Page 28 - ar2012

Enabling Growth: Prudent & Proactive Capital
Management
As at 31 March 2012, A-REIT has an aggregate leverage of 36.6%,
despite making nearly S$1.0 billion worth of new investments
during the fnancial year.
A-REIT issued two tranches of notes under its S$1 billion
Multicurrency Medium Term Note Programme (the
“Programme”) established by A-REIT on 20 March 2009. A
S$200.0 million 4.0% notes due 2022 was issued in February
2012 while a tranche of ¥10.0 billion 2.55% per annum notes
due 2024 was issued in April 2012. The Japanese Yen notes
have been immediately swapped into Singapore Dollars upon
issuance to eliminate any foreign exchange exposure for A-REIT
resulting in gross proceeds of approximately S$153.7 million.
On 3 May 2012, the Manager issued 150 million new units
to raise approximately S$298.5 million to fund committed
investments. The issue price of S$1.99 per Unit represents
a premium of 6.0% over A-REIT’s net asset value per Unit of
about S$1.878 as at 31 March 2012. The fund raising exercise
was oversubscribed and saw strong participation from 65 new
and existing institutional investors from Asia, Australia, Europe
and the United States. Consequently, A-REIT’s aggregate
leverage decreased from 36.6% to 32.1% immediately after
the private placement pending the deployment of proceed for
their intended use. A-REIT’s weighted average term of debt was
further extended to 4.6 years compared to 3.4 years as at 31
March 2012 with a average cost of debt of 3.34%.
MANAGER’S REPORT
Debt Profle After equity fund raising
exercise in May 2012
After notes issuance
in April 2012 As at 31 Mar 12 As at 31 Mar 11
Aggregate leverage 32.1% 36.6% 35.2%
Total debt (S$m)(1) 2,104.1 2,401.2 1,893.0
Fixed rate debt as a % of total
debt 70.9% 62.2% 55.8% 71.3%
Weighted average all-in funding
cost (2) 3.34% 3.04% 2.83% 3.46%
Weighted average term of debt
(years) 4.6 4.2 3.4 3.2
Weighted average term of fxed
rated debt (years) 4.2 4.2 3.4 3.2
Interest cover ratio (times) 5.3 4.5
Unencumbered properties as %
of total investment properties 58.6% 55.3%
Notes:
(1) Excludes deferred payments of purchase price of properties
(2) Including annual maintenance costs and amortisation of establishment cost of loans
Term Loan Facility (RMB denominated)
Committed revolving Credit Facility
Exchangeable Collateralised Securities
Medium Term Note (JPY denominated)
Medium Term Note
Commercial Mortgage Backed Securities
Term Loan Facility
A-REIT’s Debt Maturity Profle
(After Issuance Of 12-Year Notes In April 2012 And
Private Placement In May 2012)
0
S$450
S$400
S$350
S$300
S$250
S$200
S$150
S$100
S$50
2012
S$19
2013
S$132
S$125
2014
S$395
2015
S$300
2016
Amount of debt (S$m)
S$104
S$150
2017
S$375
2018
S$148
2022
S$200
2024
S$154
S$3
ASCENDAS REAL ESTATE INVESTMENT TRUST
ANNUAL REPORT FY11/12
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