Suntec REIT Achieves Record High DPU of 9.932 Cents in FY 2011

Suntec Real Estate Investment Trust Annual Repor t 2011
Setting the Stage
Suntec REIT has grown from strength to strength to become one of Singapores largest commercial REITs with a portfolio of premier real estate assets. We have set the stage for further growth and remain committed to deliver long-term value to our stakeholders.
About Suntec REIT

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

The Manager is a wholly-owned subsidiary of ARA Asset Management Limited (ARA), a real estate fund management company listed on the Mainboard of the SGX-ST, and is an affiliate of the multinational conglomerate Cheung Kong Group. ARA currently manages real estate investment trusts (REITs) listed in Singapore, Hong Kong and Malaysia with a diversified portfolio spanning the office, retail and industrial/office sectors, as well as private real estate funds investing in real estate in Asia. ARA also provides real estate management services, including property management services, convention & exhibition services and corporate finance advisory services. As at 31 December 2011, ARAs total assets under management was approximately S$20.2 billion. The Manager is responsible for the management and administration of Suntec REIT, as well as the implementation of Suntec REITs strategic long-term growth.
Contents
01 03 10 12 14 About Suntec REIT Mission Statement Year In Review Chairmans Report Financial Highlights 15 16 20 24 30 Unit Performance Board Of Directors Management Team Managers Report Property Portfolio 50 52 54 64 Market Report Investor Communications Corporate Governance Financial Contents
Delivering a resounding performance requires the coordinated symphony of a dedicated team of professionals with the skill set to deliver premium value to our stakeholders.
Our Mission
Forging ahead to create, provide and deliver premium value to all stakeholders of Suntec REIT.
Casting the Light on
Value
Our single minded focus allows us to strengthen and enhance the long term value of our asset portfolio.
Fine-tuning for
Sound Execution
Our discipline, prudence and proactive fine-tuning of our sound capital management strategies enable us to build a strong credit standing and deliver a solid financing track record.
Delivering a
Performance
Our passion, dedication and teamwork allow us to deliver a consistent and sustainable performance in the interests of our unitholders.
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Suntec REIT Annual Report 2011
Year in Review
S$
7.7b
S$
220.7m
ASSETS UNDER MANAGEMENT
Distribution Income
JANUARY 2011
Achieved distribution income of S$44.9 million for the period 1 October 2010 to 31 December 2010. Distribution per unit (DPU) for the quarter amounted to 2.316 cents.
APRIL 2011
Unitholders approved all resolutions tabled at Suntec REITs annual general meeting held on 15 April 2011. Achieved distribution income of S$52.9 million for the period 1 January 2011 to 31 March 2011. DPU for the quarter amounted to 2.388 cents.
August 2011
New issue of S$150 million medium term notes under the S$500 million Multicurrency MTN Programme. Announced and completed the S$114.75 million acquisition of a 51.0% interest in Harmony Partners Investments Limited which holds an 80.0% indirect interest in Suntec Singapore International Convention & Exhibition Centre (Suntec Singapore). This increases Suntec REITs effective stake in Suntec Singapore from 20.0% to 60.8%. Secured S$120 million term loan facility.
11
99.2
JULY 2011
97.5
office comMitTed occupancy
RETAIL comMitTed occupancy
Achieved distribution income of S$56.2 million for the period 1 April 2011 to 30 June 2011. DPU for the quarter amounted to 2.532 cents.
Establishment of a new S$500 million Multicurrency Medium Term Note (MTN) Programme.
October 2011
Achieved distribution income of S$56.4 million for the period 1 July 2011 to 30 September 2011. DPU for the quarter amounted to 2.533 cents. Suntec REIT conferred SIAS Most Transparent Company award 2011 (Runner-Up, REITs Category). Announced the divestment of CHIJMES for S$177 million, at 23.2% above the valuation as of 15 October 2011. Announced the S$410 million multi-phased remaking of Suntec City.
12
Chairmans Report
Suntec REIT achieved a record high distribution income of S$220.7 million and a strong distribution per unit of 9.932 cents for FY 2011.
13
Dear Unitholders, On behalf of the Board of ARA Trust Management (Suntec) Limited, the manager of Suntec REIT (the Manager), I am pleased to present the annual report of Suntec REIT for the financial year ended 31 December 2011 (FY 2011). FY 2011 was a year of uncertainty, exacerbated by natural disasters in Japan, political upheavals in the Middle East and the economic crisis in Europe. Notwithstanding the global uncertainty, Suntec REIT achieved a record high distribution income of S$220.7 million for FY 2011, an increase of 20.9% over the previous year. Unitholders received a distribution per unit (DPU) of 9.932 cents which was 0.7% higher year-on-year and 14.2% higher than our Forecast1. VALUE ENHANCEMENT AND PORTFOLIO OPTIMISATION In August 2011, Suntec REIT gained strategic majority control of Suntec Singapore International Convention & Exhibition Centre (Suntec Singapore) through the acquisition of an additional 40.8% equity stake, raising our effective interest from 20.0% to 60.8%. Suntec City Mall and the award-winning Suntec Singapore will soon undergo an asset enhancement initiative (AEI). Suntec Singapore has played a major role in advancing the MICE2 industry in Singapore and with the planned enhancements, it will strengthen its foothold as Singapores premier MICE2 venue of choice. Levels 1 and 2 of Suntec Singapore will also be converted to retail use and integrated with Suntec City Mall which when the planned AEI is completed, would offer visitors a seamless experience in Suntec City. Suntec City Mall with its size, prime location and connectivity to two MRT stations, will transform itself into a more exciting shopping and lifestyle destination with new retail offerings, concept stores, alfresco dining complete with comprehensive amenities. The 4 phased AEI is targeted to complete in 2015 and projected to deliver an attractive 10.1% return on investment to unitholders. As part of our proactive asset management strategies in maximising returns from our portfolio, we divested CHIJMES for a price of S$177.0 million, 23.2% higher than valuation. The sale proceeds will be deployed to partially fund the AEI and provide us the flexibility to mitigate any temporary dip in distribution per unit during the execution of the AEI. PRUDENT AND PROACTIVE CAPITAL MANAGEMENT We continued our prudent capital management strategy during the year to improve our overall financing cost and strengthen our debt maturity profile. Suntec REIT established a new S$500 million multicurrency medium term note (MTN) programme in July 2011 and issued a S$150 million MTN at 3.10% due 2016 to refinance Suntec REITs existing FY 2011 loans. In addition, we entered into a S$120 million term loan facility to finance the acquisition of the additional stake in Suntec Singapore. As at 31 December 2011, Suntec REITs total debt portfolio was approximately S$2.8 billion and our gearing ratio was 37.3% with an average all-in financing cost of 2.81% for FY 2011.
Notes: 1 The forecast is based on the assumptions as set out in Suntec REITs circular to Unitholders dated 8 November 2010 (Forecast). 2 Meetings, incentives, conventions and exhibitions.
ROBUST FINANCIAL AND OPERATING PERFORMANCE Against the backdrop of negative rental reversions in our office portfolio in FY 2011, the continuing challenges of the retail sector and the on-going Euro crisis, our strategy and focus on protecting and preserving our high occupancies enabled Suntec REIT to achieve a record distribution income of S$220.7 million for the year, a 20.9% increase year-on-year. With the DPU of 9.932 cents for FY 2011, Suntec REIT has, since our initial public offering in December 2004, delivered 65.3 Singapore cents of DPU through the peaks and troughs of the property market. As at 31 December 2011, we achieved strong committed occupancies of 99.2% for our office properties and 97.5% for our retail properties in FY 2011. In particular, Park Mall, CHIJMES, One Raffles Quay achieved 100% occupancies. LOOKING AHEAD The economic outlook for Singapore is expected to be positive but muted for 2012 with the Ministry of Trade and Industry estimating GDP growth to be only 1%-3% on the back of uncertain global macroeconomic conditions. We are cognisant of the uncertainties ahead and have implemented pre-emptive measures to protect our income stream and minimise our risk exposure. By December 2011, we have forward renewed more than 233,000 sq ft of office leases due to expire in 2012. With a balance of approximately 10.0% of our office leases expiring in 2012 and the high committed occupancy of the REIT portfolio, we are well positioned to meet the challenges ahead. Our key priorities in 2012 are to continue our proactive leasing strategies and to ensure the smooth and successful execution of the AEI so as to continue to deliver premium value to our unitholders. AWARD AND ACCOLADES During the year, Suntec REIT received a Runner-up Award for the Most Transparent Company Award 2011 under the REITs category in the SIAS Investors Choice Awards 2011. This is the sixth year that Suntec REIT has been recognised for our high standards of corporate transparency and disclosure. IN APPRECIATION I would like to express my appreciation to the members of the Board for their invaluable contributions during the year. I would also like to thank the management team for their hard work and dedication in delivering another year of strong performance for Suntec REIT. Last but not least, I am grateful to our unitholders, tenants, business partners and stakeholders for your continued strong support.
Chiu KwoK hung, Justin Chairman and Director 28 February 2012
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Financial Highlights
Consolidated Profit And Loss Statement For The Financial Year Gross Revenue Net Property Income Income Contribution from Jointly Controlled Entities1 Income Available For Distribution Distribution Per Unit (DPU) Fully Diluted DPU2
2011 S$270.3m S$193.4m S$105.8m S$220.7m 9.93 9.93
2010 S$249.5m S$193.1m S$45.3m S$182.5m 9.86 9.61
Notes: 1 Includes 20.0% interest in Suntec Singapore for the period 1 January 2011 to 18 August 2011. Following the acquisition of additional 40.8% interest in Suntec Singapore, it has been reclassified out from interest in jointly controlled entities and consolidated accordingly.
2
The deferred units totaling 207,002,170 units had been issued in six equal half-yearly instalments, with the first instalment issued on 9 June 2008 and the last instalment issued on 9 December 2010. The deferred units were issued at the Suntec REIT initial public offering price of S$1.00 per unit. The Fully Diluted DPU illustrates the pro-forma DPU assuming that all the deferred units had been issued on 9 December 2004.
CONSOLIDATED Balance Sheet as at Investment Properties Interest In Jointly Controlled Entities1 Total Assets Debt At Amortised Cost Total Liabilities Unitholders Funds Net Asset Value Per Unit Debt-to-Asset Ratio2
31 Dec 2011 S$5,241.8m S$2,087.3m S$7,516.7m S$2,804.1m S$2,970.1m S$4,433.8m S$1.99 37.3%
31 Dec 2010 S$4,452.0m S$2,039.7m S$6,652.1m S$2,554.6m S$2,667.4m S$3,984.6m S$1.80 38.4%
Notes: 1 Arising from the acquisition of a one-third interest in One Raffles Quay through the purchase of the entire issued share capital of Comina Investment Limited in 2007 and the acquisition of a one-third interest in the Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall through the purchase of one-third of the issued share capital of BFC Development Pte. Ltd. in 2010. Following the acquisition of additional 40.8% interest in Suntec Singapore through its wholly-owned subsidiary Suntec Harmony Pte. Ltd. in August 2011, the interest in Suntec Singapore has been reclassified out from Interest in jointly controlled entities and consolidated accordingly.
2
Based on debt at amortised cost. Suntec REITs Aggregate Leverage Ratio, which refers to the ratio of the value of borrowings (inclusive of proportionate share of borrowings of jointly controlled entities) and deferred payments (if any) to the value of the Deposited Property in accordance with Appendix 6 on the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore was 39.1% and 40.4% as at 31 December 2011 and 31 December 2010 respectively.
Strong Growth And Performance Track Record Since Listing ASSETS UNDER MANAGEMENT
S$ bil
10
INCOME AVAILABLE FOR DISTRIBUTION

S$ mil
250
220.7 189.6 167.7 182.5
7.0 5.4 4.6 5.2
7.7
200
150
122.1 87.1 99.8
3.2 2.2 2.3
100
50
Dec 04
Sep 05
Sep 06
Sep 07
Dec 08
Dec 09
Dec 10
Dec 11
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
15
Unit Performance
Unit Performance as at1 Last Done Unit Price Highest Unit Price Lowest Unit Price Market Capitalisation2 (mil) Traded Volume for the Financial Year (mil)
Notes: 1 Unit performance statistics are for the financial years ended 31 December.
2
2011 S$1.075 S$1.63 S$1.065 S$2,391 1,664
2010 S$1.50 S$1.56 S$1.23 S$3,308 1,618
2009 S$1.35 S$1.37 S$0.495 S$2,426 2,244
2008 S$0.71 S$1.69 S$0.575 S$1,116 1,782
2007 S$1.71 S$2.10 S$1.55 S$2,542 2,149
Based on 1,487 million units, 1,571 million units, 1,797 million units, 2,205 million units and 2,225 million units in issue as at 31 December 2007, 2008, 2009, 2010 and 2011 respectively.
Comparative Yield Statistics (%) for the Financial Year Traded Yield (based on DPU ) Traded Yield (based on Fully Diluted DPU1,2) Singapore Government 10-Year Bond3
1
2011 9.24 9.24 1.63
2010 6.57 6.40 2.71
2009 8.67 8.09 2.66
2008 15.53 13.84 2.05
2007 4.95 4.33 2.68
Notes: 1 Based on the last done unit price (as stated in the table above) and the full year DPU based on the period from 1 January to 31 December. Calculations were based on a DPU of 8.47 cents, 11.02 cents, 11.70 cents, 9.86 cents and 9.93 cents, and a Fully Diluted DPU of 7.40 cents, 9.83 cents, 10.92 cents, 9.61 cents and 9.93 cents for FY 2007, FY 2008, FY 2009, FY 2010 and FY 2011 respectively.
2
The deferred units totaling 207,002,170 units had been issued in six equal half-yearly instalments, with the first instalment issued on 9 June 2008 and the last instalment issued on 9 December 2010. The deferred units were issued at the Suntec REIT initial public offering price of S$1.00 per unit. The Fully Diluted DPU illustrates the pro-forma DPU assuming that all the deferred units had been issued on 9 December 2004. As at 31 December for the respective financial years.
As at 31 December 2011, Suntec REITs unit price stood at S$1.075, with a market capitalisation of approximately S$2.4 billion. Suntec REITs FY 2011 DPU yield of 9.24% has also outperformed the Singapore Government 10-year bond yield at 1.63%. As at end FY 2011, Suntec REIT unitholders would have achieved an average annual return of 9.7% since listing. As one of Singapores most liquid listed REITs, the overall traded volume was 1,664 million units for the 12 months ended 31 December 2011. As at 31 December 2011, Suntec REIT is a constituent member of major global indices such as the FTSE NAREIT/EPRA Global Real Estate Index and the Global Property Research (GPR) 250 Index series. It is also a constituent of the FTSE Straits Times Mid Cap Index and FTSE Straits Times Real Estate Index in Singapore.
UNIT PRICE AND VOLUME CHART FOR FY 2011
1.50
20 15 10 5 0
1.30 1.10 0.90 0.70 0.50
Dec 10
Jan 11
Feb 11
Mar 11
Apr 11
May 11
Jun 11
Jul 11
Aug 11
Sep 11
Oct 11
Nov 11
Dec 11 Price
Volume Traded
Volume (Daily,Millions)
1.70
25
Unit Price (S$)
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Board of Directors
CHIU KWOK HUNG, JUSTIN Chairman and Director Mr. Chiu Kwok Hung, Justin is the Chairman of the Manager. He is also the Chairman and Nonexecutive Director of ARA Asset Management Limited (ARA), the holding company of the Manager, the Chairman of ARA Asset Management (Fortune) Limited, the manager of Fortune REIT and the Chairman of ARA Asset Management (Prosperity) Limited, the manager of Prosperity REIT. ARA is listed on Singapore Exchange Securities Trading Limited (the SGX-ST), Fortune REIT is dual-listed on the SGX-ST and the Main Board of The Stock Exchange of Hong Kong Limited (SEHK), and Prosperity REIT is listed on the Main Board of SEHK. Mr. Chiu is also a Director of ARA Fund Management (Asia Dragon) Limited, as the manager of the ARA Asia Dragon Fund. Mr. Chiu is a member of the 11th Shanghai Committee of the Chinese Peoples Political Consultative Conference of the Peoples Republic of China, a Fellow of The Hong Kong Institute of Directors, a Fellow of Hong Kong Institute of Real Estate Administrators and a member of the Board of Governors of Hong Kong Baptist University Foundation. Mr. Chiu has more than 30 years of international experience in real estate in Hong Kong and various countries and is one of the most respected professionals in the property industry in Asia. Mr. Chiu is an Executive Director of Cheung Kong (Holdings) Limited (Cheung Kong), a company listed on the Main Board of SEHK. He joined Cheung Kong in 1997 and has been an Executive Director since 2000, heading the real estate sales, marketing and property management teams. Prior to joining Cheung Kong, Mr. Chiu was with Sino Land Company Limited from 1994 to 1997 and Hang Lung Development Company, Limited (now known as Hang Lung Group Limited) from 1979 to 1994 responsible for the leasing and property management in both companies. Both Sino Land Company Limited and Hang Lung Group Limited are listed on the Main Board of SEHK. Mr. Chiu holds Bachelor degrees in Sociology and Economics from Trent University in Ontario, Canada. LIM HWEE CHIANG, JOHN Director Mr. Lim is a Director of the Manager. He is also the Group Chief Executive Officer and an Executive Director of ARA, the holding company of the Manager, which is listed on the SGX-ST. He has been the Group Chief Executive Officer and a Director of ARA since its establishment in 2002. He is also a Director of ARA Asset Management (Fortune) Limited, the manager of Fortune REIT, duallisted in Singapore and Hong Kong, ARA Asset Management (Prosperity) Limited, the manager of Hong Kong-listed Prosperity REIT, Am ARA REIT Managers Sdn Bhd, the manager of Malaysialisted AmFIRST REIT, ARA-CWT Trust Management (Cache) Limited, the manager of Singaporelisted Cache Logistics Trust, APN Property Group Limited listed in Australia and Hui Xian Asset Management Limited, the manager of Hong Kong-listed Hui Xian REIT. He is also the Chairman of APM Property Management Pte. Ltd., Suntec Singapore International Convention & Exhibition Services Pte. Ltd. and the management council of Management Corporation Strata Title Plan No. 2197 (Suntec City). In addition, Mr. Lim is an Independent Director and member of the audit committee of Singapore-listed Teckwah Industrial Corporation Limited. He is also the Vice President of the Hong Kong-Singapore Business Association, the Senior Vice President of the Asian Pacific Real Estate Association, a council member of the Singapore Chinese Chamber of Commerce & Industry and a member of the Valuation Review Board of the Ministry of Finance of Singapore. Mr. Lim has more than 30 years of experience in real estate. Prior to founding ARA, from 1997 to 2002, he was an Executive Director of GRA (Singapore) Pte. Ltd., a wholly-owned subsidiary of Prudential (US) Real Estate Investors. From 1996 to 1997, he founded and was the Managing Director of The Land Managers (S) Pte. Ltd., a Singapore-based property and consulting firm specialising in feasibility studies, marketing and leasing management in Singapore, Hong Kong and China. He was the General Manager of the Singapore Labour Foundation Management Services Pte. Ltd. from 1991 to 1995, and was with DBS Land Limited (now part of CapitaLand Limited) from 1981 to 1990. Mr. Lim holds a Bachelor of Engineering (First Class Honours) in Mechanical Engineering, a Master of Science in Industrial Engineering, as well as a Diploma in Business Administration, each from the National University of Singapore.
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IP TAK CHUEN, EDMOND Director Mr. Ip Tak Chuen, Edmond is a Director of the Manager. He is also a Non-executive Director of ARA, the holding company of the Manager, a Non-executive Director of the manager of Hui Xian REIT and a Director of the manager of Fortune REIT. ARA is listed on the SGX-ST, Hui Xian REIT is listed on the Main Board of SEHK and Fortune REIT is dual-listed on the SGX-ST and the Main Board of SEHK. Mr. Ip has been an Executive Director of Cheung Kong since 1993 and Deputy Managing Director since 2005, responsible for overseeing all financial and treasury functions of Cheung Kong and its subsidiaries, particularly in the fields of corporate and project finance. He has been an Executive Director of Cheung Kong Infrastructure Holdings Limited (CK Infrastructure) since its incorporation in 1996 and Deputy Chairman since 2003, and the Senior Vice President and Chief Investment Officer of CK Life Sciences Intl., (Holdings) Inc. (CK Life Sciences) since 2002. He oversees matters relating to corporate finance, strategic acquisition and investment of both CK Infrastructure and CK Life Sciences. Mr. Ip is also a Non-executive Director of TOM Group Limited (TOM), AVIC International Holding (HK) Limited (AVIC), Excel Technology International Holdings Limited (Excel), Real Nutriceutical Group Limited (formerly known as Ruinian International Limited) (Real Nutriceutical) and Shougang Concord International Enterprises Company Limited (Shougang). Cheung Kong, CK Infrastructure, CK Life Sciences and TOM, AVIC, Real Nutriceutical and Shougang are listed on the Main Board of SEHK. Excel is listed on the Growth Enterprise Market (GEM) of SEHK. Prior to joining Cheung Kong, Mr. Ip held a number of senior financial positions in major financial institutions and has extensive experience in the Hong Kong financial market covering diverse activities such as banking, capital markets, corporate finance, securities brokerage and portfolio investments. Mr. Ip holds a Bachelor of Arts degree in Economics and a Master of Science degree in Business Administration. TAN KIAN CHEW Independent Director Mr. Tan is an Independent Director and Chairman of the audit committee of the Manager. He is currently the Group Chief Executive Officer of NTUC FairPrice. He served in the Republic of Singapores Navy from 1976 to 1983 and held the position of head of naval operations from 1980 to 1983. He left the Navy to join the Singapore Governments elite Administrative Service in 1983 and served in the Ministry of Trade and Industry. At that time he was also appointed to the board of directors of NTUC FairPrice Co-operative Ltd. In 1988, he was posted to the Prime Ministers Office where he served as the Principal Private Secretary to the then Deputy Prime Minister, Mr. Ong Teng Cheong. Mr. Tan left the Administrative Service to join NTUC FairPrice in 1992 as its Assistant General Manager and was subsequently promoted to Chief Executive Officer in 1997. Mr. Tan obtained an Honours degree (First Class) in Mechanical Engineering from the University of Aston in Birmingham, UK. He also completed the Advance Management Program at Harvard University in 2000. Mr. Tan was awarded a SAF (Overseas) Scholarship in 1972 and was a recipient of the Singapore Public Administration Medal (Silver) in 1991.
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Board of Directors
SNG SOW MEI (ALIAS POON SOW MEI) Independent Director Mrs. Sng is an Independent Director and member of the audit committee of the Manager. Mrs. Sng, who has been appointed as the Independent Non-executive Director and member of the audit committee of Cheung Kong Infrastructure Holdings Limited, is also an Independent Director and member of the audit committee of the manager of Fortune REIT, the manager of Prosperity REIT, an Independent Non-executive Director and member of the audit committee of Hutchison Port Holdings Management Pte. Limited and a Director of INFA Systems Ltd, a subsidiary of Singapore Technologies Electronics Limited. Since 2001, she has been the Senior Consultant (International Business) of Singapore Technologies Electronics Limited. Prior to her appointments with Singapore Technologies Pte Ltd (now part of ST Engineering Limited), where she was Director, Special Projects (North East Asia) in 2000 and a Consultant in 2001, Mrs. Sng was the Managing Director of CapitaLand Hong Kong Ltd for investment in Hong Kong and the region including Japan and Taiwan. In Hong Kong from 1983 to 1997, Mrs. Sng was the Centre Director and then Regional Director of the Singapore Economic Development Board and Trade Development Board respectively. She was Singapores Trade Commissioner in Hong Kong from 1990 to 1997. Mrs. Sng, with a Bachelor of Arts degree from the Nanyang University of Singapore, has wide experience in various fields of industrial investment, business development, strategic and financial management, especially in property investment and management. In 1996, Mrs. Sng was conferred the title of PPA(P) Pingat Pentadbiran Awam (Perak), the Singapore Public Administration Medal (Silver). LIM LEE MENG Independent Director Mr. Lim is an Independent Director and member of the audit committee of the Manager. He is currently a Senior Partner of RSM Chio Lim LLP, a member firm of RSM International. Mr. Lim is also an Independent Director of Teckwah Industrial Corporation Ltd (Teckwah), Tye Soon Ltd, and the manager of Fortune REIT. He also serves as the Chairman of the audit committee of Teckwah and the manager of Fortune REIT. Mr. Lim is also a practising member of the Institute of Certified Public Accountants of Singapore, an associate member of the Institute of Chartered Secretaries and Administrators and a fellow member of the Singapore Institute of Directors. He is also the Vice-Chairman of the River Valley High School Advisory Committee, the Chairman of Yio Chu Kang Citizen Consultative Committee and the Chairman of the finance committee of Ang Mo Kio Town Council. In addition, Mr. Lim serves as a member of the Casino Regulatory Authority of Singapore Board, a member of the Appeal Advisory Panels of the Monetary Authority of Singapore and a member of the Taxpayer Feedback Panel of the Inland Revenue Authority of Singapore. Mr. Lim graduated from the Nanyang University of Singapore with a Bachelor of Commerce (Accountancy) degree in May 1980. He also has a Master of Business Administration degree from the University of Hull (1992), a Diploma in Business Law from the National University of Singapore (1989) and an ICSA qualification from the Institute of Chartered Secretaries and Administrators. CHEN WEI CHING, VINCENT Independent Director Mr. Chen is an Independent Director and member of the audit committee of the Manager. He is currently also an Independent Director of Transpac Industrial Holdings Ltd and United Fiber System Ltd. Mr. Chen has more than 20 years of experience in the banking and finance industry, having spent 17 years with the First National Bank of Chicago, Bank of America, and Banque Francaise du Commerce Exterieur, and subsequently co-founded a financial consulting firm in 1988. Since 1993, he has been managing his personal and family investments. Mr. Chen holds a Bachelor of Science degree in Industrial Engineering from Cornell University, and a Master of Business Administration degree from the University of Pennsylvania.
19
CHOW WAI WAI, JOHN Non-executive Director Mr. Chow is a Non-executive Director of the Manager. He is currently the Managing Director of Hong Kong-listed Winsor Properties Holdings Limited, which has operations in Hong Kong, China and Singapore. He is also the Managing Director of Winsor Industrial Corporation Limited, which has international operations spanning countries in the US, Europe and Asia, and he holds directorships in the various subsidiaries and associated companies of the Winsor companies. He is an Executive Director of Hong Kong-listed Wing Tai Properties Limited and is also a Non-executive Director of Hong Kong-listed Dah Sing Financial Holdings Limited. Mr. Chow has more than 30 years of experience in the property, textile and clothing businesses. He has served as Chairman of the Hong Kong Garment Manufacturers Association and as a member of the Textile Advisory Board of the Hong Kong Government. Mr. Chow received his Bachelor of Arts (Economics) degree from the University of British Columbia.
YEO SEE KIAT Chief Executive Officer and Director Mr. Yeo See Kiat is the Chief Executive Officer and an Executive Director of the Manager. He is also a Director of One Raffles Quay Pte Ltd., BFC Development Pte. Ltd. and Suntec Harmony Pte Ltd. Mr. Yeo has more than 30 years of experience in the real estate industry, managing and overseeing various projects with Hwa Hong Corporation Limited, The Wharf Group, Parkway Holdings Limited, and CapitaLand Limited. He has held senior management positions over the last 20 years. Mr. Yeo started his career in Turquand Young (now Ernst & Young) and was with the firm from 1976 to 1980. Mr. Yeo holds a Bachelor of Accountancy from the University of Singapore and a Graduate Diploma in Management Studies from the Singapore Institute of Management. He is also a fellow of the Institute of Certified Public Accountants of Singapore. Ma Lai Chee, Gerald Alternate Director Mr. Ma is an Alternate Director to Mr. Ip Tak Chuen, Edmond, a Director of the Manager and the manager of Fortune REIT. He is also a Director of AMTD Financial Planning Limited, iBusiness Corporation Limited, CK Communications Limited, Beijing Net-Infinity Technology Development Company Limited and mReferral Corporation (HK) Limited. He also serves as a Non-executive Director of the manager of Prosperity REIT, and is an Alternate Director to Mr. Dominic Lai, Non-executive Director of Hutchison Telecommunications Hong Kong Holdings Limited. Mr. Ma is currently Director, Corporate Strategy Unit and Chief Manager, Corporate Business Development at Cheung Kong. He has over 22 years of experience in banking, investment and portfolio management, real estate development and marketing, as well as managing IT related ventures and services. He is a member of the Hospitality Services Committee of Caritas Hong Kong and a member of the Finance Committee of The Scout Association of Hong Kong. He is also a member of the Presidents Circle of the University of British Columbia, Canada (UBC) and a member of the Deans Advisory Board for the Faculty of Arts of UBC. Mr. Ma holds a Bachelor of Commerce degree in Finance and a Master of Arts degree in Global Business Management.
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ARA Trust Management (Suntec) Limited

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

Chief Executive Officer
Mr. Yeo is responsible for the performance and direction of Suntec REIT. He leads his team of managers to achieve the key mission of creating, adding and delivering premium value to all stakeholders of Suntec REIT. With single-minded focus, he leads and supports his team of experienced professionals with a passion and drive to deliver. His experience is highlighted in the section on the Board of Directors.
Yip Kam Thai
Chief Operating Officer
Mr. Yip assists the Chief Executive Officer on operational matters pertaining to Suntec REIT, including asset management, investment, investor relations and asset enhancement initiatives. Mr. Yip has been with the real estate industry since 1993, and has been with ARA since 2004. Within ARA, he has held various senior positions in the listed REITs and funds under management, including Executive Director of the manager of Fortune REIT, and Acting Chief Executive Officer of the manager of Prosperity REIT. Prior to his current appointment, he was based in Hong Kong as the Director and Head of Asset Management, as well as the China and Hong Kong Representative for the ARA Asia Dragon Fund. Mr. Yip holds a Bachelor of Science (Honours) Degree in Estate Management from the National University of Singapore.
Richard Tan
Director, Finance
Mr. Tan heads the finance team and assists the Chief Executive Officer on all accounting, finance, treasury and capital management functions for Suntec REIT. Mr. Tan has more than 30 years of financial management experience in the banking and IT industries. He was previously the Regional Finance Director and Business Manager for South East Asia in Hewlett-Packards Sales & Marketing Division. Prior to joining the IT industry, Mr. Tan also held various senior positions in banking both in Singapore and Hong Kong for over 18 years. He was the Finance Director of Schroders Singapore and was Head of Finance & Operations for an investment bank in Hong Kong. Mr. Tan also held the position of Country Operations Manager for American Express Bank Singapore. Mr. Tan holds a Bachelor of Accountancy Degree from the University of Singapore.
Thomas Wong
Senior Manager, Asset Management
Mr. Wong is a member of the Asset Management team and assists the Chief Operating Officer in the monitoring of the performance of the assets within the existing portfolio, strategizing, implementing asset enhancement initiatives, and in business development & acquisition of properties. Mr. Wong has more than 18 years of real estate experience in areas of property investment and asset management of residential, commercial and hospitality properties. Prior to joining the Manager, he was a Business Development Manager with Keppel Land International Limited where he was involved in the acquisition of properties for redevelopment and investment. He previously held position as Senior Business Development Executive at Sembawang Leisure Private Limited and Executive at Neptune Orient Line Limited. Mr. Wong holds a Master Degree in Financial Management from the Macquarie University and a Bachelor Degree of Arts from the National University of Singapore..
Ng Ee San
Senior Manager, Finance
Ms. Ng is a member of the Finance team, responsible for the finances of Suntec REIT and provides support in areas of secretariat compliance, taxation and treasury. Ms. Ng has more than 13 years of experience in accounting and finance. Prior to joining the Manager, she was the Finance Manager at Ascott Residence Trust Management Limited, the Manager of Ascott Residence Trust. She was also previously an Accountant at Wing Tai Holdings Limited and The Hour Glass Limited, and had held various positions with PSA Corporation Limited and Deloitte And Touche. Ms. Ng holds a Bachelor of Accountancy (Accounting) Degree from Nanyang Technological University, Singapore, and is a Certified Public Accountant.
22
ARA Trust Management (Suntec) Limited

Management Team
Janice Phoon
Senior Manager, Asset Management
Ms. Phoon is a member of the Asset Management team, responsible for overseeing and driving the performance of the office portfolio of Suntec REIT. Ms. Phoon has more than 15 years of experience in marketing and leasing. Prior to joining the Manager, she was the Assistant Marketing Manager of Riverwalk Promenade Pte Ltd where she played a key role in marketing and leasing the TradeMart Singapore complex. Ms. Phoon holds a Bachelor of Commerce Degree in Marketing and Management from Murdoch University, Western Australia and a Diploma in Building Management from Ngee Ann Polytechnic, Singapore.
Lim Kim Loon

Manager, Asset Management
Ms. Lim is a member of the Asset Management team, responsible for monitoring the performance of the retail assets, and in strategising and implementing asset enhancement initiatives. Ms. Lim has over 15 years of real estate experience in areas of property management and maintenance, marketing and lease management of commercial and retail properties. Prior to joining the Manager, she was with CapitaLand Retail Management Pte Ltd where she was responsible for the day-to-day management of a shopping mall. Her responsibilities included the leasing, marketing, operations, asset enhancement and financial performance. She previously held positions as Manager of the Property Department at The Great Eastern Life Assurance Co Limited and Marketing Officer of SLF Management Services Pte Ltd. Ms. Lim holds a Bachelor of Science (Honours) Degree in Estate Management from the National University of Singapore.
Chan Chuey Leng

Manager, Asset Management
Ms. Chan is a member of the Asset Management team, responsible for monitoring the performance of the retail assets and overseeing the advertising and promotional activities and branding initiatives of the retail portfolio. Ms. Chan has more than 15 years of experience in marketing and leasing of commercial, retail, industrial and residential properties. Prior to joining the Manager, she was the Marketing and Leasing Manager at Cathay Cineleisure International Pte Ltd. She was previously the Assistant Marketing Manager with Tuan Sing Holdings Limited and prior to that, was the Assistant Marketing Manager with Riverwalk Promenade Pte Ltd. Ms. Chan holds a Bachelor of Science (Honours) Degree in Estate Management from the National University of Singapore.
Julia Koh
Manager, Special Projects
Ms. Koh is a member of the Special Projects team who is involved in asset enhancement works, with more than 15 years of working experience in Quantity Surveying and Project Management. Prior to joining the Manager, she was the Senior Project Executive at CapitaLand Retail Limited involving in the redevelopment of Clarke Quay, reconstruction of Sembawang Shopping Centre as well as the upgrading of LOT One Shoppers Mall. She was also the Senior Quantity Executive at Tiong Seng Contractor Limited involved in the construction of Guilin View Condominium. Ms. Koh holds a Diploma in Building (Quantity Surveying) from the Singapore Polytechnic.
Serene Lui
Manager, Finance
Ms. Lui is a member of the Finance team, assisting in managing the monthly accounts and preparation of financial statements and providing support in areas of secretariat compliance, taxation and treasury. Ms. Lui has more than 9 years of experience in accounting and finance. Prior to joining the Manager, she was Audit Manager at PricewaterhouseCoopers LLC. Ms. Lui holds a Bachelor of Commerce (Accounting & Finance) Degree from University of Western Australia, Perth, and is a Certified Public Accountant.
23
Tan Cheng Cheng

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

Assistant Manager
Mr. Foo is responsible for developing and maintaining financial and asset models to analyse the performance of Suntec REIT. He provides support in the evaluation of potential investments and asset enhancement initiatives. Mr. Foo has over 5 years of experience in the investment industry. Prior to joining the Manager, he was part of the Portfolio Management team at Temasek Holdings Pte. Ltd. He was also previously a Property Analyst with OCBC Investment Research and Research Analyst with NRA Capital Pte. Ltd. Mr. Foo holds a Bachelor of Business (Banking and Finance) from Nanyang Technological University and he is a CFA Charterholder.
Elaine Leong
Senior Accountant, Finance
Ms. Leong is a member of the Finance team, assisting in managing the monthly accounts and preparation of financial statements and providing support in areas of secretariat compliance, taxation and treasury. Ms. Leong has over 4 years of experience in accounting and finance. Prior to joining the Manager, she was the Accountant at Mapletree Investments Pte Ltd where she was responsible for the finance operations of its commercial property subsidiaries. She was also previously an Auditor with KPMG LLP. Ms. Leong holds a Bachelor of Business Management (Finance and Accounting) Degree from Singapore Management University and an ACCA Certificate (UK).
24
Managers Report
YEAR IN REVIEW Suntec REIT achieved record distribution income of S$220.7 million and a strong distribution per unit (DPU) of 9.932 cents for the financial year ended 31 December 2011 (FY 2011). In FY 2011, Suntec REIT acquired strategic majority control of Suntec Singapore International Convention & Exhibition Centre (Suntec Singapore), divested CHIJMES at 23.2% above valuation and initiated the S$410 million asset enhancement initiative (AEI) for the remaking of Suntec City Mall and Suntec Singapore. As at end FY 2011, Suntec REITs assets under management (AUM) has grown to approximately S$7.7 billion, underpinned by a strong 2.4 million sq ft of prime office portfolio and 1.1 million sq ft retail portfolio strategically-located in the heart of Singapores Central Business District. FINANCIAL PERFORMANCE Suntec REIT achieved gross revenue of S$270.3 million in FY 2011, an increase of 8.3% compared to the corresponding period in 2010 (FY 2010). Office revenue in FY 2011 was S$115.2 million, a dip of 2.1% year-on-year, whilst retail revenue achieved was S$127.7 million, which was 3.1% lower than in FY 2010. In terms of revenue contribution by asset, Suntec City contributed S$210.1 million in gross revenue in FY 2011 whilst Park Mall and CHIJMES contributed S$22.3 million and S$10.5 million respectively. Suntec Singapores revenue contribution for the period 19 August to 31 December 2011 was S$27.4 million. The net property income achieved in FY 2011 was S$193.4 million, up 0.2% compared to FY 2010. The income contribution from the jointly controlled entities for FY 2011 was S$105.8 million. This comprised the income contribution of S$31.2 million from the one-third interest in One Raffles Quay and
S$73.9 million from the one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall (the MBFC Properties), and S$0.7 million from Suntec Singapore1. The income available for distribution achieved for FY 2011 was S$220.7 million, 20.9% higher year-on-year. The DPU achieved for FY 2011 amounted to 9.932 cents, which translated to an annual yield of 9.2%2 for the year. Compared to the Forecast3, the revenue and net property income achieved in FY 2011 was 10.9% and 6.4% higher. The distribution income and DPU were also at a significant 14.5% and 14.2% above the Forecast3 mainly due to interest cost savings and higher income contribution from the MBFC Properties.
Notes: 1 For the period 1 January 2011 to 18 August 2011. Following this, Suntec Singapores results was consolidated with the acquisition of the additional 40.8% effective stake. 2 Based on the market closing price of S$1.075 as at 31 December 2011. 3 The forecast is based on the assumptions as set out in Suntec REITs circular to Unitholders dated 8 November 2010 (Forecast).
Distribution per unit FY2011 FY2010 DPU Fully Diluted DPU1 9.932 9.932 9.859 9.607
Note: 1 The deferred units totaling 207,002,170 units had been issued in six equal half-yearly instalments, with the first instalment issued on 9 June 2008 and the last instalment issued on 9 December 2010. The deferred units were issued at the Suntec REIT initial public offering price of S$1.00 per unit. The Fully Diluted DPU illustrates the pro-forma DPU assuming that all the deferred units had been issued on 9 December 2004.
PROPERTY PORTFOLIO On 18 August 2011, Suntec REIT successfully acquired an additional 40.8% interest in Suntec Singapore for S$114.8 million, raising Suntec REITs stake to 60.8%. Suntec Singapore is strategic to the
Gross Revenue
Contribution by Asset
Net Property Income

Contribution by Asset
FY 2011
FY 2011
Suntec City Park Mall CHIJMES
87.9% 8.2% 3.9%
Suntec City Park Mall CHIJMES
87.8% 8.5% 3.7%
25
REITs existing portfolio being an integral part of Suntec City and offers synergistic opportunities to further unlock the underlying value through the AEI. Suntec REIT announced the remaking of Suntec City on 31 October 2011. Scheduled to commence in mid 2012, the multi-phased AEI comprised of a S$230 million capital expenditure in remaking Suntec City Mall and a further S$180 million on Suntec Singapore, transforming Suntec City into a premier MICE1, business, shopping and lifestyle destination. Upon completion in mid-2015, Suntec City will offer almost 1 million sq ft of retail lettable space. As part of the proactive strategies to maximize returns from the portfolio, CHIJMES was divested for S$177.0 million, a 23.2% premium over its last valuation of S$143.7 million2. CHIJMES was purchased in December 2005 for S$128 million. The sale proceeds will be used to partially fund the AEI and to mitigate any temporary dip in DPU during the execution of the AEI. Suntec REITs total AUM comprising of approximately 2.4 million sq ft of attributable office space and more than 1.1 million sq ft of retail and convention space was valued at approximately S$7.7 billion as at 31 December 2011, S$654 million higher than the preceding year. The net asset value of Suntec REIT stood at S$1.987 per unit as at 31 December 2011. Property VALUATION (S$M) Suntec City3 Park Mall4 Chijmes2 Suntec Singapore3 One Raffles Quay5 MBFC Properties5 Total 31 Dec 2011 4,336 370 143.7 243.2 1,082 1,523 7,697.9 31 Dec 2010 3,980 338 134 57.6 1,023 1,511 7,043.6
CAPITAL STRUCTURE Suntec REITs total consolidated debt stood at S$2,822 million, with Debt-to-Assets and Aggregate Leverage ratios of 37.3% and 39.1% respectively as at 31 December 2011. The average all-in financing cost of Suntec REITs debt portfolio for FY 2011 was 2.81%. On 27 July 2011, Suntec REIT established a new S$500 million multicurrency medium term note (MTN) programme. Under this programme, Suntec REIT issued a S$150 million 5-year medium term notes bearing a fixed rate of 3.10%. The proceeds were used to fully refinance the REITs existing FY 2011 loans. This further improved Suntec REITs overall financing cost and strengthened our debt maturity profile. On 15 August 2011, Suntec REIT secured a S$120 million term loan facility to finance the acquisition of the additional stake in Suntec Singapore. Suntec REITs exposure to derivatives is elaborated in the Financial Statements. The fair value derivative for FY 2011, which is included in the Financial Statements as Derivative Assets and Derivative Liabilities, was S$0.3 million and S$14.0 million respectively. The net fair value derivative represented 0.3% of the net assets of Suntec REIT as at 31 December 2011.
Notes: 1 Meetings, incentives, conventions and exhibitions. 2 Based on the valuation by DTZ Debenham Tie Leung (SEA) Pte Ltd on 15 Oct 2011. 3 Based on the valuation by Colliers International Consultancy & Valuation (Singapore) Pte Ltd. Suntec Singapore reflects the value of Suntec REITs 60.8% interest in the property. 4 Based on the valuation by Knight Frank Pte Ltd. 5 Based on the valuation by Knight Frank Pte Ltd, reflecting the value of Suntec REITs one-third interest in One Raffles Quay and the MBFC Properties.
Assets Under Management

S$ bil
9 8 7 6 5 4 3 2 1 0
Debt Maturity Profile (REIT Level)

S$ mil
900
7.0 5.4 4.6 3.2 2.3 5.2
7.7
800 700 600 500 400 300 200 100 0
50 270 773.5 350 200

FY 2012 FY 2013 FY 2014 FY 2015
331.5
120 350 150 100

FY 2016
Sep 05
Sep 06
Sep 07
Dec 08
Dec 09
Dec 10
Dec 11
S$200 mil term loan S$50 mil bi-lateral loan S$270 mil convertible bonds S$700 mil loan facility
S$1.1 bil loan facility S$100 mil loan facility S$150 mil medium term note S$120 mil term loan
26
Managers Report
STRONG OCCUPANCY FOR ASSET PORTFOLIO Suntec REITs asset portfolio performance continued to remain strong. As at 31 December 2011, the committed occupancy of Suntec City office improved further to 99.2% compared to 99.1% in the year before, whilst Park Mall office maintained its full occupancy. The committed occupancy of Suntec City Mall stood at 96.7% as at 31 December 2011, whilst Park Mall and CHIJMES both achieved 100% committed occupancy.
For the jointly controlled entities, One Raffles Quay achieved full committed occupancy, whilst the committed occupancy for the MBFC Properties stood at 98.6% as at 31 December 2011. As such, Suntec REITs office and retail portfolio achieved an overall committed occupancy of 99.2% and 97.5% respectively as at 31 December 2011.
COMMITTED OCCUPANCY AS AT: DEC 10 Suntec City: - Office - Retail Park Mall: - Office - Retail Chijmes One Raffles Quay MBFC Properties Office Portfolio Occupancy Retail Portfolio Occupancy 99.1% 97.9% 100% 100% 99.5% 100% 96.5% 98.8% 98.0%
MAR 11 99.5% 97.9% 100% 100% 97.8% 100% 97.4% 99.2% 98.0%
JUN 11 99.5% 97.1% 100% 100% 100% 100% 97.4% 99.2% 97.7%
SEP 11 DEC 11 98.0% 96.5% 100% 100% 100% 100% 98.5% 98.6% 97.3% 99.2% 96.7% 100% 100% 100% 100% 98.6% 99.2% 97.5%
27
LEASING ACHIEVEMENTS IN FY 2011 For the office portfolio, a total of 647,640 sq ft of new, renewal and replacement leases were secured in FY 2011. With the steady recovery of the Singapore office market and in tandem with the consistently strong committed occupancy of Suntec City Office during the year, renewal and replacement leases at Suntec City Office Towers were secured at an average rent of between S$9.22 psf per month in the first quarter of 2011 and S$8.72 psf per month in the fourth quarter of 2011 up from the trough of between S$7.11 psf per month and S$7.30 psf per month in the second half of 2009. For the retail portfolio, a total of 383,756 sq ft of new, renewal and replacement leases were secured in FY 2011. The performance of the retail portfolio was relatively stable during the year. The average committed passing rents for Suntec City Mall, Park Mall and CHIJMES stood at S$10.09 psf per month, S$7.70 psf per month and S$10.79 psf per month respectively as at 31 December 2011.
OFFICE LEASING ACTIVITIES Renewal leases & lease extensions Replacement leases New leases Total
TENANTS NLA (SQ FT) 59 80 7 146 412,584 218,511 16,545 647,640
RETAIL LEASING ACTIVITIES Renewal leases & lease extensions Replacement leases New leases Total
TENANTS NLA (SQ FT) 139 81 18 238 238,554 65,101 80,101 383,756
commitTed average paSsing rents - suntec city malL, park malL and chijmes
S$ psf pm
12
10
10.48
10.63
10.27
10.73
10.16
10.79
10.10
10.74
10.09
10.79
7.45
7.47
7.48
7.51
7.70
4Q 2010
1Q 2011
2Q 2011
3Q 2011
4Q 2011
Suntec City Mall
Park Mall
Chijmes
28
Managers Report
HIGHER REVENUE FROM OTHER INCOME INITIATIVES Suntec REITs revenue from other income initiatives, namely atrium rentals for events and exhibitions, media sales and pushcart rentals achieved approximately S$7.3 million in FY 2011.
OTHER INCOME
S$ mil
8 7 6 5 4 3 2 1 0
7.0 6.0 6.2
7.2 6.5
7.3
3.0
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
29
ENTERTAINMENT AND EVENTS AT SUNTEC CITY MALL Suntec City Mall is well established as a convenient one-stop destination for shopping, dining and entertainment served by two circle line MRT stations. As one of Singapores largest shopping mall with events and offerings for everyone, Suntec City Mall played host to a myriad of events including Fashion Weeks Fashion in Play where notably, students from local fashion schools such as Lasalle College of the Arts, Nanyang Academy of Fine Arts, Raffles Merchandising Institute and Temasek Polytechnic collaborated with tenants in a fashion styling competition that showcased their creativity and craft. Other notable events include the launch of the hugely anticipated new bartainer Tiger Truck and the meet-and-greet sessions with Formula 1 drivers with their race cars leading up to the 2011 Formula 1 Singtel Singapore Grand Prix night race in September. The monthly themed promotions, in conjunction with key events such as Chinese New Year, Great Singapore Sale, Food Festival, National Day, Mid Autumn, Childrens Day and Christmas were very well-received by shoppers.
The grand finals of the annual Suntec Dance Competition was held on 10 September 2011 and the champions of the open group category, Elecoldxhot represented Singapore in the eighth annual World Supremacy Battlegrounds 2011 Dance Competition in Sydney, Australia. Amidst stiff competition among an international pool of the best hip hop dance crews, Suntec Dance champions Elecoldxhot emerged Runner-up in the international open division. There were also many activities targeted at families and children, including art and craft workshops such as balloon sculpturing, lanternmaking, piggy bank painting as well as cooking workshops dedicated to kids. The meet-and-greet sessions with the Sylvanian Family and Sharity Elephant in conjunction with Childrens Day were also a hit with the kids. During the Christmas festive season, the Looney Tunes Christmas Musical event featuring Bugs Bunny, Tweety Bird and Sylvester as well as the meet-and-greet sessions with Tasmanian Devil were hugely popular with the children.
30
Property Portfolio
PORTFOLIO propertIES - statistics1

As at 31 December 2011
Net Lettable Area (sq ft) Office Retail Number of Tenants (actual) Office Retail Valuation (S$ million) Committed Occupancy (%) Office Retail
3,506,330 2,415,191 1,091,1392 824 307 517 7,697.93 99.2 97.5
Notes: 1 Includes CHIJMES which was divested on 20 January 2012. 2 Includes 60.8% interest in the retail net lettable area in Suntec Singapore. 3 Includes the valuation of Suntec REITs 60.8% interest in Suntec Singapore, the valuation of Suntec REITs onethird interest in One Raffles Quay and the valuation of Suntec REITs one-third interest in the MBFC Properties.
31
HIGH QUALITY COMMERCIAL ASSETS STRATEGICALLY LOCATED IN SINGAPORES PRIME DISTRICT Suntec REITs portfolio comprises prime commercial properties in Suntec City, Park Mall, CHIJMES, a one-third interest in One Raffles Quay and a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall (the MBFC Properties), all located within Singapores growth precincts, namely Marina Bay and the Civic and Cultural District. Spanning a total net lettable area (NLA) of about 3.5 million sq ft, the properties derive a steady stream of income from a well-diversified pool of strong office and retail tenants. The committed occupancy of Suntec REITs office and retail portfolio stood at 99.2% and 97.5% respectively as at 31 December 2011. VibranT Tenant MIX Suntec REITs office portfolio leases are well diversified across 14 business sectors. 64.1% of the total gross office revenue for the month of December 2011 was attributable to the major business sectors of Banking, Insurance and Financial Services, and Technology, Services and Consultancy. The top 10 tenants of the office portfolio contributed 26.9% of Suntec REITs total gross revenue for the month
of December 2011 and occupied an area representing 43.0% of Suntec REITs total office portfolio NLA. For the retail portfolio, 52.9% of the total gross retail revenue for the month of December 2011 was attributable to the major business sectors of Food and Beverage, and Fashion. The top 10 tenants of the retail portfolio contributed 7.8% of Suntec REITs total gross revenue for the month of December 2011 and occupied an area representing 35.4% of Suntec REITs total retail portfolio NLA.
OFFICE PORTFOLIO
Business Sector Analysis (By Gross Rental Income 1)
RETAIL PORTFOLIO
Business Sector Analysis (By Gross Rental Income1)
Legal Real Estate and Property Services Trading Manufacturing Shipping and Freight Forwarding Others Government and Government-Linked Offices Banking, Insurance and Financial Services Technology, Services and Consultancy Beauty / Health Clinics / Laboratories Consultancy / Services Institutions / Schools Travel / Leisure
2.5% 2.7% 15.5% 1.1% 4.1% 0.9% 1.0% 47.7% 16.4% 0.8% 0.4% 5.2% 1.3% 0.4%
Electronics / Technology Fashion Food and Beverage Gifts and Speciality / Books / Hobbies / Toys Homeware and Home Furnishings Hypermarket Jewellery and Watches Leisure and Entertainment / Sports and Fitness Beauty and Healthcare Others Services / Educational
2.1% 21.0% 31.9% 4.9% 8.9% 5.8% 3.2% 5.0% 4.5% 4.4% 8.3%
Note: 1 Includes one-third interest in One Raffles Quay and one-third interest in Marina Bay Financial Centre Towers 1 and 2.
Note: 1 Includes one-third interest in One Raffles Quay, one-third interest in the Marina Bay Link Mall and 60.8% interest in Suntec Singapore.
32
Property Portfolio
OFFICE PORTFOLIO - TOP 10 TENANTS BY GROSS RENTAL INCOME1

Tenant Business Sector NLA % of % of Total (sq ft) Office Monthly NLA Gross Rental Income Standard Chartered Bank Barclays Capital Services Ltd UBS AG BHP Billiton Marketing (Asia) Pte Ltd The Royal Bank of Scotland Oracle Corporation Singapore Pte Ltd Deutsche Bank Nomura Singapore Ltd Ernst & Young Macquarie Capital Securities (Singapore) Pte. Limited Banking, Insurance and Financial Services Banking, Insurance and Financial Services Banking, Insurance and Financial Services Trading Banking, Insurance and Financial Services Technology, Services and Consultancy Banking, Insurance and Financial Services Banking, Insurance and Financial Services Banking, Insurance and Financial Services Banking, Insurance and Financial Services 171,252 150,072 233,053 76,884 63,389 84,035 93,249 56,859 46,849 25,109 1,000,751 7.4 6.5 10.0 3.3 2.7 3.6 4.0 2.4 2.0 1.1 43.0 4.9 4.1 4.1 3.6 2.0 1.9 1.9 1.6 1.5 1.3 26.9
Total
Note: 1 Includes one-third interest in One Raffles Quay and one-third interest in Marina Bay Financial Centre Towers 1 and 2.
RETAIL PORTFOLIO - TOP 10 TENANTS BY GROSS RENTAL INCOME1

Tenant Business Sector NLA % of % of Total (sq ft) Retail Monthly NLA Gross Rental Income Carrefour Singapore Pte Ltd Rock Productions Pte Ltd Lei Garden Restaurant Pte Ltd RSH (Singapore) Pte Ltd FJ Benjamin Lifestyle Pte Ltd Suntec Food & Leisure Pte Ltd Jay Gee Enterprises (Pte.) Ltd True Fitness Pte. Ltd. Furniture & Furnishings Pte Ltd X-tra Designs Pte Ltd Hypermarket Services / Educational Food and Beverage Fashion Fashion Food and Beverage Fashion Leisure and Entertainment / Sports and Fitness Homeware and Home Furnishings Homeware and Home Furnishings 137,404 66,377 15,705 24,763 12,216 27,008 17,872 29,708 20,584 22,298 373,935 13.0 6.3 1.5 2.3 1.2 2.6 1.7 2.8 1.9 2.1 35.4 2.1 1.3 0.7 0.7 0.6 0.5 0.5 0.5 0.5 0.4 7.8
Total
Note: 1 Includes one-third interest in One Raffles Quay, one-third interest in the Marina Bay Link Mall and 60.8% interest in Suntec Singapore.
33
Lease Expiry Profile In FY 2011, approximately 631,095 sq ft of office space was renewed and signed, including a pre-commitment of approximately 233,000 sq ft of office leases expiring in FY 2012. As at 31 December 2011, 10.1%, 22.6% and 19.8% of the total office NLA are due to expire in FY 2012, FY 2013 and FY 2014 respectively, whilst 46.7% is due to expire in FY 2015 and beyond. For the retail portfolio, as at 31 December 2011, 28.5%, 32.7% and 17.1% of the total retail NLA1 are due to expire in FY 2012, FY 2013 and FY 2014 respectively, whilst 6.0% is due to expire in FY 2015 and beyond.
Note: 1 Adjusted for leases that will be affected by Phase 1 of the AEI in Suntec City Mall.
OffICE PORTFOLIO
Lease Expiry Profile
As at 31 December 2011 %
45 40 35 30 25 20 15 10 5 0
1
RETAIL PORTFOLIO
Lease Expiry Profile1,2
45
40.1 35.9
40 35 30 25
33.4 32.7 26.4 28.5
20.3
22.6 21.9
19.8
20 15
17.6 17.1
8.2
10.1
9.5
10.8
10 5 0
1.2
FY2012 FY2013 FY2014
2.4
0.9
3.6
FY2012
FY2013
FY2014
FY2015
FY2016 & Beyond
FY2015
FY2016 & Beyond
% of Total Monthly Gross Office Rental Income % of Total Office NLA

Note: Includes one-third interest in One Raffles Quay and one-third interest in Marina Bay Financial Centre Towers 1 and 2.
% of Total Monthly Gross Retail Rental Income % of Total Retail NLA

Notes: Includes one-third interest in One Raffles Quay, one-third interest in the Marina Bay Link Mall and 60.8% interest in Suntec Singapore. 2 Adjusted for leases that will be affected by Phase 1 of the AEI in Suntec City Mall.
1
34
Property Portfolio Suntec City
SUNTEC CIty - property statistics

Location Title Total Net Lettable Area (sq ft) Office Retail Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Gross Revenue (S$) Net Property Income (S$) Committed Occupancy (%)
3, 5, 6, 7, 8 and 9 Temasek Boulevard, Singapore Leasehold 99 years from 1989 2,129,804 1,295,216 834,5881 563 3,0732 2,383 million3 4,579 million4 (31 December 2010: 4,038 million) 237.5 million5,6 (2010: 216.7 million) 169.8 million6 (2010: 169.3 million) 98.21 (31 December 2010: 98.6)
Notes: 1 Includes 60.8% interest in the retail NLA in Suntec Singapore. 2 Owned and managed by the Management Corporation Strata Title Plan No. 2197 (MCST). 3 Includes the purchase price of 73,561.2 sq ft of strata office space amounting to S$136.3 million, and the investment of S$139.8 million for a 60.8% interest in Suntec Singapore. 4 Includes 60.8% interest in Suntec Singapore. 5 Comprises gross rental income of S$201.3 million and other income of S$8.8 million from Suntec City and S$27.4 million from Suntec Singapore. 6 Gross revenue and net property income from Suntec Singapore had been consolidated since 19 August 2011 following the acquisition of the increased stake.
35
Suntec City is an iconic integrated commercial development located in the Marina Bay Precinct within Singapores Central Business District. Developed by a consortium of successful business leaders from Hong Kong with a vision of making the complex The Business Capital of Asia, Suntec City is a landmark development which comprises five Grade A office towers, a world-class convention and exhibition centre, and one of Singapores largest shopping mall, all of which are interlinked by street level plazas and underground walkways. The world-famous Fountain of Wealth, which sits in the heart of Suntec City, embodies an abundance of life and an endless variety of bustling activity.
Suntec REIT owns 57% of Suntec City Office and 100% of Suntec City Mall, and in 2011 increased its interest in Suntec Singapore International Convention and Exhibition Centre to 60.8% from 20% previously. Easily accessible by car and public transport networks, Suntec City houses a total of 3,073 carparks over two basement levels, and is directly linked to the Esplanade Station and Promenade Station on the new Circle MRT line. The Managers objective for Suntec City is to enhance the properties held and reposition Suntec City into a premier MICE, business, shopping and lifestyle destination.
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SUNTEC CITY OFFICE

Business Sector Analysis (By Gross Rental Income)
SUNTEC CITY OFFICE

Lease Expiry Profile
40 35 30 25 20 15
39.1 34.7 36.2 33.8
13.1 13.8
13.1
15.4
Legal Real Estate and Property Services Trading Manufacturing Shipping and Freight Forwarding Others Government and Government-Linked Offices Banking, Insurance and Financial Services Technology, Services and Consultancy Consultancy / Services
2.1% 3.1% 18.4% 2.2% 8.3% 1.0% 2.0% 21.7% 31.2% 10.0%
10 5 0
FY2012
FY2013
FY2014
FY2015
FY2016 & Beyond
% of Monthly Gross Office Rental Income % of Office NLA
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Suntec City Office Suntec REIT owns a NLA of approximately 1.3 million sq ft in Suntec City Office Towers, comprising strata units in Towers One, Two and Three, and all strata units in Towers Four and Five. Towers One to Four are 45-storey buildings of column-free floor space, whilst Tower Five is an 18-storey building with large floor plates of up to 28,000 sq ft. With quality buildings fronting the Marina Bay skyline and complemented by a wealth of amenities from the integrated shopping mall, Suntec City Offices draw a good stream of diverse multinational firms ranging from sectors such as Banking, Insurance and Financial Services, Technology, Services and Consultancy, Trading, Shipping and Freight Forwarding. Diverse Tenant MIX For the month of December 2011, 31.2% of the total gross office revenue was attributable to the Technology, Services and Consultancy sector, followed by 21.7% and 18.3% from the Banking, Insurance and Financial Services sector and the Trading sector respectively. In terms of NLA, as at 31 December 2011, 29.0% of Suntec Citys office NLA for the month of December 2011 was attributable to the Technology, Services and Consultancy sector, followed by 26.0% and 17.6% from the Banking, Insurance and Financial Services sector and the Trading sectors respectively. The top 10 office tenants of Suntec City Office contributed 17.6% of Suntec Citys total gross revenue for the month of December 2011 and occupied an area representing 33.8% of the Suntec City office NLA owned by Suntec REIT. Lease Expiry Profile Based on the committed leases as at 31 December 2011, 13.8%, 36.2% and 33.8% of Suntec Citys office NLA is due to expire in FY 2012, FY 2013 and FY 2014 respectively, whilst 15.4% is due to expire in FY 2015 and beyond.
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SUNTEC CITY MALL Suntec City Mall is one of Singapores largest malls and a leading shopping destination, with more than 370 retail establishments offering a unique one-stop shopping, dining, recreation and entertainment experience for many. It caters to the needs of the working population from the five office towers within Suntec City and office buildings in the vicinity, the daily flow of tourists and locals, as well as the vast network of local and international delegates who convene at Suntec Singapore International Convention & Exhibition Centre for exhibitions, seminars and conferences. Comprising approximately 822,000 sq ft of net lettable retail space across three levels and a basement, Suntec City Mall is segmented into four thematic mall zones namely Galleria, the Tropics, the Fountain Terrace and the Entertainment Centre, each offering a variety of shopping, dining and entertainment options to appeal to the different market segments. In addition, there are five specialty zones, namely Happy Kidz, Tasty Treatz, e-life@Suntec, MPG and Galleria, which target various customer profiles and provide greater appeal to shoppers through a wider range of brands and enhanced shopping ambience. The exciting new tenants introduced into Suntec City Mall during the year included restaurants such as Marutama Ramen, Olive Vine and Paradise Inn; fashion stores such as Benjamin Barker, Cotton Amour, Elisa Litz, Glitter Glam, Hypnosis, Pachelbel, Payless Shoesource and Rockport; and lifestyle and concept stores such as
SUNTEC CITY RETAIL

Business Sector Analysis (By Gross Rental Income)
SUNTEC CITY RETAIL

Lease Expiry Profile1
40 35 30 25 20 15 10 5 0
31.5 27.6 24.4
29.8
16.8
Electronics / Technology Fashion Food and Beverage Gifts and Speciality / Books / Hobbies / Toys Homeware and Home Furnishings Hypermarket Jewellery and Watches Leisure and Entertainment / Sports and Fitness Beauty and Healthcare Others Services / Educational
2.8% 27.6% 25.6% 5.6% 1.2% 7.8% 4.1% 6.6% 4.7% 4.8% 9.2%
14.2
1.0
FY2012 FY2013 FY2014
2.5
3.8 0.1
FY2016 & Beyond
FY2015
% of Monthly Gross Retail Rental Income % of Retail NLA

Note: 1 Adjusted for leases that will be affected by Phase 1 of the AEI in Suntec City Mall.
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Alienware, Bottles & Bottles, Enavose, Flight Centre, Kiitos The Lifestyle Shop, Slumberland, amongst others. VibranT Tenant MIX For the month of December 2011, 53.2% of the total gross retail revenue was attributable to the Fashion and Food and Beverage sectors, and the remaining from other varied sectors such as the services / educational, hypermarket, leisure and entertainment and electronics sectors. In terms of NLA, as at 31 December 2011, 19.2% of Suntec City Malls NLA was attributable to the Food and Beverage sector, followed
by 17.5% and 16.1% from the Hypermarket sector and Leisure and Entertainment/Sports and Fitness sector respectively. The top 10 retail tenants of Suntec City Mall contributed 12.5% of Suntec Citys total gross revenue for the month of December 2011, representing 40.6% of the malls total NLA. Lease Expiry Profile Based on the committed leases as at 31 December 2011, 27.6%, 29.8% and 14.2% of Suntec Citys total retail NLA is due to expire in FY 2012, FY 2013 and FY 2014 respectively, whilst 6.3% is due to expire in FY 2015 and beyond.
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Property Portfolio Suntec Singapore International Convention & Exhibition Centre
Suntec Singapore International Convention and Exhibition Centre (Suntec Singapore) is a world-class meeting, convention and exhibition venue. With more than one million sq ft of versatile floor space over six levels, this award-winning facility can cater to events from 10 to 20,000 persons, offering direct access to 5,200 hotel rooms, 1,000 retail outlets, 300 restaurants within close proximity to Singapores entertainment and cultural attractions. On 18 August 2011, Suntec REIT secured strategic majority control of Suntec Singapore through the acquisition of an additional 40.8% equity stake, raising the effective stake from 20.0% to 60.8%. Since 1995, Suntec Singapore has hosted more than 18,000 events within its premier convention facility, including key notable events such as the World Trade Organization Ministerial Meetings in 1996,
the Annual Meetings of the Board of Governors of the International Monetary Fund and World Bank Group in 2006 and the APEC Leaders Week in 2009. It served as one of the largest sporting venues for the inaugural Youth Olympic Games in 2010. Suntec Singapore has received numerous international, regional and local accolades and awards since its inception, in recognition of its high standards of service excellence, dedication and passion. In 2011, it has garnered 11 major industry awards including the Asias Leading Meetings and Conference Centre award at the World Travel Awards 2011, Best International Venue award at the Exhibition News Awards 2011, AIPC Innovation Award at the AIPC Innovation Award 2011 and Best Convention and Exhibition Centre & Best MICE Sales Team awards at the CEI Asia Industry Awards 2011.
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42
Property Portfolio Park Mall
PARK MALL - property statistics

Location Title Total Net Lettable Area (sq ft) - Office - Retail Permissible Gross Lettable Area from acquired land (sq ft) Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Gross Revenue (S$) Net Property Income (S$) Committed Occupancy (%)
9 Penang Road, Singapore 238459 Leasehold 99 years from 1969 269,959 (existing Park Mall area) 126,043 143,916 65,454 118 346 245.1 million1 370 million1 (31 December 2010: 338 million) 22.3 million2 (2010: 22.5 million) 16.4 million (2010: 16.7 million) 100.0 (31 December 2010: 100.0)
Notes: 1 Includes the purchase price of 1,316.2 sq m of land along Penang Road amounting to S$15.1 million. 2 Comprises gross rental income of S$20.7 million and other income of S$1.5 million.
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Park Mall is an integrated office, lifestyle and home furnishing mall situated within the Orchard Road shopping belt. It is located next to Dhoby Ghaut MRT interchange station, a key transit hub for many commuters shuttling between the North-South line and the NorthEast line, and the new Circle MRT Line. Park Mall comprises a 15-storey office cum retail complex and has been conceptualised and launched as a premier furniture and lifestyle shopping mall. Major tenants at Park Malls offices include SSTC Education Centre, Nu Skin Enterprise Singapore Pte Ltd, NUS Extension, Altron Education Group and Star Cruise Pte Ltd, whilst major tenants at Park Malls retail area include Furniture & Furnishings Pte Ltd, X-tra Designs Pte Ltd, Furniture Club Holdings Pte Ltd and OB Singapore Operations Pte Ltd.
As part of the future asset enhancement plan for Park Mall, the Manager acquired from the Singapore Government two strips of land along Penang Road in July 2007 and in March 2008 amounting to approximately 14,167 sq ft for amalgamation with Park Mall, at a total acquisition cost of S$15.1 million. The purchase prices of the two strips of land are based on the development charges rates issued by the Singapore Government. Together, the two strips of land will create an additional floor area of about 65,454 sq ft for the property, and increase the total permissible gross floor area for Park Mall to approximately 450,000 sq ft. The Managers objective for Park Mall is to continue to optimise the current business returns and to position Park Mall for the future.
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Property Portfolio Chijmes
CHIJMes - property statistics

Location Title Net Lettable Area (sq ft) Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Gross Revenue (S$) Net Property Income (S$) Committed Occupancy (%)
30 Victoria Street, Singapore 187996 Leasehold 99 years from 1991 79,794 31 97 128 million 143.7 million1 (31 December 2010: 134 million) 10.5 million2 (2010: 10.3 million) 7.2 million (2010: 7.1 million) 100.0 (31 December 2010: 99.5)
Notes: 1 As of 15 October 2011. 2 Comprises gross rental income of S$9.9 million and other income of S$0.6 million.
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CHIJMES is an award-winning gazetted national monument recognised by UNESCO as an Asia Pacific Culture Heritage Conservation development with two historic buildings, Caldwell House and the CHIJMES Hall. A premier dining and entertainment establishment in the heart of Singapores Civic and Cultural District, CHIJMES offers a variety of culinary delights, as well as a unique venue for selective performances and special events. The key events held at CHIJMES include the third annual AsiaOne Adventure Race, the annual New Year Countdown party, as well as live screenings of the English Premier League and UEFA Champions League
soccer matches by tenants. CHIJMES also played host to patrons of Singapores Formula One Grand Prix night race held in late September with a range of promotional activities and entertainment. Major tenants at CHIJMES include Lei Garden Restaurant Pte Ltd, Watabe Singapore Pte Ltd, Maracana Group Pte Ltd and Prime Cuisine Pte Ltd. On 27 October 2011, Suntec REIT announced the divestment of CHIJMES for S$177 million and the transaction was completed on 20 January 2012.
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Property Portfolio One Raffles Quay
One rafFles quay - property statistics

Location Title Total Net Lettable Area (sq ft) Net Lettable Area (sq ft) Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Net Property Income (S$) Committed Occupancy (%)
One Raffles Quay, Singapore 048583 Leasehold 99 years from 2001 1,335,360 445,1201 29 713 941.5 million1 1,082 million1 (31 December 2010: 1,023 million) 29.6 million2 (2010: 38.7 million) 100.0 (31 December 2010: 100.0)
Notes: 1 Reflects one-third interest. 2 Comprises other income, dividend income and interest income from the jointly controlled entity net of all taxes.
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One Raffles Quay is a prime landmark commercial development located in Singapores Central Business District comprising a 50-storey office tower (the North Tower), a 29-storey office tower (the South Tower), an underground link to the Raffles Place MRT station with excellent connectivity and accessibility along the North-South and East-West MRT lines, a sheltered plaza serving as a drop-off point and a hub car park with 713 car park lots. Designed by internationally renowned architectural firm Kohn Pedersen Fox Associates of New York, its state-of-the-art building services and management systems cater to the needs of global financial tenants. One Raffles Quay has a large and diversified tenant base comprising 24 office tenants and five retail tenants. The major office tenants include Barclays PLC, Credit Suisse (Singapore) Limited, Deutsche Bank Aktiengesellschaft, Ernst & Young Services Pte. Ltd., Societe Generale, The Royal Bank of Scotland and UBS AG. In equal partnership with reputable property companies Hongkong Land and K-REIT Asia, Suntec REIT holds a one-third interest in One Raffles Quay through the acquisition of the entire issued share capital of Comina Investment Limited, a special purpose company holding one-third of the issued share capital of One Raffles Quay Pte Ltd, the developer and owner of the property. A prestigious iconic prime grade A office development with long term growth potential, One Raffles Quay is well-positioned to capitalise on the future growth of the Marina Bay area, given its proximity to Marina Bay. STRONG TENANT MIX For the month of December 2011, 92.3% of the total gross revenue was attributable to the Banking, Insurance and Financial Services sector. Lease Expiry Profile Based on the committed leases as at 31 December 2011, 27.5% of One Raffles Quays total NLA is due to expire during the period from FY 2012 to FY 2015, whilst 72.5% is due to expire in FY 2016 and beyond. The Managers objective for One Raffles Quay is to generate sustainable growth from its interest in the property for Suntec REIT unitholders.
ONE RAFFLES QUAY

Business Sector Analysis (By Gross Rental Income )
1
ONE RAFFLES QUAY

100 90 80 70 60 50 40
71.5 72.5
Legal Real Estate and Property Services Others Banking, Insurance and Financial Services Clinics / Laboratories Food and Beverage Services / Educational Note: 1 Reflects one-third interest.
4.1% 1.8% 1.0% 92.3% 0.3% 0.4% 0.1%
30 20 10 0
0.9 0.8
FY 2012
7.5 8.2
FY 2013
6.2 5.1
FY 2014
13.9 13.4
FY 2015 FY 2016 & Beyond
% of Monthly Gross Rental Income % of NLA

1
Note: Reflects one-third interest.
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Property Portfolio MBFC Properties
MBFC Properties - property statistics

Location Title Total Net Lettable Area (sq ft) Net Lettable Area (sq ft) Number of Tenants (actual) Car Park Lots Purchase Price (S$) Market Valuation (S$) Net Property Income (S$) Committed Occupancy (%)
8 Marina Boulevard, Singapore 018981 Leasehold 99 years from 2005 1,744,959 581,6531 83 695 1,495.81 million 1,523 million1 (31 December 2010: 1,511 million) 70.3 million2 (9 to 31 December 2010: 2.3 million) 98.6 (31 December 2010: 96.5)
Notes: 1 Reflects one-third interest. 2 Comprises other income, dividend income and interest income from the jointly controlled entity net of all taxes.
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The Marina Bay Financial Centre is a prime landmark commercial development strategically located in the heart of Marina Bay. Designed by the internationally renowned architectural firm Kohn Pedersen Fox Associates of New York, Phase 1 of the development comprises a 33-storey office tower (Tower 1), a 50-storey office tower (Tower 2), Marina Bay Residences, the Marina Bay Link Mall which consists of approximately 94,508 sq ft of NLA for retail use including the ground levels of Tower 1 and Tower 2 and the Ground Plaza, and 695 car park lots. There is an underground link from Marina Bay Link Mall to the Raffles Place MRT Station, and is directly connected to the future Downtown MRT Station when it is operational around 2013. The MBFC Properties has a premier tenant base, with major office tenants including American Express International, Bank Pictet, Barclays Capital, BHP Billiton, ICAP, Macquarie Capital Securities, Murex Southeast Asia Pte Ltd, Nomura Singapore, Prudential Asset Management and Standard Chartered Bank. In equal partnership with reputable property companies Hongkong Land and K-REIT Asia, Suntec REIT holds a one-third interest in the MBFC Properties through the acquisition of one-third of the issued share capital of BFC Development Pte. Ltd. The MBFC Properties comprises the office and retail properties under Phase 1 but does not include the Marina Bay Residences. The Marina Bay Sands Integrated Resort, Singapore Flyer, Gardens by the Bay, Esplanade Theatres, international and boutique hotels, residential apartments and waterside food and beverage outlets are all within close proximity.
STRONG Tenant MIX For the month of December 2011, 66.1% of the total gross revenue was attributable to the Banking, Insurance and Financial Services sector. Lease Expiry Profile Based on the committed leases as at 31 December 2011, 5.7% of the total NLA of the MBFC Properties is due to expire during the period from FY 2012 to FY 2015, whilst 92.9% is due to expire in FY 2016 and beyond. The Managers objective for the MBFC Properties is to generate sustainable growth from its interest in the property for Suntec REIT unitholders.
mbfc properties
Business Sector Analysis (By Gross Rental Income1)
mbfc properties
100 90 80 70 60 50 40 30
92.6 92.9
Legal Real Estate and Property Services Trading Banking, Insurance and Financial Services Technology, Services and Consultancy Electronics / Technology Note: Reflects one-third interest.
2.4% 2.6% 19.4% 66.1% 2.6% 0.1%
Fashion Food and Beverage Gifts & Speciality / Books / Hobbies / Toys Jewellery and Watches Beauty / Health Services / Educational Others
0.5% 3.3% 0.2% 0.1% 0.4% 1.9% 0.4%
20 10 0
4.2 3.0
FY 2012 FY 2013
2.2 1.8
FY 2014
1.0 0.9
FY 2015 FY 2016 & Beyond
% of Monthly Gross Rental Income % of NLA Note: 1 Reflects one-third interest.
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Market Report
The Singapore Office Property Market

Overview Persistent weakness in the United States and Europe dampened outputs across most industries in Singapore, resulting in a moderated Gross Domestic Product (GDP) growth in 2011. Notwithstanding, the GDP growth for the whole year of 2011 is still in line with market expectation at 4.9%. However, GDP growth in 2012 may be moderated following challenges from the lack-luster macroeconomic growth and global uncertainties. Muted growth between 1%-3% is expected for the next two years as both the public and private sectors have indicated lower businesses expectations, net profits and fewer hires in 2012. The brooding market sentiments are expected to have a negative trickledown effect on the office sector. Unlike previous years, where office supply was relatively limited, the current office market is swinging in favour of tenants as new office supply is completed and available. Since 2009, the annual new office supply average to about 2.06 million sq ft, which is a stark difference to the 10-year average annual new supply prior 2009 (from 1998 to 2008) of 1.01 million sq ft. Though the island-wide occupancy rate inched up marginally by 0.4% in 4Q 2011 to 88.7%, the office market, especially in the Downtown Core Area, is still absorbing the additional new supply that was released in the past three years. Whilst the total office new supply in the last three years (2009 to 2011) amounted to about 6.1 million sq ft, new demand has been lagging, with only a total of 3.7 million sq ft. This shift in the office dynamics towards office tenants favour is made more prominent by waning office demand resulting from softening economic conditions. Whilst demand from smaller office space users kept up, many bigger office space users adopted a wait and see stance. Some had reportedly sub-let their excess office space to streamline EFFECTIVE GROSS OFFICE RENTS
$ per sq ft per month
20 18 16 14 12 10 8 6 4 2 0 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11
their operation costs. Though the emergence of such shadow office space is not as rampant as 2008/2009, such phenomena is likely to intensify the current challenges faced by landlords. Expectations for Grade A+ office buildings in Raffles Place have moderated as monthly gross office rents dipped 3.9% quarter-onquarter from $13.50 per sq ft in previous quarter to about $13.00 per sq ft in 4Q 2011. Traditional Grade A office spaces in Raffles Place were also affected as average monthly gross office rents fell from $10.50 to $10.25 per sq ft. Outlook The emergence of shadow space, generous rents incentives from landlords and dropping office rents seem to indicate early signs of market softening. The year of 2012 looks challenging for the office sector. New supply completed offers more options for tenants thus shifting the office market in their favour. Landlords may face greater competition from the additional supply released since 2009, amounting to some 1.7 million sq ft to be completed in 2012. The softening market condition may be further exacerbated by declining office demand in view of the global uncertainty. Against a backdrop of potential worsening Euro and US market conditions, coupled with more supply, office rents may soften up to 15% year-on-year (y-o-y). However, unlike the 2008/2009 global financial crisis, the expected correction is likely to be more gradual. Nonetheless, such correction is still largely pending the resolution of the Euro debt issue and the recovery of US economy. Any quick recovery or optimism in these economies is likely to encourage greater business expansion and improve current office market condition. OFFICE NEW SUPPLY, NEW DEMAND, OCCUPANCY RATES
000 sq ft
1,400 1,200 1,000 800 600 400 200 0 -200 -400 -600 4Q 07 2Q 08 4Q 08 2Q 09 4Q 09 2Q 10 4Q 10 2Q 11 4Q 11
%
94 93 92 91 90 89 88 87 86 85 84
Raffles Place Grade A Orchard Road Grade A Suburban Areas
Shenton Way/Robinson Road/Tanjong Pagar Grade A Suntec/Marina/City Hall Grade A Raffles Place Grade A+ (New basket of office rents created in 4Q 2010)
Source: Knight Frank Research
Office Space New Supply (sq ft) Total, Island-wide Occupancy Rate (%)
Office Space New Demand (sq ft)
Source: URA, Knight Frank Research
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The Singapore RETAIL Property Market

Overview Amid healthy economic growth and record high employment rates in 2011, the Retail Sales Index (RSI) excluding Motor Vehicles grew 3.9% over the course of the year. Notably, the RSI for Department Stores, Watches and Jewellery, and Recreational Goods have declined from the start of the year, signifying declining discretionary spending. Recent consumer confidence surveys have also demonstrated increased pessimism over the third quarter of 2011. With slower economic growth of 1% - 3% expected in 2012, the retail sector may see tougher times in the coming year. Supply conditions along Orchard Road remained relatively stable compared to the last two years. However, approximately 240,000 sq ft of net lettable area from the refurbished 268 Orchard and the redeveloped Orchard Gateway (formerly Hotel Phoenix/Specialists Shopping Centre and Orchard Emerald) is expected to be completed in 2013. Average island-wide retail occupancy rates in 2011 improved 0.5% against the previous year to reach a record high at 94.7%. Change in the occupancy rates y-o-y outside the Central Region accounted for most of the increase, rising by 1.0%, while Central Region saw a marginal increase of 0.2%. Within Central Region, occupancy rates at the Orchard and City Fringe areas had declined by 0.3% and 0.9% y-o-y respectively. On the contrary, occupancy rates at Downtown Core and Rest of Central Area had improved by 3.9% and 0.4% y-o-y. Over the next 2 years, approximately 2.5 million sq ft of new lettable retail area will be completed, of which the majority (57.0%) will be located outside the Central Region, while the remainder will be in City Fringe (19.8%) and Central Region (23.2%) areas. New lifestyle hubs will be added to the heartlands and at new growth areas where the Government is focusing on in the future. With no major upcoming supply in Central Area in the next few years, the performance of malls in these areas will largely depend on demand conditions, i.e. domestic retail expenditure and tourism receipts. Island-wide prime retail rents increased approximately 2.4% over the year following new market entrants looking to set up its first store in prime retail spaces, high retail spending and strong tourist arrivals and expenditure this year. While prime retail spaces in Fringe area performed well, prime rentals in the Marina Centre, City Hall and Bugis areas registered a fall of 2.5% y-o-y. To remain relevant and to compete better with upcoming newer malls, Suntec City, the largest mall in this area, announced its S$410 million makeover, scheduled to commence in 2012. The asset enhancement initiative is projected to complete in 2015. This exercise aims to improve the shopping experience of the mall with a view to optimise returns. Outlook Moving forward, the global economy is clouded by economic uncertainty. The Singapore government has forecasted that the economy may grow at modest rates of between 1% - 3% in 2012. In tandem with the subdued economic forecast and plausible cutting back of spending by consumers, the retail property market may face a slowdown in rent escalation as retailers expect smaller takings and face rising operational costs. In addition, new upcoming retail developments slated for completion in the next few years sets the stage for a more competitive landscape. Barring a significant shock to the economy, we expect rentals island-wide to stay relatively flat over the year. Nevertheless, well-positioned malls which are well-managed will better weather any downturn.
1
Singapore Department of Statistics, Press Release, Retail Sales Index; The Retail Sales Index is seasonally adjusted and at constant prices, thus representing retail sales volume.
PRIME RETAIL MONTHLY GROSS RENTS

$ per sq ft per month
55 50 45 40 35 30 25 20 15 4Q 07 2Q 08 4Q 08 2Q 09 4Q 09 2Q 10 4Q 10 2Q 11 4Q 11
RETAIL NEW SUPPLY, NEW DEMAND, OCCUPANCY RATES

000 sq ft
800 600 94 400 200
%
95
93
0 92 -200 -400 4Q 07 2Q 08 4Q 08 2Q 09 4Q 09 2Q 10 4Q 10 2Q 11 4Q 11
Marine Centre, City Hall, Bugis *
Orchard (Central)
Shop Space New Supply (sq ft) Total, Island-wide Occupancy Rate (%)
Shop Space New Demand (sq ft)
Rents are based on pre-defined portfolio of properties; refers to prime specialty shop space on ground level with good frontage and of up to 1,500 sq ft.
Source: Knight Frank Research
Source: URA, Knight Frank Research
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Investor Communications
The Manager is committed towards upholding the utmost standards of accountability to Suntec REITs unitholders. It achieves this through good corporate transparency practices, maintaining an active channel of communication for investors, analysts and other stakeholders to access accurate and timely information on Suntec REIT, and in working towards fostering good long-term relationships with its stakeholders. The senior management team of the Manager has held regular meetings and conference calls with institutional investors throughout the year. Our participation in various key regional equity and property conferences has also enabled us to remain accessible to investors and the opportunity to provide key strategic and performance updates on Suntec REIT. The second annual general meeting of Suntec REIT unitholders in April 2011 was well-attended by retail investors. It was an opportune time for senior management of the Manager to actively engage retail investors in their enquiries and discussions about Suntec REIT. The Manager conducts regular post-results analyst and media briefings every six months subsequent to the release of the first-half and fullyear financial results. There is extensive coverage on Suntec REIT, with research coverage by analysts from 22 local and foreign brokerage firms to date, providing a global reach to shareholders and potential investors worldwide. In recognition of its good corporate transparency practices, Suntec REIT was conferred a Runner-up Award for the Most Transparent Company Award 2011 under the REITs category in the SIAS Investors Choice Awards 2011. This is the sixth year that Suntec REIT has received the award for corporate transparency.
The Suntec REIT website is regularly updated with current financial and corporate information on Suntec REIT, including press releases, announcements, corporate earnings results and other key information. Users can access the website at www.suntecreit.com to download these reports. UNITHOLDER ENQUIRIES For more information on Suntec REIT and its operations, please contact the Manager, ARA Trust Management (Suntec) Limited via the following: Telephone: Fax: Email: Website: +65 6835 9232 +65 6835 9672 enquiry@suntecreit.com www.suntecreit.com
PROPOSED 2012/2013 CALENDAR APRIL 2012 Annual General Meeting Announcement of the first quarter results MAY 2012 Books closure date to determine the first quarter distribution entitlement The first quarter distribution JULY 2012 Announcement of the second quarter and half-year results AUGUST 2012 Books closure date to determine the second quarter distribution entitlement The second quarter distribution OCTOBER 2012 Announcement of the third quarter results NOVEMBER 2012 Books closure date to determine the third quarter distribution entitlement The third quarter distribution FEBRUARY 2013 Books closure date to determine the fourth quarter distribution entitlement The fourth quarter distribution JANUARY 2013 Announcement of the fourth quarter and full year results
Corporate Governance
54 Corporate Governance
Financial Contents
64 65 66 67 68 69 Report of the Trustee Statement by the Manager Independent Auditors Report Statements of Financial Position Statements of Total Return Distribution Statements 71 72 75 76 Statements of Movements in Unitholders Funds Portfolio Statements Consolidated Statement of Cash Flows Notes to the Financial Statements 115 117 118 121 123 Statistics of Unitholdings Additional Information Notice of Annual General Meeting Corporate Directory Proxy Form
54
ARA Trust Management (Suntec) Limited, as the manager of Suntec REIT (the Manager), has adopted an overall corporate governance framework designed to meet best practice principles. The Manager also recognises that an effective corporate governance culture is critical to its performance and consequently, the success of Suntec REIT, which it manages. In particular, the Manager has an obligation to act honestly, with due care and diligence, and in the best interest of Suntec REIT unitholders (Unitholders).
ACHIEVEMENT
The Manager won the Most Transparent Company Award 2011 (Runner-up, REITs category) at the Investors Choice Awards 2011 organised by the Securities Investors Association of Singapore (SIAS). This affirms the Managers commitment to a high standard of corporate governance and accountability to Unitholders. The following segments describe the Managers main corporate governance policies and practices. They encompass proactive measures for avoiding situations of conflict and potential conflict of interest, including prioritising the interests of Unitholders over the Managers, ensuring that applicable laws and regulations are complied with, and that the Managers obligations under the Trust Deed (as defined below) are properly and efficiently carried out. The Manager confirms that it has adhered to the principles and guidelines as set out in the Code of Corporate Governance 2005 (the Code) where applicable, and has specified and explained areas of non-compliance.
THE MANAGER OF SUNTEC REIT

The Manager has general powers of management over the assets of Suntec REIT. The Managers main responsibility is to manage Suntec REITs assets and liabilities in the best interest of Unitholders. The primary role of the Manager is to set the strategic direction of Suntec REIT and make recommendations to HSBC Institutional Trust Services (Singapore) Limited, as trustee of Suntec REIT (the Trustee), on the acquisition, divestment and enhancement of assets of Suntec REIT in accordance with its stated investment strategy. Other main functions and responsibilities of the Manager include: 1. using its best endeavours to ensure that the business of Suntec REIT is carried out and conducted in a proper and efficient manner and to conduct all transactions with or for Suntec REIT at arms length and on normal commercial terms; 2. preparing property reports on a regular basis, which may contain forecasts on net income, capital expenditure, sales and valuations, explanations of major variances to previous forecasts, written commentary on key issues and underlying assumptions on inflation, annual turnover, occupancy costs and any other relevant assumptions. The purpose of these reports is to monitor and explain the performance of Suntec REITs assets; 3. ensuring compliance with the applicable provisions of the Securities and Futures Act and all other relevant legislation, the Listing Manual of the Singapore Exchange Securities Trading Limited (the SGX-ST), the Code on Collective Investment Schemes (CIS Code) issued by Monetary Authority of Singapore (MAS), including the Property Funds Appendix, the Trust Deed (as amended), the tax ruling dated 15 June 2004 issued by the Inland Revenue Authority of Singapore and all relevant contracts; 4. attending to all regular communications with Unitholders; and 5. supervising the property managers which provide property management, lease management, marketing and marketing co-ordination services in relation to Suntec REITs properties pursuant to the respective property management agreements. Suntec REIT, constituted as a trust, is externally managed by the Manager and accordingly, it has no personnel of its own. The Manager appoints experienced and well-qualified management to handle its day-to-day operations. The Manager is appointed in accordance with the terms of the Trust Deed dated 1 November 2004 as amended by a First Supplemental Deed dated 25 January 2006, a Second Supplemental Deed dated 20 April 2006, a Third Supplemental Deed dated 30 July 2007, a Fourth Supplemental Deed dated 11 October 2007, a Fifth Supplemental Deed dated 29 September 2008, a Sixth Supplemental Deed dated 14 April 2010 and a First Amending and Restating Trust Deed dated 7 September 2010 (collectively, the Trust Deed). The Trust Deed outlines certain circumstances under which the Manager can be removed by notice in writing given by the Trustee in favour of a corporation appointed by the Trustee, upon the occurrence of certain events, including the Unitholders by a resolution passed by a simple majority of Unitholders, present and voting at a meeting of Unitholders, duly convened and held in accordance with the provisions of the Trust Deed.
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THE BOARDS CONDUCT OF AFFAIRS

Principle 1 Every company should be headed by an effective Board to lead and control the company. The Board is collectively responsible for the success of the company. The Board works with Management to achieve this and the Management remains accountable to the Board.
The Board of Directors of the Manager (the Board) is entrusted with responsibility for the overall management of the Manager. The Board is responsible for the overall corporate governance of the Manager, including establishing goals for managing and monitoring the achievement of these goals. The Board is also responsible for the strategic business direction and risk management of Suntec REIT. All Board members participate in matters relating to corporate governance, business operations and risks, financial performance and the nomination and appointment of directors. The Board has established a framework for management of the Manager and Suntec REIT, including a system of internal controls and risk management processes. The Board meets regularly to review the Managers key activities. Board meetings are held once every quarter (or more often if necessary) to discuss and review the strategies and policies of Suntec REIT, including any significant acquisitions and disposals, the annual budget, the financial performance of Suntec REIT and to approve the release of quarterly, half year and full year results. The Board also reviews the assessment of key risks to the assets of Suntec REIT, as well as financial and treasury management administration and acts upon any comments from the auditors of Suntec REIT. Where necessary, additional meetings would be held to address significant transactions or issues requiring the Boards attention. The Articles of Association of the Manager permits Directors participation in meetings by way of tele-conference or video conference. Four Board meetings were held during the financial year ended 31 December 2011 (FY 2011). The Board has adopted a set of internal controls which it believes is adequate in safeguarding Unitholders interest and Suntec REITs assets. Appropriate delegation of authority has been provided to management of the Manager (Management) to facilitate operational efficiency with oversight by the Board and this includes, among other things, approval limits for capital expenditure and operating of bank accounts. Apart from matters that specifically require approval from the Board, the Board approves transactions exceeding established threshold limits and delegates authority for transactions below those limits to Board Committees. Changes to regulations, policies and accounting standards are monitored closely. Where the changes have an important impact on Suntec REIT and its disclosure obligations, the Directors are briefed either during a Board meeting, at specially convened sessions or via circulation of Board papers. Relevant updates, news releases issued by the SGX-ST and the Accounting and Corporate Regulatory Authority (ACRA) will also be circulated to the Board for information. Newly appointed Directors are given letters explaining the terms of their appointment as well as their duties and obligations. An orientation is arranged for these Directors to be briefed on the business activities of Suntec REIT and its strategic directions and policies.
BOARD COMPOSITION AND GUIDANCE

Principle 2 There should be a strong and independent element on the Board, which is able to exercise objective judgement on corporate affairs independently, in particular, from Management. No individual or small group of individuals should be allowed to dominate the Boards decision making.
The Board presently comprises nine members, four of whom are independent. The Chairman of the Board is Mr. Chiu Kwok Hung, Justin. The composition of the Board is determined using the following principles: 1. the Chairman of the Board should be a Non-executive Director; 2. the Board should comprise Directors with a broad range of commercial experience including expertise in fund management and the property industry; and 3. at least one-third of the Board should comprise Independent Directors. The composition of the Board is reviewed regularly to ensure that the Board has the appropriate mix of expertise and experience. In particular, the Manager strives to ensure that the Board as a whole has the requisite background, experience and knowledge in business, finance and management
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skills critical to Suntec REITs businesses. Collectively and individually, the Directors act in good faith and exercise due diligence and care in the course of deliberations and consider objectively at all times the interests of Suntec REIT and its Unitholders. The Board is of the view that its current composition of persons, who as a group provide the necessary core competencies, is adequate and that the current Board size is appropriate, taking into consideration the nature and scope of Suntec REITs operations. Profiles of the Directors and other relevant information are set out on Pages 16 to 19 of this Annual Report. At least one-third of the Board comprises Independent Directors. The Independent Directors exercise objective judgement on Suntec REITs affairs and are independent from Management. The Independent Directors have no relationship with the Manager, its related companies or their officers that could interfere, or be reasonably perceived to interfere, with the exercise of their independent judgement. Non-executive Directors contribute to the Board process by monitoring and reviewing Managements performance against goals and objectives. Their views and opinions provide alternative perspectives to Suntec REITs business and enable the Board to make informed and balanced decisions. It also enables the Board to interact and work with Management to help shape the strategic process. When reviewing Management proposals or decisions, the Non-executive and Independent Directors bring independent judgement to bear on business activities and transactions involving conflicts of interest and other complexities. A healthy exchange of ideas and views between the Board and Management through regular meetings and updates enhances the management of Suntec REIT. This, together with a clear separation of roles between Chairman and Chief Executive Officer (CEO), provide a healthy and professional relationship between the Board and Management.
BOARD COMMITTEE
The Board is supported by various Board Committees, namely the audit committee and designated committee to assist the Board in discharging its responsibilities and enhance its corporate governance framework. The Board has delegated specific responsibilities to these Board Committees and their composition and terms of reference are described in this Report. The Board accepts that while these Board Committees have the authority to examine particular issues in their specific areas respectively, the Board Committees shall report back to the Board with their decision and/or recommendations and the ultimate responsibility on all matters lies with the Board.
Designated Committee Constituted by the Board on 26 October 2010, the designated committee (Designated Committee) was formed to assist the Board: 1. in reviewing Managements proposal on the structure of financing and refinancing strategies for recommendation to the Board for approval; and 2. in reviewing and approving Managements proposal on hedging strategies, financing and re-financing arrangements and transactions involving derivative instruments for hedging purposes. The Designated Committee would also undertake other reviews and projects as may be requested by the Board. The Designated Committee comprises the following members : Mr. Chow Wai Wai, John Mr. Tan Kian Chew Mr. Chen Wei Ching, Vincent Ms. Seow Bee Lian, Cheryl Chairman Member Member Member*
*Ms. Seow is the Senior Director, Group Finance of ARA Asset Management Limited.
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MEETING ATTENDANCE
The matrix of Board members participation in the various Board and its Board Committee meetings and attendance thereat for FY 2011 are as follows: Board Meetings Board Members Mr. Chiu Kwok Hung, Justin Mr. Lim Hwee Chiang, John Mr. Ip Tak Chuen, Edmond (Alternate Director Mr. Ma Lai Chee, Gerald) Mr. Tan Kian Chew Mrs. Sng Sow-Mei (alias Poon Sow Mei) Mr. Lim Lee Meng Mr. Chen Wei Ching, Vincent Mr. Chow Wai Wai, John Mr. Yeo See Kiat Participation Chairman Member Member Attendance/ Number of Meetings 4/4 4/4 4/4 Audit Committee Meetings Participation NA NA NA Attendance/ Number of Meetings NA NA NA
Member Member Member Member Member Member and CEO
4/4 4/4 4/4 4/4 4/4 4/4
Chairman Member Member Member NA CEO
5/5 5/5 5/5 5/5 NA NA
There were no Designated Committee meetings held in FY2011.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER

Principle 3 There should be a clear division of responsibilities at the top of the company the working of the Board and the executive responsibility of the companys business which will ensure a balance of power and authority, such that no one individual represents a considerable concentration of power.
The roles of Chairman and CEO are separate and held by Mr. Chiu Kwok Hung, Justin and Mr. Yeo See Kiat respectively. The separation of responsibilities between the Chairman and the CEO facilitates effective oversight and a clear segregation of duties. The Chairman leads the Board and ensures that its members work together with Management in a constructive manner to address strategies, business operations and enterprise issues. The CEO has full executive responsibilities over the business direction and operational decisions of managing Suntec REIT in accordance with the objectives establishd by the Board.
BOARD MEMBERSHIP AND PERFORMANCE

Principle 4 Principle 5 There should be a formal and transparent process for the appointment of new directors to the Board. There should be a formal assessment of the effectiveness of the Board as a whole and the contribution by each director to the effectiveness of the Board.
As the Manager is not itself a listed entity, the Manager does not consider it necessary for the Board to establish a nominating committee. The Manager believes that contributions from each Director go beyond his/her attendance at Board and its Board Committee meetings and are reflected in the long term success of Suntec REIT. The Board performs functions that a nominating committee would perform, namely, tabling nominations to the Board, reviewing the structure, size and composition of the Board and reviewing the independence of Board members. In reviewing and recommending the appointment of new Directors, the Board takes into consideration the current Board size and mix, and the principles outlined earlier in this statement. The Board also reviews the candidates ability to contribute to the proper guidance of the Manager in its management of Suntec REIT.
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The independence of Directors is reviewed upon appointment and thereafter the Board reviews the independence of Board members annually with reference to the guidelines set out in the Code. The Board has determined that Mr. Tan Kian Chew, Mrs. Sng Sow-Mei, Mr. Lim Lee Meng and Mr. Chen Wei Ching, Vincent are considered to be Independent Directors. Although the Directors hold multiple board representations in other companies, the Board ensures that sufficient time and attention are given by the Directors to the affairs of the Manager and Suntec REIT. The Board is of the view that such multiple board representations do not hinder the Directors from carrying out their duties in the Manager and Suntec REIT. Reviews of Board performance as appropriate are informal. Renewal or replacement of Board members do not necessarily reflect their contributions to-date, but may be driven by the needs of Suntec REIT and its business. The Manager believes that Board performance would be better reflected and evidenced by proper guidance, diligent oversight and able leadership and support that the Board members lend to Management to steer Suntec REITs performance under favourable or challenging market conditions. Ultimately, the interests of Suntec REIT will be safeguarded and reflected by maximisation of Unitholders value.
ACCESSS TO INFORMATION
Principle 6 In order to fulfil their responsibilities, Board members should be provided with complete, adequate and timely information prior to Board meetings and on an on-going basis.
Management provides complete, adequate and timely information to the Board on Suntec REITs affairs and issues that require the Boards decision. Explanatory background information relating to matters brought before the Board includes quarterly results announcement, budgets, and copies of relevant disclosure documents. The CEO keeps Board members abreast of key developments affecting Suntec REIT as well as material transactions so that the Board is kept fully aware of the affairs of Suntec REIT. All Directors have separate and independent access to Management, Company Secretary, internal and external auditors at all times. Board meetings for each year are scheduled in advance to facilitate Directors individual arrangements and commitments. Board papers are generally circulated at least three days in advance of each meeting and include background explanatory information for the Directors to prepare for the meeting and make informed decisions. The Company Secretary attends all Board meetings and assists the Board in ensuring that Board procedures and all other rules and regulations applicable to the Manager are complied with. The Company Secretary works with the Chairman to ensure that information flows within the Board and its Board Committee and between senior management and the Non-executive Directors. The Company Secretary will assist with professional development and training for Directors when required to do so. The appointment and the removal of the Company Secretary shall be reviewed by the Board. The Manager has in place procedures to enable Directors, whether as a group or individually, to obtain independent professional advice as and when necessary, in furtherance of their duties, at the Managers expense. The appointment of such independent professional advisors is subject to approval by the Board.
REMUNERATION MATTERS
Principle 7 Principle 8 There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual directors. No director should be involved in deciding his own remuneration. The level of remuneration should be appropriate to attract, retain and motivate the directors needed to run the company successfully but companies should avoid paying more than is necessary for this purpose. A significant proportion of executive directors remuneration should be structured so as to link rewards to corporate and individual performance. Each company should provide clear disclosure of its remuneration policy, level and mix of remuneration, and the procedure for setting remuneration in the companys annual report. It should provide disclosure in relation to its remuneration policies to enable investors to understand the link between remuneration paid to directors and key executives, and performance.
Principle 9
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All Directors and employees of the Manager are remunerated by the Manager from the fees it received from Suntec REIT, and not by Suntec REIT.
ACCOUNTABILITY
Principle 10 The Board should present a balanced and understandable assessment of the companys performance, position and prospects. The Board seeks to keep Unitholders updated on Suntec REITs financial performance, position and prospects through quarterly and annual financial reports as well as timely announcements on developments in its businesses. Quarterly results are released to Unitholders within 45 days of the reporting period, while the full year results are released to Unitholders within 60 days of the financial year end. In presenting the financial reports, the Board aims to provide a balanced and understandable presentation of Suntec REITs financial performance, position and prospects. Management provides the Board with a continual flow of relevant information on the performance on a timely basis in order that the Board may effectively discharge its duties.
AUDIT COMMITTEE
Principle 11 The Board should establish an Audit Committee with written terms of reference which clearly set out its authority and duties. The Board has established an audit committee (Audit Committee) to assist in the discharge of its responsibilities. The Audit Committee comprises four Independent Directors, namely: Mr. Tan Kian Chew Mrs. Sng Sow-Mei (alias Poon Sow Mei) Mr. Lim Lee Meng Mr. Chen Wei Ching, Vincent Chairman Member Member Member
The Audit Committee members have professional expertise and experience in financial and business management fields. The Board is of the view that members of the Audit Committee are appropriately qualified, with the necessary accounting and financial management expertise and experience to discharge their responsibilities. Five Audit Committee meetings were held for FY 2011. In keeping with best practices in corporate governance, the Board has established that a majority of members of the Audit Committee (including the Chairman) shall be Independent Directors. The role of the Audit Committee is to monitor and evaluate the effectiveness of the Managers internal controls. The Audit Committee also reviews the quality and reliability of information prepared for inclusion in financial reports and any formal announcements relating to Suntec REITs financial performance. The Audit Committee is responsible for the nomination of external and internal auditors for re-appointment and for reviewing the adequacy of existing audits in respect of cost, scope and performance. The Audit Committee meets with the external auditors and the internal auditors, without the presence of Management, at least once annually. In FY 2011, the Audit Committee had met with the internal and external auditors without the presence of Management. The internal and external auditors had confirmed that they had full access to and had received the full co-operation and support of Management. The Audit Committee has adopted a written terms of reference endorsed by the Board that defines its scope of authorities and responsibilities including: 1. reviewing external and internal audit reports to ensure that where deficiencies in internal controls have been identified, appropriate and prompt remedial action is taken by Management; 2. monitoring procedures in place to ensure compliance with applicable legislation, the Listing Manual of the SGX-ST and the Property Funds Appendix; 3. reviewing and approving the financial statements and auditors report; and
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4. monitoring procedures established to regulate Related Party Transactions (as defined below), including ensuring compliance with the provisions of the Listing Manual of the SGX-ST relating to transactions between the Trustee and an interested person, and the provisions of the Property Funds Appendix relating to transactions between the Trustee and an interested party (both such types of transactions constituting Related Party Transactions). The Audit Committee is authorised to investigate any matters within its terms of reference. It is entitled to full access to and co-operation by Management and has full discretion to invite any Director or Executive Officer of the Manager to attend its meetings. The Audit Committee has full access to resources to enable it to discharge its functions fully. The Audit Committee has also conducted a review of all non-audit services provided by the external auditors and is satisfied that the nature and extent of such services will not prejudice the independence and objectivity of the external auditors. The audit and non-audit fees paid/payable to the external auditors for FY 2011 amount to S$309,000 and S$57,000 respectively. The Audit Committee, with the concurrence of the Board, has recommended the re-appointment of KPMG LLP as the external auditors of Suntec REIT at the forthcoming annual general meeting. The Board, on behalf of Suntec REIT, has complied with the requirements of Rule 712 and 716 of the Listing Manual of the SGX-ST in respect of the suitability of the auditing firms of Suntec REIT and its associated companies.
Whistle-Blowing Policy The Board has put in place a Whistle-Blowing programme for Suntec REIT whereby staff may in confidence, raise their concerns to the Audit Committee about possible improprieties in matters of financial reporting or such other matters in a responsible and effective manner. The objective of the Whistle-Blowing programme is to ensure that arrangements are in place for independent investigation of such concerns and allow appropriate follow-up actions to be taken. There were no reports of whistle-blowing received in FY 2011.
INTERNAL CONTROLS AND AUDIT

Principle 12 Principle 13 The Board should ensure that the Management maintains a sound system of internal controls to safeguard the Unitholders investments and the companys assets. The company should establish an internal audit function that is independent of the activities it audits.
The Manager has established and maintains a robust system of internal controls and risk management framework to safeguard Suntec REITs assets and Unitholders interests and to provide reasonable assurance against misstatement of loss, maintenance of reliable and proper accounting records and compliance with relevant legislation. Internal auditors conduct audits to evaluate the effectiveness of the material internal control systems in Suntec REIT which include financial, operational, compliance and information technology controls. Any material non-compliance or lapses in internal controls together with corrective measures are reported to the Audit Committee. The internal auditor reports directly to the Audit Committee on audit matters. The Audit Committee also reviews and approves the annual internal audit plan as well as the internal audit reports and effectiveness of the actions taken by Management on recommendations made by the internal auditor in this respect. The internal audit function of the Manager is out-sourced to BDO Consultants Pte Ltd, a member firm of BDO International Limited. The Audit Committee is satisfied that the internal auditor has met the standards set by internationally recognized professional bodies including the International Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors. The Audit Committee is of the view that the internal auditor has adequate resources to perform its functions and has maintained its independence from the activities that it audits.
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In addition to the work performed by the internal auditors, the external auditors also perform tests of certain controls that are relevant to the preparation of Suntec REITs financial statements. The external auditors report any significant deficiencies of such internal controls to the Audit Committee. Based on the framework established and audits conducted, together with Managements quarterly and annual undertaking confirming their responsibilities for and effectiveness of the internal controls, pursuant to Rule 1207(10) of the Listing Manual of the SGX-ST, the Board, with the concurrence of the Audit Committee, is of the opinion that the internal controls in place are adequate in addressing Suntec REITs material financial, operational and compliance risks in its current business environment.
COMMUNICATION WITH UNITHOLDERS

Principle 14 Principle 15 Companies should engage in regular, effective and fair communication with unitholders. Companies should encourage greater Unitholder participation at AGMs and allow Unitholders the opportunity to communicate their views on various matters affecting the company.
The Listing Manual of the SGX-ST requires that a listed entity discloses to the market matters that would likely have a material effect on the price of the entitys securities. The Manager upholds a strong culture of continuous disclosure and transparent communication with Unitholders and the investing community. The Managers disclosure policy requires timely and full disclosure of all material information relating to Suntec REIT by way of public releases or announcements through the SGX-ST via SGXNET at first instance and subsequently, by way of release on Suntec REITs website at www.suntecreit.com. The Manager also conducts regular briefings for analysts and media representatives, which will generally coincide with the release of Suntec REITs half year and full year results. During these briefings, Management will review Suntec REITs most recent performance as well as discuss the business outlook for Suntec REIT. In line with the Managers objective of transparent communication, briefing materials are also simultaneously released through the SGX-ST via SGXNET and also made publicly available at Suntec REITs website on a non-selective basis. Unitholders are informed of meetings through notices accompanied by annual reports or circulars sent to them. Unitholders are invited at such meetings to put forth any questions they may have on the motions to be debated and decided upon. If any unitholder is unable to attend, he/she is allowed to appoint up to two proxies to vote on his/her behalf at the meeting through proxy forms sent in advance. Members of the Board of Directors together with the Audit Committee and the auditors will be in attendance at these meetings to address questions from Unitholders.
DEALINGS IN SUNTEC REIT UNITS

The Board has adopted an internal compliance code of conduct to provide guidance to its Directors, key officers and employees in respect of dealings in Suntec REITs units (Units). In general, the Managers policy encourages Directors and employees of the Manager to hold Units, but prohibits them from dealing in such Units: 1. during the period commencing one month before the public announcement of Suntec REITs annual, semi-annual and quarterly results and (where applicable) any property valuations, and ending on the date of announcement of the relevant results or property valuations; and 2. at any time whilst in possession of price-sensitive information. Directors and employees of the Manager are discouraged from dealing in Units on short-term considerations. In addition, the Manager has given an undertaking to the MAS that it will announce to the SGX-ST the particulars of its unitholdings in Suntec REIT and any changes thereto within two business days after the change. The Manager has also undertaken that it will not deal in Units during the period commencing one month before the public announcement of Suntec REITs annual, semi-annual and quarterly results and (where applicable) any property valuations, and ending on the date of announcement of the said information.
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RISK ASSESSMENT AND MANAGEMENT OF BUSINESS RISK

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

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

Review Procedures for Related Party Transactions In general, the Manager has established internal control procedures to ensure that all Related Party Transactions will be undertaken on an arms length basis and under normal commercial terms and will not be prejudicial to the interests of Suntec REIT and Unitholders. As a general rule, the Manager must demonstrate to the Audit Committee that such transactions satisfy the foregoing criteria, which may entail obtaining (where practicable) quotations from independent parties not related to the Manager, or obtaining one or more valuations from independent professional valuers (in accordance with the Property Funds Appendix).
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In addition, the following procedures will be undertaken: 1. transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding S$100,000 in value but below 3.0% of the value of Suntec REITs latest audited net tangible assets will be subject to review by the Audit Committee at regular intervals; 2. transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding 3.0% but below 5.0% of the value of Suntec REITs latest audited net tangible assets will be subject to the review and prior approval of the Audit Committee. Such approval shall only be given if the transactions are on normal commercial terms and are consistent with similar types of transactions made by the Trustee with third parties which are unrelated to the Manager. The Manager will, in compliance with Rule 905 of the Listing Manual of the SGX-ST, announce any related party transaction if such transaction, either individually or when aggregated with other related party transactions entered into with the same related party during the same financial year, is 3.0% or more of Suntec REITs latest audited net tangible assets; and
3. transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party during the same financial year) equal to or exceeding 5.0% of the value of Suntec REITs latest audited net tangible assets will be reviewed and approved prior to such transactions being entered into, on the basis described in the preceding paragraph, by the Audit Committee which may, as it deems fit, request advice on the transaction from independent sources or advisers, including the obtaining of valuations from independent professional valuers. Further, under the Listing Manual of the SGX-ST and the Property Funds Appendix, such transactions would have to be approved by the Unitholders at a meeting of Unitholders. Where matters concerning Suntec REIT relate to transactions entered into or to be entered into by the Trustee with a related party of the Manager or Suntec REIT, the Trustee is required to consider the terms of such transactions to satisfy itself that such transactions are conducted on arms length basis and on normal commercial terms, are not prejudicial to the interest of Suntec REIT and the Unitholders, and are in accordance with all applicable requirements of the Property Funds Appendix and/or the Listing Manual of the SGX-ST relating to the transaction in question. Further, the Trustee has the ultimate discretion under the Trust Deed to decide whether or not to enter into a transaction involving a related party of the Manager or Suntec REIT. If the Trustee is to sign any contract with a related party of the Manager or Suntec REIT, the Trustee will review the contract to ensure that it complies with the requirements relating to interested party transactions in the Property Funds Appendix (as may be amended from time to time) and the provisions of the Listing Manual of the SGX-ST relating to interested person transactions (as may be amended from time to time) as well as such other guidelines as may from time to time be prescribed by the MAS and the SGX-ST to apply to real estate investment trusts. For so long as Cheung Kong (Holdings) Limited and/or Mr. Lim Hwee Chiang, John are controlling shareholders (as defined in the Listing Manual of the SGX-ST) of the Manager and the Manager is the manager of Suntec REIT, all transactions between Suntec REIT and the said controlling shareholders and/or their associates shall be considered as interested person transactions and the provisions of the Listing Manual of the SGX-ST relating to interested person transactions as well as such other guidelines as may from time to time be prescribed by the SGX-ST shall apply to such transactions.
Role of the Audit Committee for Related Party Transactions and Internal Control Procedures All Related Party Transactions will be subject to regular periodic reviews by the Audit Committee. The Managers internal control procedures are intended to ensure that Related Party Transactions are conducted on an arms length basis and under normal commercial terms and are not prejudicial to Unitholders. The Manager maintains a register to record all Related Party Transactions (and the bases, including any quotations from unrelated parties and independent valuations obtained to support such bases, on which they are entered into), which are entered into by Suntec REIT. The Manager will incorporate into its internal audit plan a review of all Related Party Transactions entered into by Suntec REIT. The Audit Committee shall review the internal audit reports to ascertain that the guidelines and procedures established to monitor Related Party Transactions have been complied with. In addition, the Trustee will also have the right to review such audit reports to ascertain that the Property Funds Appendix has been complied with. The Audit Committee will periodically review all Related Party Transactions to ensure compliance with the Managers internal control procedures and with the relevant provisions of the Listing Manual of the SGX-ST and the Property Funds Appendix. The review will include the examination of the nature of the transaction and its supporting documents or such other data deemed necessary by the Audit Committee. If a member of the Audit Committee has an interest in a transaction, he is required to abstain from participating in the review and approval process in relation to that transaction. The Manager will disclose in Suntec REITs annual report the aggregate value of Related Party Transactions conducted during the relevant financial year.
64
Report of the Trustee
HSBC Institutional Trust Services (Singapore) Limited (the Trustee) is under a duty to take into custody and hold the assets of Suntec Real Estate Investment Trust (the Trust) and its subsidiaries (the Group) in trust for the holders (Unitholders) of units in the Trust (the Units). In accordance with the Securities and Futures Act, Chapter 289, of Singapore, its subsidiary legislation, and the Code on Collective Investment Schemes, the Trustee shall monitor the activities of ARA Trust Management (Suntec) Limited (the Manager) for compliance with the limitations imposed on the investment and borrowing powers as set out in the trust deed dated 1 November 2004 (as amended) (the Trust Deed) between the Manager and the Trustee in each annual accounting period and report thereon to Unitholders in an annual report. To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Trust during the period covered by these financial statements, set out on pages 67 to 114 in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed.
For and on behalf of the Trustee, HSBC Institutional Trust Services (Singapore) Limited
Antony Wade Lewis Director
Singapore 7 March 2012
65
Statement by the Manager
In the opinion of the directors of ARA Trust Management (Suntec) Limited, the accompanying financial statements set out on pages 67 to 114, comprising the Statements of Financial Position, Statements of Total Return, Distribution Statements, Statements of Movements in Unitholders Funds, Portfolio Statements, Consolidated Statement of Cash Flows and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financial position of Suntec Real Estate Investment Trust (the Trust) and its subsidiaries (the Group) as at 31 December 2011, the total return, distributable income, movements in Unitholders funds and cash flows of the Group and the total return, distributable income and movements in Unitholders funds of the Trust for the financial year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore and the provisions of the Trust Deed. At the date of this statement, there are reasonable grounds to believe that the Trust will be able to meet its financial obligations as and when they materialise.
For and on behalf of the Manager, ARA Trust Management (Suntec) Limited
Lim Hwee Chiang, John Director
Yeo See Kiat Director and Chief Executive Officer
66
Independent Auditors Report

Unitholders of Suntec Real Estate Investment Trust (Constituted under a Trust Deed in the Republic of Singapore)
Report on the financial statements

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

Note Non-current assets Plant and equipment 4 Investment properties 5 Intangible asset 6 Interest in jointly controlled entities 7 Investments in subsidiaries 8 Derivatives assets 9 Current assets Derivatives assets 9 Investment property held for sale 5 Inventories Trade and other receivables 10 Cash and cash equivalents 11 Total assets
Group 2011 $000 2010 $000 2011 $000
Trust 2010 $000
7,923 5,098,080 60,744 2,087,311 7,254,058 265 143,700 2,494 11,807 104,402 262,668 7,516,726
10 4,452,000 100,029 2,039,680 416 6,592,135 762 6,685 52,493 59,940 6,652,075
3 4,706,000 60,744 1,474,417 649,899 6,891,063 265 143,700 4,546 79,957 228,468 7,119,531
10 4,452,000 100,029 1,474,791 535,506 416 6,562,752 762 6,587 51,909 59,258 6,622,010
Current liabilities Interest-bearing borrowings 12 Trade and other payables 13 Derivative liabilities 9 Current portion of security deposits Provision for taxation Non-current liabilities Interest-bearing borrowings 12 Non-current portion of security deposits Derivative liabilities 9 Deferred tax liabilities Total liabilities Net assets Represented by: Unitholders funds Non-controlling interests Units in issue (000) Net asset value per Unit (S$) 16 17
199,967 80,929 19,628 5,110 305,634 2,604,103 43,999 13,974 2,353 2,664,429 2,970,063 4,546,663
404,585 41,103 8,756 22,452 2,032 478,928 2,150,059 38,239 216 2,188,514 2,667,442 3,984,633
199,967 63,116 18,654 5,110 286,847 2,477,777 43,999 13,974 2,535,750 2,822,597 4,296,934
404,585 41,103 8,756 22,452 2,032 478,928 2,150,059 38,239 216 2,188,514 2,667,442 3,954,568
4,433,821 112,842 4,546,663 2,224,520 1.987
3,984,633 3,984,633 2,205,128 1.804
4,296,934 4,296,934 2,224,520 1.926
3,954,568 3,954,568 2,205,128 1.790
The accompanying notes form an integral part of these financial statements.
68
Statements of Total Return

Year ended 31 December 2011
Note Gross revenue 18 Property expenses 19 Net property income Other income 20 Share of profit of jointly controlled entities 7 Finance income 21 Finance costs 21 Net finance costs Amortisation of intangible asset 6 Asset management fees 22 Professional fees Trustees fees Audit fees Other charges 23 Net income Net change in fair value of financial derivatives Net change in fair value of investment properties Total return for the year before tax Income tax expense 24 Total return for the year after tax
Group 2011 $000 270,282 (76,899) 193,383 47,722 141,653 23,506 (75,284) (51,778) (39,285) (36,078) (2,525) (1,135) (309) (1,320) 250,328 (5,913) 396,193 640,608 (6,013) 634,595 2010 $000 249,479 (56,389) 193,090 22,410 30,937 15,963 (79,431) (63,468) (20,895) (27,932) (539) (868) (252) (1,020) 131,463 7,566 248,715 387,744 (2,029) 385,715 2011 $000 282,428 (57,395) 225,033 46,673 22,057 (74,356) (52,299) (39,285) (35,339) (529) (1,135) (269) (1,208) 141,642 (5,913) 394,392 530,121 (5,107) 525,014
Trust 2010 $000 260,911 (56,389) 204,522 22,410 13,402 (79,431) (66,029) (20,895) (27,932) (539) (868) (252) (1,016) 109,401 7,566 248,715 365,682 (2,029) 363,653
Attributable to: Unitholders of the Trust 631,836 385,715 525,014 Non-controlling interests 2,759 634,595 385,715 525,014 Earnings per Unit (cents) 25 Basic 28.504 20.337 23.685 Diluted 26.915 19.152 22.415
363,653 363,653
19.174 18.078
69
Distribution Statements
Amount available for distribution to Unitholders at the beginning of the year Net income Net tax adjustments (Note A) Taxable income Add: Tax exempt dividend income (Note B) Less: Income tax expense (Note C) Amount available for distribution to Unitholders Distributions to Unitholders: Distribution of 2.568 cents per Unit for period from 1/10/2009 to 21/12/2009 Distribution of 0.403 cents per Unit for period from 9/12/2009 to 21/12/2009 Distribution of 0.318 cents per Unit for period from 22/12/2009 to 31/12/2009 Distribution of 2.513 cents per Unit for period from 1/1/2010 to 31/3/2010 Distribution of 1.928 cents per Unit for period from 1/4/2009 to 8/6/2010 Distribution of 0.600 cents per Unit for period from 9/6/2010 to 30/6/2010 Distribution of 2.502 cents per Unit for period from 1/7/2010 to 30/9/2010 Distribution of 1.723 cents per Unit for period from 1/10/2010 to 8/12/2010 Distribution of 0.593 cents per Unit for period from 9/12/2010 to 31/12/2010 Distribution of 2.388 cents per Unit for period from 1/1/2011 to 31/3/2011 Distribution of 2.532 cents per Unit for period from 1/4/2011 to 30/6/2011 Distribution of 2.533 cents per Unit for period from 1/7/2011 to 30/9/2011 Income available for distribution to Unitholders at end of the year
Group 2011 $000 2010 $000 2011 $000
Trust 2010 $000
44,799 250,328 (64,091) 231,036 39,570 (5,107) 265,499
47,689 131,463 41,611 220,763 11,432 (2,029) 230,166
44,799 141,642 84,165 270,606 (5,107) 265,499
47,689 109,401 75,105 232,195 (2,029) 230,166
(31,830) (13,102) (52,867) (56,173) (56,347) (210,319) 55,180
(41,969) (139) (5,728) (45,366) (34,881) (11,063) (46,221) (185,367) 44,799
(31,830) (13,102) (52,867) (56,173) (56,347) (210,319) 55,180
(41,969) (139) (5,728) (45,366) (34,881) (11,063) (46,221) (185,367) 44,799
70
Distribution Statements
Note A Net tax adjustments comprise: - Amortisation of intangible asset - Amortisation of transaction costs - Asset management fees paid/payable in Units - Interest income - Professional fees - Net profit from subsidiaries and/or jointly-controlled entities - Trustees fees - Other items Net tax adjustments Note B
Group 2011 $000 2010 $000 2011 $000
Trust 2010 $000
39,285 14,024 28,271 (1,449) 489 (146,807) 1,135 961 (64,091)
20,895 29,580 22,345 (2,561) 254 (30,937) 868 1,167 41,611
39,285 14,024 28,271 489 1,135 961 84,165
20,895 29,580 22,345 254 868 1,163 75,105
This relates to the dividend income received from Comina Investment Limited, Suntec Harmony Pte. Ltd. and BFC Development Pte. Ltd..
Note C This relates to income tax on the income support received by the Group and the Trust under the Deed of Income Support entered with Cavell Limited and Choicewide Group Limited, the vendors of the one-third interest in One Raffles Quay Pte. Ltd. and BFC Development Pte. Ltd. respectively.
71
Statements of Movements in Unitholders Funds

Balance at the beginning of the year Operations Total return for the year after tax attributable to Unitholders of the Trust Net increase in Unitholders funds resulting from operations Unitholders transactions Creation of Units: - asset management fees paid in Units - acquisition fee paid in Units - private placement of Units Units to be issued: - asset management fees payable in Units Unit issue expenses Distributions to Unitholders Net (decrease)/increase in Unitholders funds resulting from Unitholders transactions Unitholders funds at end of the year
Group 2011 $000 3,984,633 2010 $000 3,327,857 2011 $000 3,954,568
Trust 2010 $000 3,319,854
631,836 631,836
385,715 385,715
525,014 525,014
363,653 363,653
20,767 7,504 (600) (210,319) (182,648) 4,433,821
16,017 14,958 428,810 6,328 (9,685) (185,367) 271,061 3,984,633
20,767 7,504 (600) (210,319) (182,648) 4,296,934
16,017 14,958 428,810 6,328 (9,685) (185,367) 271,061 3,954,568
72
Group Remaining Description Tenure of Term of Term of Existing Committed Carrying of Property Land Lease Lease Location Use Occupancy Rate Value 2011 2010 2011 2010 % % $000 $000 As at 31 December 2011 Percentage of Unitholders Funds 2011 2010 % %
Investment properties in Singapore 38.9 38.3
Portfolio Statements
58.9
61.6
8.3
8.5 3.3
Suntec City Mall Leasehold 99 years 77 years 3 Temasek Commercial 96.7 97.9 1,725,000 1,525,000 Boulevard Suntec City Leasehold 99 years 77 years 5 - 9 Temasek Commercial 99.2 99.1 2,611,000 2,455,000 Office Towers Boulevard Park Mall Leasehold 99 years 57 years 9 Penang Road Commercial 100.0 100.0 370,000 338,000 CHIJMES Leasehold 99 years 79 years 30 Victoria Commercial 100.0 99.5 * 134,000 Street Suntec Singapore^ Leasehold 99 years 77 years 1 Raffles Commercial n/m 392,080 Boulevard Investment properties, at valuation 5,098,080 4,452,000 Investment property held for sale* 143,700 Interest in jointly controlled entities (Note 7) 2,087,311 2,039,680 7,329,091 6,491,680 Other assets and liabilities (net) (2,782,428) (2,507,047) Net assets 4,546,663 3,984,633 Non-controlling interests (112,842) Unitholders funds 4,433,821 3,984,633 8.8 114.9 3.2 47.1 165.2 (62.7) 102.5 (2.5) 100.0 111.7 51.2 162.9 (62.9) 100.0 100.0
^ denotes Suntec Singapore International Convention and Exhibition Centre. n/m denotes not meaningful.
Trust Remaining Description Tenure of Term of Term of Existing Committed Carrying of Property Land Lease Lease Location Use Occupancy Rate Value 2011 2010 2011 2010 % % $000 $000 As at 31 December 2011 Percentage of Unitholders Funds 2011 2010 % %
Investment properties in Singapore 40.1 38.6
60.8
62.1
8.6 109.5 34.3 15.1 3.3 162.2 (62.2) 100.0
8.6 3.3 112.6 37.3 13.5 163.4 (63.4) 100.0
Suntec City Mall Leasehold 99 years 77 years 3 Temasek Commercial 96.7 97.9 1,725,000 1,525,000 Boulevard Suntec City Leasehold 99 years 77 years 5 - 9 Temasek Commercial 99.2 99.1 2,611,000 2,455,000 Office Towers Boulevard Park Mall Leasehold 99 years 57 years 9 Penang Road Commercial 100.0 100.0 370,000 338,000 CHIJMES Leasehold 99 years 79 years 30 Victoria Commercial 100.0 99.5 * 134,000 Street Investment properties, at valuation 4,706,000 4,452,000 Interest in jointly controlled entities (Note 7) 1,474,417 1,474,791 Investments in subsidiaries (Note 8) 649,899 535,506 Investment property held for sale* 143,700 6,974,016 6,462,297 Other assets and liabilities (net) (2,677,082) (2,507,729) Unitholders funds 4,296,934 3,954,568
73
74
Note: Suntec City Office Towers comprise 15 strata lots in Suntec City Office Tower One, 7 strata lots in Suntec City Office Tower Two, 76 strata lots in Suntec City Office Tower Three and all the strata lots in Suntec City Office Towers Four and Five. Suntec Singapore comprises more than one million square feet of versatile floor space over six levels as well as approximately 32,000 square feet of retail space. Park Mall comprises a 15-storey with basement shopping cum office building. CHIJMES comprises four retail blocks, two basement levels and a chapel. The carrying amounts of the investment properties as at 31 December 2011 and 31 December 2010 were based on independent valuations undertaken by Knight Frank Pte Ltd (Knight Frank), CB Richard Ellis (Pte) Ltd (CBRE), Colliers International Consultancy & Valuation (Singapore) Pte Ltd (Colliers) and DTZ Debenham Tie Leung (SEA) Pte Ltd (DTZ). The independent valuers have appropriate professional qualifications and recent experience in the location and category of the properties being valued. Valuation Description Valuer Valuation method 2011 2010 of Property $000 $000 Suntec City Mall Colliers Investment method and discounted 1,725,000 1,525,000 (2010: Knight Frank) cash flow analysis Suntec City Office Towers Colliers Investment method and discounted 2,611,000 2,455,000 (2010: Knight Frank) cash flow analysis Suntec Singapore Colliers Investment method and discounted 392,080 (2010: N/A) cash flow analysis Park Mall Knight Frank Investment method and discounted 370,000 338,000 (2010: CBRE) cash flow analysis (2010: Capitalisation of income approach and discounted cash flow analysis) CHIJMES DTZ Capitalisation of income approach 143,700 134,000 (2010: Knight Frank) and discounted cash flow analysis (2010: Investment method and discounted cash flow analysis) The Group and the Trust entered into a property sale agreement with PRE 8 Investments Pte Ltd on 27 October 2011 for the sale of CHIJMES at a price of $177,000,000. The property has been reclassified as investment property held for sale accordingly. The property sale is scheduled to be completed in January 2012. Investment properties comprise commercial properties that are leased to external customers. Generally, the leases contain an initial noncancellable period of three years. Subsequent renewals are negotiated with the lessee. Contingent rents recognised upon receipt in the Statement of Total Return of both the Group and the Trust amounted to $1,309,000 (2010: $1,033,000).
75
Consolidated Statement of Cash Flows

Note Cash flows from operating activities Net income Adjustments for: Allowance for doubtful receivables Amortisation of intangible asset Asset management fees paid/payable in Units Depreciation of plant and equipment Loss on disposal of plant and equipment Negative goodwill on acquisition Net finance costs Share of profit of jointly controlled entities Operating income before working capital changes Changes in working capital: Trade and other receivables Trade and other payables Cash generated from operating activities Income tax paid Net cash from operating activities Cash flows from investing activities Acquisition of interest in a jointly controlled entity Acquisition of subsidiary, net of cash acquired 26 Adjustment to investment in jointly controlled entities Capital expenditure on investment properties Deposit received on investment property held for sale Dividend income received Interest received Loan (to)/repaid by jointly controlled entities Purchase of intangible asset Purchase of plant and equipment Net cash used in investing activities Cash flows from financing activities Distributions to Unitholders Dividends paid to non-controlling interests Interest paid Proceeds from interest-bearing loans Proceeds from issue of units, net of expenses Proceeds from medium term notes Redemptions of convertible bonds Repayment of interest-bearing loans Unit issue costs paid Net cash (used in)/from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 11 Significant Non-Cash Transactions
2011 $000 250,328 384 39,285 28,271 1,118 80 (1,049) 51,778 (141,653) 228,542 412 (10,319) 218,635 (2,029) 216,606 (92,562) 3,198 (3,275) 26,550 40,090 22,462 (1,874) (167) (5,578) (210,319) (1,176) (58,750) 235,000 150,000 (774) (272,500) (600) (159,119) 51,909 52,493 104,402
Group
2010 $000
131,463 430 20,895 22,345 38 4 63,468 (30,937) 207,706 466 4,401 212,573 (6,207) 206,366 (1,414,713) 790 (1,285) 11,610 15,656 300,000 (84,800) (7) (1,172,749) (185,367) (76,110) 1,805,000 419,125 (975,000) 987,648 21,265 31,228 52,493
The Group and the Trust had issued or will be issuing a total of 22,076,035 (2010: 15,725,881) Units to the Manager, amounting to approximately $28,271,000 (2010: $22,345,000) at unit prices ranging from $1.0834 to $1.4965 (2010: $1.3295 to $1.5039) as satisfaction of asset management fees payable in Units in respect of the year ended 31 December 2011. In the previous year, 10,266,300 Units were issued to the Manager, amounting to approximately $14,958,000 at $1.457 per unit as satisfaction of the acquisition fee paid on the acquisition of the one-third interest in BFC Development Pte. Ltd..
76
Notes to the Financial Statements
These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Manager and the Trustee on 7 March 2012.
General
Suntec Real Estate Investment Trust (the Trust) is a Singapore-domiciled unit trust constituted pursuant to the trust deed dated 1 November 2004 (as amended) (the Trust Deed) between ARA Trust Management (Suntec) Limited (the Manager) and HSBC Institutional Trust Services (Singapore) Limited (the Trustee). The Trust Deed is governed by the laws of the Republic of Singapore. The Trustee is under a duty to take into custody and hold the assets of the Trust in trust for the holders (Unitholders) of Units in the Trust (the Units). The Trust was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (the SGX-ST) on 9 December 2004 and was included in the Central Provident Fund (CPF) Investment Scheme on 9 December 2004. The principal activity of the Trust and its subsidiaries is to invest in income producing real estate and real estate related assets, which are used or substantially used for commercial purposes, with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth. The financial statements of the Trust as at and for the year ended 31 December 2011 comprise the Trust and its subsidiaries (together referred to as the Group and individually as Group entities) and the Groups interest in jointly controlled entities. The Trust has entered into several service agreements in relation to management of the Trust and its property operations. The fee structures of these services are as follows:
(i)
Property management fees APM Property Management Pte Ltd (APM), the property manager of Suntec City Mall and Suntec City Office Towers, is entitled to receive 3.0% per annum of gross revenue for provision of lease management services, marketing and marketing co-ordination services and property management services. In addition, where the aggregate of all (1) licence fees; (2) media sales; and (3) other advertising and promotion income derived from the property for each financial year exceeds $5,520,000, APM is entitled to receive a commission of 10.0% of the said licence fees, media sales and other advertising and promotion income which exceeds $5,520,000 for each financial year. APAC Investment Management Pte Ltd, the property manager of Park Mall and CHIJMES, is entitled to receive 3.0% per annum of gross revenue for provision of lease management, property management, marketing and marketing co-ordination services. Suntec Singapore International Convention and Exhibition Services Pte Ltd, the property manager of Suntec Singapore, is entitled to received 3.0% per annum of gross revenue for provision of convention and exhibition management, lease management, property management, marketing and marketing co-ordination services. The property management fees are payable monthly in arrears.
(ii)
Asset management fees Pursuant to the Trust Deed, asset management fees comprise the following: (a) a base fee not exceeding 0.3% per annum of the value of the Deposited Property (being all the assets of the Trust (including all its Authorised Investments) as defined in the Trust Deed) of the Trust or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders; and an annual performance fee equal to a rate of 4.5% per annum of the Net Property Income (as defined in the Trust Deed) of the Trust and any Special Purpose Vehicles (as defined in the Trust Deed) for each financial year, or such lower percentage as may be determined by the Manager in its absolute discretion or such higher percentage as may be approved by an Extraordinary Resolution at a meeting of Unitholders.
(b)
77
General (continued)
(ii) Asset management fees (continued) Based on the current agreement between the Manager and the Trustee, the base fee is agreed to be 0.3% per annum of the value of the Deposited Property. For a period of seven years commencing from the listing of the Units on the SGX-ST, 80.0% of the asset management fees payable to the Manager will be paid in the form of Units issued at the volume weighted average traded price for a unit for all trades on the SGX-ST on the ordinary course of trading on the SGX-ST for the last ten Business Days (as defined in the Trust Deed) of the relevant period in which the management fees accrue, and 20.0% of the management fees will be paid in the form of cash. Thereafter, the asset management fees shall be in the form of Units and/or cash as the Manager may elect. The portion of the asset management fees payable in the form of Units will be made on a quarterly basis, in arrears. The portion of the asset management fees payable in cash will be made on a monthly basis, in arrears. The Manager is also entitled to receive an acquisition fee at the rate of 1.0% of the acquisition price and a divestment fee of 0.5% of the sale price on all future acquisition or disposal of properties.
(iii) Trustees fee Pursuant to the Trust Deed, the Trustees fee shall not exceed 0.25% per annum of the value of the Deposited Property (subject to a minimum sum of $9,000 per month) or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders. The Trustees fee is payable out of the Deposited Property of the Trust on a monthly basis, in arrears. The Trustee is also entitled to reimbursement of all reasonable out-of-pocket expenses incurred in the performance of its duties under the Trust Deed.
Basis of preparation
2.1 Statement of compliance The financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice (RAP) 7 Reporting Framework for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore, and the applicable requirements of the Code on Collective Investment Schemes (the CIS Code) issued by the Monetary Authority of Singapore (MAS) and the provisions of the Trust Deed. RAP 7 requires the accounting policies to generally comply with the recognition and measurement principles of Singapore Financial Reporting Standards (FRS).
2.2 Basis of measurement These financial statements are prepared on the historical cost basis except for certain financial assets and liabilities which are measured at fair value.
2.3 Functional and presentation currency The financial statements are presented in Singapore dollars which is the Trusts functional currency. All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated.
2.4 Use of estimates and judgements The preparation of financial statements in conformity with RAP 7 requires the Manager to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
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Basis of preparation (continued)

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements and information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: Note 5 Note 15 Valuation of investment properties Valuation of financial instruments
2.5
Changes in accounting policies Identification of related party relationships and related party disclosures From 1 January 2011, the Group has applied the revised FRS 24 Related Party Disclosures (2010) to identify parties that are related to the Group and to determine the disclosures to be made on transactions and outstanding balances, including commitments, between the Group and its related parties. FRS 24 (2010) improved the definition of a related party in order to eliminate inconsistencies and ensure symmetrical identification of relationships between two parties. The adoption of FRS 24 (2010) does not result in additional parties being identified as related to the Group. Transactions and outstanding balances, including commitments, with these related parties for the current and comparative years have been disclosed accordingly in note 31 to the financial statements. The adoption of FRS 24 (2010) affects only the disclosures made in the financial statements. There is no financial effect on the results and financial position of the Group for the current and previous financial years. Accordingly, the adoption of FRS 24 (2010) has no impact on earnings per share.
Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and have been applied consistently by Group entities. 3.1 Basis of consolidation Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in Statement of Total Return. Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in Statement of Total Return.
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Significant accounting policies (continued)

3.1 Basis of consolidation (continued) Business combinations (continued) For non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the acquirees net assets in the event of liquidation, the Group elects on a transaction-by-transaction basis whether to measure them at fair value, or at the non-controlling interests proportionate share of the recognised amounts of the acquirees identifiable net assets, at the acquisition date. All other non-controlling interests are measured at acquisition-date fair value or, when applicable, on the basis specified in another standard. Subsidiaries Subsidiaries are entities controlled by the Group. 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 with the policies adopted by the Group. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance. Loss of control Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in Statement of Total Return. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale financial asset depending on the level of influence retained. Jointly controlled entities Jointly controlled entities are entities whose activities the Group has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. Investments in jointly controlled entities are accounted for using the equity method and are recognised initially at cost. The cost of the investments includes transaction costs. The consolidated financial statements include the Groups share of the profit or loss and other comprehensive income of the jointly controlled entities after adjustments to align the accounting policies with those of the Group, from the date that joint control commences until the date that joint control ceases. When the Groups share of losses exceeds its interest in the jointly controlled entities, the carrying amount of that interest, including any long-term investments, is reduced to zero and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the jointly controlled entities. Acquisition of non-controlling interests Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore the carrying amounts of assets and liabilities are not changed and goodwill is not recognised as a result of such transactions. The adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. Any difference between the adjustment to non-controlling interests and the fair value of consideration paid is recognised directly in equity and presented as part of equity attributable to Unitholders of the Trust.
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3.1 Basis of consolidation (continued) Transactions eliminated on consolidation Intra-group balances and transactions and any unrealised income or expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with the jointly controlled entities are eliminated against the investment to the extent of the Groups interest in the jointly controlled entities. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Accounting for subsidiaries and jointly controlled entities Investments in subsidiaries and jointly controlled entities are stated in the Trusts Statement of Financial Position at cost less accumulated impairment losses.
3.2 Plant and equipment Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Gains or losses arising from the retirement or disposal of plant and equipment are determined as the difference between the estimated net disposal proceeds and the carrying amount of the asset, and are recognised in the Statement of Total Return. Depreciation is recognised in Statement of Total Return on a straight-line basis so as to write off items of plant and equipment over their estimated useful lives as follows: Equipment Furniture and fittings Motor vehicles - - - 3 - 5 years 5 years 10 years
Depreciation methods, useful lives and residual values are reviewed at each reporting period and adjusted if appropriate.
3.3 Investment properties Investment properties are properties held either to earn rental income or capital appreciation or for both. Investment properties are measured at cost on initial recognition and subsequently at fair value. Fair value is determined in accordance with the Trust Deed, which requires the investment properties to be valued by independent registered valuers in the following events: in such manner and frequency required under the Property Funds Appendix of the CIS Code issued by the MAS; and where the Manager proposes to issue new Units for subscription or to redeem existing Units unless the investment properties have been valued not more than 6 months ago.
Fair value changes are recognised in the Statement of Total Return. When an investment property is disposed of, the resulting gain or loss is recognised in the Statement of Total Return as the difference between net disposal proceeds and the carrying amount of the property. For taxation purposes, the Group and the Trust may claim capital allowances on assets that qualify as plant and machinery under the Income Tax Act.
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3.4 Intangible asset Intangible asset acquired by the Group and the Trust is measured initially at cost. Following initial recognition, the intangible asset is measured at cost less any accumulated amortisation and accumulated impairment losses. The intangible asset is amortised in the Statement of Total Return on a systematic basis over its estimated useful life. Intangible asset is tested for impairment as described in Note 3.7.
3.5 Inventories Inventories are measured at the lower of cost and net realisable value. Inventories consist of food and beverages, general stocks and operating supplies. Cost of food and beverages and general stocks is calculated using the weighted average cost formula and comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Operating supplies is the amount of stocks held above the minimum level required to be maintained for the operations. Cost of operating supplies is determined on a first-in, first-out basis and comprises all costs of purchase and other costs incurred in bringing the supplies to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
3.6 Financial instruments Non-derivative financial assets The Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through the Statement of Total Return) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the Statement of Financial Position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Group has the following non-derivative financial assets: loans and receivables. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise trade and other receivables and cash and cash equivalents. Cash and cash equivalents comprise cash balances and bank deposits.
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3.6 Financial instruments (continued) Non-derivative financial liabilities The Group initially recognises all other financial liabilities (including liabilities designated at fair value through the Statement of Total Return) on the trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. The Group classifies non-derivative financial liabilities into other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Other financial liabilities comprise interest bearing borrowings, security deposits and trade and other payables. Derivative financial instruments The Group holds derivative financial instruments to hedge its interest rate risk exposure. Derivative financial instruments are recognised initially at fair value; attributable transaction costs are recognised in the Statement of Total Return when incurred. Subsequent to initial recognition, derivatives are measured at fair value, changes therein are accounted for as described below. Separable embedded derivatives Changes in the fair value of separated embedded derivatives are recognised immediately in Statement of Total Return. Other non-trading derivatives When a derivative financial instrument is not designated in a hedge relationship that qualifies for hedge accounting, all changes in its fair value are recognised immediately in Statement of Total Return. Convertible bonds The convertible bonds comprise a liability for the interest and principal amount and a derivative liability. The derivative liability is recognised at fair value at inception. The carrying amount of the convertible bonds at initial recognition is the difference between the gross proceeds from the convertible bonds issue and the fair value of the derivative liability. Any directly attributable transaction costs are allocated to the convertible bonds and derivative liability in proportion to their initial carrying amounts. Subsequent to initial recognition, the convertible bonds are measured at amortised cost using the effective interest method. The derivative liability is measured at fair value through the Statement of Total Return.
3.7
Impairment Non-derivative financial assets A financial asset not carried at fair value through total return is assessed at the end of each reporting period to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy or economic conditions that correlate with defaults.
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3.7 Impairment (continued) Loans and receivables The Group considers evidence of impairment for loans and receivables at both a specific asset and collective level. All individually significant loans and receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Loans and receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics. In assessing collective impairment, the Group uses historical trends of the probability of default, the timing of recoveries and the amount of loss incurred, adjusted for Managers judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows, discounted at the assets original effective interest rate. Losses are recognised in Statement of Total Return and reflected in an allowance account against loans and receivables. Interest on the impaired asset continues to be recognised. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through the Statement of Total Return. Non-financial assets The carrying amounts of the Groups non-financial assets, other than investment properties, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its 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 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 time value of money and the risks specific to the asset or CGU. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. Impairment losses recognised in prior periods in respect of other assets are assessed at each reporting date for any indications that the loss has decreased or no longer exists. 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 the extent that the assets 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.
3.8 Non-current assets held for sale Non-current assets, or disposal groups comprising assets and liabilities, that are expected 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, or components of a disposal group, are remeasured in accordance with the Groups accounting policies. Thereafter, the assets, or disposal group, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is first allocated to goodwill, and then to remaining assets and liabilities on pro rata basis, except that no loss is allocated to inventories, financial assets and investment property, which continue to be measured in accordance with the Groups accounting policies. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in Statement of Total Return. Gains are not recognised in excess of any cumulative impairment loss.
3.9 Issue expenses Issue expenses relate to expenses incurred in connection with the issue of Units. Such expenses are deducted directly against Unitholders funds.
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3.10 Revenue recognition Rental income from operating leases Rental income receivable under operating leases is recognised in the Statement of Total Return on a straight-line basis over the term of the lease, 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 part of the total rental to be received. Contingent rentals, which include gross turnover rental, are recognised as income in the accounting period on a receipt basis. No contingent rentals are recognised if there are uncertainties due to the possible return of amounts received. Dividend income Dividend income is recognised on the date that the right to receive payment is established. 3.11 Expenses Property expenses Property expenses consist of advertising and promotion expenses, property tax, property management fees (using the applicable formula stipulated in Note 1(i)), maintenance charges and other property outgoings in relation to investment properties where such expenses are the responsibility of the Group. Property expenses are recognised on an accrual basis. Asset management fees Asset management fees are recognised on an accrual basis using the applicable formula stipulated in Note 1(ii). Trustees fee Trustees fee is recognised on an accrual basis using the applicable formula stipulated in Note 1(iii). 3.12 Finance income and finance costs Finance income comprises interest income on funds invested, that are recognised in the Statement of Total Return. Interest income is recognised as it accrues, using the effective interest method. Finance costs comprise interest expense on borrowings and amortisation of transaction costs incurred on borrowings that are recognised in the Statement of Total Return. All borrowing costs are recognised in the Statement of Total Return using the effective interest method. 3.13 Tax Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in the Statement of Total Return except to the extent that it relates to items directly related to Unitholders funds, in which case it is recognised in Unitholders funds. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and for differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future.
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3.13 Tax (continued) Deferred tax is measured at the tax rates that are expected to be applied to the temporary 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 (i) on the same taxable entity; or (ii) on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or 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, against which the temporary differences can be utilised, will be available. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. The Inland Revenue Authority of Singapore (IRAS) has issued a tax ruling on the taxation of the Trust for income earned and expenditure incurred after its listing on the SGX-ST. Subject to meeting the terms and conditions of the tax ruling which includes a distribution of at least 90% of the taxable income of the Trust, the Trustee will not be taxed on the portion of taxable income of the Trust that is distributed to Unitholders. Any portion of the taxable income that is not distributed to Unitholders will be taxed on the Trustee. In the event that there are subsequent adjustments to the taxable income when the actual taxable income of the Trust is finally agreed with the IRAS, such adjustments are taken up as an adjustment to the taxable income for the next distribution following the agreement with the IRAS. Although the Trust is not taxed on its taxable income distributed, the Trustee and the Manager are required to deduct income tax from distributions of such taxable income of the Trust (i.e. which has not been taxed in the hands of the Trustee) to certain Unitholders. However, the Trustee and the Manager will not deduct tax from distributions made out of the Trusts taxable income to the extent that the beneficial Unitholder is: An individual (excluding a partnership in Singapore); A tax resident Singapore-incorporated company; A body of persons registered or constituted in Singapore (e.g. a town council, a statutory board, a registered charity, a registered cooperative society, a registered trade union, a management corporation, a club or a trade and industry association); A Singapore branch of a foreign company which has been presented a letter of approval from the Comptroller of Income Tax granting waiver from tax deducted at source in respect of distributions from the Trust; or An agent bank acting as a nominee for individuals who have purchased Units within the Central Provident Fund Investment Scheme (CPFIS) and the distributions received from the Trust are returned to CPFIS.
The above tax transparency ruling does not apply to gains from sale of properties. Where the gains are trading gains, the Trustee will be assessed for tax. Where the gains are capital gains, the Trustee will not be assessed for tax and may distribute the capital gains without tax being deducted at source.
3.14 Earnings per share The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the total return for the year after tax attributable to Unitholders of the Trust by the weighted average number of units outstanding during the year. Diluted earnings per share is determined by adjusting the total return for the year after tax attributable to Unitholders of the Trust and the weighted average number of units outstanding, for the effects of all dilutive potential units, which comprise convertible bonds.
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3.15 Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Groups other components. All operating segments operating results are reviewed regularly by the Groups CEO, who is the Groups chief operating decision maker, to make decisions about resources to be allocated to the segment and assess the segments performance, and for which discrete financial information is available.
3.16 New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2011, and have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the Group and the Trust, except for FRS 111 Joint Arrangements and the amendments to FRS 28 Investments in Associates and Joint Ventures which will become mandatory for the Group and the Trusts financial statements for 2013. The new standard classifies joint arrangements into two types - joint operations and joint ventures, and requires (1) a joint operator to recognise and measure the assets and liabilities (and recognise the related revenues and expenses) in relation to its interest in the arrangement in accordance with relevant FRSs applicable to the particular assets, liabilities, revenues and expenses and (2) a joint venturer to recognise an investment and to account for that investment using the equity method in accordance with FRS 28 Investments in Associates and Joint Ventures, using the equity method. The adoption of the new standard and amendments would require the Group to assess its rights and obligations arising from its joint venture arrangements so as to determine the type of joint arrangement in which it is involved. The adoption of the new standard and amendments would only affect the presentation of the joint ventures in the financial statements. Since the change in accounting policy only impacts presentation aspects, there is no impact on earnings per unit. The Group does not plan to adopt these amendments early.
Plant and equipment

Furniture Motor Note and fittings Equipment vehicles $000 $000 $000 Group Cost At 1 January 2010 489 Additions 7 Disposal (7) At 31 December 2010 489 Acquisition through business combinations 26 8,702 223 19 Additions 73 94 Disposal (119) (2) At 31 December 2011 8,656 804 19 Accumulated depreciation At 1 January 2010 444 Charge for the year 38 Disposal (3) At 31 December 2010 479 Charge for the year 1,015 98 5 Disposal (39) (2) At 31 December 2011 976 575 5 Carrying amount At 1 January 2010 45 At 31 December 2010 10 At 31 December 2011 7,680 229 14 Total $000
489 7 (7) 489 8,944 167 (121) 9,479
444 38 (3) 479 1,118 (41) 1,556
45 10 7,923
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Plant and equipment (continued)

Trust Cost At 1 January 2010 Additions Disposal At 31 December 2010 Additions Disposal At 31 December 2011 Accumulated depreciation At 1 January 2010 Charge for the year Disposal At 31 December 2010 Charge for the year Disposal At 31 December 2011 Carrying amount At 1 January 2010 At 31 December 2010 At 31 December 2011 Equipment $000
489 7 (7) 489 (2) 487
444 38 (3) 479 7 (2) 484
45 10 3
Investment properties
Group Trust Note 2011 2010 2011 2010 $000 $000 $000 $000 At 1 January 4,452,000 4,202,000 4,452,000 4,202,000 Acquisition through business combinations 26 390,312 Capital expenditure capitalised 3,275 1,285 3,308 1,285 4,845,587 4,203,285 4,455,308 4,203,285 Changes in fair value of investment properties 396,193 248,715 394,392 248,715 Investment property reclassified to held for sale (143,700) (143,700) At 31 December 5,098,080 4,452,000 4,706,000 4,452,000 The investment properties, Suntec City Mall, part of Suntec City Office Tower 3 and Suntec Singapore, with a total carrying value of $2,383,880,000 (2010: Suntec City Mall and part of Suntec City Office Tower 3, with a total carrying value of $1,773,200,000), have been mortgaged as security for credit facilities granted to the Group (Note 12). Following the approval of the Board and Trustee on 27 October 2011 for the sale of CHIJMES, the carrying value has been reclassified as investment property held for sale in the Statement of Financial Position. Investment properties are stated at fair value based on valuations performed by independent professional valuers. The fair value is based on market value, being the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing seller in an arms length transaction after property marketing wherein the parties had acted knowledgeably, prudently and without compulsion.
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Investment properties (continued)

In determining the fair value, the valuers have used valuation methods which involve certain estimates. The valuation methods used are in the Portfolio Statements. The Manager is of the view that the valuation methods and estimates are reflective of the market condition at the date of the valuation. The key assumptions used to determine the fair value of the investment properties include estimated net cash flows expected to be received on renting out the properties, market-corroborated capitalisation yield, terminal yield and discount rate.
Intangible asset
Group and Trust 2011 2010 $000 $000
Cost Balance at 1 January 176,298 91,498 Addition during the year 84,800 Balance at 31 December 176,298 176,298 Amortisation Balance at 1 January 76,269 55,374 Amortisation for the year 39,285 20,895 Balance at 31 December 115,554 76,269 Carrying amounts At 1 January 2010 36,124 At 31 December 2010 100,029 At 31 December 2011 60,744 Intangible asset represents the unamortised income support receivable by the Group and the Trust under the Deeds of Income Support entered into with Cavell Limited and Choicewide Group Limited, the vendors of the one-third interest in One Raffles Quay Pte. Ltd. and BFC Development Pte. Ltd. respectively.
Interest in jointly controlled entities

Group 2011 $000 2010 $000 2011 $000 Trust 2010 $000
Investment in jointly controlled entities 1,481,089 1,412,332 868,195 870,443 Loans to jointly controlled entities 606,222 627,348 606,222 604,348 2,087,311 2,039,680 1,474,417 1,474,791 The loans to jointly controlled entities are unsecured. Included in the loans is an amount of $606,222,000 (2010: $604,348,000) which bears interest between 3.0% to 3.3% (2010: 3.0% to 3.3%) per annum above the three-month Singapore Dollar Swap Offer Rate and settlement is neither planned nor likely to occur in the foreseeable future. As the amount is, in substance, a part of the Groups and the Trusts net investment in the entities it is stated at cost less accumulated impairment loss. At Group level, the remaining amount of $23,000,000 as at 31 December 2010, bears interest at 10.0% per annum and is repayable on 30 September 2014. During the year, this amount has been reclassified to investment in subsidiaries after the Trust acquired a 51.0% interest in Harmony Partners Investment Limited on 18 August 2011 (Note 26). Included in investment in jointly controlled entities of the Group are non-audit fees paid to auditors of the Trust capitalised of $677,000 (2010: $677,000).
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Interest in jointly controlled entities (continued)

Details of the jointly controlled entities are as follows: Name of jointly Country of controlled entities incorporation One Raffles Quay Pte. Ltd. (1) Singapore BFC Development Pte. Ltd. (1) Singapore Harmony Investors Group Limited (2) British Virgin Islands One Raffles Quay Pte. Ltd. owns the property One Raffles Quay. BFC Development Pte. Ltd. owns Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.
(1)
Effective equity held by the Group 2011 2010 % % 33.33 33.33 33.33 33.33 20.00
Audited by Ernst & Young LLP. The Managers Board of Directors and Audit Committee are satisfied that the appointment will not compromise the standard and effectiveness of the audit. Not required to be audited under the laws of the country in which it is incorporated.
(2)
Acquisition of one-third interest in BFC Development Pte. Ltd. On 9 December 2010, the Group completed the acquisition of a one-third interest in BFC Development Pte. Ltd.. The following table summarises the proportion of the amounts of net assets recognised as of the acquisition date and the fair value of the total consideration transferred: Identifiable assets acquired and liabilities assumed Investment property Loans Total identifiable net assets One-third interest Fair value of total consideration transferred at acquisition date Purchase consideration for share of net assets acquired Shareholders loan assumed Acquisition fee and other related expenses Total consideration transferred Represented by: Share of identifiable net assets acquired Intangible asset 2010 $000 4,289,111 (1,677,782) 2,611,329 870,443
2010 $000 1,495,800 (559,261) 18,704 955,243
870,443 84,800 955,243
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Interest in jointly controlled entities (continued)

The summarised financial information of the Groups interest in the jointly controlled entities, adjusted for the percentage of ownership held by the Group, is as follows: 2011 $000 Group 2010 $000
Assets and liabilities Non-current assets Current assets Total assets Current liabilities Non-current liabilities Total liabilities Results Revenue Expenses Net change in fair value of investment properties Net profit for the year
1,890,895 518,875 2,409,770 22,619 906,062 928,681
1,864,598 518,964 2,383,562 14,478 956,752 971,230
107,144 (73,213) 107,722 141,653
39,208 (32,195) 23,924 30,937
Investments in subsidiaries
2011 $000 649,899 Trust 2010 $000
Equity investment at cost Details of the subsidiaries are as follows: Country of Name of subsidiaries incorporation
535,506
Effective equity held by the Group 2011 2010 % %
Held by the Trust Comina Investment Limited British Virgin Islands 100.0 Suntec Harmony Pte. Ltd. (2) Singapore 100.0 Held through subsidiaries Held by Suntec Harmony Pte. Ltd. Harmony Partners Investments Limited (1) (3) British Virgin Islands 51.0 Held by Harmony Partners Investment Ltd. Harmony Investors Group Limited (1) (3) British Virgin Islands 60.8 Held by Harmony Investors Group Limited Harmony Investors Holding Limited (1) (3) British Virgin Islands 60.8
100.0 100.0
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Investments in subsidiaries (continued)

Country of Name of subsidiaries incorporation Held by Harmony Investors Holding Limited Harmony Convention Holding Pte Ltd (1) (2) Singapore Effective equity held by the Group 2011 2010 % %
60.8
Harmony Convention Holding Pte Ltd owns the property Suntec Singapore.
(1)
On 18 August 2011, the Group completed the acquisition of 51.0% share capital of Harmony Partners Investments Limited (Note 26), which holds 80.0% interest in Harmony Investors Group Limited, Harmony Investors Holding Limited and Harmony Convention Holding Pte Ltd. Audited by KPMG LLP Singapore. Not required to be audited under the laws of the country in which it is incorporated.
(2)
(3)
Financial derivatives
Group and Trust 2011 2010 $000 $000
Derivative assets - Interest rate swaps at fair value through Statement of Total Return 265 1,178 Current 265 762 Non-current 416 265 1,178 Derivative liabilities - Interest rate swaps at fair value through Statement of Total Return 12,876 513 - Embedded derivatives relating to convertible bonds 1,098 8,459 13,974 8,972 Current 8,756 Non-current 13,974 216 13,974 8,972 The Group uses interest rate swaps to manage its exposure to interest rate movements on its floating rate interest-bearing term loans and short term borrowings by swapping the interest expense on a proportion of these term loans and short term borrowings from floating rates to fixed rates and vice versa. Interest rate swaps with a total notional amount of $1,275,000,000 (2010: $675,000,000) have been entered into at the reporting date to provide fixed and floating rate funding for terms of 2 to 3 years (2010: 3 to 5 years) at an average interest rate of -0.09278% to 1.82% (2010: 0.27009% to 3.725%) per annum.
92
10 Trade and other receivables

Group Trust 2011 2010 2011 2010 $000 $000 $000 $000 Trade receivables 8,114 4,965 3,827 4,965 Impairment losses (2,582) (2,551) (2,352) (2,551) Net receivables 5,532 2,414 1,475 2,414 Deposits 451 Amounts due from: - jointly controlled entities 1,586 3,419 - subsidiaries 1,415 3,320 Loans and receivables 7,569 5,833 2,890 5,734 Prepayments and other receivables 4,238 852 1,656 853 11,807 6,685 4,546 6,587 The trade receivables in respect of Suntec City Mall, part of Suntec City Office Tower 3 and Suntec Singapore amounting to $7,704,000 (2010: Suntec City Mall and part of Suntec City Office Tower 3 amounting to $4,086,000) are charged or assigned by way of security for credit facilities granted to the Group (Note 12). The amounts due from the jointly controlled entities and the subsidiaries are non-trade in nature, unsecured, interest-free and repayable on demand. The exposure of the Group and the Trust to credit risk and impairment losses related to trade receivables is disclosed in Note 15.
11 Cash and cash equivalents

Group Trust 2011 2010 2011 2010 $000 $000 $000 $000 Cash at bank and in hand 64,697 21,405 40,252 20,821 Fixed deposits with a financial institution 39,705 31,088 39,705 31,088 104,402 52,493 79,957 51,909 The weighted average effective interest rate relating to cash and cash equivalents at the reporting date for the Group and the Trust is 0.0931% and 0.1185% (2010: 0.0715% and 0.0724% for both the Group and the Trust) per annum respectively. Interest rates reprice at intervals of one month. Cash and cash equivalents in respect of Suntec City Mall, part of Suntec City Office Tower 3 and Suntec Singapore amounting to $28,887,000 (2010: Suntec City Mall and part of Suntec City Office Tower 3 amounting to $3,731,000) are charged or assigned by way of security for credit facilities granted to the Group (Note 12). The exposure of the Group and the Trust to interest rate risk related to financial assets are disclosed in Note 15.
93
12 Interest-bearing borrowings
Note Group 2011 $000 2010 $000 2011 $000 Trust 2010 $000
Term loans - secured 917,779 788,647 791,453 788,647 - unsecured 1,609,371 1,493,882 1,609,371 1,493,882 2,527,150 2,282,529 2,400,824 2,282,529 Convertible bonds - unsecured 14 276,920 272,115 276,920 272,115 2,804,070 2,554,644 2,677,744 2,554,644 Current 199,967 404,585 199,967 404,585 Non-current 2,604,103 2,150,059 2,477,777 2,150,059 2,804,070 2,554,644 2,677,744 2,554,644 The exposure of the Group and the Trust to liquidity and interest rate risks related to interest-bearing borrowings are disclosed in Note 15. Terms and debt repayment schedule Terms and conditions of outstanding interest-bearing borrowings are as follows:
Weighted average nominal Year of interest Rate maturity %
Face value $000
2011 Carrying amount $000
Face value $000
2010 Carrying amount $000
Group Floating rate term loans 1.54 2012 to 2,302,500 2,280,650 2,105,000 2,078,524 2016 Fixed rate term loans 4.34 2016 250,000 246,500 207,500 204,005 Convertible bonds 3.25 2013 269,250 276,920 270,000 272,115 2,821,750 2,804,070 2,582,500 2,554,644 Trust Floating rate term loans 1.52 2012 to 2,175,000 2,154,324 2,105,000 2,078,524 2016 Fixed rate term loans 4.34 2016 250,000 246,500 207,500 204,005 Convertible bonds 3.25 2013 269,250 276,920 270,000 272,115 2,694,250 2,677,744 2,582,500 2,554,644 Interest-bearing borrowings at the reporting date of $2,804,070,000 (2010: $2,554,644,000) at the Group comprise the following: - - - - $Nil (2010: $157,429,000) unsecured term loan from Sunshine Assets Limited; $1,609,371,000 (2010: $1,336,453,000) unsecured term loan from various institutional banks; $276,920,000 (2010: $272,115,000) convertible bonds due 2013; and $917,779,000 (2010: $788,647,000) secured term loan facilities from various institutional banks.
94
12 Interest-bearing borrowings (continued)

Terms and debt repayment schedule (continued) (a) Term loan facility with Sunshine Assets Limited As at 31 December 2011, the Trust has in place a $Nil (2010: $157.5 million) term loan facility with Sunshine Assets Limited (Sunshine), a special purpose company. (b) Secured term loan facilities with various institutional banks As at 31 December 2011, the Group has in place secured facilities of $927.5 million (2010: $800 million) term loan facilities with a panel of banks. The facilities are secured on the following: - - - - - - A first legal mortgage on Suntec City Mall, part of Suntec City Office Tower 3 and Suntec Singapore (the Properties); A first fixed charge over the central rental collection account in relation to the Properties (Notes 10 and 11); An assignment of the Groups rights, title and interest in the tenancy documents and the proceeds in connection with the Properties; An assignment of the Groups rights, title and interest in the insurance policies in relation to the Properties; A fixed and floating charge over the assets of the Group in relation to the Properties, agreements, collateral, as required by the financial institutions granting the facilities (Note 5); and An assignment of any interest swap facilities, which may be entered into by the Group in relation to the term loan facilities.
The current portion of the interest-bearing borrowings comprise term loan of $200.0 million (2010: $132.5 million) which is due in 2012.
13 Trade and other payables

Group 2011 $000 2010 $000 2011 $000 Trust 2010 $000
Trade and other payables 13,237 3,140 6,042 3,140 Deposit received on Investment Property held for sale 26,550 - 26,550 Accrued operating expenses 11,914 11,121 8,731 11,121 Amounts due to related parties (trade) 2,724 1,393 2,079 1,393 Accrued income 14,069 16,677 7,283 16,677 Interest payable 12,435 8,772 12,431 8,772 80,929 41,103 63,116 41,103 The amounts due to related parties are unsecured and interest-free. Included in the amounts due to related parties for the Group is an amount due to the Trustee, the Manager and related parties of the Manager of $306,000, $1,328,000 and $1,090,000 (2010: $169,000, $716,000 and $508,000) respectively. Included in the amounts due to related parties for the Trust is an amount due to the Trustee, the Manager and a related party of the Manager of $306,000, $1,328,000 and $445,000 (2010: $169,000, $716,000 and $508,000) respectively. Transactions with related parties are priced on an arms length basis.
95
14 Convertible bonds debt component
Group and Trust 2011 2010 $000 $000
Carrying amount of debt component at 1 January 272,115 266,812 Amortisation of transaction costs 860 865 Redemption of convertible bonds (774) Interest accretion 4,719 4,438 Carrying amount of debt component at 31 December 276,920 272,115 In 2008, the Trust issued $270.0 million principal amounts of convertible bonds (the Bonds) due 2013 which carry a coupon interest at 3.25% per annum. The Bonds are convertible by bondholders into Units at the conversion price of $1.718 (2010: $1.723) at any time on or after 30 April 2008 up to 3.00 p.m. on 13 March 2013 or, if redeemed prior to 13 March 2013, then up to 3.00 p.m. on a date no later than 7 business days prior to the date fixed for redemption thereof. As at 31 December 2011, the Trust redeemed $750,000 of convertible bonds at an exercise price of 103.164% on the principal amount. Based on the conversion price, the Bonds are convertible into approximately 156,722,934 Units (2010: 156,703,424 Units), representing 7.0% (2010: 7.1%) of the total number of Units of the Trust in issue as at 31 December 2011. The Trust has the option to pay cash in lieu of issuing new Units on conversion of any Bonds. The Bonds may be redeemed, in whole or in part, at the option of the bondholder of 20 March 2011 at a put price of 103.164% together with any accrued but unpaid interest up to that date. To exercise such right, the holder of the relevant bond must, within a period of three months prior to 20 March 2011, complete, sign and deposit the notice of redemption with the payment agent. The Bonds may also be redeemed, in whole but not in part, at the option of the Trust on or at any time not less than 7 business days prior to 20 March 2013 (subject to the satisfaction of certain conditions) having given not less than 30 nor more than 60 days notice to the bondholders. The early redemption amount represents a gross yield to maturity of 4.25% per annum, on a semi-annual basis calculated on the basis of a 360-day year consisting of 12 months of 30 days each and, in the case of an incomplete month, the number of days elapsed. Unless previously redeemed by the bondholders on 20 March 2011 or by the Trust at any time on or after 20 March 2011 and not less than 7 business days prior to 20 March 2013, the final redemption date of the Bonds is 20 March 2013. The redemption price upon maturity is equal to 105.5063% of the principal amount, together with any accrued but unpaid interest accrued to the date of redemption, on the final redemption date. As at 31 December 2011, the effective interest rate for the Bonds debt component is approximately 5.25% (2010: 5.25%) per annum.
15 Financial instruments
Credit risk Exposure to credit risk The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: Group Trust Carrying amount Carrying amount Note 2011 2010 2011 2010 $000 $000 $000 $000 Derivative assets at fair value through Statement of Total Return 9 Loans and receivables 10 Cash and cash equivalents 11
265 7,569 104,402 112,236
1,178 5,833 52,493 59,504
265 2,890 79,957 83,112
1,178 5,734 51,909 58,821
96
15 Financial instruments (continued)

Credit risk (continued) Exposure to credit risk (continued) The maximum exposure to credit risk for trade receivables at the reporting date by type of tenants is: Group 2011 $000 2010 $000 2011 $000 Trust 2010 $000
Office 45 214 45 214 Retail 1,430 2,200 1,430 2,200 Convention 4,057 5,532 2,414 1,475 2,414 The Groups tenants are engaged in a wide spectrum of business activities across many industry segments. The Groups most significant tenant accounts for $1,093,000 (2010: $1,093,000) of the trade receivables carrying amount as at the reporting date. Impairment losses The ageing of trade receivables at the reporting date is: Gross 2011 $000 Impairment losses Gross 2011 2010 $000 $000 Impairment losses 2010 $000
At 1 January Acquisition through business combinations Impairment loss recognised Allowance utilised during the year At 31 December
Group Not past due 3,697 Past due 31 60 days 1,566 Past due 61 90 days 182 More than 90 days 2,669 (2,582) 8,114 (2,582) Trust Not past due 1,011 Past due 31 60 days 408 Past due 61 90 days 48 More than 90 days 2,360 (2,352) 3,827 (2,352) The movement in the allowance for impairment in respect of trade receivables during the year was as follows: Group 2011 $000 2,551 20 384 (373) 2,582 2010 $000 2,982 430 (861) 2,551
1,705 461 297 2,502 4,965
(49) (2,502) (2,551)
1,705 461 297 2,502 4,965
(49) (2,502) (2,551)
Trust 2011 $000 2,551 174 (373) 2,352 2010 $000 2,982 430 (861) 2,551
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Credit risk (continued) Impairment losses (continued) Based on historic default rates, the Manager believes that, apart from the above, no additional impairment allowance is necessary in respect of trade receivables as these receivables mainly arose from tenants that have a good track record with the Group, and the Group has sufficient security deposits as collateral. The allowance account in respect of trade receivables is used to record impairment losses unless the Group and the Trust are satisfied that no recovery of the amounts owing are possible; at that point the amounts are considered irrecoverable and are written off against the financial asset directly. At 31 December 2011, the Group and the Trust do not have any collective impairment on its trade receivables (2010: nil). Liquidity risk The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements: Cash flows Carrying Contractual Within Within amount cash flows 1 year 1 to 5 years $000 $000 $000 $000 Group 2011 Non-derivative financial liabilities Financial liabilities measured at amortised cost: - Floating rate term loans 2,280,650 (2,406,722) (239,698) (2,167,024) - Fixed rate term loans 246,500 (299,307) (10,880) (288,427) - Convertible bonds 276,920 (294,745) (8,775) (285,970) - Trade and other payables* 66,860 (66,860) (66,860) - Security deposits 63,627 (63,627) (19,628) (43,999) 2,934,557 (3,131,261) (345,841) (2,785,420) Derivative financial liabilities Financial liabilities at fair value through Statement of Total Return - Interest rate swaps 12,876 (17,759) (9,580) (8,179) 2,947,433 (3,149,020) (355,421) (2,793,599) * Exclude accrued income.
More than 5 years $000
98

Credit risk (continued) Liquidity risk (continued) Cash flows Carrying Contractual Within Within amount cash flows 1 year 1 to 5 years $000 $000 $000 $000 Trust 2011 Non-derivative financial liabilities Financial liabilities measured at amortised cost: - Floating rate term loans 2,154,324 (2,272,750) (237,230) (2,035,520) - Fixed rate term loans 246,500 (299,307) (10,880) (288,427) - Convertible bonds 276,920 (294,745) (8,775) (285,970) - Trade and other payables* 55,833 (55,833) (55,833) - Security deposits 62,653 (62,653) (18,654) (43,999) 2,796,230 (2,985,288) (331,372) (2,653,916) Derivative financial liabilities Financial liabilities at fair value through Statement of Total Return - Interest rate swaps 12,876 (17,759) (9,580) (8,179) 2,809,106 (3,003,047) (340,952) (2,662,095) Group and Trust 2010 Non-derivative financial liabilities Financial liabilities measured at amortised cost: - Floating rate term loans 2,078,524 (2,225,028) (34,156) (2,190,872) - Fixed rate term loans 204,005 (243,838) (7,814) (132,949) - Convertible bonds 272,115 (304,340) (8,775) (295,565) - Trade and other payables* 24,426 (24,426) (24,426) - Security deposits 60,691 (60,691) (22,452) (38,239) 2,639,761 (2,858,323) (97,623) (2,657,625) Derivative financial liabilities Financial liabilities at fair value through Statement of Total Return - Interest rate swaps 513 (4,108) (1,672) (2,436) 2,640,274 (2,862,431) (99,295) (2,660,061) * Exclude accrued income. More than 5 years $000
(103,075) (103,075)
(103,075)
99

Interest rate risk Cash flow sensitivity analysis for variable rate instruments For the interest rate swaps and the other variable rate financial liabilities, a change of 30 basis points (bp) (2010: 30 bp) in interest rate at the reporting date would increase/(decrease) total return (before any tax effects) by the amounts shown below. There is no impact on Unitholders funds. This analysis assumes that all other variables remain constant. Group 2011 Interest-bearing borrowings (floating rate) Interest rate swaps Trust 2011 Interest-bearing borrowings (floating rate) Interest rate swaps Group and Trust 2010 Interest-bearing borrowings (floating rate) Interest rate swaps Fair value sensitivity analysis for fixed rate instruments Statement of Total Return 30 bp 30 bp increase decrease $000 $000
(6,908) 4,184 (2,724)
6,908 (4,184) 2,724
(6,525) 4,184 (2,341)
6,525 (4,184) 2,341
Statement of Total Return 30 bp 30 bp increase decrease $000 $000
(6,315) 2,299 (4,016)
6,315 (2,262) 4,053
The Group does not account for any fixed rate financial assets and liabilities at fair value through the Statement of Total Return, nor does the Group designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the reporting date would not affect the Statement of Total Return.
100
Classification and fair value of financial instruments
The fair values of financial assets and liabilities, together with the carrying amounts shown in the Statement of Financial Position, are as follows:
Designated at Loans and fair value receivables Note $000 $000 Fair value $000
Other financial liabilities $000
Total carrying amount $000
Group 2011 Financial derivatives 9 265 265 265 Loans and receivables 10 7,569 7,569 7,569 Cash and cash equivalents 11 104,402 104,402 104,402 265 111,971 112,236 112,236 Financial derivatives 9 (13,974) (13,974) (13,974) Interest-bearing borrowings 12 (2,527,150) (2,527,150) (2,533,035) Trade and other payables 13 (80,929) (80,929) (80,929) Security deposits (63,627) (63,627) (62,785) Convertible bonds 14 (276,920) (276,920) (280,268) (13,974) (2,948,626) (2,962,600) (2,970,991)
2010 Financial derivatives 9 1,178 1,178 Loans and receivables 10 5,833 5,833 Cash and cash equivalents 11 52,493 52,493 1,178 58,326 59,504 Financial derivatives 9 (8,972) (8,972) Interest-bearing borrowings 12 (2,282,529) (2,282,529) Trade and other payables 13 (41,103) (41,103) Security deposits (60,691) (60,691) Convertible bonds 14 (272,115) (272,115) (8,972) (2,656,438) (2,665,410)
1,178 5,833 52,493 59,504 (8,972) (2,296,621) (41,103) (59,975) (283,141) (2,689,812)
Classification and fair value of financial instruments (continued)
Designated at Loans and fair value receivables Note $000 $000 Fair value $000
Other financial liabilities $000
Total carrying amount $000
Trust 2011 Financial derivatives 9 265 265 265 Loans and receivables 10 2,890 2,890 2,890 Cash and cash equivalents 11 79,957 79,957 79,957 265 82,847 83,112 83,112 Financial derivatives 9 (13,974) (13,974) (13,974) Interest-bearing borrowings 12 (2,400,824) (2,400,824) (2,406,709) Trade and other payables 13 (63,116) (63,116) (63,116) Security deposits (62,653) (62,653) (61,811) Convertible bonds 14 (276,920) (276,920) (280,268) (13,974) (2,803,513) (2,817,487) (2,825,878) 2010 1,178 5,734 51,909 58,821 (8,972) (2,296,621) (41,103) (59,975) (283,141) (2,689,812)
Financial derivatives 9 1,178 1,178 Loans and receivables 10 5,734 5,734 Cash and cash equivalents 11 51,909 51,909 1,178 57,643 58,821 Financial derivatives 9 (8,972) (8,972) Interest-bearing borrowings 12 (2,282,529) (2,282,529) Trade and other payables 13 (41,103) (41,103) Security deposits (60,691) (60,691) Convertible bonds 14 (272,115) (272,115) (8,972) (2,656,438) (2,665,410)
101
102

Fair values Estimation of fair values Fair values of the financial instruments of the Group and the Trust have been determined for measurement and/or disclosure purposes based on the following methods: Derivatives The fair value of interest rate swaps is based on broker quotes at the reporting date. These quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each swap and using market interest rates for similar instruments at the measurement date. The fair value of the embedded derivative component of the convertible bonds is the difference between the fair value of the convertible bonds based on broker quotes at the reporting date and the fair value of the liability component of the convertible bonds, determined using the discounted cash flow technique. Non-derivative financial liabilities The fair values of the non-current portion of security deposits, fixed interest-bearing borrowings, borrowings which reprice after three months, which are determined for disclosure purposes, are estimated using the discounted cash flow technique. Future cash flows are based on managements best estimates and the discount rate is based on a market-related rate for a similar instrument at the reporting date. Other financial assets and liabilities The carrying amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash equivalents, trade and other payables and interest-bearing borrowings which reprice within six months) are assumed to approximate their fair values because of the short period to maturity or repricing. Interest rates used in determining fair values The Group used the following interest rates to discount estimated cash flows: Non-current portion of security deposits Fixed rate borrowings Convertible bonds Fair value hierarchy Group and Trust 2011 2010 % % 1.951 3.87 4.50 4.01 1.907 1.237 4.50 3.34
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 2: Level 3:
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15 Financial instruments (continued) Fair value hierarchy (continued)

Group and Trust 2011 Derivative assets - interest rate swaps 265 Derivative liabilities - interest rate swaps (12,876) - embedded derivatives relating to convertible bonds (1,098) (12,876) (1,098) (12,611) (1,098) 2010 Derivative assets - interest rate swaps 1,178 Derivative liabilities - interest rate swaps (513) - embedded derivatives relating to convertible bonds (8,459) (513) (8,459) 665 (8,459) During the financial year ended 31 December 2011, there were no transfers between Level 1 and Level 2. The Level 3 financial instruments measured at fair value are as follows: Group and Trust Embedded derivatives relating to convertible bonds As at 1 January Changes in fair value recognised in Statement of Total Return As at 31 December Total gain for the year included in Statement of Total Return for financial instruments held at the reporting date 2011 $000 2010 $000 Level 2 $000 Level 3 $000 Total $000
265
(12,876) (1,098) (13,974) (13,709)
1,178
(513) (8,459) (8,972) (7,794)
(8,459) 7,361 (1,098)
(14,992) 6,533 (8,459)
7,361
6,533
104
15 Financial instruments (continued) Fair value hierarchy (continued)

Gain for the year included in the Statement of Total Return is presented in net change in fair value of financial derivatives as follows:
Group and Trust 2011 2010 $000 $000
Total gain for the year included in Statement of Total Return 7,361 6,533 Total gain for the year included in Statement of Total Return for financial instruments held at 31 December 7,361 6,533 The fair value of the embedded derivative relating to convertible bonds has been determined using the discounted cash flows approach. The valuation requires management to estimate the expected cash flows over the life of the convertible bonds to investors, which are not evidenced by observable market data. If the assumptions applied by management were 5.0% favourable or unfavourable with all other variables held constant, the fair value of the embedded derivative relating to the convertible bonds would decrease/(increase) by $815,000 (2010: $13,457,000) and ($812,000) (2010: ($13,451,000)) respectively. The analysis is performed on the same basis for 2010.
16 Units in issue
Units in issue: At 1 January 2,205,128 1,797,300 Issue of Units: - asset management fees paid in Units 19,392 15,561 - acquisition fee paid in Units 10,266 - deferred consideration on investment properties acquired 69,001 - private placement of new Units 313,000 At 31 December 2,224,520 2,205,128 Units to be issued: - asset management fees payable in Units 6,926 4,242 Total issued and issuable Units at 31 December 2,231,446 2,209,370 During the year, the Group and the Trust had issued a total of 19,391,490 (2010: 15,561,317) Units at unit prices ranging from $1.1891 to $1.4965 (2010: $1.3072 to $1.5039) per Unit, amounting to $27,094,000 (2010: $21,347,000) in satisfaction of asset management fees payable in Units. Group and Trust 2011 2010 000 000
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16 Units in issue (continued)

Each Unit in the Trust represents an undivided interest in the Trust. The rights and interests of Unitholders are contained in the Trust Deed and include the right to: receive income and other distributions attributable to the Units held; participate in the termination of the Trust by receiving a share of all net cash proceeds derived from the realisation of the assets of the Trust and available for purposes of such distribution less any liabilities, in accordance with their proportionate interests in the Trust. However, a Unitholder has no equitable or proprietary interest in the underlying assets of the Trust and is not entitled to the transfer to it of any assets (or part thereof) or of any estate or interest in any asset (or part thereof) of the Trust; and attend all Unitholders meetings. The Trustee or the Manager may (and the Manager shall at the request in writing of not less than 50 Unitholders or one-tenth in number of the Unitholders, whichever is the lesser) at any time convene a meeting of Unitholders in accordance with the provisions of the Trust Deed.
The Unitholders cannot give any directions to the Manager or the Trustee (whether at a meeting of Unitholders or otherwise) if it would require the Trustee or the Manager to do or omit doing anything which may result in: the Trust ceasing to comply with the Listing Manual issued by SGX-ST or the Property Funds Appendix; or the exercise of any discretion expressly conferred on the Trustee or the Manager by the Trust Deed or the determination of any matter for which the agreement of either or both the Trustee and the Manager is required under the Trust Deed.
A Unitholders liability is limited to the amount paid or payable for any Units. The provisions of the Trust Deed provide that no Unitholders will be personally liable to indemnify the Trustee or any creditor of the Trustee in the event that liabilities of the Trust exceed its assets.
17 Net asset value per Unit

Group 2011 $000 2010 $000 2011 $000 Trust 2010 $000 Note
Net asset value per Unit is based on: Net assets attributable to Unitholders 4,433,821 000 Total issued and issuable Units at 31 December
3,984,633 000
4,296,934 000
3,954,568 000
16
2,231,446
2,209,370
2,231,446
2,209,370
18 Gross revenue
Group 2011 $000 270,062 220 270,282 2010 $000 249,230 249 249,479 2011 $000 242,638 39,570 220 282,428 Trust 2010 $000 249,230 11,432 249 260,911 Gross rental income Dividend income from subsidiaries Others
106
19 Property expenses
Group Trust 2011 2010 2011 2010 $000 $000 $000 $000 Advertising and promotion expenses 5,139 4,374 4,277 4,374 Allowance for doubtful receivables 384 430 174 430 Depreciation of plant and equipment 1,118 38 7 38 Maintenance expenses 3,078 2,169 2,172 2,169 Contributions to maintenance funds 17,770 16,534 16,534 16,534 Property management fees (including reimbursables) 16,182 7,277 7,286 7,277 Property tax 19,978 17,617 19,336 17,617 Utilities 4,208 2,378 2,557 2,378 Others 9,042 5,572 5,052 5,572 76,899 56,389 57,395 56,389 Property expenses represent the direct operating expenses arising from rental of investment properties and sale of food and beverages.
20 Other income
Other income relates to the income support received/receivable by the Group and the Trust under the Deeds of Income Support entered with Cavell Limited and Choicewide Group Limited, the vendors of the one-third interest in One Raffles Quay Pte. Ltd. and BFC Development Pte. Ltd. respectively, and negative goodwill arising on acquisition of 51.0% interest in Harmony Partners Investments Limited. One Raffles Quay Pte. Ltd. holds One Raffles Quay and BFC Development Pte. Ltd. holds Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.
Group 2011 $000 2010 $000 2011 $000
Trust 2010 $000
Income support received from: - Cavell Limited 13,983 20,361 - Choicewide Group Limited 32,690 2,049 46,673 22,410 Negative goodwill on acquisition 1,049 Other income 47,722 22,410
13,983 32,690 46,673 46,673
20,361 2,049 22,410 22,410
21 Finance income and finance costs

Group 2011 $000 2010 $000 2011 $000 Trust 2010 $000
Interest income: - bank deposits 42 33 - interest rate swaps 895 1,958 - loan to jointly controlled entities 22,569 13,972 Finance income 23,506 15,963
42 895 21,120 22,057
33 1,958 11,411 13,402
107
21 Finance income and finance costs (continued)
Group 2011 $000 2010 $000 2011 $000
Trust 2010 $000
Interest expense: - bank loans (40,843) (36,280) - the convertible bonds (8,775) (8,775) - interest rate swaps (11,477) (4,796) Amortisation of transaction costs (14,189) (29,580) Finance costs (75,284) (79,431) Recognised in the Statement of Total Return (51,778) (63,468)
(40,080) (8,775) (11,477) (14,024) (74,356) (52,299)
(36,280) (8,775) (4,796) (29,580) (79,431) (66,029)
22 Asset management fees

Included in the asset management fees of the Group and the Trust is an aggregate of 22,076,035 (2010: 15,725,881) Units, amounting to $28,271,000 (2010: $22,345,000), that have been or will be issued to the Manager in satisfaction of the asset management fees payable in Units.
23 Other charges
Included in other charges are the following items: Non-audit fees paid to auditors of the Trust Group and Trust 2011 2010 $000 $000 57 44
24 Income tax expense
Group 2011 $000 2010 $000 2011 $000
Trust 2010 $000
Tax expense Current year 6,013 2,029 Reconciliation of effective tax rate Net income 250,328 131,463 Add: Net change in fair value of financial derivatives (5,913) 7,566 Less: Share of profit of jointly controlled entities (141,653) (30,937) Net income before share of result of jointly controlled entities and after net change in fair value of financial derivatives 102,762 108,092 Income tax using the Singapore tax rate of 17% 17,470 18,376 Non-tax deductible items 19,296 13,901 Non-taxable income (1,727) (2,016) Tax exempt income Tax transparency (Note 3.13) (29,026) (28,232) 6,013 2,029
5,107
2,029
141,642 (5,913)
109,401 7,566
135,729 23,074 16,615 (1,302) (4,254) (29,026) 5,107
116,967 19,884 13,061 (1,581) (1,103) (28,232) 2,029
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25 Earnings per Unit

Basic earnings per Unit is based on: Group 2011 $000 631,836 2010 $000 385,715 2011 $000 525,014 Trust 2010 $000 363,653
Total return for the year after tax
Number of Units Group 2011 000 2010 000 2011 000 Trust 2010 000
Weighted average number of Units: - outstanding during the year 2,216,661 1,896,610 2,216,661 1,896,610 - to be issued as payment of asset management fees payable in Units 19 12 19 12 2,216,680 1,896,622 2,216,680 1,896,622 In calculating diluted earnings per Unit, the total return for the year after tax and weighted average number of Units in issue are adjusted to take into account the dilutive effect arising from the dilutive Bonds, with the potential Units weighted for the year outstanding. Group Trust 2011 2010 2011 2010 $000 $000 $000 $000 Total return for the year after tax Profit impact of conversion of the dilutive potential Units Adjusted total return for the year after tax 631,836 6,974 638,810 385,715 7,545 393,260 525,014 6,974 531,988 363,653 7,545 371,198
Number of Units Group 2011 000 2010 000 2011 000 Trust 2010 000
Weighted average number of Units used in calculation of basic earnings per Unit 2,216,680 1,896,622 2,216,680 1,896,622 Weighted average number of Units to be issued assuming conversion of the Bonds 156,723 156,703 156,723 156,703 Weighted average number of Units used in calculation of diluted earnings per Unit 2,373,403 2,053,325 2,373,403 2,053,325 As at 31 December 2011, the Group and the Trust had Bonds which were convertible into approximately 156,722,934 (2010: 156,703,424) Units.
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26 Acquisition of subsidiary
Acquisitions in the year ended 31 December 2011 On 18 August 2011, a subsidiary of the Group acquired of 51.0% of the issued ordinary share capital of Harmony Partners Investments Limited, which holds 80.0% interest in Harmony Investors Group Limited, Harmony Investors Holding Limited and Harmony Convention Holding Pte Ltd. As a result, the Groups interest in Suntec Singapore increase from 20.0% to 60.8%. The Manager believes that the acquisition will benefit the Unitholders in the long term as the acquisition fits the Managers principal investment strategy for the Group to invest in quality income-producing assets. The Manager believes that the increase in the Groups interest in Suntec Singapore will be a strategic addition to the Groups existing portfolio, providing opportunities to integrate and enlarge the Groups existing interest in the entire Suntec City development and to unlock the underlying value of the assets. From 19 August 2011 to 31 December 2011, Suntec Singapore contributed revenue of $27,424,000 and profit of $5,287,000 to the Groups results. If the acquisition had occured on 1 January 2011, the Manager estimates that consolidated revenue would have been $309,114,000 and consolidated Statement of Total Return attributable to Unitholders for the year would have been $665,000,000. In determining these amount, the Manager has assumed that the fair value adjustments, determined provisionally, that arose on the date of acquisition would have been the same if the acquisition had occurred on 1 January 2011. The following table summaries the major classes of consideration transferred, and the recognised amounts of assets acquired and liabilities assumed at the acquisition date: Consideration transferred Cash Identifiable assets acquired and liabilities assumed Note Investment property 5 Property, plant and equipment 4 Trade and other receivables Cash and cash equivalents Trade and other payables Interest bearing borrowings Deferred tax liabilities Non-controlling interests Total identifiable net assets
2011 $000 114,750
2011 $000 390,312 8,944 11,861 22,188 (21,875) (126,161) (1,447) (56,764) 227,058
The following fair values have been determined on a provisional basis: Fair value of investment property.
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26 Acquisition of subsidiary (continued)

Negative goodwill Negative goodwill was recognised as a result of the acquisition as follows: 2011 $000 Total consideration transferred 114,750 Non-controlling interests, that are present ownership interests and entitle the holders to a proportionate share of the acquirees net assets on liquidation, based on their proportionate interest in the recognised amounts of the asset and liabilities of the acquiree 111,259 Fair value of identifiable net assets (227,058) Negative goodwill (1,049) The negative goodwill has been recognised in other income in the Statement of Total Return (Note 20) and is expected to be non-deductible for tax purposes. Acquisition-related costs The Group incurred acquisition-related costs of approximately $1,319,000 relating to professional fees and have been included in professional fees in the Groups Statements of Total Return.
27 Operating segments
For the purpose of making resource allocation decisions and assessing segment performance, the Groups chief operating decision maker reviews internal/management reports of its retail and office business segments. The nature of the leases (lease of retail, office or other space) is the factor used to determine the reportable segments. As the retail and office segments of each property are similar in economic characteristics, nature of services and type of customer, the retail and office segments of each property are aggregated accordingly to form the retail and office reportable segments. This forms the basis of identifying the operating segments of the Group under FRS 108 Operating Segments. Other operations segment, which relates to leasing of advertising space and car park, does not meet any of the quantitative thresholds for determining reportable segments for both 2011 and 2010. Segment revenue comprises mainly of income generated from its tenants. Segment net property income represents the income earned by each segment after allocating property operating expenses. This is the measure reported to the chief operating decision maker for the purpose of assessing segment performance. Unallocated items comprise mainly other income, trust-related income and expenses, changes in fair value of investment properties and income tax expense.
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27 Operating segments (continued)

Information regarding the Groups reportable segments is presented in the tables below. Segment information in respect of the Groups geographical segments is not presented as the Groups activities for the year ended 31 December 2011 and 31 December 2010 related wholly to properties located in Singapore. Information about reportable segments Office $000 Retail $000 Others $000 Total $000
2011 Gross revenue 114,842 Property expenses (24,499) Reportable segment net property income 90,343 2010 Gross revenue 117,334 Property expenses (22,982) Reportable segment net property income 94,352 Reconciliation of reportable segment net property income
118,347 (27,871) 90,476
37,093 (24,529) 12,564
270,282 (76,899) 193,383
122,871 (28,493) 94,378
9,274 (4,914) 4,360
249,479 (56,389) 193,090
2011 $000
Group
2010 $000
Total return Reportable segment net property income 180,819 Other net property income 12,564 193,383 Unallocated amounts: - Other income 47,722 - Net finance costs (51,778) - Amortisation of intangible assets (39,285) - Asset management fees (36,078) - Other trust expenses (5,289) - Net change in fair value of financial derivatives (5,913) - Net change in fair value of investment properties 396,193 Share of profit of jointly controlled entities 141,653 Consolidated total return for the year before tax 640,608
188,730 4,360 193,090 22,410 (63,468) (20,895) (27,932) (2,679) 7,566 248,715 30,937 387,744
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28 Commitments
Group and Trust 2011 2010 $000 $000
(a) Capital commitments Capital expenditure contracted but not provided for 2,798 1,359 Loan facilities to jointly controlled entities 560,778 562,652 (b) The Group and the Trust lease out their investment properties. Non-cancellable operating lease rentals receivable are as follows:
Group 2011 $000 209,414 206,741 416,155 2010 $000 208,147 236,209 444,356 2011 $000 207,719 206,741 414,460
Trust 2010 $000 208,147 236,209 444,356
Within 1 year After 1 year but within 5 years
29 Contingent liability
Pursuant to the tax transparency ruling from IRAS, the Trustee and the Manager have provided a tax indemnity for certain types of tax losses, including unrecovered late payment penalties that may be suffered by IRAS should IRAS fail to recover from Unitholders tax due or payable on distributions made to them without deduction of tax, subject to the indemnity amount agreed with IRAS. The amount of indemnity, as agreed with IRAS, is limited to the higher of $500,000 (2010: $500,000) or 1.0% (2010: 1.0%) of the taxable income of the Trust for the year ended 31 December 2011. Each yearly indemnity has a validity period of the earlier of seven years from the relevant year of assessment and three years from the termination of the Trust.
30 Financial ratios
Group 2011 % 2010 % 2011 % Trust 2010 %
Expenses to weighted average net assets1 - including performance component of asset management fees 2.00 1.52 1.97 - excluding performance component of asset management fees 1.66 1.20 1.63 Portfolio turnover rate 2
1
1.52 1.20
The annualised ratios are computed in accordance with the guidelines of the Investment Management Association of Singapore. The expenses used in the computation relate to expenses of the Group and the Trust, excluding property expenses, interest expense and income tax expense. The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Group and the Trust expressed as a percentage of daily average net asset value.
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31 Significant related party transactions

For the purposes of these financial statements, parties are considered to be related to the Group if the Group has the ability to directly or indirectly control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to a common significant influence. Related parties may be individuals or other entities. During the financial year, other than the transactions disclosed elsewhere in the financial statements, there were the following related party transactions: Group Trust 2011 2010 2011 2010 $000 $000 $000 $000 Acquisition fees paid to the Manager 1,148 14,958 1,148 14,958 Asset manager fees paid/payable to a related corporation of the Manager 740 Financial advisory fee paid to a related corporation of the Manager 1,071 1,071 Agency commission paid/payable to a related corporation of the Manager 3,058 3,298 3,058 3,298 Rental income received/receivable from related corporations of the Manager 1,553 1,548 1,553 1,548 Property management fees payable (including reimbursable) to related 15,199 6,500 6,303 6,500 corporations of the Manager
32 Financial risk management

The Group has exposure to credit risk, liquidity risk and market risk. This note presents information about the Groups exposure to each of the above risks, the Groups objectives, policies and processes for measuring and managing risk, and the Groups management of capital. Further quantitative disclosures are included throughout these financial statements.
Risk management framework Risk management is integral to the whole business of the Group. The Group has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risk. The Manager monitors the Groups risk management process to ensure that an appropriate balance between risk and control is achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Groups activities. The Board of Directors of the Manager oversees how management of the Manager monitors compliance with the Groups risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Board is assisted in its oversight role by the Audit Committee. The Audit Committee undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Board.
Credit risk Credit risk is the potential financial loss resulting from the failure of a tenant or a counterparty to settle its financial and contractual obligations to the Group as and when they fall due. The Manager has established credit limits for tenants and monitors their balances on an on-going basis. Credit evaluations are performed by the Manager before lease agreements are entered into with tenants. The Group establishes an allowance for impairment, based on a specific loss component that relates to individually significant exposures, that represents its estimate of incurred losses in respect of trade and other receivables. Cash and fixed deposits are placed with financial institutions which are regulated. Transactions involving derivative financial instruments are allowed only with counterparties that are credit worthy.
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32 Financial risk management (continued)

Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Manager monitors and maintains a level of cash and cash equivalents deemed adequate to finance the Groups operations and to mitigate the effects of fluctuations in cash flows. In addition, the Manager monitors and observes the CIS Code issued by the MAS concerning limits on total borrowings.
Market risk Market risk is the risk that changes in market prices, such as interest rates, which will affect the Groups total return 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.
Interest rate risk The Groups exposure to changes in interest rates relates primarily to interest-bearing financial liabilities. Interest rate risk is managed by the Manager on an on-going basis with the primary objective of limiting the extent to which net interest expense could be affected by adverse movements in interest rates. As at 31 December 2011, the Group has entered into interest rate swaps with a total notional amount of $1,275 million (2010: $675 million) whereby the Group has agreed with counterparties to exchange, at specified intervals, the difference between floating rate and fixed rate interest amounts calculated by reference to the agreed notional principal amounts of the secured and unsecured term loans. The fair value of the above swaps at 31 December 2011 is a net liability of $12,611,000 (2010: net asset of $665,000), comprising assets of $265,000 (2010: $1,178,000) and liabilities of $12,876,000 (2010: $513,000) (Note 9).
Capital management The Board of Directors of the Manager reviews the Groups capital management policy regularly so as to optimise Unitholders return through a mix of available capital sources. The Group monitors its gearing ratio and maintains it within the approved limits. The Group assesses its capital management approach as a key part of the Groups overall strategy, and this is continuously reviewed by the Manager. The Groups gearing stood at 37.3% (2010: 38.4%) as at 31 December 2011. The Group is subject to the aggregate leverage limit as defined in the Property Funds Appendix. The Property Funds Appendix stipulates that the total borrowings and deferred payments (together the Aggregate Leverage) of a property fund should not exceed 35.0% of the funds deposited property. The aggregate leverage of a property fund may exceed 35.0% of the funds deposited property (up to a maximum of 60.0%) only if a credit rating of the property fund from Fitch Inc., Moodys or Standard and Poors is obtained and disclosed to the public. The property fund should continue to maintain and disclose a credit rating so long as its aggregate leverage exceeds 35.0% of the funds deposited property. In the previous year, the Groups corporate family rating and unsecured debt rating is Baa2 and Baa3 respectively. The Group has complied with the Aggregate Leverage limit of 60.0% and there were no changes in the Groups approach to capital management during the financial year.
33 Subsequent events
Subsequent to 31 December 2011, the divestment of an investment property CHIJMES was completed for a cash consideration of $177 million, giving rise to an estimated gain of $29.8 million, which include a divestment fee of $0.9 million paid to the Manager.
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Statistics of Unitholdings
Issued and Fully Paid-Up Units

As at 28 February 2012 There are 2,231,446,413 Units (voting rights: one vote per Unit) outstanding as at 28 February 2012. There is only one class of units in Suntec REIT. There were no treasury units held.
Distribution of Unitholdings
As at 28 February 2012 Size of Unitholdings 1 - 999 1,000 - 10,000 10,001 - 1,000,000 1,000,001 and above TOTAL : No. of Unitholders 28 16,851 5,192 43 22,114
% 0.13 76.20 23.48 0.19 100.00
No. of Units 8,190 69,717,964 267,062,555 1,894,657,704 2,231,446,413
% 0.00 3.12 11.97 84.91 100.00
Twenty Largest Unitholders

As at 28 February 2012 No. Name 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Citibank Nominees Singapore Pte Ltd HSBC (Singapore) Nominees Pte Ltd United Overseas Bank Nominees Pte Ltd DBS Nominees Pte Ltd Suntec City Development Pte Ltd DBSN Services Pte Ltd DBS Vickers Securities (S) Pte Ltd Chinowa Group Limited Bank of Singapore Nominees Pte Ltd Raffles Nominees (Pte) Ltd DB Nominees (S) Pte Ltd Winsor Properties (Overseas) Limited ARA Trust Management (Suntec) Limited BNP Paribas Nominees Singapore Pte Ltd Lee Shau Kee PCK Corporation CIMB Securities (Singapore) Pte Ltd Frank Wen-King Tsao Merrill Lynch (Singapore) Pte Ltd Chow Chung Kai No. of Units 594,198,820 305,374,307 167,269,988 142,356,233 139,420,484 86,878,300 63,543,604 51,657,365 50,315,085 48,677,352 41,073,129 26,428,295 24,840,893 17,796,083 11,352,304 10,811,338 10,538,000 10,138,300 9,724,578 9,366,595 1,821,761,053 % 26.63 13.69 7.50 6.38 6.25 3.89 2.85 2.31 2.25 2.18 1.84 1.18 1.11 0.80 0.51 0.48 0.47 0.45 0.44 0.42 81.63
TOTAL:
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Statistics of Unitholdings
Substantial Unitholders
As at 28 February 2012
Number of Units Direct Interest Deemed Interest 1 Suntec City Development Pte Ltd1 139,420,484
Note: 1 Units included 1,419,038 units held in trust for estate of deceased shareholder.
Managers Directors Unitholdings

As at 21 January 2012 As shown in the Register of Directors Unitholdings Number of Units Direct Interest Deemed Interest 1 2 3 4 5 Lim Hwee Chiang, John Tan Kian Chew Chen Wei Ching, Vincent Chow Wai Wai, John Yeo See Kiat 0 250,000 200,000 2,221,729 325,000 61,933,8781 0 0 0 250,000 2
Notes: 1 By virtue of Mr. Lim Hwee Chiang, Johns 0.61% direct interest in ARA Asset Management Limited (ARA) and 36.59% deemed interest in ARA through JL Investment Group Limited (100% owned by Mr. Lim Hwee Chiang, John) and JL Philanthropy Ltd. The beneficiary of JL Philanthropy Ltd is JL Charitable Settlement and Mr. Lim Hwee Chiang, John is the settlor of JL Charitable Settlement. Mr. Lim Hwee Chiang, John is deemed to be interested in 61,933,878 units held by the Manager and its fellow subsidiary, ARA Investors II Limited (ARA Investors II). Both the Manager and ARA Investors II are wholly-owned subsidiaries of ARA.
2
Deemed interested in 250,000 units held by spouse.
Free Float
Based on the information made available to the Manager as at 28 February 2012, approximately 90.8% of the Units are held in the public hands. Under Rule 723 of the Listing Manual of the SGX-ST, a listed issuer must ensure that at least 10% of its listed securities are at all times held by public.
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Additional Information
Related Party Transactions

The transactions entered with related parties during the financial period and which fall within the Listing Manual of the SGX-ST and the Property Funds Appendix are: Aggregate Value of All Related Party Transactions During the Financial Year Under Review (Excluding Transactions Less Than $100,000) $000
ARA Trust Management (Suntec) Limited and its associates Asset management fees Rental income Property management fees and reimbursables Acquisition fees Retail consultancy and project management Leasing commission HSBC Institutional Trust Services (Singapore) Limited Trustee fees Cavell Limited Income Support 13,983 1,135 36,078 1,553 15,199 1,148 465 3,058
Choicewide Group Limited Income Support 32,690
Subscription of Suntec REIT Units

As at 31 December 2011, an aggregate of 2,224,519,933 Units were in issue. On 20 January 2012, Suntec REIT issued 6,926,480 Units to the Manager as asset management fees for the period from 1 October 2011 to 31 December 2011.
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Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the Annual General Meeting (AGM) of the holders of units of Suntec Real Estate Investment Trust (Suntec REIT, and the holders of units of Suntec REIT, Unitholders) will be held at Level 2, Rooms 208 to 209, Suntec International Convention & Exhibition Centre, 1 Raffles Boulevard, Suntec City, Singapore 039593 on Thursday, 19 April 2012 at 10.30 am to transact the following business:
AS ORDINARY BUSINESS
1. To receive and adopt the Report of HSBC Institutional Trust Services (Singapore) Limited, as trustee of Suntec REIT (the Trustee), the Statement by ARA Trust Management (Suntec) Limited, as manager of Suntec REIT (the Manager) and the Audited Financial Statements of Suntec REIT for the financial year ended 31 December 2011 and the Auditors Report thereon. (Resolution 1)
2.
To re-appoint KPMG LLP as the Auditors of Suntec REIT to hold office until the conclusion of the next AGM of Suntec REIT and to authorise the Manager to fix their remuneration. (Resolution 2)
AS SPECIAL BUSINESS
To consider and if thought fit, pass the following ordinary resolution, with or without any modifications: 3. GENERAL MANDATE FOR THE ISSUE OF NEW UNITS AND/OR CONVERTIBLE SECURITIES That authority be and is hereby given to the Manager to (a) (i) issue new units in Suntec REIT (Units) whether by way of rights, bonus or otherwise; and/or
(ii) make or grant offers, agreements or options (collectively, Instruments) that might or would require Units to be issued, including but not limited to the creation and issue of (as well as adjustments to) securities, warrants, debentures or other instruments convertible into Units, at any time and upon such terms and conditions and for such purposes and to such persons as the Manager may, in its absolute discretion deem fit; and (b) issue Units in pursuance of any Instrument made or granted by the Manager while this Resolution was in force (notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time such Units are issued),
provided that: (A) the aggregate number of Units to be issued pursuant to this Resolution (including Units to be issued in pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed fifty percent (50%) of the total number of issued Units (excluding treasury Units, if any) (as calculated in accordance with sub-paragraph (B) below), of which the aggregate number of Units to be issued other than on a pro rata basis to Unitholders (including Units to be issued in pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed twenty percent (20%) of the total number of issued Units (excluding treasury Units, if any) (as calculated in accordance with subparagraph (B) below);
(B) subject to such manner of calculation as may be prescribed by Singapore Exchange Securities Trading Limited (the SGX-ST) for the purpose of determining the aggregate number of Units that may be issued under sub-paragraph (A) above, the total number of issued Units (excluding treasury Units, if any) shall be based on the total number of issued Units (excluding treasury Units, if any) at the time this Resolution is passed, after adjusting for: (i) any new Units arising from the conversion or exercise of any Instruments which are outstanding as at the time this Resolution is passed; and
(ii) any subsequent bonus issue, consolidation or subdivision of Units;
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(C) in exercising the authority conferred by this Resolution, the Manager shall comply with the provisions of the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the trust deed constituting Suntec REIT (as amended) (the Trust Deed) for the time being in force (unless otherwise exempted or waived by the Monetary Authority of Singapore);
(D)
unless revoked or varied by the Unitholders in a general meeting, the authority conferred by this Resolution shall continue in force until (i) the conclusion of the next AGM of Suntec REIT or (ii) the date by which the next AGM of Suntec REIT is required by applicable regulations to be held, whichever is earlier;
(E)
where the terms of the issue of the Instruments provide for adjustment to the number of Instruments or Units into which the Instruments may be converted in the event of rights, bonus or other capitalisation issues or any other events, the Manager is authorised to issue additional Instruments or Units pursuant to such adjustment notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time the Instruments or Units are issued; and
(F)
the Manager and the Trustee be and are hereby severally authorised to complete and do all such acts and things (including executing all such documents as may be required) as the Manager or, as the case may be, the Trustee may consider expedient or necessary or in the interest of Suntec REIT to give effect to the authority conferred by this Resolution.
[See Explanatory Note] (Resolution 3)
4.
OTHER BUSINESS To transact such other business as may be transacted at an AGM.
By Order of the Board ARA Trust Management (Suntec) Limited as manager of Suntec REIT Yvonne Choo Busarakham Kohsikaporn Company Secretaries Singapore 27 March 2012
Notes 1. A Unitholder entitled to attend and vote at the AGM is entitled to appoint not more than two proxies to attend and vote in his/her stead. A proxy need not be a Unitholder. Where a Unitholder appoints more than one proxy, the appointments shall be invalid unless he/she specifies the proportion of his/her holding (expressed as a percentage of the whole) to be represented by each proxy. The proxy form must be lodged at the Unit Registrars office at Boardroom Corporate & Advisory Services Pte. Ltd., 50 Raffles Place #32-01, Singapore Land Tower, Singapore 048623, not later than 17 April 2012 at 10.30 a.m. being 48 hours before the time fixed for the AGM.
2.
3.
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Explanatory Note to Resolution to be passed: (i) Ordinary Resolution 3 above, if passed, will empower the Manager from the date of the AGM until (i) the conclusion of the next AGM of Suntec REIT or (ii) the date by which the next AGM of Suntec REIT is required by the applicable regulations to be held, whichever is earlier, or (iii) the date on which such authority is revoked or varied by the Unitholders in a general meeting, whichever is the earliest, to issue Units, to make or grant Instruments and to issue Units pursuant to such Instruments, up to a number not exceeding 50% of which up to 20% may be issued other than on a pro rata basis to Unitholders (in each case, excluding treasury Units, if any). For determining the aggregate number of Units that may be issued, the percentage of issued Units will be calculated based on the issued Units at the time Ordinary Resolution 3 above is passed, after adjusting for new Units arising from the conversion or exercise of any Instruments which are outstanding at the time this Resolution is passed and any subsequent bonus issue, consolidation or subdivision of Units. Fund raising by issuance of new Units may be required in instances of property acquisitions or debt repayments. In any event, if the approval of Unitholders is required under the Listing Manual of the SGX-ST and the Trust Deed or any applicable laws and regulations in such instances, the Manager will then obtain the approval of Unitholders accordingly.
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Corporate Directory
TRUSTEE
Registered Address HSBC Institutional Trust Services (Singapore) Limited 21 Collyer Quay #14-01 HSBC Building Singapore 049320 Telephone: +65 6534 1900 Facsimile: +65 6533 1700 Trustee HSBC Institutional Trust Services (Singapore) Limited 21 Collyer Quay #03-01 HSBC Building Singapore 049320 Telephone: +65 6658 0458 Facsimile: +65 6534 5526
Chen Wei Ching, Vincent Independent Director (Appointment since 1 October 2010) Chow Wai Wai, John Non-executive Director (Appointment since 1 July 2007) Yeo See Kiat Chief Executive Officer and Director (Appointment since 25 January 2006) Ma Lai Chee, Gerald Alternate Director to Ip Tak Chuen, Edmond (Appointment since 24 April 2008)
AUDIT COMMITTEE
Tan Kian Chew Chairman Sng Sow-Mei (alias Poon Sow Mei) Member Lim Lee Meng Member Chen Wei Ching, Vincent Member
MANAGER
ARA Trust Management (Suntec) Limited 6 Temasek Boulevard #16-02 Suntec Tower Four Singapore 038986 Telephone: +65 6835 9232 Facsimile: +65 6835 9672
DIRECTORS OF THE MANAGER

Chiu Kwok Hung, Justin Chairman and Director (Appointment since 1 October 2004) Lim Hwee Chiang, John Director (Appointment since 30 August 2004) Ip Tak Chuen, Edmond Director (Appointment since 28 October 2004) Tan Kian Chew Independent Director (Appointment since 28 October 2004) Sng Sow-Mei (alias Poon Sow Mei) Independent Director (Appointment since 28 October 2004) Lim Lee Meng Independent Director (Appointment since 28 October 2004)
DESIGNATED COMMITTEE
Chow Wai Wai, John Chairman Tan Kian Chew Member Chen Wei Ching, Vincent Member Seow Bee Lian, Cheryl Member
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Corporate Directory
COMPANY SECRETARIES OF THE MANAGER

Yvonne Choo Busarakham Kohsikaporn
AUDITOR OF THE TRUST

KPMG LLP 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 Telephone: +65 6213 3388 Facsimile: +65 6225 2230 (Partner-in-charge: Karen Lee) (Appointed since Financial Year 2011)
LEGAL ADVISER
Allen & Gledhill LLP One Marina Boulevard #28-00 Singapore 018989 Telephone: +65 6890 7188 Facsimile: +65 6327 3800
STOCK EXCHANGE QUOTATION

BBG: SUN SP Equity RIC: SUNT.SI
UNIT REGISTRAR
Boardroom Corporate & Advisory Services Pte. Ltd. 50 Raffles Place #32-01 Singapore Land Tower Singapore 048623 Telephone: +65 6536 5355 Facsimile: +65 6536 1360
WEBSITES
www.suntecreit.com www.ara-asia.com
IMPORTANT:
1. For investors who have used their CPF monies to buy Suntec REITs units, this Annual Report is forwarded to them at the request of the CPF Approved Nominees and is sent solely FOR INFORMATION ONLY.
SUNTEC REAL ESTATE INVESTMENT TRUST

(Constituted in the Republic of Singapore pursuant to a trust deed dated 1 November 2004 (as amended))
2. This Proxy Form is not valid for use by CPF investors and shall be ineffective for all intents and purposes if used or purported to be used by them. 3. CPF investors who wish to attend the Annual General Meeting as observers have to submit their requests through their CPF Approved Nominees within the time frame specified. If they also wish to vote, they must submit their voting instructions to the CPF Approved Nominees within the time frame specified to enable the CPF Approved Nominees to vote on their behalf. 4. PLEASE READ NOTES TO THE PROXY FORM.
PROXY FORM ANNUAL GENERAL MEETING

I/We of (Name)
(NRIC/Passport No.) (Address)
being a unitholder/unitholders of Suntec Real Estate Investment Trust (Suntec REIT), hereby appoint: Name Address and/or (delete as appropriate) Name Address or both of whom failing, the Chairman of the Annual General Meeting (AGM) as *my/our *proxy/proxies to attend and vote for *me/us on *my/our behalf at the AGM of the Suntec REIT to be held at Level 2, Rooms 208 to 209, Suntec International Convention & Exhibition Centre, 1 Raffles Boulevard, Suntec City, Singapore 039593, on Thursday, 19 April 2012 at 10.30 a.m. and at any adjournment thereof. *I/We direct *my/ our *proxy/proxies to vote for or against the resolutions to be proposed at the AGM as indicated hereunder. If no specific direction as to voting is given, the *proxy/proxies will vote or abstain from voting at *his/their discretion, as they will on any other matter arising at the AGM. No. Resolutions relating to: AS ORDINARY BUSINESS 1. 2. To receive and adopt the Report of the Trustee, the Statement by the Manager and the Audited Financial Statements of Suntec REIT for the year ended 31 December 2011. To re-appoint KPMG LLP as Auditors of Suntec REIT and authorise the Manager to fix the Auditors remuneration. AS SPECIAL BUSINESS 3. To authorise the Manager to issue Units and to make or grant convertible instruments. OTHER BUSINESS 4. To transact any other business which may be transacted at an AGM. No. of Votes For** No. of Votes Against** NRIC/ Passport No. Proportion of Unitholdings No. of Units % NRIC/ Passport No. Proportion of Unitholdings No. of Units %
* Delete where inapplicable ** If you wish to exercise all your votes For or Against, please tick () within the box provided. Alternatively, please indicate the number of votes as appropriate.
Dated this
day of
2012
Total number of Units held Signature of Unitholder(s)/and, Common Seal of Corporate Unitholder
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Affix Postage Stamp ARA Trust Management (Suntec) Limited (as manager of Suntec Real Estate Investment Trust) c/o Unit Registrar Boardroom Corporate & Advisory Services Pte. Ltd., 50 Raffles Place #32-01, Singapore Land Tower Singapore 048623
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IMPORTANT: PLEASE READ THE NOTES TO PROXY FORM BELOW Notes To Proxy Form
1. A unitholder of Suntec REIT (Unitholder) entitled to attend and vote at the Annual General Meeting (AGM) is entitled to appoint one or two proxies to attend and vote in his/her stead. 2. Where a Unitholder appoints more than one proxy, the appointments shall be invalid unless he/she specifies the proportion of his/her holding (expressed as a percentage of the whole) to be represented by each proxy. 3. A proxy need not be a Unitholder. 4. A Unitholder should insert the total number of Units held. If the Unitholder has Units entered against his/her name in the Depository Register maintained by The Central Depository (Pte) Limited (CDP), he/she should insert that number of Units. If the Unitholder has Units registered in his/her name in the Register of Unitholders of Suntec REIT, he/she should insert that number of Units. If the Unitholder has Units entered against his/her name in the said Depository Register and registered in his/her name in the Register of Unitholders, he/she should insert the aggregate number of Units. If no number is inserted, this Proxy Form (as defined in note 5 below) will be deemed to relate to all the Units held by the Unitholder. 5. The instrument appointing a proxy or proxies (the Proxy Form) must be deposited at the Unit Registrars office at Boardroom Corporate & Advisory Services Pte. Ltd., 50 Raffles Place #32-01, Singapore Land Tower, Singapore 048623, not later than 17 April 2012 at 10.30 a.m., being 48 hours before the time set for the AGM. 6. Completion and return of the Proxy Form shall not preclude a Unitholder from attending and voting at the AGM. 7. The Proxy Form must be executed under the hand of the appointor or of his/her attorney duly authorised in writing. Where the Proxy Form is executed by a corporation, it must be executed under its common seal or under the hand of its attorney or a duly authorised officer. 8. Where the Proxy Form is signed on behalf of the appointor by an attorney or a duly authorised officer, the power of attorney or other authority (if any) under which it is signed, or a notarially certified copy of such power or authority must (failing previous registration with the Manager) be lodged with the Proxy Form, failing which the Proxy Form may be treated as invalid.
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9. The Manager shall be entitled to reject a Proxy Form which is incomplete, improperly completed or illegible or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified on the Proxy Form. In addition, in the case of Units entered in the Depository Register, the Manager may reject a Proxy Form if the Unitholder, being the appointor, is not shown to have Units entered against his/her name in the Depository Register as at 48 hours before the time appointed for holding the AGM, as certified by CDP to the Manager. 10. All Unitholders will be bound by the outcome of the AGM regardless of whether they have attended or voted at the AGM. 11. At any meeting, a resolution put to the vote of the meeting shall be decided on a show of hands unless a poll is (before or on the declaration of the result of the show of hands) demanded by the Chairman or by five or more Unitholders present in person or by proxy, or by one or more Unitholders present in person or by proxy holding or representing not less than one-tenth in value of the Units represented at the meeting. Unless a poll is so demanded, a declaration by the Chairman that such a resolution has been carried or carried unanimously or by a particular majority or lost shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution. 12. On a poll, every Unitholder who is present in person or by proxy shall have one vote for every Unit of which he/she is the Unitholder. There shall be no division of votes between a Unitholder who is present in person and voting at the AGM and his/her proxy(ies). A person entitled to more than one vote need not use all his/her votes or cast them the same way.
ARA Trust Management (Suntec) Limited 6 Temasek Boulevard #16-02 Suntec Tower Four Singapore 038986 Tel: (65) 6835 9232 Fax: (65) 6835 9672 www.suntecreit.com

Suntec REIT Achieves Record High DPU of 9.932 Cents in FY 2011

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Suntec REIT Achieves Record High DPU of 9.932 Cents in FY 2011

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Suntec Real Estate Investment Trust Annual Repor t 2011

Setting the Stage

About Suntec REIT

About ARA Trust Management (Suntec) Limited

Casting the Light on

Suntec REIT Annual Report 2011

ASSETS UNDER MANAGEMENT

office comMitTed occupancy

RETAIL comMitTed occupancy

Suntec REIT Annual Report 2011

Chiu KwoK hung, Justin Chairman and Director 28 February 2012

Suntec REIT Annual Report 2011

2011 S$270.3m S$193.4m S$105.8m S$220.7m 9.93 9.93

2010 S$249.5m S$193.1m S$45.3m S$182.5m 9.86 9.61

INCOME AVAILABLE FOR DISTRIBUTION

220.7 189.6 167.7 182.5

7.0 5.4 4.6 5.2

122.1 87.1 99.8

3.2 2.2 2.3

2011 S$1.075 S$1.63 S$1.065 S$2,391 1,664

2010 S$1.50 S$1.56 S$1.23 S$3,308 1,618

2009 S$1.35 S$1.37 S$0.495 S$2,426 2,244

2008 S$0.71 S$1.69 S$0.575 S$1,116 1,782

2007 S$1.71 S$2.10 S$1.55 S$2,542 2,149

2011 9.24 9.24 1.63

2010 6.57 6.40 2.71

2009 8.67 8.09 2.66

2008 15.53 13.84 2.05

2007 4.95 4.33 2.68

UNIT PRICE AND VOLUME CHART FOR FY 2011

1.30 1.10 0.90 0.70 0.50

Unit Price (S$)

Suntec REIT Annual Report 2011

Suntec REIT Annual Report 2011

Suntec REIT Annual Report 2011

ARA Trust Management (Suntec) Limited

Thomas Wong Senior Manager, Asset Management

Lim Kim Loon Manager, Asset Management

Elaine Leong Senior Accountant, Finance

Yeo See Kiat Chief Executive Officer

Chan Chuey Leng Manager, Asset Management

Richard Tan Director, Finance

Yip Kam Thai Chief Operating Officer

Yeo See Kiat

Yip Kam Thai

Chief Operating Officer

Senior Manager, Finance

Suntec REIT Annual Report 2011

ARA Trust Management (Suntec) Limited

Lim Kim Loon

Chan Chuey Leng

Tan Cheng Cheng

Foo Sze Ming

Suntec REIT Annual Report 2011

Net Property Income

Suntec City Park Mall CHIJMES

87.9% 8.2% 3.9%

Suntec City Park Mall CHIJMES

87.8% 8.5% 3.7%

Assets Under Management

Debt Maturity Profile (REIT Level)

7.0 5.4 4.6 3.2 2.3 5.2