143 ANNUAL REPORT 2025 Corporate Governance REVIEWS CONDUCTED BY THE ARC In FY2025, the ARC performed independent reviews of the half-yearly and full year financial results of UHREIT before recommending that the Board approve the release of the financial statements and SGX announcements relating to UHREIT’s financial statements. In the process, the ARC reviewed the significant financial reporting issues and judgements, including the appropriateness of accounting policies and the quality and completeness of disclosure to ensure the integrity of the financial statements. Following the review and discussions, the ARC was satisfied with the approach and appropriateness of methodologies used by Management, as adopted and disclosed in the financial statements, and recommendation was made by the ARC to the Board to approve the financial statements. The ARC reviewed and approved the audit plan and scope of the audit of the full year financial statements. The ARC also reviewed and approved the internal audit plan and scope of the Internal Auditor’s work and audit programme. It reviewed the findings during the year and Management’s responses thereto and it satisfied itself of the adequacy of the internal audit function. In addition, the ARC reviewed the IPT to ensure compliance with the Listing Manual and the Property Funds Appendix. Changes to the accounting standards and issues which have a direct impact on the financial statements were reported and discussed with the ARC at its meetings. In carrying out its function, the ARC may also obtain independent or external legal or other professional advice or appoint external consultants as it considers necessary at the Manager’s cost. The Manager has in place internal policies and procedures in relation to sanctions risk and conducts an annual assessment relating to such risks. The Company currently does not have exposure to sanctions risks. The Board and ARC are responsible for monitoring the Company’s risk of becoming subject to, or violating, any Sanctions Law; and ensuring timely and accurate disclosures to SGX and other relevant authorities The ARC also reviewed and discussed with Management, among other matters, the following key audit matter(s) (“KAM”) identified by the External Auditors for FY2025: VALUATION OF INVESTMENT PROPERTIES The ARC considered the approach and methodology applied to the valuation model in assessing the valuation of investment properties, noted the objectivity, independence and expertise of the external appraisers engaged by the Manager, assessed the appropriateness of the valuation model and reasonableness of the significant assumptions adopted, evaluated major cost items capitalised in investment properties during the period for reasonableness and having reviewed the valuation reports and the carrying value of its investment properties are satisfied that the use of inputs and assumptions are reasonable and that the investment properties have been appropriately measured at fair value and valuations fall within a reasonable range.
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