Response to SGX Queries::
Issuer & Securities
FEO HOSPITALITY ASSET MANAGEMENT PTE. LTD.
FAR EAST HOSPITALITY TRUST - SG2F08984575 - Q5T
Other Issuer(s) for Stapled Security
DBS TRUSTEE LIMITED
Response to SGX Queries
Date &Time of Broadcast
On Annual Reports
Submitted By (Co./ Ind. Name)
Gerald Lee Hwee Keong
Chief Executive Officer
Description (Please provide a detailed description of the change in the box below)
FEO Hospitality Asset Management Pte. Ltd., as manager of Far East Hospitality Real Estate Investment Trust (the REIT Manager ), and FEO Hospitality Trust Management Pte. Ltd. as trustee-manager of Far East Hospitality Business Trust (the Trustee-Manager, and together with the REIT Manager, the Managers ), refers to Far East Hospitality Trust's annual report for the financial year ended 31 December 2015 (the "Trust's Annual Report 2015"), which was made available on the SGXNET.
Singapore Exchange Securities Trading Limited (the "SGX-ST") has provided some comments to the Managers to seek further clarification and the Managers wish to provide their clarification as set out below:-
1. Comment from the SGX-ST:
Guideline 9.3 of the Code recommends that the Company disclose in aggregate the total remuneration paid to the top five management personnel (who are not directors or the CEO). We note that such disclosure of the total remuneration paid to the top five management personnel has not been made.
Response from the Managers:
The Board is of the view that the disclosure of the aggregate remuneration of the top five key management personnel will not be in the best interests of the Managers, Far East Hospitality Trusts or its Stapled Securityholders due to the competitiveness for key talent in the REIT industry. The Board felt that such information is sensitive in nature and disclosing it could affect the stability of the management team.
Accordingly, the Board is of the opinion that such non-disclosure will not be prejudicial to the interest of the Stapled Securityholders.
2. Comment from the SGX-ST:
Guideline 9.4 of the Code recommends the Company disclose details of the remuneration of employees who are immediate family members of a director or the CEO, and those remuneration exceeds S$50,000 during the year. We note the representation in page 58 that there is no employee with the REIT Managers who is an immediate family member of a director or the Chairman. However, it is unclear whether there is employee who is an immediate family member of the CEO, and whose remuneration exceeds S$50,000 during the year.
Response from the Managers:
There is no employee with the REIT Manager who is an immediate family member of a director or the CEO and whose remuneration exceeds $50,000 during the year.