These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1. GENERAL INFORMATION EC World Real Estate Investment Trust (“ECW”) is a Singapore-domiciled Real Estate Investment Trust constituted pursuant to the Trust Deed dated 5 August 2015 (as amended and restated) between EC World Asset Management Pte. Ltd. (the “Manager”) and DBS Trustee Limited (the “Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore. ECW was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 28 July 2016 (the “Listing Date”) and was approved for inclusion under the Central Provident Fund Investment Scheme. The principal activity of ECW and its subsidiaries (the “Group”) is to invest, directly or indirectly, in a diversified portfolio of income-producing real estate which is used primarily for e-commerce, supply chain management and logistics purposes, as well as real estate-related assets, with an initial geographical focus on the People’s Republic of China (the “PRC”). ECW has entered into several service agreements in relation to the management of ECW and its property operations. The fee structures for these services are as follows: (a) Trustee’s fees The Trustee’s fees shall not exceed 0.1% per annum of the value of all the assets of the Group (“Deposited Property”) (subject to a minimum of S$12,000 per month), excluding out-of-pocket expenses and GST in accordance with the Trust Deed. The Trustee’s fees are payable out of the Deposited Property of ECW monthly, in arrears. (b) Manager’s management fees The Manager is entitled under the Trust Deed to receive the following remuneration: (i) a base fee of 10.0% per annum of the Distributable Income (calculated before accounting for the base fee and the performance fee in each financial year); and (ii) a performance fee of 25.0% of the difference in Distribution per Unit (“DPU”) in a financial year with the DPU in the preceding full financial year (calculated before accounting for the performance fee but after accounting for the base fee in each financial year) multiplied by the weighted average number of Units in issue for such financial year. The Performance Fee is payable if the DPU in respect of any financial year exceeds the DPU in the preceding Financial Year, notwithstanding that the DPU in such relevant Financial Year may be less than the DPU in the Financial Year prior to any preceding full Financial Year. The base fee and performance fee, if any, is payable to the Manager or its nominees in the form of cash and/or Units (as it may in its sole discretion determine). The base fees will be paid quarterly in arrears. The performance fee will be paid annually in arrears. The Manager had elected to receive 100% (2023: 100%) of the Manager’s management fees in the form of cash for the financial year ended 31 December 2024. EC WORLD REIT 80 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024
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