O U R S T R A T E G Y
The Manager is fully committed towards A-REIT’s mission of delivering predictable distributions and long-term capital stability to
Unitholders. Since its initial public offering in November 2002, A-REIT has been paying out 100% of its taxable income available
for distribution and intends to continue doing so.
This is achieved through a three-pronged strategy of
1) Proactive portfolio management,
2) Disciplined value-adding investments, and
3) Prudent capital and risk management
1) Proactive portfolio management
The Manager’s primary strategy is to maximise the organic growth
potential of the portfolio through active asset management. Key
areas of focus of portfolio and asset management include:
• proactive marketing and leasing of spaces to achieve a
healthy occupancy;
• delivery of quality property and customer services to tenants;
• improvement of operational efficiency and optimise operating
costs; and
• implementation of asset enhancement initiatives.
The Manager works closely with its Property Manager to ensure
delivery of above strategies and to enhance portfolio returns.
2) Disciplined value-adding investments
The Manager is committed to undertake disciplined and value-
adding investments through acquisitions and development
of high quality properties and will continue to focus on the
following key areas of activities:
• acquisition of income-producing properties with established
tenants;
• acquisition of good quality multi-tenant properties with
strong income stream and/or asset enhancement potential;
• built-to-suit development projects to cater to prospective
tenants’ operational requirements and specifications;
• selective redevelopment and government land sales to
capitalise on the Manager’s development capabilities; and
• sourcing of investment opportunities beyond Singapore to
enhance portfolio diversification and resilience.
3) Prudent capital and risk management
The Manager regularly reviews A-REIT’s debt and capital
management as well as financing policy so as to optimise
A-REIT’s funding structure and costs. The Manager also
monitors A-REIT’s exposure to various risk elements and
externally-imposed requirements by closely adhering to clearly
established management policies and procedures.
A-REIT has a system of controls in place to create an acceptable
balance between the benefits derived from managing risks
and the cost of managing those risks. The Manager also
monitors A-REIT’s risk management process closely to ensure
that an appropriate balance between control and business
objectives is achieved. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions
and A-REIT’s strategic direction.
The key aspects of the capital and risk management strategies
are as follows:
• maintain a strong balance sheet and optimise the capital
structure;
• diversify the sources of funding; and
• manage interest rate risk, liquidity risk, credit risk and foreign
currency risk.
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