M A N A G E R ’ S R E P O R T
HIGHLIGHTS OF FY14/15
Financial Performance
Gross Revenue
+9.8%
FY14/15: S$673.5 million
FY13/14: S$613.6 million
Net Property Income (NPI)
+6.1%
FY14/15: S$462.7 million
FY13/14: S$436.0 million
Total Amount Available for Distribution
+2.7%
FY14/15: S$351.1 million
FY13/14: S$342.0 million
Distribution Per Unit (DPU)
+2.5%
FY14/15: 14.60 cents
FY13/14: 14.24 cents
Capitalisation Rate (Singapore Portfolio)
6.46%
FY13/14: 6.57%
Total Assets
+10.9%
FY14/15: S$8.2 billion
FY13/14: S$7.4 billion
Net Asset Value (NAV) Per Unit
+3.0%
FY14/15: S$2.08
FY13/14: S$2.02
Proactive Portfolio Management
• Continued to review portfolio and embarked on asset
enhancement initiatives to upgrade building specifications,
enhance marketability of properties and in some cases,
increase lettable area by maximising available plot ratio. In
FY14/15, A-REIT embarked on 3 new asset enhancement
initiatives with an estimated value of S$37.7 million.
• Achieved positive rental reversion of 8.3% in FY14/15 as
passing rental rates for most of the leases were below the
prevailing market rental rates.
• Overall portfolio occupancy and multi-tenant properties
(same store) occupancy stood at 87.7% and 85.6%
respectively as at 31 March 2015.
Disciplined Value-Adding Investment & Divestment
• Acquired three high quality properties for a combined
purchase consideration of S$770.6 million:
° Hyflux Innovation Centre, a prime high-specifications
property, was acquired for a total purchase
consideration of S$193.9 million. Hyflux has leased
50% of the gross floor area (GFA) for 15 years.
° Acquired Aperia, a newly completed integrated mixed-use
development located at the fringe of the central business
district in Singapore for S$463.0 million. Aperia offers a
unique and holistic work environment catering to many
renowned global companies with operations in Singapore.
° The Kendall, was acquired for S$113.7 million. This is
the 19
th
property from the Ascendas Group since the
IPO with 8 properties in 2002.
• Embarked on the development of a modern logistics facility
in Jiashan, China, for a total development cost of RMB
105.2 million (approximately S$23.7 million). The facility is
expected to complete in 1Q 2016.
• Divested No. 1 Kallang Place (with remaining land tenure
of about 10 years) for S$12.6 million, representing a 5%
premium over the original purchase price of S$12.0 million.
In April 2015, the Manager also divested 26 Senoko Way
for S$24.8 million, realising capital gains of S$9.0 million.
Prudent Capital And Risk Management
• Aggregate leverage remains healthy at 33.5% as at 31
March 2015. This implies a debt headroom of around
S$1.7 billion before aggregate leverage reaches 45%.
• Maintained A3 credit rating from Moody’s and continue to
enjoy good access to debt capital markets
° Secured a S$100 million 5-year Murabahah Term Loan
Facility
° Issued 3.5-year HKD620 million, 5-year S$95 million
and 15-year HKD640 million notes under the Medium
Term Note Programme.
Note:
The Group adopted FRS 110 Consolidated Financial Statements with effect
from 1 April 2014 which results in the Group consolidating Ruby Assets Pte.
Ltd. and Emerald Assets Limited since 1Q FY14/15. FY13/14 figures have
been restated on a similar basis for comparison.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
