134 UNITED HAMPSHIRE US REIT Corporate Governance (c) The long-term incentive is in the form of the Performance Unit Plan of the Manager (“PUP”) and the Restricted Award Plan of the Manager (“RSA”) which are applicable to KMP: i. RSA: The RSA was introduced in FY2024 and is a restricted award plan aimed at encouraging continued service. The award is a deferred time-based award and will be paid in cash over three equal annual tranches, provided the recipient remains under employment of the Manager. ii. PUP: The PUP has a three-year performance period and the final number of units to be released pursuant to the awards (“PUP Awards”) depends on the achievement of certain performance targets at the end of the performance period. The performance targets comprise of a combination of the Absolute Total Unitholder Return (“ATUR”), Assets Under Management Growth (“AUM Growth”) and Distribution Per Unit (“DPU”). ATUR drives alignment of Manager’s interests to that of the Unitholders, whilst the DPU and AUM Growth complement the ATUR in capturing UHREIT’s long-term value creation objectives. The Manager believes that the unit-based components of the remuneration for KMP serve to align the interests of such KMP with that of Unitholders and UHREIT’s long-term growth and value. In respect of PUP Awards which have been granted in FY2021, FY2022 and FY2023 pursuant to the PUP, based on the NRC’s and the Board’s assessment of the performance achieved by UHREIT for these financial years, and taking into consideration, amongst other things, the prevailing market conditions, the performance of the Singapore REIT sector and UHREIT’s operational and financial performance compared to its industry peers, the NRC and the Board had approved the partial vesting of the PUP Awards which have been awarded, which will not be subject to the achievement of any of the performance targets at the end of the three-year performance period, as the NRC is satisfied that the Manager has attained an achievement factor which is reflective of partially meeting the pre- determined performance target levels for the FY2021, FY2022 and FY2023 PUP Awards. To encourage continued service, these Units will vest over a three-year period following the end of the respective three year performance periods, provided the recipient remains under employment. Accordingly, in FY2026, (i) a portion of the FY2021 PUP Awards will vest following the end of its three-year performance period in FY2023; (ii) a portion of the FY2022 PUP Awards will vest following the end of its three-year performance period in FY2024; and (iii) a portion of the FY2023 PUP Awards will vest following the end of its three-year performance period in FY2025. PUP Awards were granted in FY2025 to KMP which is subject to the aforesaid three year performance period. No new Units are or will be issued by UHREIT to satisfy the release of Units pursuant to the awards granted under the PUP and/or the RSA as such awards will be satisfied by the transfer of Units by the Manager to the relevant KMP and/ or recipient. No employee share option schemes or share schemes have been implemented by UHREIT. The Manager has in place other nonfinancial related benefits such as life and health insurance, subsidised annual health checks, and parental leave according to prevailing local market practices. These benefits extend to all employees of the Manager. The Manager also have four team bonding sessions a year to allow employees to de-stress and bond outside of work, fostering greater employee cohesiveness and sense of belonging. The Manager applies the principle that remuneration matters are to be sufficiently structured and benchmarked to good market practices in order to attract and retain suitably qualified talent, to grow and manage UHREIT. The remuneration for the Board and KMP is also viewed in totality. The NRC and Board have reviewed and ensured that the level and structure of remuneration for the Manager’s Directors and KMP are aligned with the long-term interests and risk management policies of UHREIT.
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