Page 30 - ar2013.pdf

As we enter the 11th year of A-REIT’s listing, we are pleased that the Manager’s core
strategies of disciplined value-adding investment, proactive portfolio management and
prudent capital and risk management, have continued to serve A-REIT well. A-REIT,
being the first and largest business space and industrial REIT listed on the SGX-ST, has
and would continue to constantly re-calibrate its strategies to keep abreast of the fast
changing business and global landscape.
On behalf of the Board of Directors of Ascendas Funds Management (S) Limited, the
Manager of A-REIT, I am pleased to present the Annual Report for the financial year ended
31 March 2013.
With assets under management (“AUM”) growing at a Compounded Annual Growth
Rate (“CAGR”) of 27.0% over the past decade, A-REIT has established itself as the
largest and probably the strongest business space and industrial real estate investment
trust in Singapore. It currently has a portfolio of 103 properties with total assets under
management of about S$7.0 billion.
Net Asset Value (“NAV”) per Unit also increased to about S$1.94 per Unit as at 31 March
2013 compared to S$0.89 per Unit at IPO, notwithstanding that an additional 1.8 billion new
Units (approximately 340% of initial offering of IPO Units of 545 million) were issued during
this period. Distribution Per Unit (“DPU”) grew at a CAGR of 6.1% over the same period.
As A-REIT continues to attract, retain and grow its customer base through its
comprehensive space offering of business and industrial space across the five major
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Distribution Centres and Warehouse Retail Facilities, we constantly re-invent ourselves
and our product offerings to extract and enhance returns for A-REIT’s Unitholders.
Capitalising on the lease expiry in some of A-REIT’s existing single-tenanted buildings,
the Manager initiated and implemented various asset enhancement works totaling
S$52.2 million in FY12/13 to upgrade buildings’ specifications, improve their
marketability and in some instances, maximise plot ratio to create additional lettable
space. These asset enhancement works are expected to bring about higher value-add
to the portfolio upon completion.
In FY12/13, we moderated our pace of investments to consolidate the acquisitions
of more than half a billion dollars in the prior financial year. As such, we only acquired
The Galen, a Science Park property, for S$127.5 million at a net property income yield
of 6.8% from the Ascendas Group.
Chairman’s
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OUR PERFORMANCE
26 ASCENDAS REAL ESTATE INVESTMENT TRUST