M A N A G E R ’ S R E P O R T
Key Debt Funding Indicators
Indicators
As at 31 March 2015
As at 31 March 2014
Aggregate Leverage
33.5%
30.0%
Total Debt^ (S$m)
2,735
2,208
Fixed debt as a % of total debt
68.2%
65.3%
Weighted average all-in borrowing cost
2.7%
2.7%
Weighted average tenure of debt outstanding (years)
3.6
3.3
Weighted average tenure of fixed debt outstanding (years)
3.7
3.5
Interest cover ratio
6.1x
6.0x
Total debt / EBITDA
6.5x
5.6x
Unencumbered properties as % of total investment properties
#
86.1%
62.2%
^ Excludes fair value changes and amortised costs. Borrowings denominated in foreign currencies are translated at the prevailing exchange rates except for JPY/
HKD-denominated debt issues, which are translated at the cross-currency swap rates that A-REIT has committed to.
# Total investment properties exclude properties reported as finance lease receivables.
Customer Credit & Concentration Risk Management
To minimise tenant credit risk, a credit evaluation process has been established to assess the creditworthiness of A-REIT’s customers.
Based on standard industry practice, one month’s worth of gross rental is usually held as security deposit for each year’s lease.
However, for long-term leases in single-tenant properties, a larger sum of security deposit may be held. This is dependent on
the length of the lease, the credit risks of such tenants and commercial negotiation. Security deposits for A-REIT’s single-tenant
properties range from six months to 12 months of rental income equivalent. The average security deposit for the portfolio is
approximately five months of rental income.
Average Security Deposits For Single-Tenant Properties
As at 31 March 2015
No. of single-tenant
properties
Weighted average
security deposit*
(no. of months)
Business & Science Park Properties
2
12
Integrated Development, Amenities & Retail Properties
2
10
High-Specifications Industrial Properties & Data Centres
8
6
Light Industrial Properties
15
11
Logistics & Distribution Centres
8
10
35
9
* Excluding cases where rental is paid upfront
With a tenant base of around 1,410 local and international companies, rigorous and conscientious effort has been put in to
manage accounts receivables. About 81.8% of rental receipts are collected via interbank GIRO services. This enables us to react
efficiently and appropriately towards any delinquency in payment.
Top ten tenants accounted for not more than 19.2% of A-REIT’s gross rental income and the majority of these tenants are either
multinational or listed companies. Furthermore, no single property accounts for more than 4.8% of A-REIT’s monthly gross revenue,
offering income diversity within the portfolio.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
