133 ANNUAL REPORT 2025 Corporate Governance REMUNERATION POLICY IN RESPECT OF KEY MANAGEMENT PERSONNEL The Manager’s remuneration framework for KMP is directly linked to corporate and individual performances (being both financial and non-financial in nature), and also takes into consideration the keen competition for talent in the REIT management industry and the importance of retaining its competent and committed staff to ensure the stability and continuity of the business and operations of UHREIT. The financial performance of the Manager which is closely linked to UHREIT’s distributable income is also taken into account and is distributed to employees based on their individual performance. In terms of individual performance, this is designed to holistically incorporate components that measure near-term and mid-term performance. The NRC takes into consideration all aspects of the remuneration and aims to be competitive and fair while ensuring that the remuneration package aligns with the interest of UHREIT’s unitholders. The total remuneration mix comprises three components - annual fixed pay, short-term incentive and long-term incentive. (a) The annual fixed pay component comprises the annual basic salary. The Manager uses market benchmarking to ensure that its remuneration is competitive. (b) The short-term incentive is determined by a Balanced Scorecard (“BSC”) which is a variable cash component that looks at UHREIT’s financial and non-financial performance (including risk management, compliance and human resource related performance) and is distributed to employees based on their individual performance. The BSC component drives focus on short-term dynamic targets whilst ensuring a holistic assessment of performance. It also aligns the interests of UHREIT and the Manager. The Manager has identified four key areas as key to measuring its performance under the BSC: i. Financial: This includes targets relating to key financial indicators such as the net property income of UHREIT and the income available for distribution to unitholders; ii. Customer/Asset Focus: This includes targets relating to the occupancy at UHREIT’s properties, lease renewals, rental collections and accounts receivable; iii. Operations/Strategic Focus: This includes targets relating to risk management, legal and regulatory compliance, investors relations and Environmental, Social and Governance (“ESG”); and iv. People: This includes targets relating to employee retention, training and engagement. These four key areas are cascaded down throughout the organisation, thereby creating alignment of interests between UHREIT and the Manager. After the close of each financial year, the Board reviews UHREIT’s achievements against the targets set in the BSC and determines the overall performance taking into consideration qualitative factors such as the quality of earnings, operating environment, regulatory landscape and industry trends. In determining the payout quantum for each employee under the BSC, the Board considers the overall business performance and individual performance as well as the affordability of the payout by the Manager.
RkJQdWJsaXNoZXIy NTM2MDQ5