SUSTAINABILITY REPORT
The Manager of A-REIT, is pleased to publish A-REIT’s fourth
sustainability report this year and is proud to be one of the
first S-REITs to publish a sustainability report since 2013.
A-REIT is well-prepared for SGX upcoming ‘comply or explain’
regulation for listed companies on sustainability reporting.
In 2015, the second materiality assessment with key
representatives from the Manager and the Property
Manager was conducted. The exercise enabled them to
re-identify and prioritise issues deemed material to both
internal and external stakeholders. The top three issues
identified were high standards of corporate governance,
stakeholder communications, and business ethics and
employee conduct.
The Manager is committed to uphold best practices in
corporate transparency and disclosures. This year, A-REIT is
again recognised for its good corporate practices, winning
the SIAS ‘Most Transparent Company Award’ and was the
runner-up for the ‘Singapore Corporate Governance Award’.
Every year, surveys are conducted with the investment
community to assess the Manager’s performance and
improvements were made where possible.
Faced with an increasingly competitive business environment,
there is the need to differentiate A-REIT further through the
delivery of exceptional customer experience. The Manager
redesigned their customer approach by addressing their
customer’s physical and emotional needs from an outside–in
perspective, aligned it to our brand’s definition and worked
on instilling pride and passion amongst employees to deliver
the exceptional experience to customers. Following the
success of the pilot focus group sessions to understand brand
perceptions and challenges in the service delivery at A-REIT
properties located in one-north and the science parks, the
project was rolled out to all A-REIT properties in 2015.
On supply chain management, the Manager has tightened
their internal procurement processes to ensure that
suppliers meet our stringent financial, health and safety
standards. They hold meetings with the management of
key suppliers to engage and provide them with feedback
on their performance.
Guided by their core values, the Manager is committed to
providing high-quality and environmentally-friendly business
and industrial spaces to tenants. Recent acquisitions such as
ONE@Changi City and the high-quality logistics portfolio in
Australia attest to this commitment.
The Manager will continue to actively engage stakeholders
through various channels to understand their concerns and
expectations. This will enable them to build a sustainable
business model that will positively serve their large and
diverse groups of stakeholders over the long term.
This year’s sustainability report is produced in both hardcopy
and in electronic format. PDF versions of the sustainability
reports can also be downloaded from A-REIT’s corporate
website at
OUTLOOK
FY16/17 is expected to be challenging, with significant new
supply and tepid economic growth both in Singapore and
globally.
19.4% of A-REIT’s gross revenue is due for renewal in
FY16/17 and another 12.4% of vacant space exists in
the portfolio. Although average passing rental rates are
close to current market rates, modest rental reversion
can be expected as slight gaps still remain. The Manager
will continue to improve the quality of A-REIT’s portfolio
through repositioning and asset enhancement works to
serve the needs of current and prospective tenants and to
generate potential upside when vacant spaces are leased.
With access to the Ascendas-Singbridge Group’s pipeline
of more than S$1 billion worth of business and science park
properties, the Manager will also continue to selectively
seek growth opportunities as and when they arise in order
to maintain A-REIT’s market leading portfolio.
In Australia, A-REIT has gained a strategic footprint with
the acquisition of 27 logistics properties in Australia, worth
about A$1.1 billion. Demand for logistics space is expected
to be strong, backed by a healthy jobs market, low interest
rates and firm consumer spending. The Manager believes in
adopting a focused approach and will continue to evaluate
and expand the depth of its portfolio in the Australian market.
Barring any unforeseen events and any weakening of the
economic environment, the Manager expects A-REIT to
maintain a stable performance for the financial year ending
31 March 2017.
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A-REIT ANNUAL REPORT
2015/2016
