MANAGER’S REPORT
HIGHLIGHTS OF FY15/16
FY15/16: S$378.3 million
FY14/15: S$351.1 million
Total Amount Available
for Distribution
+7.7%
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.
o In FY15/16, A-REIT embarked on 7 new asset
enhancement initiatives with an estimated value of
S$52.5 million and completed 5 projects worth about
S$96.0 million
• Achieved positive rental reversion of 7.0% in FY15/16 as
passing rental rates for most of the leases were still below
the prevailing market rental rates
• Overall portfolio occupancy and multi-tenant properties
occupancy stood at 87.6% and 80.5% respectively as at
31 March 2016
Portfolio Occupancy
FY15/16: 87.6%
FY14/15: 87.7%
Capitalisation Rate
(Singapore portfolio)
FY15/16: 6.30%
FY14/15: 6.46%
Capitalisation Rate
(Australia portfolio)
FY15/16: 6.58%
Rental Reversion
FY15/16: 7.0%
FY14/15: 8.3%
Disciplined Value-Adding Investment and Divestment
• Acquired 28 properties in Singapore and Australia for a
combined purchase consideration of S$1.5 billion:
o 27 prime logistics properties located on freehold land
in the key Australian cities of Sydney, Melbourne,
Brisbane and Perth for A$1.1 billion (S$1.1 billion)
o ONE@Changi City, a high-quality and well–located
property within Changi Business Park in Singapore for
S$420 million
• Completed two development projects
o DBS Asia Hub Phase 2 in Singapore for S$21.8 million,
which is fully leased to DBS Bank
o A modern logistics facility in Jiashan, China, for RMB
105.2 million (S$22.1 million)
• Divested 26 Senoko Way and BBR Building for S$24.8
million and S$13.9 million respectively, realising total
capital gains of S$15.7 million in FY15/16. Divested Four
Acres Singapore for S$34.0 million, realising capital gains
of S$0.6 million.
Prudent Capital and Risk Management
• Aggregate leverage remained healthy at 37.3% as at 31
March 2016.
• Weighted average all-in borrowing cost was maintained
at 2.8% per annum.
• Long debt maturity profile at 3.4 years.
• 71.9% of A-REIT’s interest rate risk exposure is hedged
with a weighted average duration of 3.3 years.
FY15/16: S$761.0 million
FY14/15: S$673.5 million
Gross Revenue
+13.0%
FY15/16: S$533.7 million
FY14/15: S$462.7 million
Net Property Income
(NPI)
+15.3%
FY15/16: 15.357 cents
FY14/15: 14.600 cents
Distribution
Per Unit (DPU)
+5.2%
Total Assets
+20.7%
FY15/16: S$9.9 billion
FY14/15: S$8.2 billion
.30
A-REIT ANNUAL REPORT
2015/2016
