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CHAIRMAN’S MESSAGE
Consequently, A-REIT’s aggregate leverage decreased from
36.6% to 32.1% immediately after the private placement with a
weighted average cost of debt of 3.34%. The weighted average
term of debt was further extended to 4.6 years compared to
3.4 years as at 31 March 2012 due to repayment of the short-
term revolving credit facilities pending the deployment of the
proceeds for their intended usage.
Since IPO, A-REIT has completed ten secondary equity fund
raising exercises. Together with revaluation gains on properties
acquired and developed over the years, the NAV of A-REIT
increased to S$1.878 per unit as at 31 March 2012 compared to
S$0.89 per unit at IPO, notwithstanding that an additional 1.5
billion units were issued during this period.
Market capitalisation of A-REIT has grown from about S$0.5
billion at IPO to S$4.2 billion as at 31 March 2012. A-REIT
remains the largest business space and industrial REIT listed
on the SGX-ST. It accounts for 9.5% of the market capitalisation
of the S-REIT sector. In FY11/12, it accounted for about 10.3% of
the trading volume of S-REITs on the SGX-ST, making it one of
the most liquid REITs in the Singapore market.
A-REIT is also included in major indices, namely: the MSCI
Singapore Index, FTSE Mid Cap Index as well as iShare FTSE
EPRA/NAREIT Asia Index.
A-REIT’s corporate family rating of A3 is the highest corporate
rating amongst industrial S-REITs.
Looking Ahead
The US economy has shown tentative signs of recovery, but the
world is still concerned with the sovereign debt problems of
certain European countries, rising infation and the possibility
of signifcant slowdown in some major developing countries.
Singapore Government has projected a GDP growth of between
1% to 3% for 2012.
We will persist in our focus on the core fundamentals of our
business. In the medium to long term, the Manager remains
committed to pursuing quality and sustainable yield accretive
investments. In addition, the Manager will continue to review
its existing portfolio to ensure relevancy and suitability of the
properties to A-REIT.
The Manager will continue with its tested strategies to further
consolidate A-REIT’s market leadership position, its portfolio
and market presence to deliver yet another year of stable
returns.
In Appreciation
A-REIT’s success would not have been possible without the
concerted effort of many parties. First, I would like to thank
my fellow Board members for their invaluable advice and
contributions throughout the year. We are especially grateful
to my predecessor, Mr David Wong who had been chairman of
the Board since April 2008 until his retirement from the Board
in July 2011. On behalf of the Board and Management, I would
like to thank him for his signifcant contribution to A-REIT during
his stewardship. His invaluable counsel and wisdom shared
over the past years has helped to steer A-REIT into becoming
what it is today - the largest business space and industrial
REIT in Singapore. We are also very grateful to our tenants
and business partners for their unwavering support, which has
been the basis of the success of A-REIT over all these years.
On behalf of all Unitholders, I would also like to extend our
sincere appreciation to the hardworking team at AFM, the
Manager of A-REIT, for their dedication and discipline in
pursuing the core strategies that underlie the success of A-REIT.
Last but not least, I would like to thank you, our Unitholders,
for your trust and confdence in us, and for your investment in
A-REIT.
With unwavering focus on our enduring values and core
strategies, I am confdent that we will be able to capitalise on
the opportunities that are available in a challenging business
environment and continue to deliver another year of steady
performance.
Koh Soo Keong
Chairman
28 May 2012
21
A DECADE OF ENABLING BUSINESSES