Page 40 - ar2012

MANAGER’S REPORT
In FY12/13, we will look forward to consolidate our position as
the market leader in the business space and industrial sector.
A-REIT will leverage on its wide spectrum of real estate space
offering to cater to the varied requirements of its customers.
A-REIT has a vacancy rate of about 21.9% for its investments
completed in FY11/12 which we will strive to lease up. This
would be a potential source of organic growth.
38% of A-REIT’s portfolio is made up of long term leases with
built in rental escalation; 32.2% of such leases have rental
escalation pegged to CPI with a fxed rate foor. The balance
of such long term leases have varying quantum of periodic
escalation.
A-REIT is also set to beneft from the full-year net property
income contribution from the investments completed during
FY11/12, particularly from the investments that were completed
in the fourth quarter of FY11/12. This includes Cintech I to IV as
well as FoodAxis @ Senoko and 90 Alps Avenue.
S$0.00
S$0.50
S$1.00
S$1.50
S$2.50
S$2.00
S$3.00
0
200
400
600
800
1,600
1,400
1,200
1,000
1,800
2,000
S$3.50
S$4.00
S$4.50
S$5.00
Rental Rates (psf pm)
Area Due for renewal (‘000sf)
Business & Science Parks Hi-Tech Industrial Light Industrial Flatted Factories Logistics & Distribution
S$3.35
S$2.24
S$1.44 S$1.49
S$1.38
S$3.31
S$2.10
S$1.28
S$1.49
S$1.22
S$3.90
S$2.85
S$1.90 S$1.90
S$1.75
Area (‘000sf) for Renewal in FY12/13
Area (‘000sf) for Renewal in FY13/14
Weighted avg existing rates (psf pm) for FY 12/13
Weighted avg existing rates (psf pm) for FY 13/14
Current Market rental (psf pm)
Multi-tenanted Buildings:
Typically 3-year rolling
leases
Single-tenanted Buildings:
Long term leases typically
with periodic rental
escalation, of which 32.2%
of these leases are pegged
to CPI
38%
62%
FY12/13 FY12/13 FY12/13 FY12/13 FY12/13 FY13/14 FY13/14 FY13/14 FY13/14 FY13/14
ASCENDAS REAL ESTATE INVESTMENT TRUST
ANNUAL REPORT FY11/12
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