Ascendas Real Estate Investment Trust : Payment Of Acquisition Fee By Way Of Issue Of Units In Ascendas Real Estate Investment Trust ("Ascendas REIT")

(Constituted in the Republic of Singapore

pursuant to a trust deed dated 9 October 2002 (as amended)("Trust Deed"))

PAYMENT OF ACQUISITION FEE BY WAY OF ISSUE OF UNITS

IN ASCENDAS REAL ESTATE INVESTMENT TRUST ("ASCENDAS REIT")

Unless otherwise defined, capitalised terms used in this announcement shall have the same meaning as defined in the announcement dated 1 November 2019 titled "Proposed Acquisitions of a Portfolio of United States Properties and Two Singapore Properties" (the "Announcement").

Further to the announcement dated 11 December 2019 titled "Completion of Acquisitions of a Portfolio of United States Properties and two Singapore Properties and Use of Proceeds from the Rights Issue", the Board of Directors of Ascendas Funds Management (S) Limited ("Ascendas- FMS") wishes to announce that 5,494,086 units in Ascendas Reit (the "New Units", and the units in Ascendas Reit, the "Units") have been issued today to Ascendas-FMS, in its capacity as Manager of Ascendas Reit. The New Units were for payment of acquisition fee in relation to the acquisition by Ascendas Reit of a portfolio of United States properties and two Singapore properties from indirect wholly-owned entities of CapitaLand Limited on 11 December 2019. These New Units were issued at an issue price of S$3.0098 per New Unit.

In accordance with the Trust Deed and Appendix 6 (Property Funds) of the Code on Collective Investment Scheme, when Ascendas Reit acquires real estate assets from interested parties, the acquisition fee earned by Ascendas-FMS on such acquisition shall be paid in the form of Units issued by Ascendas Reit at the prevailing market price. These Units should not be sold within one year from their date of issuance. In accordance with established precedence, related fees payable in Units are to be paid 30 days after the completion of the transaction.

The issue price of the New Units was determined based on the volume weighted average traded price for all trades done on Singapore Exchange Securities Trading Limited ("SGX-ST") in the ordinary course of trading on the SGX-ST from 26 December 2019 to 9 January 2020 which is 10 business days immediately preceding the date of issue of the New Units to Ascendas-FMS.

Following the above issue of New Units, the total number of Units in Ascendas Reit in issue is 3,618,187,918, of which Ascendas-FMS holds 93,663,917 Units or approximately 2.589% of the total Units in issue.

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BY ORDER OF THE BOARD

ASCENDAS FUNDS MANAGEMENT (S) LIMITED

(Company Registration No. 200201987K)

(as manager of Ascendas Real Estate Investment Trust)

Mary Judith de Souza Company Secretary 10 January 2020

Important Notice

The value of Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested.

Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.

This announcement is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for Units.

The past performance of Ascendas Reit is not necessarily indicative of the future performance of Ascendas Reit.

This announcement may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income and occupancy, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on the Manager's current view of future events.

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