities arising from a Single
Transaction–
Amendments to SFRS(I) 1-12: International Tax Reform – Pillar Two Model Rules–
Amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2: Disclosure of Accounting Policies–
Amendments to SFRS(I) 1-8: Definition of Accounting Estimates

Material accounting policy information

Leadership

Other than the below, the application of these amendments to accounting standards and interpretations
does not have a material effect on the financial statements.

The Company adopted Amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2: Disclosure of
Accounting Policies for the first time in 2023. Although the amendments did not result in any changes tothe accounting policies themselves, they impacted the accounting policy information disclosed in thefinancial statements.

Management reviewed the accounting policies and made updates to the information disclosed in note
2 Material accounting policies (2022: Significant accounting policies) in certain instances in line with theamendments.
The Company has not early adopted the new standards, interpretations and amendments to standards(collectively, Changes) which are effective for annual periods beginning after 1 January 2023, in preparing
these financial statements. These Changes are not expected to have a significant impact on the
Company’s financial statements.

Portfolio & Performance

The amendments required the disclosure of ‘material’, rather than ‘significant’, accounting policies. The
amendments also provide guidance on the application of materiality to disclosure of accounting policies,
assisting entities to provide useful, entity-specific accounting policy information that users need tounderstand other information in the financial statements.

Sustainability & Governance

343

Financial Statements andOther Information

ANNUAL REPORT 2023

ADDITIONAL INFORMATIONINTERESTED PERSON TRANSACTIONS
The transactions entered into with interested persons during the financial year, which fall under the Listing
Manual of Singapore Exchange Securities Trading Limited (SGX-ST) and the Property Funds Appendix of theCode on Collective Investment Schemes (excluding transactions of less than $100,000 each), are as follows:

Name of Interested Person

Temasek Holdings (Private) Limited
and its associates

Rental Income
Purchase of goods and services
CapitaLand Investment Limited
and its associates

Aggregate value1 ofAggregrate value1
all interested personof all interested
transactions during person transactions
the financial year
conducted
under review (excluding
under Stapled
transactions less thanSecurityholders’
S$100,000 and transactions mandate pursuant to
conducted under Stapled
rule 920 (excluding
Securityholders' mandatetransactions lessNature of relationshippursuant to rule 920)
than S$100,000)
S$’000
S$’000Ultimate controllingshareholder ofthe Managers
and ultimate
controlling stapled
securityholder

DBS Trustee Limited
REIT Trustee’s fee

REIT Trustee

DBS Group Holdings Ltd
and its associates
Underwriting and commission fees

Associate of
REIT Trustee

Total

2

–
–

357,800–

282,537
183,150
57,001–––

29,374 2
9,908
4,375 22,594 2
1,023 2
414
387
162 2
101 2

–
–
–
–
–
–
–
–
–

749 2

–

940 2

–

932,431–

Intermediate
controllingshareholder ofthe Managers
and intermediate
controlling stapled
securityholder

Acquisition of interests in two hotels
and one serviced residenceManagement fees
Master lease income
Key money from managementagreements
REIT Manager’s management fees
Service fees
REIT Manager’s acquisition fees
BT Trustee-Manager’s management fees
BT Trustee-Manager’s acquisition fees
Technical / Design Fee
Rental income
BT Trustee-Manager’s trustee fees
REIT Manager’s divestment fees

1

1,555
361

The aggregate value is for the contract period, except for REIT Manager’s management fees, REIT Manager’s acquisition fees, BT TrusteeManager’s management fees, BT Trustee-Manager's acquisition fees, BT Trustee-Manager’s trustee fees, REIT Manager's divestment fees,
REIT Trustee’s fee and underwriting and commission fees.
These are in respect of fees incurred during the year.

344

CAPITALAND ASCOTT TRUSTADDITIONAL INFORMATION
Overview

OPERATING EXPENSES AND TAXATION
According to disclosure requirements under paragraph 11.1 item (l) of the Property Funds Appendix of the Codeon Collective Investment Schemes, the total operating expenses incurred by CapitaLand Ascott Trust in FY 2023
was S$447.3 million. The amount included all fees and charges paid to the Managers and interested parties.
This translates to 10.3% of the property fund’s net asset value as at 31 December 2023. Taxation incurred was
S$72.4 million.

REIT MANAGER’S MANAGEMENT FEES PAID IN STAPLED SECURITIESFor Period

Issue Date

StapledSecurities

Issue PriceS$

Total Value
S$’000

8 May 2023
7 August 2023
6 November 2023
27 February 2024

3,390,682
3,124,109
3,567,105
3,611,479
13,693,375

0.995
1.097
0.972
0.977

3,373
3,427
3,467
3,527
13,794

Performance Management Fees
1 January 2023 to 31 December 2023

27 February 2024

8,441,085
22,134,460

0.977

8,244
22,038BT TRUSTEE-MANAGER’S MANAGEMENT FEES PAID IN STAPLED SECURITIESA summary of Stapled Securities issued for payment of the BT Trustee-Manager’s management fees (partpayment) in respect of the financial year are as follows:
For Period

8 May 2023
7 August 2023
6 November 2023
27 February 2024

StapledSecurities

578,148475,124
601,802695,489
2,350,563

Issue PriceS$

Total Value
S$’000

0.995
1.097
0.972
0.977

575
521
585
679
2,360

345

Financial Statements andOther Information

ANNUAL REPORT 2023

Sustainability & GovernanceBase and Performance Management Fees
1 January 2023 to 31 March 2023
1 April 2023 to 30 June 2023
1 July 2023 to 30 September 2023
1 October 2023 to 31 December 2023

Issue Date

Portfolio & Performance

Base Management Fees
1 January 2023 to 31 March 2023
1 April 2023 to 30 June 2023
1 July 2023 to 30 September 2023
1 October 2023 to 31 December 2023

Leadership

A summary of Stapled Securities issued for payment of the REIT Manager’s management fees (part payment) in
respect of the financial year are as follows:

STATISTICS OF STAPLED SECURITYHOLDINGSAs at 29 February 2024

ISSUED AND FULLY PAID STAPLED SECURITIES
3,776,051,995 (Voting Rights: 1 vote per Stapled Security)
Market Capitalisation of S$3,379,566,536 based on market closing Stapled Security price of S$0.895 on
29 February 2024.

DISTRIBUTION OF STAPLED SECURITYHOLDINGS
Size of Stapled Securityholdings

1 – 99100 – 1,000
1,001 – 10,000
10,001 – 1,000,000
1,000,001 and above
TOTAL
Country

Singapore
Malaysia
OthersTOTAL

No. ofStapled Securityholders%

No. ofStapled Securities%

11,70430,996
19,733
11,53858
74,029

15.81
41.87
26.65
15.59
0.08
100.00566,860
11,182,604
90,836,765
523,554,429
3,149,911,337
3,776,051,995

0.01
0.30
2.41
13.86
83.42
100.00No. of Stapled
Securityholders%

No. ofStapled Securities%

71,3871,712
930
74,029

96.43
2.31
1.26
100.003,755,641,155
12,771,761
7,639,079
3,776,051,995

99.46
0.34
0.20
100.00No. ofStapled Securities%1596,287,750
539,512,636
348,773,305
280,931,465
229,686,643
219,572,781
189,510,989
153,542,083
150,827,045
106,765,793
49,896,697
36,660,272
22,693,590
22,280,405
16,995,855
14,704,960
13,560,473
13,273,496
12,942,657
12,085,433
3,030,504,328

15.79
14.28
9.23
7.43
6.08
5.81
5.01
4.06
3.99
2.82
1.32
0.97
0.60
0.59
0.45
0.38
0.35
0.35
0.34
0.32
80.17

TWENTY LARGEST STAPLED SECURITYHOLDERS
No.

Name

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Somerset Capital Pte Ltd
Citibank Nominees Singapore Pte Ltd
DBS Nominees (Private) Limited
CapitaLand Ascott Trust Management LimitedRaffles Nominees (Pte.) Limited
HSBC (Singapore) Nominees Pte Ltd
The Ascott Limited
CapitaLand Group Pte Ltd
DBSN Services Pte. Ltd.
United Overseas Bank Nominees (Private) Limited
BPSS Nominees Singapore (Pte.) Ltd.
AHDF Pte Ltd
Phillip Securities Pte Ltd
Ko Woon HongUOB Kay Hian Private Limited
OCBC Securities Private Limited
OCBC Nominees Singapore Private Limited
DB Nominees (Singapore) Pte Ltd
BNP Paribas Nominees Singapore Pte. Ltd.
iFAST Financial Pte. Ltd.
Total

1

The percentage is based on 3,776,051,995 Stapled Securities in issue as at 29 February 2024. Percentages are rounded down to the nearest
0.01%.

346

CAPITALAND ASCOTT TRUSTSTATISTICS OF STAPLED SECURITYHOLDINGS
Overview

DIRECTORS’ INTERESTS IN STAPLED SECURITIES AND CONVERTIBLE SECURITIESAS AT 21 JANUARY 2024
Based on the Register of Directors’ Stapled Securityholdings as at 21 January 2024, the direct and deemedinterests of each of the Directors in Stapled Securities and convertible securities issued by CLAS are as follows:
No. ofStapled Securities
DirectInterest

DeemedInterest

Tan Beng Hai, Bob

167,510––

Teo Joo Ling, Serena

57,064–0 to 560,972 2

Sim Juat Quee Michael Gabriel

113,920–––

Chia Kim Huat

136,988–––

Deborah Lee Siew Yin

39,218–––Max Loh Khum Whai

120,000–––

Goh Soon Keat Kevin

234,319–––

1,872,934–

0 to 814,436 2

Beh Siew Kim
1
2

3
4

–
110,913 3,4

314,523 3,4This refers to the number of Stapled Securities which are the subject of contingent awards granted or finalised but not released under the
REIT Manager’s Performance Stapled Security Plan and the Restricted Stapled Security Plan (“RSSP”).
The final number of Stapled Securities to be released will depend on the achievement of pre-determined targets at the end of the three‑year
performance periods. The final number of Stapled Securities that will be released could range from 0% to 200% of the baseline award.
The Nominating and Remuneration Committee of the REIT Manager has the discretion to adjust the number of Stapled Securities released
taking into consideration other relevant quantitative and qualitative factors. The Stapled Securities released, if any, will be delivered in a
combination of stapled securities and cash.
Being the unvested Stapled Securities under the RSSP.
On the final vesting, an additional number of Stapled Securities of a total value equal to the value of the accumulated distributions which
are declared during each of the vesting periods and deemed foregone due to the vesting mechanism of the RSSP, will also be released.

Portfolio & Performance

Name of Directors

Leadership

Contingent Awardsof Stapled Securities 1
under the REIT Manager’s
Performance
Restricted
StapledStapledSecurity Plan
Security Plan

Sustainability & Governance

347

Financial Statements andOther Information

ANNUAL REPORT 2023

STATISTICS OF STAPLED SECURITYHOLDINGSAs at 29 February 2024

SUBSTANTIAL STAPLED SECURITYHOLDERS’ STAPLED SECURITYHOLDINGS
Based on the Register of Substantial Stapled Securityholders as at 29 February 2024, the names of the Substantial
Stapled Securityholders of CLAS and a breakdown of their direct and deemed interests are as follows:
Direct Interest
No. of Stapled
Securities%1

Name of Substantial Stapled
Securityholders

Deemed Interest
No. of Stapled
Securities%1

Temasek Holdings (Private) Limited 2 (“Temasek”)––

1,269,813,108

33.62

Tembusu Capital Pte. Ltd. (“Tembusu”)––

1,245,319,512

32.97

Bartley Investments Pte. Ltd. 4,5 (“Bartley”)––

1,232,558,794

32.64

–

–

1,232,558,794

32.64

–

–

1,232,558,794

32.64

–

–

1,232,558,794

32.64

–

–

1,232,558,794

32.64

153,542,083

4.06

1,079,016,711

28.57

–

–

1,079,016,711

28.57

The Ascott Limited (“Ascott”)

189,510,989

5.01

596,287,750

15.79

Somerset Capital Pte Ltd (“SCPL”)

596,287,750

15.79

–

–

CapitaLand Ascott Trust Management Limited (“CLASML”)

280,931,465

7.43

–

–

3

Mawson Peak Holdings Pte. Ltd.

4,5(“Mawson”)

Glenville Investments Pte. Ltd. 4,5 (“Glenville”)
TJ Holdings (III) Pte. Ltd.

4,5(“TJHIII”)

CLA Real Estate Holdings Pte Ltd 6 (“CLA”)
CapitaLand Group Pte. Ltd. (“CLG”)
7

CapitaLand Investment Limited 8 (“CLI”)
9

1
2
3
4
5
6
7
8
9

The percentage is based on 3,776,051,995 Stapled Securities in issue as at 29 February 2024. Percentages are rounded down to the nearest
0.01%.
Temasek is deemed to have an interest in the Stapled Securityholdings in which its subsidiaries (including but not limited to CLA) andassociated company have or are deemed to have an interest pursuant to Section 4 of the Securities and Futures Act 2001 (“SFA”).
Tembusu is deemed to have an interest in the Stapled Securityholdings in which its subsidiaries (including but not limited to CLA) have orare deemed to have an interest pursuant to Section 4 of the SFA.
Temasek holds 100% of the equity interest in Tembusu, which holds 100% of the equity interest in Bartley, which holds 100% of the equity
interest in Mawson, which holds 100% of the equity interest in Glenville, which holds 100% of the equity interest in TJHIII, which holds 100%of the equity interest in CLA, which holds 100% equity interest in CLG. CLI is a subsidiary of CLG.
Each of Temasek, Tembusu, Bartley, Mawson, Glenville and TJHIII is deemed to have an interest in the Stapled Securityholdings in which
CLA is deemed to have an interest pursuant to Section 4 of the SFA.
CLA is deemed to have an interest in the Stapled Securityholdings in which CLG has or is deemed to have an interest pursuant to Section 4of the SFA.
CLG is deemed to have an interest in the Stapled Securityholdings that CLI is deemed to have an interest pursuant to Section 4 of the SFA.
CLI is deemed to have an interest in the Stapled Securityholdings of its wholly owned subsidiaries namely, Ascott, SCPL (through Ascott),
CLASML, CapitaLand Ascott Business Trust Management Pte. Ltd. and Carmel Plus Pte. Ltd..
Ascott is deemed to have an interest in the Stapled Securityholdings of its wholly owned subsidiary, SCPL.

PUBLIC FLOAT
Based on the information available to the Managers as at 29 February 2024, approximately 66.2% of the Stapled
Securities were held in the hands of the public. Rule 723 of the Listing Manual of the SGX-ST has accordingly
been complied with.

348

CAPITALAND ASCOTT TRUSTCounter Name: CapLand Ascott T
Stock Code: HMN
Website: www.capitalandascotttrust.com
Email: ask-us@capitalandascotttrust.com

CAPITALAND ASCOTT TRUST MANAGEMENT LIMITEDAs Manager of CapitaLand Ascott Real Estate Investment Trust
Company Registration Number: 200516209Z

CAPITALAND ASCOTT BUSINESS TRUST MANAGEMENT PTE. LTD.
As Trustee-Manager of CapitaLand Ascott Business Trust
Company Registration Number: 201925299R

168 Robinson Road
#30-01 Capital Tower
Singapore 068912
Tel:+65 6713 2888
Fax:
+65 6713 2999
Email: ask-us@capitalandascotttrust.com
www.capitalandascotttrust.com