Page 27 - ar2012

MANAGER’S REPORT
A Decade Of Enabling Businesses
FY11/12 has been a fruitful year for A-REIT.
A-REIT maintains its market leadership position in the
Singapore business space and industrial REIT sector with total
assets and market capitalisation of S$6.6 billion and S$4.2
billion respectively. This represents a CAGR of 30.0% in AUM
since its listing 10 years ago on the SGX-ST.
Gross revenue crossed the half-billion dollar mark, increasing
by 12.4% yoy to S$503.3 million. This was contributed largely
by the completion of development projects and acquisitions
during the fnancial year. However, this increase was offset by
higher operating expenses caused mainly by higher electricity
charges and land rent, resulting in a net property income
increase of 8.5%. To help defray the escalation in operating
expenses, service charge was increased by 8.0% with effect
from 1 July 2011 but gradually implemented over the course
of 12 months.
A-REIT’s amount available for distribution grew13.6% in FY11/12
while DPU increased 2.5% to 13.56 cents for the fnancial year
despite an 10.9% increase in its unit base. Since its listing in
2002, A-REIT has achieved a CAGR of 6.6% in DPU despite a
3-fold increase in the number of units in issue.
Occupancy rate improved from a year ago, on a same-store
basis, to 92.8% and 96.4% for its multi-tenanted properties and
portfolio respectively. Positive rental reversions of between
5.2% and 15.7% were achieved across all segments, refecting
the resilience and strong underlying fundamentals of the
portfolio. These are results of the Manager’s proactive asset
management.
Portfolio organic growth of 4.7% was achieved in FY11/12.
Business & Science
Parks
Hi-Tech Industrial /
Data Centres
Light Industrial /
Flatted Factories
Logistics &
Distribution Centres
Warehouse Retail
Facilities
S$m FY11/12 FY10/11 FY11/12 FY10/11 FY11/12 FY10/11 FY11/12 FY10/11 FY11/12 FY10/11
Gross Revenue 176.8 127.9 119.1 114.3 81.7 81.0 112.4 111.5 13.3 12.9
Operating Expenses 53.0 32.8 36.4 31.2 18.8 18.3 24.9 24.0 1.9 1.9
Net Property Income 123.8 95.1 82.7 83.1 62.9 62.7 87.5 87.5 11.4 11.0
Breakdown of Net Property Income :
Investments made in
FY11/12 20.4 - 3.3 - 0.4 - 0.2 - - -
Properties held > 1
year 103.4 94.3 79.4 76.8 62.5 62.2 87.3 84.4 11.4 11.0
Organic growth (%) 9.6% 3.4% 0.5% 3.4% 3.6%
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A DECADE OF ENABLING BUSINESSES