SUSTAINABILITY REPORT
As the Manager of A-REIT, we are pleased to publish A-REIT’s
third sustainability report this year. Guided by our core values,
we are committed to providing high quality and environmentally-
friendly business and industrial spaces for our tenants, delivering
sustainable value for our Unitholders, and supporting the local
communities we operate in.
Along our sustainability journey, we have actively engaged
our stakeholders through various channels to understand their
concerns and expectations. We will continue to do so to build
a sustainable business model that will positively serve our large
and diverse groups of stakeholders over the long term.
Our on-going asset enhancement initiatives in the Singapore
Science Park for instance, will not only enhance specifications
in our properties for our tenants but will also benefit the wider
community by creating more public amenities space, covered
link ways and spaces for tenant engagement activities.
Another key focus for the Manager has been to uphold best
practices in corporate transparency and disclosures. Surveys
with the investment community are conducted yearly to
assess our performance and we strive to make improvements
whenever possible.
We will continue to improve our sustainability reporting
disclosures and look forward to sharing our progress with you.
For further details, please refer to our sustainability report from
page 78 to 92.
OUTLOOK
With 12.3% vacant space in A-REIT’s portfolio, there could be
potential upside when some of the space is leased, the speed
of which will largely depend on prevailing market conditions.
In addition, the average passing rental rates of most of the
leases in our portfolio due for renewal in FY15/16 are still
below market spot rental rates; hence, moderate positive rental
reversion can be expected when such leases are renewed.
However, the changing industrial property landscape in
Singapore poses challenges. Stringent government policies,
as well as the conversion of single-tenant to multi-tenant
buildings, may still cause short term volatility in occupancy
rates. The Manager will continue to improve and reposition
A-REIT’s assets to serve the needs of current and prospective
tenants. Simultaneously, A-REIT will continue to evaluate and
seek growth opportunities as and when they arise. With the
opportunities offered by the extended umbrella of the Sponsor,
we will explore selectively more developed and mature markets
for opportunities to help us realise our strategic mission.
In China, the Manager will adopt a cautious approach while
seeking opportunities in the business park and logistics property
segments. Over the longer term, demand for high quality
business and logistics space should be strong as the Chinese
Government reforms the economy towards a more sustainable
growth driven by domestic consumption and private demand.
Barring any unforeseen events and any weakening of the
economic environment, the Manager expects A-REIT to
maintain a stable performance for the balance of the financial
year ending 31 March 2016.
Land Lease Expiry Profile
Land Tenure
Expiry as at 31
Mar 2015
Business & Science
Park Properties
Integrated
Development,
Amenities & Retail
Properties
High-Specifications
Industrial Properties
& Data Centres
Light Industrial
Properties & Flatted
Factories
Logistics &
Distribution Centres
Total
No. of
properties
S$m No. of
properties
S$m No. of
properties
S$m No. of
properties
S$m No. of
properties
S$m No. of
properties
S$m
< 30 years left
(2015 to 2045)
1
58
2
152
–
–
4
125
1
119
8
454
< 40 years left
(2046 to 2055)
3
525
–
–
5
501
13
562
9
617
30
2,205
< 50 years left
(2056 to 2065)
13
1,060
–
–
10
601
15
319
10
467
48
2,447
< 60 years left
(2066 to 2075)
8
1,055
1
507
2
222
–
–
3
120
14
1,904
>60 years left
(Beyond 2076)
3
332
–
–
3
535
–
–
–
–
6
867
FreeHold
–
–
–
–
1
77
–
–
–
–
1
77
Total
28
3,030
3
659
21
1,936
32
1,006
23
1,323
107
7,954
42 43
