SEO Version
MANAGER’S REPORT
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Singapore
Telecommunications
Limited
C&P Holdings
Pte Ltd
Citibank, N.A Creative
Technologies
DBS Bank
Federal
Express
Corporation
Biomedical
Sciences
Institutes
Siemens
SENKEE
Logistics
Cold Storage
6.0%
3.7%
2.8%
2.8%
2.0%
1.7%
1.7%
1.6%
1.6%
1.6%
Top 10 Tenants (By Monthly Gross Revenue)
Low exposure to
conventional manufacturing (By net lettable area)
About 85% of A-REIT’s lettable area is leased to multi-national
or government-linked companies and agencies. The balance of
its lettable space is occupied by Small and Medium Enterprises
(“SME”) and other tenants who each take up less than 2,000
sqm of space. This group of customers represents less than
0.5% of the Singapore SME population. Only 20.3% of A-REIT’s
lettable area is used for conventional manufacturing.
The Manager regularly review the credit risk profle of A-REIT’s
customers to minimise bad debt. A weighted average of
6-month worth of rental income is collected as security
deposit to safeguard A-REIT against potential tenant default.
The standard industry practice is to hold one-month worth of
rental as security deposit for each year’s lease. However, for
single-tenanted buildings, resulting typically from a sale-and-
leaseback transaction or a built-to-suit arrangement, a larger
sum of security deposits may be obtained depending on the
credit-standing of the customer and commercial negotiation.
Non-manufacturing activities include R&D,
backroom offces, telecommunications &
data centre, software and media consultancy
services as well as transport & storage
* Excluding cases where rental is paid upfront
Manufacturing activities include food &
beverages, aeronautical auxiliary equipment,
precision engineering etc.
79.7%
20.3%
No. of single-
tenanted
properties
Weighted average
security deposit*
(no. of months)
Business & Science
Parks
4
12
Hi-Tech Industrial
Properties
8
7
Light Industrial
23
12
Logistics &
Distribution Centres
13
10
Warehouse Retail
Facilities
2
10
50
10
% of monthly gross revenue
37
A DECADE OF ENABLING BUSINESSES
Powered by FlippingBook Publisher