Aggregate
Leverage
FY15/16: 37.3%
FY14/15: 33.5%
Average Debt
Maturity
FY15/16: 3.4 years
FY14/15: 3.6 years
All-in Borrowing
Cost (weighted
average)
FY15/16: 2.8%
FY14/15: 2.7%
• Continued to enjoy good access to debt and equity
markets:
o Issued S$150.0 million 7-year notes, S$230.0 million
5-year notes and HKD500.0 million (S$91.6 million) 10-
year notes under the Medium Term Note Programme
o Secured A$564.3 million syndicated loan facilities for
Australian portfolio acquisitions and S$150.0 million
5-year term loans.
o Strengthened balance sheet with equity funds raised
through:
– S$300.0 million perpetual securities
– S$200.1 million private placement
– S$144.8 million preferential offering
– S$210.0 million consideration units
MAINTAIN STRONG CORPORATE
GOVERNANCE CULTURE
• Winner of the “Most Transparent Company Award” in the
REITs and business trusts category at the 2015 Securities
Investors Association (Singapore) Investors’ Choice
Awards for the fifth consecutive year
• Runner-up of the “Singapore Corporate Governance
Award” at the 2015 Securities Investors Association
(Singapore) Investors’ Choice Awards
• Achieved the Gold Award at the Singapore Corporate
Awards 2015 for Best Annual Report
FINANCIAL PERFORMANCE
FY15/16 FY14/15 Variance
Number of properties as
at 31 March
133*
107
+26
Gross revenue (S$ million)
761.0 673.5 +13.0%
NPI (S$ million)
533.7 462.7 +15.3%
Total amount available for
distribution (S$ million)
378.3 351.1 +7.7%
DPU for the financial year
(cents)
15.357 14.600 +5.2%
* The land titles of both The Aries and The Gemini have been amalgamated
subsequent to the completion of asset enhancement works for Sparkle,
a link block connecting the two buildings. A-REIT will be reporting both
buildings as a single property going forward.
Gross revenue increased 13.0% to S$761.0 million, due to full
year income contribution from investments made in FY14/15
(mainly from Aperia, The Kendall and Hyflux Innovation
Centre) and maiden contributions from investments made in
FY15/16 (mainly from the 27 logistics properties in Australia
and ONE@Changi City in Singapore).
Net property income increased 15.3% from S$462.7 million
to S$533.7 million.
Total amount available for distribution grew 7.7% to S$378.3
million. Included in the amount available for distribution
was approximately S$3.7 million (or DPU of 0.148 cents) of
income support in relation to certain properties that was
received and paid to Unitholders in FY15/16.
DPU grew 5.2% to 15.357 cents (after performance fees)
in FY15/16 as compared with 14.600 cents in FY14/15. The
Manager continued to pay out 100% of A-REIT’s taxable
income available for distribution.
As at 31 March 2016, A-REIT remained the largest business
space and industrial REIT listed on the SGX-ST with total
assets and market capitalisation of S$9.9 billion and S$6.4
billion respectively.
INVESTMENT HIGHLIGHTS
During the financial year, the Manager extended its mandate
to explore investment opportunities in new developed
markets. This is in line with A-REIT’s strategy to own a
diversified portfolio with a stable and predictable income
stream and long-term growth prospects. In October and
November 2015, A-REIT completed its maiden acquisition of
a portfolio of 26 logistics properties in Australia for A$1,013
million. The properties are located in the key industrial cities
of Sydney, Melbourne, Brisbane and Perth. Subsequently in
February 2016, A-REIT completed the acquisition of its 27
th
logistics property in Australia for A$76.6 million.
The strategic investments have enabled A-REIT to gain
immediate scale in a new market and establish itself as the
eighth largest industrial landlord in Australia. Some of the
attractive features of the investments include:
• Mature and transparent industrial real estate market
in Australia provides opportunities for growth and
strengthens A-REIT’s ability to generate stable and
predictable income streams and long term capital stability
• Freehold land which complements A-REIT’s Singapore
and China portfolio that are mainly on leasehold land
• High-quality, income producing assets with established
tenants which strengthens and diversifies A-REIT’s portfolio
.31
A-REIT ANNUAL REPORT
2015/2016
