Tenant’s Industry Diversification by Gross Rental Income
POSITIVE RENTAL REVERSION
For FY15/16, A-REIT’s portfolio achieved positive rental reversions of between 4.5% and 9.6% across the various property
segments, with a weighted average rental reversion of 7.0% for the leases renewed during the year.
Achieved Positive Rental Reversion in FY15/16
Multi-tenant properties
(1)
As at 31 March 2016
FY15/16 Increase
in renewal rates
(2)
Net lettable Area (sq m)
Vacant space (sq m)
Business & Science Park
509,838
65,346
9.6%
High-Specifications Industrial
332,225
61,799
4.5%
Light Industrial
309,390
30,903
6.1%
Logistics & Distribution Centres – Singapore
549,988
131,541
6.5%
Weighted Average
7.0%
Notes:
(1) A-REIT’s Singapore portfolio only. There were no renewals in Australia in FY15/16.
(2) Increase in renewal rental rates for leases renewed in FY15/16 versus previous contracted rates.
LEASE STRUCTURE AND PROFILE
About 27.4% of A-REIT’s portfolio comprises long-term leases in single-tenant properties. These leases provide stability in
earnings growth as 25.5% of such leases have rental escalation pegged to the Consumer Price Index with a fixed rate floor
and 74.5% incorporate fixed rate adjustments. The remaining 72.6% of A-REIT’s portfolio comprises multi-tenant buildings
with typically three-year leases without any rental adjustments during their tenure. The rental rates for such leases are
marked-to-market upon renewal and provide an opportunity for increase in earnings in an upmarket.
3rd Party Logistics, Freight Forwarding
Distributors, Trading Companies
Information Technology
Financial
M&E and Machinery & Equipment
Telecommunication & Datacentre
Electronics
Life Science
Food Products & Beverages
Healthcare Products
Medical, Precision & Optical Instruments, Clocks
Hotels and Restaurants
Chemical
Textiles & Wearing Apparels
Construction
Repair and Servicing of Vehicles
Printing & Reproduction of Recorded Media
Fabricated Metal Products
Rubber and Plastic Products
Others
18%
0%
12%
6%
2%
14%
8%
4%
16%
10%
10.8%
10.5%
9.3%
9.1%
8.5%
7.8%
6.9%
5.0%
2.7%
2.3%
1.5%
1.5%
1.4%
1.4%
1.4%
0.9%
0.8%
0.8%
0.6%
16.8%
.41
A-REIT ANNUAL REPORT
2015/2016
