A FINE BALANCE - Ascendas REIT

A FINE BALANCE

A-REIT 7TH ANNUAL REPORT FY2008/09

04 About A-REIT

06 A-REIT Structure

08 Significant Events

10 Financial Highlights

16 Chairman’s Statement

20 Manager’s Report

36 Board of Directors

38 The A-REIT Team

42 The Property Manager

48 Investment Property Portfolio

54 Business & Science Park Properties

58 Hi-Tech Industrial Properties

62 Light Industrial/

Flatted Factories Properties

68 Logistics & Distribution Centres

72 Warehouse Retail Facilities

74 Enhancing Corporate

Social Responsibilities

76 Investor Relations

77 CBRE Market Study

84 Corporate Governance

94 Financial Statements

144 Statistics of Unitholdings

146 Additional Information

149 Glossary

CONTENTS

A-REIT was voted as Singapore’s 7th best

managed company (after SingTel, SIA, OCBC,

Capitaland, DBS and UOB) in FinanceAsia’s 2009

annual poll of Asia’s best managed companies.

Any discrepancies in the tables and charts between the listed figures and totals thereof are due to rounding.Where applicable, figures and percentages are rounded to one decimal place.

Every system requires some form of self-balancing mechanism to cleanse itself of

excesses, which may build up from time to time, so as to sustain its health and vigour.

Managing a business is also all about balancing. And it was a fine balancing act that

has brought us to where we are today, and will take us further tomorrow. It is an ever

evolving art that requires us to weigh carefully the many priorities that often pull a

business in opposite directions: the long-term interests of the business versus the

short-term impulses of the market; the indivisible, yet divergent interests of its

customers, investors and employees; the drive to pursue profits without sacrificing

ethics; and the need to seek progress without compromising the environment.

A-REIT is a business that is not only driven to grow and prosper, but one that seeks

long-lasting success and resilience by always maintaining a fine balance of the forces

within its operating sphere. It is precisely this balance of the “hardware” and the

“heart-ware” that sets us apart not just as a sustainable business, but one with a soul.

To deliver predictable distributionsand achieve long term

capital stability for unitholders.

A-REIT’s Mission

About A-REIT

A-REIT owns a diversified portfolio of properties in Singapore comprising:

• Business & Science Parks

Suburban office, corporate HQ buildings and R&D space.

• Hi-Tech Industrial

High office content combined with high specifications mixed-use

industrial space.

• Light Industrial / Flatted Factories

Low office content combined with manufacturing space.

• Logistics & Distribution Centres

Warehousing and distribution centres.

• Warehouse Retail Facilities

Single-user retail and warehouse space.

These properties house a tenant base of about 900 international and

local companies from a range of industries and activities, including

research and development, life sciences, information technology,

engineering, light manufacturing, logistics service providers, electronics,

telecommunications, manufacturing services and back-room office

support in service industries.

Ascendas Funds Management (S) Limited (“AFM”) is the manager of

A-REIT (the “Manager”).

The Manager is committed to delivering long-term sustainable

distributions and capital stability to unitholders through a three-pronged

strategy of:

• Yield accretive investments comprising developments as well as

acquisitions of income-producing properties with strong underlying

real estate fundamentals

• Organic portfolio growth through proactive asset management

• Prudent capital & risk management

Ascendas Real Estate Investment Trust (“A-REIT”) is the first and largest

business space and industrial Real Estate Investment Trust (“REIT”)

listed on Singapore Exchange Securities Trading Limited (“SGX-ST”).

0405

A-REIT Structure

22.9%

100% 100%

Distributions

Investment in A-REIT

Ownership of Assets

Net property income

Acts on behalf

of UnitholdersTrustee Fee

Managem

ent Fees

Managem

ent Serv

ices

Property

Management

Fees

Property

Management

Services

STRATEGIES Capital & RiskManagement

ProactiveAsset Management

Value AddingInvestments

• Equity funding• Debt Funding• Interest rate

risk management• Cost of capital

• Portfolio positioning and strategies

• Supervise execution of asset managementactivities

• Yield accretive acquisitions

• Built-to-Suit projects• Development

OUTCOME Stability Growth

TOTAL RETURNS Predictable Income Capital Stability

Revenue Management

• Occupancy improvements

• Rental rates improvements

Expense Management

• Efficiency improvements

• Cost savings initiatives

Property Management

• Property maintenance service

• Site staff management

Customer Care

• Customer retention

• Customer satisfaction

Responsible for Responsible for

Responsible for

HSBCINSTITUTIONAL

TRUST SERVICES(SINGAPORE)

LIMITED

PROPERTIESUNITHOLDERS

ASCENDASSERVICES PTE LTD

(”ASPL”)(PROPERTY MANAGER)

(Reports to ASPL

Board of Directors)

ASCENDASFUNDS

MANAGEMENT(S) LIMITED (”AFM”)

(A-REIT MANAGER)

(Reports to AFM

Board of Directors)

ASCENDAS

GROUP

A Fine BalanceAscendas Real Estate Investment Trust . Annual Report 2008/09

A-REIT’s Competitive Edge

Stability & Growth

A-REIT’s value offering is stability and

predictability built on a fine balance

of three solid cornerstones of prudent

capital and risk management,

disciplined and value-adding

investment and proactive asset

management. We continue to build

upon our strengths to create a

competitive edge to differentiate

ourselves, to facilitate growth,

resilence and enhance sustainability

and stability in our portfolio.

Diversity & Depth

We are the largest business space

and industrial REIT in Singapore

spanning across six property asset

classes. The portfolio of properties

is well-located, of high quality and is

well-diversified in terms of tenants’

industries and country of origin.

There is a good balance of long-term

and short-term leases which

provides stability and predictability. Customer Focus

We have a track record of customers

growing with us with a high customer

retention ratio of 80% in FY2008/09.

Size Advantage

A-REIT accounted for 15% of the

S-REIT sector and 8% of Asian

REIT (ex-Japan) sector. In 2008,

it accounted for about 11% of the

trading volume for S-REIT on the

SGX-ST, making it one of the more

liquid REITs in the Singapore market.

Market Leader

A-REIT is the established market

leader in most of the sectors that

it operates in.

We are focused on the business

space and industrial property sector

with a committed sponsor. Ascendas

Group has a track record of more

than 20 years in this sector.

Development Capability

We are the only REIT in Singapore to

offer our development capability to

create greater value and returns for

our Unitholders by taking advantage

of the development capacity allowed

under the S-REIT regulations.

Established Operational Platform

Our Property Manager, Ascendas

Services Pte Ltd (”ASPL”), has a

dedicated sales/marketing, leasing

and property management team

of over 80 people, all of whom

possess in-depth understanding of

this property sector and its

customers’ needs.

0607

2008

Significant Events

April

17th

Announced results for financial

year ended 31 Mar 2008

- Distribution per unit grew

10.8% y-o-y

22th

Reconstitution of Board and

Audit Committee of the

Manager following Goodman

Group’s divestment of its

interest in the Manager

Appointment of Mr David

Wong as Chairman of

the Manager

May

5th

Acquired 8 Loyang Way 1

for S$25.0m

12th

Ranked 10th in BT Corporate

Transparency Index. Only S-REIT

in top 10 standing

Jun

26th

Acquired 31 International Business

Park for S$246.8m

Jul

18th

1QFY08/09: Distribution per unit

grew 15.4% y-o-y

Aug

12th

Completion of Pioneer Hub, a

logistics and distribution facility

and achieved 100% occupancy rate

on completion

Sep

1st

Completion of 15 Changi North

Way, a logistics and distribution

facility and achieved 100%

occupancy rate on completion

Oct

2nd

Secured a 3-year S$200m

unsecured committed credit facility

9th

A-REIT was awarded the

“Most Transparent Company

Award 2008” in the REITs

Category by SIAS

17th

2Q FY2008/09: Distribution per

unit grew 14.2% y-o-y


Jan

15th

3Q FY2008/09: Distribution per unit

grew 13.8% y-o-y

Launched a private placement of

258,000,000 new units at S$1.16 per

unit (which represents a 7% discount

to the adjusted volume weighted

average price at the day of the launch)

to raise approximately S$300m and

a 1-for-15 preferential offering to

raise approximately S$108m. The

net proceeds from the equity fund

raising exercise were used to fund

committed development projects and

to reduce borrowings

Feb

16th

Completion of 3 Changi Business

Park Crescent, a pre-committed

business park development for

Citibank N.A.

Mar

20th

Established a S$1 bn

Multicurrency Medium Term

Note (MTN) program to diversify

sources of funds for A-REIT.

The program has been

assigned a Baa2 rating

April

17th

Financial Year ended 31 March

2009: Distribution per unit grew

7.4% y-o-y

23rd

A-REIT’s development project, a

business park property at

3 Changi Business Park Crescent,

was awarded the BCA Green

Mark Platinum Award, the

highest accolade in Singapore for

environmental sustainability.

30th

First issuance of S$110m fixed

rate notes due 2011 as part of

the newly establish MTN program

2009

0809

Financial Highlights

FY 08/0907/0806/0705/0604/0503/0402/03FY 08/0907/0806/0705/0604/0503/0402/03

FY 08/0907/0806/0705/0604/0503/0402/03 FY 08/0907/0806/0705/0604/0503/0402/03

NET INCOME (S$m) NET INCOME AVAILABLE

FOR DISTRIBUTION (S$m)

EARNINGS PER UNIT

(”EPU”) (cents)(2)

DISTRIBUTION PER UNIT

(”DPU”) (cents)

200.7

175.0

148.4

132.0

75.2

40.6

14.3

210.9

187.3

163.8

142.6

84.2

45.5

15.2

15.1

8

14.1

3

12.7

5

11.6

8

9.5

6

8.1

6

7.6

3(1

)

6.1

1

18.3

6(1

)

50.3

1

26.1

3

11.8

4

10.9

8

8.6

5

Notes:

(1) Annualised based on restated EPU of 6.69 cents and actual DPU of 2.78 cents for the 133 days ended 31 Mar 03

(2) The EPU has been calculated using total return for the period and the weighted average number of units on issue during the period. In accordance to FRS 33, comparative EPUs and weighted

average number of units for calculation of EPU have been restated to account for the effects of the rights issue in February 2009


As at

31 March 09080706050403 09080706050403 09080706050403

89

84

77

64

36

16

8

4,5

47.6

4,2

05.2

3,3

07.0

2,8

07.5

2112.3

1,0

20.7

636.4

1.6

1

1.8

4

1.4

9

1.3

4

1.2

3

0.9

8

0.9

1

NUMBER OF PROPERTIES

IN PORTFOLIO

TOTAL ASSETS (S$m) NET ASSET

VALUE PER UNIT (S$)

Notes:

(1) Before adjustment for distributable income not yet distributed.

(2) Based on respective closing prices on 31 Mar.

(3) Includes total borrowings and deferred payments on acquistion of properties.

As at

31 March

As at

31 March

FINANCIAL YEAR 02/03 03/04 04/05 05/06 06/07 07/08 08/09

Total net borrowings (S$m) 125.0 263.8 553.9 969.8 1,183.5 1,559.9 1,588.7

Total Unitholders' funds (S$m) (1) 498.2 691.6 1,425.5 1,708.4 1,970.0 2,438.0 2,703.0

Market capitalisation (S$m) (2) 444.2 898.2 2,181.8 2,663.0 3,158.6 3,154.8 2,053.8

Aggregate leverage (3) 19.6% 28.9% 30.2% 36.8% 37.3% 38.2% 35.5%

Unit price (2) (S$) 0.82 1.27 1.88 2.17 2.39 2.38 1.22

Number of Units in issue (m) 545.0 707.2 1,160.6 1,227.2 1,321.6 1,325.6 1,683.5

1011

17.3%

12.4%

4.9%

8.0%

11.9%

2.1%

0.1%

2.5%

0.60%

0.20%

A-REIT yield for IPO Investors (1)

A-REIT yield as at 31 Mar 09 (2)

ST Index (3)

FTSE ST Mid Cap Index (3)

FTSE REIT Index (3)

10 year Singapore Government bond (4)

Interbank overnight interest rate (5)

CPF (ordinary) account (6)

Bank fixed deposit (12 months) (7)

Bank savings deposits (7)

Notes:

(1) Based on A-REIT's IPO price of S$0.88 per Unit and DPU of 15.18 cents for FY2008/09

(2) Based on A-REIT's closing price of S$1.22 per Unit as at 31 Mar 2009 and DPU of 15.18 cents

for FY2008/09

(3) Based on Bloomberg as at 31 Mar 2009

(4) As at 31 Mar 09. Source: Singapore Government Securities website

COMPARABLE YIELD RETURNS

(5) Interbank overnight interest rate as at 31 Mar 09. Source: Bloomberg

(6) Based on interest paid on Central Provident Fund ("CPF") ordinary account from

1 Jan to 31 Mar 09. Source: CPF Website

(7) Bank interest rate as at 31 Mar 09. Source: Monetary Authority of Singapore

TRADING STATISTICS FOR FY2008/09

Opening Price (1 Apr 08) $2.31

Closing Price (31 Mar 09) $1.22

High (5 May 08) $2.70

Low (09 Mar 09) $1.06

Volume Traded (million units) 1,207.4

Percentage of SGX S-REIT volume 11%

Financial Highlights


% CHANGE (unit price / index value)

1,400

1,200

1,000

800

600

400

200

0

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00

MONTHLY TRADING PERFORMANCE SINCE IPO TURNOVER

Nov 02 (IPO) FY2002/03 FY2003/04 FY2004/05 FY2005/06 FY2006/07 FY2007/08 APR 08 MAY 08 JUN 08 JUL 08 AUG 08 SEP 08 OCT 08 NOV 08 DEC 08 JAN 09 FEB 09 MAR 09

Volume traded (’m) Unit Price

1213

120

110

100

90

80

70

60

50

40

30

April 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09

STI

A-REIT

IND S-REIT

FTSE S-REIT

A-REIT unit price performance versus Singapore Market

Base: April 2008

(million units)Unit Price

(S$)

DONG

moveto advance or progress

MOVING BOLDLY, TREADING WISELY.

Taking quick and big strides doesn’t necessarily get you to your desired destination,

unless you are moving in the right direction. Corporate moves should not be made

just to be the biggest or fastest. Strategic decisions should always be well contemplated

and evaluated to ensure that they are made in a wise and sensible manner.

JING

reposedignified calmness;

composure

Chairman’s Message

FY2008/09 was challenging with the

implosion of the global financial

market and its consequent impact

on economic activities as aggregate

demand rapidly declined in the major

developed markets. Singapore, being

one of the world’s most open

economies, was not spared the

tumult. However, A-REIT continued

to focus on its core competencies

and re-calibrated its three-pronged

strategies to adapt to the changing

market conditions and delivered a

commendable set of financial results

for the year.

On behalf of the Board, I am pleased

to present A-REIT’s 7th annual

report for the financial year ended

31 Mar 2009. I am glad to report a

very successful year in which the

strategies pursued by the Manager

have delivered stable and predictable

distributions for the Unitholders of

A-REIT. This achievement is

remarkable especially in the light of

the global economic turbulence in

the second half of the financial year.

A-REIT’s distribution per unit (DPU)

increased by 7.4% to 15.18 cents as

compared to 14.13 cents in the

previous financial year after taking

its performance fees in cash instead

of units. The Manager opted to

receive its performance fees in cash

in order to close the gap between

earnings per unit and DPU, i.e. to

avoid paying distribution out of

capital and also not to further dilute

Unitholders’ interest as units are

currently trading at a discount to

its NAV. The portfolio grew to 89

properties versus 84 properties last

year, and total assets were S$4.5bn

as at 31 Mar 2009, up from S$4.2bn

a year ago, an increase of about 8%

despite a devaluation of S$115m on

the portfolio upon its regulatory

annual revaluation.

A Balanced Portfolio Performance

As at 31 Mar 2009, overall portfolio

occupancy stands at a healthy 97.8%,

with 95.3% occupancy for multi-

tenanted properties. The portfolio

continues to see positive rental

reversion in renewal rates across all

sub-sectors as a result of active

leasing management and the market

rental rates being higher than

existing rental rates of those leases

in A-REIT’s portfolio due for renewal.

This is particularly true for the

Business & Science Parks and Hi-

Tech Industrial sectors. However,

due to the deteriorating economic

situation, market spot rates have

been declining and the Manager has

shifted its strategic focus to

"Maintaining Occupancy, Retaining

Customers". As a result, positive

rental reversion, if any, for FY 2009/10

is expected to be relatively muted

compared to the last financial year.

The Manager’s disciplined

investment strategy has resulted in

enhanced returns per investment

dollar from development activities

and selective quality acquisition of

income producing properties which

resulted in a healthy and strong

balance sheet. During the financial

year, A-REIT completed two

acquisitions worth S$271.8m and

completed three development

projects worth about S$174.5m.

The three development projects:

Pioneer Hub, 15 Changi North Way

and 3 Changi Business Park

Crescent, were completed on

schedule and within budget and

achieved 100% occupancy on

completion. Since commencing its

development strategy in 2006,

A-REIT has achieved an unrealized

capital gain of $109.7m

(approximately 35.2% over

development cost) on the six

development projects undertaken

so far.

In addition, A-REIT commenced

construction of a 100% pre-

committed built-to-suit logistics

facility at the Airport Logistics Park

located in the east of Singapore.

A multi-tenanted business park

building cum amenity centre is also

currently under construction at

3 Changi Business Park Crescent.

These projects are expected to be

completed in 4Q2009. In May 2009,

A-REIT announced a built-to-suit

development of a Hi-Tech industrial

property for Singapore

Telecommunications Limited. This

development is expected to be

completed in 1Q2010.

A-REIT will continue to pursue quality

and sustainable yield accretive

acquisitions and, at the same time,

engage in development (especially

built-to-suit) opportunities for

enhanced returns.

Balancing the Finances

We persist in proactive capital and

risk management of A-REIT’s

finances in order to optimize its

capital structure. When the market

turned abruptly in the second half

of the financial year, a healthy capital

structure became the focal point of

the investing community.

A 3-year S$200 m committed credit

facility was secured in October 2008

to increase A-REIT’s funding capacity.

In Jan 2009, A-REIT launched an

equity fund raising exercise and

raised approximately S$408 m (at a

7% discount to the adjusted volume

weighted adjusted price at the day of

the launch) to fund committed

development projects, as well as to

to reduce borrowings. Aggregate

leverage as at 31 Mar 2009 was 35.5%

with 90.0% of A-REIT’s total debt

hedged into fixed rate for the next

3.4 years at an all-in cost of

borrowing of 3.67%. However,

refinancing cost and cost for new

borrowings are expected to be higher

over the next 12 months.

To further diversify A-REIT’s sources

of funding, a medium term note

(MTN) programme was established

and issuance of a 2-year note for

S$150m was completed in

Apr and May 2009.

The proactive management of

A-REIT’s capital structure has

enabled us to further enhance our

balance sheet. We will continue to

balance between certainty in our

capital structure and the cost of

debt to attain optimal returns for

our Unitholders.


I am glad to report a very successful year in which the

strategies pursued by the Manager have delivered stable

and predictable distributions for the Unitholders of A-REIT.

1617

Looking Ahead

The outlook for the global economy

is uncertain as a result of the

synchronized economic slowdown

of all major developed markets

originating from the collapse of the

US financial industry. Barring any

unforeseen surprises, the Manager

aims to maintain the current level

of net property income for A-REIT

in the coming financial year.

Building on A-REIT’s position as the

leader in business space and

industrial properties, we will

continue to maintain a disciplined

investment approach, proactive asset

management and prudent capital

and risk management strategies to

continue to offer stable and

predictable distributions through a

portfolio of diversified tenants from

a broad mix of industries.

In Appreciation

A-REIT’s success would not have

been possible without the concerted

effort of many parties. Firstly,

I would like to thank my fellow

Board members for their invaluable

advice and contributions throughout

the year.

I would also like to express my

gratitude to our tenants and

business partners for their

unwavering support. I also would

like to extend my appreciation to

the A-REIT team for their dedication

in pursuing the business strategies

that the Manager has set out. Last

but not least, I would like to thank

you, our Unitholders, for your trust

and confidence in us.

With continued focus on our core

strategies, I am confident that we

will be able to overcome the

challenging business environment

and continue to deliver another year

of stable performance.

David Wong Cheong Fook

12 June 2009

Manager’s Report

Highlights

The highlights of FY 2008/09 for A-REIT are:

• Gross revenue of S$396.5m, increase of 23.0% y-o-y

• Net property income of S$296.6m, increase of 21.8% y-o-y

• Distributable income of S$210.9m, increase of 12.6% y-o-y

• Manager has opted to receive performance fees in cash instead of

Units in order to minimize the gap between earnings per Unit (”EPU”)

and distributions per Unit (”DPU”), ie to avoid paying out of capital

and to avoid diluting Unitholders as current unit price is below NAV

• Raised new equity of S$408m in 1Q 2009 to strengthen balance sheet

and fund committed development projects

• Secured new 3-year credit facility of S$200m and established an S$1

billion Medium Term Note (MTN) program to diversify sources of

funding. Maiden issue of S$150m fixed rate notes due Apr 2011 was

completed in Apr and May 2009

• 90.0% of interest rate exposure is hedged into fixed rate over an

weighted average duration of 3.4 years with an weighted average

all-in funding cost of 3.67%

• Diversified portfolio of properties with a good balance between long

and short term leases; portfolio weighted average lease to expiry is

5.1 years; 14.1% of portfolio gross rental income due for renewal in

FY2009/10

• Completed three development projects (S$174.5m) and two

acquisitions (S$271.8m)


Business & Hi-Tech Light Logistics & Warehouse

Science Parks Industrial Industrial Distribution Centres Retail Facilities

FY FY FY FY FY

S$’m 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08 08/09 07/08

Gross Revenue 103.1 62.3 106.2 94.5 78.0 72.7 96.0 79.8 13.2 12.9

Operating Expenses 28.5 16.9 36.6 32.8 16.2 15.0 16.7 12.2 1.9 1.8

Net Property Income 74.6 45.4 69.6 61.7 61.8 57.7 79.3 67.6 11.3 11.1

Net Property Income 11.4 - - - 1.5 - 3.4 - - -

-Investment in FY2008/09

Net Property Income 13.0 1.0 1.6 0.03 0.8 0.7 3.7 1.4 - -

- Investments made

in FY2007/08

Net Property Income 2.7 1.9 5.7 5.3 11.1

- Investments made

in FY2006/07

Net Property Income 41.7 59.8 51.3 60.9 -

- Properties held

> 1 year

Organic growth (%) 13.1% 10.2% 4.4% 9.1% 1.8%

50.2 68.0 59.5 72.2 11.3

Portfolio organic growth of 8.7% achieved in FY2008/09.

2021

30.7%Investments madein FY 2008/09

39.3%Organic Growth(rental occupancy rate growth,asset enhancements, etc)

30.0%Investments made

in FY 2007/08

NET PROPERTY INCOME GROWTH DRIVERS

A FINE BALANCE

OF STRATEGIES & RESULTS

A-REIT has conscientiously and

constantly fine tuned the balance

between the three cornerstones of its

business strategy: prudent capital and

risk management, disciplined and

value-adding investment as well as

proactive asset management to

develop and grow its business. Basing

the three-pronged strategies on

strong fundamentals, the Manager

has achieved stability, growth and

sustainability for A-REIT and

consistently delivered stable and

predictable income to our Unitholders.

Through the talent and dedication of

our people, the Manager continues

to grow A-REIT’s business, adding

depth and diversity to its portfolio of

quality properties and maximizing

returns for Unitholders. As a result,

A-REIT continues to be the market

leader in the business space and

industrial REIT in Singapore with total

assets and market capitalization of

S$4.5 bn and S$2.1 bn respectively

as at 31 Mar 2009.

A-REIT’s gross revenue increased

by 23.0% to S$396.5m compared to

S$322.3m in the previous financial

year. Net property income (NPI)

grew by 21.8% to S$296.6m

compared to S$243.5m a year ago.

Organic growth through positive

rental reversions, occupancy rate

Accolades

• A-REIT was voted as Singapore’s 7th best managed company (after SingTel, SIA, OCBC, Capitaland, DBS

and UOB) in FinanceAsia’s 2009 annual poll of Asia’s best managed companies

• Winner for the “Most Transparent Company Award 2008” in the REITs Category awarded by Securities Investors’

Association (Singapore)

• Platinum Green Mark Award for business park development project at 3 Changi Business Park Crescent

awarded by Ministry of National Development - Building & Construction Authority (BCA)

improvements and asset

enhancement activities contributed

39.3% of this growth in NPI. Full

year contributions from investments

made in the previous financial year

accounted for 30.0% of NPI growth

while new investments (including

completion of development projects)

made in FY2008/09 contributed the

remaining 30.7%.

Manager’s Report

April 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09

140

120

100

80

60

40

20

0

-20

A-REIT

AMB Property

Prologis

Goodman Group

Brixton PLC

A-REIT unit price performance versus selected global peers

In the financial year, as the global financial markets deteriorated, a decline of between 76 percentage points

and 95 percentage points were observed for some of the global peers. A-REIT continued to outperform selected

global peers.

FINANCIAL YEAR 02/03 03/04 04/05 05/06 06/07 07/08 08/09

Distribution (S$’m) 15.2 45.6 84.2 142.6 163.8 187.3 210.8

Distribution yield (%) 9.3% 6.4% 5.1% 5.4% 5.3% 5.9% 12.4%

Investors who had held A-REIT units since its IPO would have attained a CAGR total Unitholder return of about 18.0%.

A-REIT continues to provide a steady

and sustainable stream of

distribution to Unitholders and the

Manager remains committed to

paying out 100% of A-REIT’s

distributable income. DPU for

FY2008/09 is 15.18 cents, which is

7.4% higher than the previous

financial year. This represents a yield

of 12.4% based on the closing price

of S$1.22 per unit on 31 Mar 2009.

Had the new equity been raised at

the beginning of the financial year

instead of in the last quarter of

FY2008/09, the pro forma DPU for

FY2008/09 would have been 12.53

cents instead of 15.18 cents. Had

performance fees been paid in units

like in previous financial years,

FY2008/09 DPU would have been

15.75 cents instead of 15.18 cents.

*Distribution yield based on respective closing prices of A-REIT units at end of that financial year


DEBT MATURITY PROFILE

AS AT 31 MAR 2009 (S$m)

BALANCING EXPECTATIONS

& BUSINESS FUNDAMENTALS:

Prudent Capital and Risk

Management

Maintaining a fundamentally sound

and efficient capital structure is crucial

in the light of the current challenging

times and tough credit environment.

In Jan 2009, A-REIT launched a

private placement of 258,000,000 new

units at S$1.16 per Unit (which

represents a 7% discount to the last

adjusted volume weighted average

traded price at the day of the launch)

to raise approximately S$300m and

a 1-for-15 preferential offering to

raise approximately S$108m.

Approximately S$396.1m of the net

proceeds from the equity fund raising

exercise were used to fund

committed development projects and

to reduce borrowings. Consequently,

aggregated leverage decreased from

38.2% at the beginning of the

financial year to about 35.5% as

at 31 Mar 2009.

Managing Cost & Certainty

Debt Expiry Profile

As at 31 Mar 2009, A-REIT has total

debt outstanding of S$1,590m, of

which, less than 16% are in revolving

credit facilities. During the year,

the Manager secured a new S$200m

bilateral unsecured committed

3-year revolving credit facility.

Post the refinancing of the

commercial mortgage backed

securities (CMBS) due in August

2009, A-REIT’s nearest substantial

debt due for refinancing would be

the bilateral term loan facility due

in 2010.

EXPECTED DEBT

MATURITY PROFILE (S$m) -

POST REFINANCING OF

CMBS DUE IN AUG 2009

2014201220102009

300

300

350

395

246

2009 2010 2011 2012 2014

Commercial Mortgage Backed Securities

Term Loan Facility

Revolving Credit Facilities

196

300

150

350

395

200

DEBT PROFILE 31 Mar 2009 31 Mar 2008

Aggregate leverage 35.5% 38.2%

Total debt S$1,590m S$1,562m

• Fixed rate debt S$1,431m S$1,131m

Fixed as a % of total debt 90.0% 72.4%

Weighted average all-in funding cost 3.67% 3.10%

Weighted average term for fixed debt 3.4 yrs 3.8 yrs

Interest cover ratio 4.6 times 5.1 times

2223

Committed Credit Facility

Medium Term Note

Liquidity Risk

To address the tight credit market

environment, the Manager has

diversified A-REIT’s sources of debt

funding by establishing an S$1bn

multi-currency Medium Term Note

(”MTN”) program on 20 Mar 2009.

The issues of 2-year fixed rate

notes for S$150m was completed

in April and May 2009. The Manager

will continue to explore various

funding options and tenure whilst

balancing them with an acceptable

cost of interest to ensure a

sustainable stream of distributions

to Unitholders.

Interest Rate Risk

Adopting a prudent stance on

interest rate exposure management,

the Manager has established a policy

to hedge at least 50% of A-REIT’s

interest rate risk exposure using

interest rate swaps. As of

31 Mar 2009, A-REIT maintained

about 90% of its interest rate

exposure in fixed rates over a

weighted average duration of 3.4

years. The overall portfolio weighted

average cost of borrowings is 3.67%.

The overall portfolio weighted

average cost of borrowings is

expected to increase to about 4%

post refinancing of the CMBS due

in Aug 2009 as cost of new

borrowings is expected to be higher.

Tenant & Credit Risk

An established process has been put

in place to evaluate the credit-

worthiness of customers to minimize

potential credit risk. The top ten

tenants accounted for approximately

25.7% of total gross revenue as at

31 Mar 2009.

By diversifying A-REIT’s portfolio,

it also minimizes reliance on any one

property such that no single property

currently accounts for more than 5%

of gross revenue. A-REIT’s risk and

exposure to any particular country,

industrial sector, or type of company

is also reduced due to the diversified

nature of the portfolio. With 89

properties and about 900 tenants,

A-REIT’s tenants hail from an array

of industries and size such as

multi-national companies, small

medium enterprises, listed

companies in various trades of

telecommunications, life sciences,

food, fragrances and flavours,

research & development as well as

storage and warehousing.

19%USA

1%Australia

2%Bermuda

3%Asia

1%Others

58%Singapore

13%Europe

3%Japan

TENANT BASE BY COUNTRY OF ORIGIN (BY INCOME CONTRIBUTION)

TENANT BASE BY INDUSTRY (BY INCOME CONTRIBUTION)

12%Others

6%Life Sciences/

FFF/Chemical/Food/Healthcare

2%Fashion/Textiles &Wearing Apparels

2%Financials

8%InformationTechnology &Related Activities

8%Telecommunications and Datacentre

14%Electronics,Electronic Products& Components

12%M&E/Machinery & Equip/Electrical Machinery& Apparatus

3%Rubber and Plastic

Products/FabricatedMetal Products

24%Storage,

warehousing, 3PL,distributor/trading

5%Printing, Medical,

Construction,Furniture, Automotives

4%Warehouse

Retail Facilities

Manager’s Report


Doubtful Debts Provision

and Bad Debts

Rigorous management of account

receivables has resulted in low

doubtful debt provisions as a

percentage of total gross revenue.

Despite the relatively difficult

environment in the second half of

the financial year, A-REIT did not

experience a significant increase in

past due account receivables as the

Manager has a well established

internal credit control process in

place. About 85% of rental receipts

are collected through Interbank

GIRO services. In addition, specific

operational actions, such as

increased tenant visits and increased

vigilance on tenant’s activities, helped

to detect early signs of trouble.

As at 31 Mar 2009, outstanding

accounts receivables that are more

than two months past due amounted

to about S$189,000 or about 0.05%

of gross revenue. Within the portfolio,

the Manager estimates that about

19,000 sqm (about 1% of total

portfolio net leasable area)

accounting for about S$0.3m of gross

monthly revenue (about 0.9% of the

portfolio) is occupied by tenants that

are considered highly vulnerable.

However, A-REIT holds about

S$2.1m in security deposits from

these tenants.

S$’000 FY02/03 FY03/04 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09

Doubtful debt - 124 121 60 58 324 102

Doubtful debt provided/ 351 133 37 45 21 266 (222)

bad debt write-off/(write back)

Trade receivables 627 1,123 4,033 2,134 1,589 1,977 2,137

Total annual gross revenue 22,836 65,914 128,987 227,153 283,007 322,270 396,534

Doubtful debt provisions/ 1.54% 0.20% 0.03% 0.02% 0.01% 0.08% (0.06%)

bad debts write-off/(write back)

as % of gross revenue

Security Deposit to Mitigate Risk

The standard industry practice is to

hold one month rent as security

deposit for each year of lease.

However, for sale-and-leaseback

transactions, depending on the

credit-standing of the counterparty

and commercial negotiation, a

larger sum of security deposits may

be held. Security deposits for

A-REIT’s sale and leaseback

properties range from 7 to 12

months’ rental income. The average

security deposit for the portfolio

is approximately 6 months of

rental income.

No. of Weighted Average

SLB No. of Months Rent

Properties as Security Deposit*

Business & Science Parks 4 12

Hi-Tech Industrial 7 7

Light Industrial 26 11

Logistics & Distribution Centres 13 9

Warehouse Retail Facilities 2 11

52 10

* Sale-and-Leaseback properties (properties with long term leases)

In addition, for seven properties, the

Manager has withheld some part of

the purchase consideration to be paid

out in accordance with a pre-agreed

schedule. The total amount withheld

was S$24.2m which is about 0.53%

of Total Assets as at 31 Mar 2009.

This amount has been included in

the computation of Aggregate

Leverage of A-REIT under the

prevailing REIT guidelines.

2425

Manager’s Report

BALANCING RISKS & RETURNS:

Disciplined & Value-adding

Investment

The need to balance near term

returns with longer term

sustainability has been an important

hallmark of A-REIT’s investment

criteria. The Manager is committed

to undertake disciplined investment

through acquisitions and

development of high-quality

properties to grow A-REIT’s portfolio

of properties with sturdy and firm

strides. The Manager will continue

to focus on the following key areas

of activity:

Value (S$m) Completion Date

Acquisitions

8 Loyang Way 1 25.0 May 08

31 International Business Park 246.8 June 08

Completed Development Projects

Pioneer Hub 79.3 August 08

15 Changi North Way 36.2 September 08

3 Changi Business Park Crescent 59.0 February 09

Total 446.3

a. Built-to-suit/lease development

projects to capitalise on our

development capabilities and

strengthen and broaden our

customer base;

b. Acquisitions of income producing

properties with established

tenants; and

c. Acquisitions of good quality multi-

tenanted properties with strong

income stream and asset

enhancement potential.

The Manager has continued to

increase scale and value to A-REIT’s

portfolio with the addition of five

properties amounting to S$446.3m

to the portfolio during FY2008/09.

Since 2006, A-REIT has completed

six development projects worth

S$312m. These properties now have

a book value of S$421.7m as at 31

Mar 09, representing a 35.2% capital

appreciation over their cost

of development.

In addition, another three

development projects amounting to

approximately S$308.1m were

announced. These projects will be

undertaken in phases and is

expected to be completed over the

next twelve months.

Expected

Value (S$m) Completion Date

3 Changi Business Park Crescent 107.1 3Q FY2009/10

Phase 2 - Amenity Centre & MTB

Built-To-Suit for Expeditors at ALPS 25.6 3Q FY2009/10

Built-to-Suit Hi-Tech 175.4 4Q FY2009/10

Industrial Development for SingTel

Total Development Projects 308.1

As at 31 Mar 09, S$76.3m has been capitalised.


Development in progress:

3 Changi Business Park Crescent

To be developed over three phases,

the development at 3 Changi

Business Park Crescent comprises

three business park buildings and

an amenity podium. These buildings

will be sited on a land area of 29,864

sqm with a 60-year lease tenure and

will have a combined gross floor area

of 74,660 sqm.

This project is strategically located

at Changi Business Park, within a

short walking distance to the

Singapore Expo and Expo MRT

station and is easily accessible to

other parts of Singapore via major

expressways, namely, ECP, PIE

and TPE.

The first phase of the business park

buildings, with a gross floor area of

21,023 sqm is fully pre-committed

to Citibank NA for a lease term of 7

years with an option to extend for

another 3+3 years upon lease expiry.

It was completed in February 2009

and Citibank NA will be consolidating

its operations, technology and

support service to this building to

provide for greater synergies,

as well as cater for future

business growth.

The second building is a multi-

tenanted facility with gross floor area

of approximately 33,000 sqm of which

about 8,000 sqm is amenity space to

cater to the needs of the increasing

population at the Changi Business

Park. Expected date of completion

is in the second half of 2009.


Built-to-Suit for Expeditors Pte Ltd

A new built-to-suit project for

Expeditors Singapore Pte Ltd was

committed during the financial year.

This investment comprises a part 2-

storey / part 4-storey logistics facility

at Plot 6 of the Airport Logistics Park

of Singapore which is strategically

located within the Airport Free Trade

Zone. Upon completion in the second

half of 2009, the development is

expected to have a gross floor area

of 12,707 sqm and a net lettable area

of 11,430 sqm and will be leased to

Expeditors Singapore Pte Ltd for a

period of five years with an option to

renew for another five years.


Built-to-Suit Hi-Tech Industrial

Property for SingTel

A built-to-suit 9-storey Hi-Tech

Industrial building at Kim Chuan

Road for SingTel is in progress. Upon

completion in 1Q 2010, SingTel will

lease the building for 20 years with

annual rental escalation and with an

option to renew the lease for another

10 years. The investment, with a

gross floor area of approximately

32,862 sqm, is next to Kim Chuan

Telecommunications Complex, an

existing building owned by A-REIT

which is currently leased to SingTel.

This is a testament of the positive

working relationship with A-REIT’s

tenants and its ability to leverage on

existing tenants to further grow

its portfolio.

2627

Manager’s Report

Property Revaluation

The regulatory annual revaluation

exercise for A-REIT’s portfolio was

completed in Mar 2009 which

recorded a total devaluation of $115m

on the back of weakened outlook for

the economy. The devaluation

represented a decline of about 2.5%

of total value of the property portfolio.

As at 31 Mar 2009, based on the

revalued property values, the Net

Property Income yield on the portfolio

was about 7%.

BALANCING STAKEHOLDERS’

INTERESTS: Proactive Asset

Management

Diversified Assets

A-REIT has a balanced and well-

diversified portfolio of quality

properties across six sub-sectors

providing real estate solutions to an

array of customers from various

industries. These sub-sectors

comprise Business & Science Parks

(30%), Hi-Tech Industrial (22%), Light

Industrial (13%), Flatted Factories

(6%) and Logistics & Distribution

Centres (26%), as well as

Warehouse Retail Facilities (3%).

Balanced tenant base

A-REIT’s portfolio of 89 properties

currently house a tenant base of

about 900 international and local

companies from over 20 countries

and spread over a wide range of

Sector Change in Percentage change (%)

valuation (S$m)

Business & Science Parks (20.8) (1.5%)

Hi-Tech Industrial (25.0) (2.6%)

Light Industrial (42.6) (4.9%)

Logistics and Distribution Centres (27.3) (2.3%)

Warehouse Retail Facilities 0.3 0.2%

Total (115.4) (2.5%)

industries and activities, including

research and development, life

sciences, information technology,

engineering, light manufacturing,

logistics service providers,

electronics, telecommunications,

manufacturing services and back-

room office support in service

industries. These sub-sectors are

exposed to different segments of the

economy and have different growth

drivers, thereby providing

diversification value to the portfolio.

In FY2008/09, sources of new demand

were very broad based and originated

from more than 12 sectors ranging

from the conventional general

manufacturing, transport and

storage, precision engineering to the

knowledge-based sectors such as

financial services and research and

development activities.

ASSET CLASS DIVERSIFICATION (BY PORTFOLIO VALUE)

SOURCES OF NEW DEMAND FOR SPACE BY TENANT INDUSTRY

3%Structural

Engineering

11%Others

2%R&D 10%

IT

10%Biomedical

11%Electronics

5%GeneralManufacturing

8%PrecisionEngineering

12%Transport& Storage

2%Lifestyle

& Apparels

7%Food Products

& Beverages

1%Financial Services

18%Telecommunication

& Datacentre

3%WarehouseRetail Facilities

13%Light

Industrial

30%Business& Science Parks

22%Hi-Tech

Industrial

6%Flatted

Factories

26%Logistics &Distribution Centres


29.3%

70.7%

Business And Science Parks (By NLA)

SHORT TERM & LONG TERM LEASES

BY SECTOR

Multi tenanted/Short term Leases

Sale-and-Leaseback/Long Term Leases

A-REIT has a high quality and

well-diversified tenant base. As of

31 Mar 2009, the top 10 tenants

account for 25.7% of total gross

revenue vis-á-vis 27.9% a year ago.

In addition, no single property

accounts for more than 5.0% of

gross revenue.

Well-balanced lease tenure

A-REIT has a mix of sale-and-

leaseback properties (48%) with long

term leases and multi-tenanted

properties (52%) with short term

leases. Sale-and-leaseback long

term leases typically have annual

stepped rental increases which

provide stable growth for the portfolio.

Majority of the leases in the Business

& Science Parks as well as High-

Tech industrial properties are on

short term basis. More than two-

third of the Logistic & Distribution

sector and the Light Industrial sector

are long term leases.

Singt

el

TOP 10 TENANTS BY GROSS REVENUE

(% of Gross Revenue)

5.8

%

C&P

Creat

ive

Cold

Stora

ge

Siem

ens

SENKEE L

ogist

ics

TT In

tern

ationa

l

Hewle

tt Pac

kard

Courts M

egas

tore

Toll

Asia

4.5

%

3.5

%

1.9

%

1.9

%

1.9

%

1.7

%

1.6

%

1.5

%

1.4

%

48%Sale-and-

Leaseback

52%Multi-tenantedBuildings

2829

38.9%

61.1%

Hi-tech Industrial (by NLA)

16.7%

83.3%

Ligh Industrial (by NLA)

39.1%

60.9%

Logistic and Distribution Centres (by NLA)

Manager’s Report

The weighted average lease to expiry

is 5.1 years as at 31 Mar 2009 with

14.1% of A-REIT’s income due for

renewal in FY2009/10. The lease

expiry profile remains well balanced

and extends beyond 2021.

Weighted average land lease to expiry

for the portfolio of properties

(excluding a freehold property) is

47.6 years.

Business Hi-Tech Light Logistics & Warehouse

& Science Parks Industrial Industrial Distribution Centres Retail Facilities Total

LAND TENURE EXPIRY YEAR(1) No.Pty $(m) No.Pty $(m) No.Pty $(m) No.Pty $(m) No.Pty $(m) No.Pty $(m)

<30 years left (2009 to 2039) - - - - 2 19 2 111 2 137 6 267

<40 years left (2040 to 2049) - - - - 4 56 1 107 - - 5 163

<50 years left (2050 to 2059) 4 340 8 486 26 722 17 895 - - 55 2,443

<60 years left (2050 to 2069) 10 703 6 289 1 34 2 56 - - 19 1,082

>60 years left (Beyond 2070) 2 299 1 112 - - - - - - 3 411

Freehold - - 1 60 - - - - - - 1 60

Total 16 1,342 16 947 33 831 22 1,169 2 137 89 4,426

(1) Assuming A-REIT exercise the option to renew the land lease upon expiry

WEIGHTED AVERAGE LEASE TERM TO EXPIRY

(% of A-REIT Gross Property Income)

FY 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24

14.1

16.0

12.3

5.2

13.6

8.1

7.5

6.3

1.6

3.7

1.6 1.7

0.0 0.4

7.9

22.9%Business& Science Parks

28.4%Hi Tech Industrial

33.0%Light Industrial/

Flatted Factories

15.7%Logistics and

Distribution Centres


About 75% of the properties in

A-REIT’s portfolio are on land rent

basis. This implies that the properties

do not have a land value accorded to

its valuation.

Maintaining Stability in

Challenging Times through

Proactive Asset Management

(delivered by the Property Manager,

Ascendas Services Pte Ltd)

A-REIT’s asset management function

is outsourced to its Property

Manager, Ascendas Services Pte Ltd

(ASPL), which has a dedicated and

proactive asset management team

who is constantly exploring

opportunities to optimize value within

the portfolio.

A demonstration of our active leasing

strategy and our positive relations

with our customers, A-REIT leased

and renewed a total of 185,929 sqm

of space within the portfolio in

FY2008/09, of which, 114,897 sqm

are renewal of leases. Our customer

retention rate stands at 80%,

signifying a large majority of

customers renewed their tenancy

with A-REIT upon expiration of their

existing leases.

PROPERTIES ON LAND RENT BASIS A-REIT’S PORTFOLIO OCCUPANCY RATE VS INDUSTRY

Active Leasing: Maintaining

Occupancy, Retaining Customers

Occupancy of the portfolio declined

marginally to 97.8% from 98.4% a

year ago in the face of the global

economic crisis. The occupancy

rate for multi-tenanted buildings

also decreased to 95.3% from 96.4%

a year ago. A notable observation

is that A-REIT’s portfolio occupancy

has consistently exceeded the

Urban Redevelopment Authority’s

(”URA”) island-wide occupancy

rates and despite the weak market

conditions, continues to maintain

this lead by between 2.6 and 7.9

percentage points.

96.4

%

93.8

%

95.3

%

91.0

% 98.9

%

91.0

% 98.7

%

92.8

%

Business Park Hi Tech Industrial Light Industrial Logistics

A-REIT

URA (Industry average)

3031

Percentage

of Portfolio

Property No. of Properties on Land Rent

Value on Land Rent Basis (by

Sector (S$m) Basis Property Value)

Business & Science Parks 1,342 8 30.5%

Hi-Tech Industrial 947 7 34.3%

Light Industrial/ Flatted Factories 831 30 64.0%

Logistics & Distribution Centres 1,169 22 100.0%

Warehouse Retail Facilities 137 0 0.0%

Total 4,426 67 55.0%

Manager’s Report

Organic Growth: Rent Reversions

Renewal rates in the Business &

Science Park property sector grew

by 41.3% over existing contract rates

while rental rates for new demand

declined by 21.8% quarter-over-

quarter at the end of the financial

year. In the Hi-Tech Industrial

property sector, the corresponding

figures were 31.4% and 12.7%

respectively. However, both Light

Industrial and Logistics properties

continue to achieve modest growth

rates due to their respective

market conditions.

Looking Forward

30.1% of total lease (by total gross

lease revenue) in the portfolio will be

due for renewal in the current and

next financial year.

As of 31 Mar 2009, 231,242 sqm

accounting for about 14.1% of the

portfolio gross rental income are due

for renewal in FY2009/10. The current

passing rent for most of these leases

is below the prevailing market rate.

However, given the weakened market

conditions, the potential for positive

rental reversion, if any, upon renewal

will be much more modest than

those achieved in FY2008/09.

% Increase in

Occupancy Rate (%) New take up

% Increase in rates 4Q vs 3Q

MULTI-TENANTED PROPERTIES As at 31 Mar 09 As at 31 Dec 08 Renewal Rates(1) FY2008/09(2)

Business & Science Parks 94.7 95.2 41.3 (21.8)

Hi-Tech Industrial 92.2 94.4 31.4 (12.7)

Light Industrial/ Flatted Factories 97.1 98.0 10.2 11.6

Logistics & Distribution Centres 96.6 90.2 4.3 7.2

(1) Renewal rental rates for 4QFY2008/09 versus previous contracted rate

(2) Rental rates for new take up (including expansion by existing tenants) in 4QFY2008/09 versus rates in 3QFY2008/09

$2.63

$2.90

$2.18$2.28

$1.17

$1.71

$1.33$1.48

$1.48

$1.36

1,200

1,000

800

600

400

200

0

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.0Business & Science Parks Hi-Tech Industrial Light Industrial Flatted Factories Logistics & Distribution Centres

Area due

for renewal

(’000 sf)

Average

existing rental

rates (psf)

Area for Renewal in FY2009/10

Area for Renewal in FY2010/11

Average Existing rates for FY2009/10

Average Existing rates for FY2010/11


Investment through Acquisitions

Capitalisation rate for income

producing properties is hovering at

around 7% but the market is quiet.

The Manager will continue to evaluate

and make disciplined acquisitions of

properties very selectively, ensuring

that acquisitions made are of high

potential and could be yield accretive

in the near term as well. We will

continue to focus on choice properties

which are versatile in use and offer

sustainable long term returns.

Investment in Development

With the uncertain and challenging

business environment, the Manager

will put more emphasis on achieving

better returns per investment dollar

through the creation of assets by

utilizing our development capability

and capacity by targeting high quality

prospective tenants in more

promising and stable industries.

Asset Enhancement Opportunities

The Manager will continue to look

for opportunities to enhance assets

within the portfolio when market

conditions are more conducive.

We could expect some expansion of

existing buildings to meet future

growth requirements of existing

tenants as well as exploiting potential

to maximize plot ratio if market

demand is assessed to be conducive.

CONCLUSION

The global economy is expected to

remain weak in the coming

quarters. While there are tentative

signs of some stabilization in the

housing, financial and

manufacturing sectors in the US,

they do not yet point to a clear

turnaround in economic activities.

2009 is therefore expected to be a

difficult year given the global financial

and economic crisis. Ministry of Trade

& Industry estimates a GDP

contraction of between 6% and 9%

for Singapore in 2009.

The outlook for A-REIT in FY2009/10

will depend largely on the extent and

depth of the unfolding impact of the

global economic recession on our

existing tenants as well as on

demand for industrial space.

The diversified nature of A-REIT’s

portfolio may prove to be advantageous

during such times of economic

uncertainty. As at 31 Mar 2009,

about 86% of A-REIT’s portfolio

revenue is committed for the next

financial year and the weighted

average lease to expiry is

approximately 5.1 years. A fair mix

of long and short term leases

(48% versus 52% by portfolio value

respectively) in the portfolio provides

a certain degree of predictability

and sustainability. Barring any

significant deterioration in market

conditions, the Manager expects

the net property income outlook for

A-REIT for FY2009/10 to be about

the level achieved in FY2008/09.

However, with an expected higher

cost of borrowing, the income

available for distribution may be

lower and will also be spread over

a larger unit base as a result of the

private placement and preferential

offering of new units in the first

quarter of 2009.


28.4%Hi-Tech Industrial


Flatted Factories

15.7%Logistics &Distribution

Centre


Flatted Factories


25.6%Hi-Tech Industrial

28.1%Logistics &

DistributionCentre

YEAR ENDING 31 MAR 2010 YEAR ENDING 31 MAR 2011

3233

LEASES DUE FOR RENEWAL (BY SECTOR)

QUAN

authoritya power or right delegated or given

ZE

responsibiltya particular burden of obligation

upon one who is responsible;accountability

AUTHORITY TO EXECUTE, RESPONSIBILITIES TO ACCOUNT FOR.

Authority is the foundation to discharge responsibilities. Working towards a common goal,

the varied interests of various stakeholders: investors, customers and business partners

must be balanced. Responsibilities, Authority and Accountability are the three inseparable

legs of a balanced tripod upon which good execution is possible. People must be accountable

for the outcomes for which they have been empowered with the authority to deliver.

Board of Directors

Mr David Wong Cheong Fook

Chairman, Independent Director

Mr Wong is a Director on the boards

of LMA International NV, PacificMas

Bhd, Banking Computer Services

Pte Ltd, Jurong International

Holdings Pte Ltd, OCBC Bank

(Malaysia) Bhd and Teva

Pharmaceutical Investments

(Singapore) Pte Ltd. He is also a

Member of the Casino Regulatory

Authority and is a board member

of the National Environment

Agency. He is a Fellow of the

Institute of Certified Public

Accountants in Singapore, and a

member of the Institute of

Chartered Accountants in England

and Wales.

Mr Swee Kee Siong

Non-executive Director

Mr Swee is the Chairman of the

Investment Committee for

Ascendas India Development Trust,

Ascendas China Industrial &

Business Parks Fund and Ascendas

China Commercial Fund. He is a

Fellow of the Royal Institution of

Chartered Surveyors and Fellow of

the Singapore Institute of Surveyors

and Valuers. He has over 30 years

of experience in planning,

developing, marketing and

managing industrial estates,

business and science parks in

Singapore. Mr Swee was a member

of URA Master Plan Committee

from 1995 to 1998, the Chief

Executive Officer of Ascendas

Singapore operations and the

Singapore Science Park, and the

Deputy Chief Executive Officer of

Jurong Town Corporation.

Ms Chong Siak Ching

Vice Chairman,

Non-executive Director

Ms Chong is the President and

Chief Executive Officer of Ascendas

Pte Ltd. She sits on the boards of

Ascendas Pte Ltd and its

subsidiaries. Ascendas pioneered

Singapore’s first business space

trust, A-REIT in Nov 2002, and

Singapore’s first India-based

properties business trust, Ascendas

India Trust in August 2008. She is

also a Board Director on the

Singapore Tourism Board and the

Deputy Chairman of Spring

Singapore, the enterprise

development agency of Singapore.

She is also a Management Board

member of the Institute of Real

Estate Studies at the National

University of Singapore and the

Nanyang Business School’s

Graduate Board Member. Previously

Jurong Town Corporation’s Deputy

Chief Executive Officer, she has

extensive experience in business

space management.

Mr Benedict Kwek Gim Song

Independent Director

Chairman, Audit Committee

Mr Kwek is the Chairman of PST

Management Pte Ltd which is the

manager and trustee of SGX listed

Pacific Shipping Trust. He also

serves on the boards of Delmonte

Pacific Ltd and NTUC ChoiceHomes

Cooperative and NTUC Club, where

he is the Audit Committee

Chairman of the two former

companies. Mr Kwek, with over 32

years of banking experience, was

formerly the President and CEO of

Keppel TatLee Bank Ltd. He was

previously a Board Member of JTC

and a director of Jurong Port

Pte Ltd.

01

02

03

04

01 Mr David Wong Cheong Fook

02 Ms Chong Siak Ching

03 Mr Benedict Kwek Gim Song

04 Mr Swee Kee Siong


05 Mr Chia Kim Huat

06 Mr Joseph Chen Seow Chan

07 Mr Tan Ser Ping

Mr Chia Kim Huat


Mr Chia is presently a partner of

Rajah & Tann LLP and heads its

Corporate and China Practice

Group. Mr Chia has more than 16

years experience as a practicing

lawyer and his main areas of

practice include capital market

transactions, cross-border joint

ventures, private equity investments,

mergers and acquisitions, corporate

and banking transactions. He

graduated from National University

of Singapore with a Bachelor of

Laws (Honours) degree in 1992 and

is a member of the Singapore

Academy of Law and The Law

Society of Singapore.

Mr Tan Ser Ping

Executive Director, CEO

Mr Tan is responsible for the overall

management and operations of A-

REIT. He works with the Board

members to determine the

business strategies and plans for

the strategic development of

A-REIT. He works closely with the

A-REIT team to ensure that the

operations of A-REIT are in

accordance with the stated

business strategies. Prior to joining

the Manager, he was the Executive

Vice President of Real Estate

Development & Investment (REDI)

of Ascendas Pte Ltd where he was

responsible for formulating REDI

policies, strategies and plans

across all country operations and

developing new product offerings

and markets for Ascendas. He

headed the task force for the

establishment of A-REIT prior to

its listing.

Mr Joseph Chen Seow Chan


Mr Chen has 29 years of experience

in the treasury and fixed income

business. He worked in a number

of major foreign banks and the

Monetary Authority of Singapore,

prior to joining United Overseas

Bank (”UOB”), where he worked for

17 years. He was Managing

Director, Global Treasury of UOB

when he retired in November 2005.

He was also a Director of UOB

Bullion & Futures, a subsidiary of

UOB, until retirement. Mr Chen was

also a member of the UOB

Management Committee and the

Assets & Liabilities Committee.

Before joining Ascendas in 2001,

Mr Tan was Senior General

Manager for the Singapore Suzhou

Industrial Park Development

Company Ltd, Residential &

Commercial Business Group. In his

over 20 years of working experience,

he also held senior positions in

various banks including the Bank

of America, Standard Chartered

Bank and United Overseas Bank.

Mr Tan graduated from the National

University of Singapore with a

Bachelor of Accountancy (Honours)

degree. He obtained his Masters in

Business Administration from the

University of Leicester, UK.

05

06

07

3637

The A-REIT Team

The A-REIT Team

01 02 03

04 05 06 07 08 09 10 11 12

Tan Ser Ping

Chief Executive Officer

Executive Director

Please refer to page 37.

Tan Shu Lin

Head, Capital Markets

As Head of Capital Markets for the

Manager, Shu Lin is responsible for

managing the capital structure of

A-REIT as well as to oversee and

manage both equity and debt capital

markets transactions and other

capital market related activities.

She is also responsible for liaising

with analysts as well as potential

and existing investors.

Prior to joining the Manager, Shu Lin

was Assistant Vice President of Real

Estate Fund Management at Ascendas

Pte Ltd where she was responsible for

developing property fund management

activities in the region. She was also

responsible for sourcing and

evaluating potential investment

opportunities in the region. Before

joining Ascendas, Shu Lin has had

more than six years of working

experience with various financial

institutions. She graduated with a

First Class Honours degree in

Economics from University of

Portsmouth, United Kingdom and is

a Chartered Financial Analyst.

Kevin Lee

Foo Pei Teng

Co-Head, Business Development

& Investment

Kevin and Pei Teng are jointly

responsible for developing and

executing A-REIT’s business

development and investment

strategy. Their team is responsible

for generating and evaluating

opportunities for acquisition and

development, structuring deals,

negotiating and closing such

transactions.

Tan Tuan Hong

Head, Corporate Services

& Risk Management

Tuan Hong is responsible for

accounting, financial reporting

and analysis, taxation, risk

management and compliance

execution. Tuan Hong has over 20

years of experience in the areas of

financial control and planning for

companies in the manufacturing,

retail & distribution as well as

services industries.

Prior to joining the Manager,

Tuan Hong served as the Asia

Pacific Financial Controller of a

NASDAQ-listed company with

principal activities in operating

network-neutral data centres and

Internet exchange services.

Tuan Hong holds a Bachelor of

Accountancy degree from the

National University of Singapore

and a Master degree in Business

Administration from Manchester

Business School (UK). He is a

Fellow member of the Institute of

Certified Public Accountants of

Singapore and a member of the

British Computer Society.

01 Rina Ang

02 Tan Shu Lin

03 Tan Ser Ping

04 Mary De Souza

05 Roy Teo

06 Sharon Seet

07 Joanne Neo

08 Kevin Lee

09 Yong Kok Fong

10 Ryan Tan

11 Sabrina Tay

12 Stefanie Tan


13 14 15

16 17 18 19 20 21 22 23 24

Kevin Lee

Head, Industrial Properties Portfolio

As Portfolio Manager (Industrial

Properties), Kevin oversees the

Property Manager, ASPL, in its

asset management strategies and

execution for A-REIT’s portfolio of

Hi-Tech Industrial and Light

Industrial properties.

Prior to joining the Manager, Kevin

was Director at an international

property consultant where he has

served corporate clients and banks

involving assets appraisal and also

investment advisory. Kevin is a

licensed valuer and also a member

of the Royal Institution of Chartered

Surveyors. He holds a Bachelor of

Science degree in Land

Management from University of

Reading, United Kingdom.

Maria Theresa Belmonte

Legal Counsel

& Compliance Manager

Assistant Company Secretary

Theresa’s responsibilities include

providing legal advice in all areas

within A-REIT including legal

documentation for acquisitions.

She also serves as the Compliance

Manager for A-REIT and assists in

A-REIT’s corporate secretarial

matters. She was formerly an in-

house legal counsel in a SGX-listed

company and prior to that was a

practicing lawyer. She has previous

experience in the areas of real

property law, general corporate law

and corporate secretarial work.

Theresa was called to the Singapore

Bar after graduating with an LL.B

(Hons) from the National University

of Singapore.

Roy Teo

Head, Logistics Properties Portfolio

Coordinator, Asset Management

Roy oversees ASPL in its asset

management strategies and

execution for A-REIT’s portfolio of

logistics properties. As Coordinator

for the Asset Management function,

he is a crucial link between the

Manager (AFM) and the Property

Manager (ASPL) to ensure that the

optimal level of service and the best

possible outcome are delivered for

the A-REIT properties.

Prior to his current role with the

Manager, Roy was the Assistant

Manager for Business Development at

Keppel Logistics Pte Ltd. He has over

eight years of experience in the

logistics industry in areas including

finance, accounting, project

management and business

development in Singapore and

regionally. Roy holds a Bachelor of

Science (Honours) degree in Applied

Accountancy from Oxford Brookes

University and is an Affiliate

member of the Association of

Chartered Certified Accountants.

Foo Pei Teng

Head, Business & Science Park

and Warehouse Retail

Facilities Portfolio

As Portfolio Manager (Business &

Science Park and Warehouse Retail

Properties), Pei Teng oversees ASPL,

in its asset management strategies

and execution for A-REIT’s portfolio

of Business & Science Park and

Warehouse Retail properties.

Prior to joining the Manager, Pei

Teng was a Business Development

Manager with Ascendas Pte Ltd.

She was involved in the evaluation

of several regional real estate

development and investment deals

in Korea, Australia and the

Philippines. Pei Teng graduated

with a Bachelor of Business

(Honours) degree in Financial

Analysis from Nanyang Technological

University and a Master of Science

degree in Real Estate from

National University of Singapore.

19 Patricia Goh

20 Foo Pei Teng

21 Calvin Tay

22 Maria Theresa Belmonte

23 Ho Sok Teng

24 Crystal Koh

13 Chan Lai Kuan

14 Ng Kok Hua

15 Tan Tuan Hong

16 Carol Ng

17 Lee Yong Kian

18 Leong Sai Keong

Not in picture: Cassie Ang, Jeffrey Toh

4041

The Property Manager(Ascendas Services Pte Ltd)

The asset management function of A-REIT is outsourced to its Property Manager,

Ascendas Services Pte Ltd (ASPL), a 100% owned subsidiary of the Ascendas Group.

Under the leadership of its CEO, Mr Thomas Teo, the ASPL team is committed to provide proactive and

professional services by working closely with the Manager to enhance the market positioning and

attractiveness of our properties and services to maximize returns for A-REIT’s unitholders.


22.9%

100% 100%

Distributions

Investment in A-REIT

Ownership of Assets

Net property income

Acts on behalf

of UnitholdersTrustee Fee

Managem

ent Fees

Managem

ent Serv

ices

Property

Management

Fees

Property

Management

Services

STRATEGIES Capital & RiskManagement


Value AddingInvestments

• Equity funding• Debt Funding• Interest rate

risk management• Cost of capital


• Supervise execution of asset managementactivities

• Yield accretive acquisitions

• Built-to-Suit projects• Development

OUTCOME Stability Growth

Revenue Management

• Occupancy improvements

• Rental rates

Expense Management

• Effi ciency improvements

• Cost savings initiatives

Property Management

• Property maintenence service

• Site staff management

Customer Care

• Customer retention

• Customer satisfaction

Responsible for Responsible for

Responsible for

HSBCINSTITUTIONAL

TRUST SERVICES(SINGAPORE)

LIMITED

PROPERTIESUNIT HOLDERS

ASCENDASSERVICES PTE LTD(PROPERTY MANAGER)

(Reports to ASPL

Board of Directors)

ASCENDASFUNDS

MANAGEMENT(S) LIMITED

(A-REIT MANAGER)

(Reports to AFM

Board of Directors)

ASCENDAS

GROUP

The ASPL team oversees day-to-

day operational matters such as

asset management, market and

leasing of space, controlling

operating expenses, providing high

quality customer care, coordinating

customers’ fitting out requirements,

supervising the performance of

contractors and ensuring building

and safety regulations are complied

with. It is also responsible for the

achievement of organic growth

within the portfolio.

More specifically, ASPL is tasked

with the following responsibilities:

Customer Care

The ASPL team plays a pivotal role

in maximising customer retention

through the implementation of the

Customer Care Program. The

program is set up through periodic

discussion between the ASPL team

and the Manager to ensure that a

desired level of customer service

is delivered to our customers. The

team is also responsible for the

management of accounts

receivable. They minimize arrears

and bad debts by continuously

monitoring customer credit.

Revenue and Occupancy

Management

The ASPL team actively markets and

leases vacant space within A-REIT’s

portfolio of properties. They also

work on expanding and renewing

leases with existing customers to

achieve positive rental reversion.

Property Management

ASPL ensures that the property

specifications and service level are

commensurate to the intended

market positioning of the property.

The ASPL team is also responsible

for managing the site staff to ensure

that the desired level of property

and customer care is implemented

at the respective properties.

Expense Management

The ASPL team adopts a prudent

operational strategy in line with the

Manager’s objective in maximizing

return without compromising service

standards. They strive to improve

operating processes continuously to

optimize operational cost so as to

ensure efficient division of labour and

effectiveness during the execution of

their day-to-day operations.

ASPL is committed to providing

optimal solutions and services to

meet the needs of A-REIT’s

customers as well as enhance the

property value of A-REIT’s portfolio.



• Supervise execution of asset management activities

Revenue Management• Occupancy improvements• Rental rates

Expense Management• Efficiency improvements• Cost savings initiatives

Property Management• Property maintenence service• Site staff management

Customer Care• Customer retention• Customer satisfaction

TOTAL RETURNS Predictable Income Capital Stability

4243

Mr Thomas Teo

Chief Executive Officer

Mr Thomas Teo is the Chief

Executive Officer of Ascendas

Services Pte Ltd, the property

management arm of ASPL

Thomas is responsible for asset

management, property & facilities

management, lease and customer

service management and project

management.

Thomas was previously the Senior

Vice President, Development &

Project Management of Ascendas,

responsible for the Singapore

property portfolio. He has over 20

years of working experience in

companies including DBS Land and

OCBC Property Services. He joined

Technology Parks in 1996 as Senior

Manager to head the Project

Management division. He was CEO

of Ascendas Land from 2002 to 2008

looking after Ascendas’ Singapore

real estate investment and

development portfolio.

Thomas holds a Master of Science

degree in Construction Management

from the University of Bath as well

as professional memberships from

the Chartered Institute Of Building

(UK) and the Association for Project

Management (UK).

Ms Han Tui Heng

Assistant Chief Executive Officer

As the Assistant Chief Executive

Officer, Ms Han Tui Heng works

closely with Thomas to grow ASPL’s

businesses and provide excellent

service to asset owners and tenants.

She also oversees the Asset

Management, Marketing and Lease

Management Departments directly.

Tui Heng has more than 16 years of

working experience in the real

estate industry in the areas of asset

management, marketing and lease

management. Prior to her

appointment as ACEO, Tui Heng

was the Vice-President of Ascendas

HQ Real Estate Services Business

Unit and Real Estate Development

& Investment Business Unit where

she was in charge of the Group’s

Portfolio Asset Management.

Tui Heng also held the appointment

of Group Head (Corporate

Development) where she was

responsible for the development of

Corporate Strategies, Corporate

Planning & Research as well as

Knowledge Management.

Tui Heng holds a Bachelor of

Science in Estate Management

(Hons) from the National University

of Singapore and a Master in

Business Administration from

University of Wales, UK.

Mr Lee Chin Leong

Vice President,

Head Of Property Management

Mr Lee Chin Leong has over 20

years of experience in development,

construction, operations and

maintenance in the real estate &

infrastructure related industries.

Trained as a Mechanical & Electrical

Engineer. Chin Leong is also

experienced in corporate real estate

services. As Head of Property

Management in ASPL,

he leads a team over 80 technical

specialists to manage existing

buildings owned by A-REIT and

Ascendas Land Singapore Pte Ltd.

Chin Leong holds a Bachelor of

Science Degree (Hons) in Electrical

Engineering from South Dakota

State University, USA.

Mr Mark Chan Swee Kee

Vice President,

Head Of Development

& Project Management

Mr Mark Chan has over 20 years of

experience in the development and

construction industry. Trained as a

builder/quantity surveyor, he has

worked for construction companies,

developers, civil engineering

contractors, quantity surveyors in

Australia, New Zealand, Malaysia

and Singapore. As Head of the

Development & Project

Management Department of ASPL,

he leads a team of 14 project

managers in the development and

management of projects

undertaken by A-REIT and

Ascendas Land Singapore.

Mark holds a Bachelor of Building

(Hons) from University of

Melbourne, Australia.

01

02 04

0607

03 05

01 Mr Thomas Teo

02 Ms Han Tui Heng

03 Mr Lee Chin Leong

04 Mr Mark Chan Swee Kee

05 Mr Dacon Pao Yah Chow

06 Ms Tan Siew Cheng

07 Ms Toh Lay Gan

Not in picture: Ms Karen Lee


Mr Dacon Pao Yah Chow

Vice President,

Head Of Singapore Marketing

As Head of Singapore Marketing for

ASPL, Mr Dacon Pao leads the team

to formulate and implement

effective marketing strategies for

the leasing and sale of Ascendas

products and services in Singapore.

Prior to managing the Singapore

portfolio, Dacon was marketing the

Ascendas’ portfolio of Asia projects,

particularly in China, Philippines

and Thailand.

Dacon joined Ascendas Pte Ltd in

1997 where he garnered extensive

experience in the marketing of

business space to both multi-

national companies as well as small

and medium enterprises.

Dacon holds a Masters of Business

Administration from the University

of Warwick, UK and a Bachelor of

Engineering (Civil) from the

Nanyang Technological University.

Ms Tan Siew Cheng

Vice President,

Asset Management

(Business & Science Parks)

With over 16 years of experience in

the real estate industry. Ms Tan Siew

Cheng currently heads the Asset

Management Team for Business

& Science Park portfolio in ASPL.

She is in charge of the marketing,

leasing as well as asset

management of A-REIT’s Business

& Science park portfolio. Prior to

this appointment, Siew Cheng was

also involved in the marketing of

industrial space for Ascendas and

office space for Knight Frank

Cheong Hock Chye and Baillieu.

Siew Cheng holds a Bachelor of

Science (Estate Management)

(Hons) degree from National

University of Singapore and

a Masters in Business Administration

from the University of Bradford.

Ms Karen Lee

Assistant Vice President,

Asset Management

(Hi-tech & Light Industrial)

(Not in picture)

Ms Karen Lee heads the Asset

Management Team for Hi-Tech

& Light Industrial portfolio in ASPL.

Karen has over 10 years of

experience in the real estate

industry covering various areas of

industrial lease and property

management and marketing in

Singapore and Vietnam.

Prior to joining ASPL, Karen held

several positions in industrial real

estate companies

Karen holds a Bachelor of Science

(Economics) (Hons) degree and a

Masters of Science (Real Estate)

from the National University

of Singapore.

Ms Toh Lay Gan

Assistant Vice President,

Asset Management

(Logistics & Distribution Centres)

Ms Toh Lay Gan possesses over

13 years of experience in the real

estate industry and currently heads

the Asset Management Team for

Logistics & Distribution portfolio in

ASPL. She is in charge of the

marketing, leasing as well as asset

management of

A-REIT’s logistics portfolio. Prior to

joining ASPL, she was with DTZ

Leung and Far East Organization

where she specialized in valuation

and marketing of industrial

properties respectively.

Lay Gan holds a Bachelor of Science

(Estate Management) (Hons) degree

from National University

of Singapore.

4445

JIN

progressa movement toward a goalor to a further or higher stage

TUI

regressTaking a step backward to aprevious and especially worse ormore primitive state or condition

BUILDING RESPONSIBLY, GROWING STEADILY.

Enhancing A-REIT’s portfolio through a balance of development projects and acquisition

of income producing properties, each investment decision was deliberated and examined

to ensure value-add to the Trust and its sustainability. While growing our business and

enhancing the enjoyment for the present generation, we also seek to leave a clean

and green earth for future generations to inherit.

Our Portfolio

The Alpha The Aries The Capricorn The Gemini

13 InternationalBusiness Park

iQuest @ IBP Hansapoint@ CBP

Acer Building Science Hub& Rutherford

31 InternationalBusiness Park

3 Changi BusinessPark Crescent

Honeywell Building Ultro Building Telepark PSB Science ParkBuilding

Techquest

Suburban office,Corporate HQ buildingsand R&D space.

BUSINESS& SCIENCE PARKS


Wisma Gulab

1 Jalan Kilang 30 Tampines Industrial Ave 3 50 Kallang Avenue 138 Depot Road 2 Changi South Lane CGG Veritas Hub

Techlink Siemens Center Infineon Building Techpoint

KA Centre KA Place Kim ChuanTelecommunicationsComplex

Pacific Tech Centre Techview

HI-TECHINDUSTRIAL

High office content combined with high specifications industrial mixed-use space.

4849

TechPlace I TechPlace II Osim HQ Building Ghim Li Building

SB Building 247 Alexandra Road Steel Industries Building Volex Building 53 SerangoonNorth Ave 4

27 Ubi Road 4 52 SerangoonNorth Ave 4

Hyflux Building Weltech Building BBR Building

84 Genting Lane Hoya Building NNB IndustrialBuilding

37A TampinesStreet 95

Hamilton SunstrandBuilding

Aztech Building Ubi Biz-Hub 26 Senoko Way Super IndustrialBuilding

1 Kallang Place

Progen Building

Da Vinci Building

Tampines Biz-Hub

Thales Building(Phase I & II)

18 Woodlands Loop

LIGHT INDUSTRIAL/FLATTED FACTORIES

9 Woodlands Terrace 11 Woodlands Terrace 1 Senoko Avenue 8 Loyang Way 1

Low office content combined with manufacturing space.


Nan Wah Building

Freight Links(Toh Guan) Building

Logistics 21

IDS Logistics Corporate HQ LogisTech TT International Tradepark Changi Logistics Centre

C&P Logistics Hub Xilin DistricentreBuilding A&B

MacDermid Building Xilin Districentre BuildingBuilding D

Freight Links(Changi) Building

Xilin Districentre BuildingBuilding C

Senkee Logistics Hub 1 Changi South Lane LogisHub @ Clementi JEL Centre

Sembawang KimtransLogistics Centre

Goldin Logistics Hub Sim Siang Choon Building 15 Changi North Way Pioneer Hub

Warehousing and distribution centres.

Courts Megastore Giant Hypermart

LOGISTICS &DISTRIBUTION CENTRES

WAREHOUSERETAIL FACILITIES

Single-user retail and warehouse space.

5051

73 5166

84

8271

78

1310

118

6876

8380

1

2

34

14

927 25

30

39

64 58

5952

6361 62

37

TUAS

SECOND LINK

WOODLANDS

CAUSEWAY

PAN ISLAN

DEXP

RESSW

AY(P

IE)

KRANJI EXPRESSWAY (K

JE)

AYERRAJAH

EXPRESSWAY (AYE)

BU

KIT

TIM

AH

EXP

RE

SS

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(BKE)

SELETAR EXPRESSW

AY

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E)

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PANISLAN

D EXPRESSW

1587

33 TechPlace I

34 TechPlace II

35 OSIM HQ Building

36 Ghim Li Building

37 Progen Building

38 SB Building

39 247 Alexandra Road

40 Steel Industries Building

41 Volex Building

42 53 Serangoon North Ave 4

43 Da Vinci Building

44 27 Ubi Road 4

45 52 Serangoon North Ave 4

46 Hyflux Building

47 Weltech Building

48 BBR Building

49 Tampines Biz-Hub

50 84 Genting Lane

51 Hoya Building

52 NNB Industrial Building

53 37A Tampines Street 95

54 Hamilton Sunstrand Building

55 Thales Building

56 Aztech Building

57 Ubi Biz-Hub

58 26 Senoko Way

59 Super Industrial Building

60 1 Kallang Place

61 18 Woodlands Loop

62 9 Woodlands Terrace

63 11 Woodlands Terrace

64 1 Senoko Avenue

65 8 Loyang Way 1

LIGHT INDUSTRIAL/FLATTED FACTORIES

1 The Alpha

2 The Aries

3 The Capricorn

4 The Gemini

5 Honeywell Building

6 Ultro Building

7 Telepark

8 Techquest

9 PSB Science Park Building

10 13 International Business Park

11 iQuest @ IBP

12 Hansapoint @ CBP

13 Acer Building

14 Science Hub & Rutherford

15 31 International Business Park

16 3 Changi Business Park Cresent

BUSINESS& SCIENCE PARKS

17 Techlink

18 Siemens Center

19 Infineon Building

20 Techpoint

21 Wisma Gulab

22 KA Centre

23 KA Place

24 Kim Chuan

Telecommunications Complex

25 Pacific Tech Centre

26 Techview

27 1 Jalan Kilang

28 30 Tampines Industrial Ave 3

29 50 Kallang Avenue

30 138 Depot Road

31 2 Changi South Lane

32 CGG Veritas Hub

HI-TECHINDUSTRIAL


33

20

34

32

42 45

46 60

29

19

1821

50

23

2243

40

57

26

17 24

4447

5635

54

7772 7574 36

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EAST COAST PARKWAY (ECP)

TA

MPINES EXPRESSWAY (TPE)

WAY (PIE)

PAN ISLAND EXPRESSWAY (PIE)

North South MRT Line

East West MRT Line

North East MRT Line

Proposed Circle MRT Line

N

65

86

16

66 IDS Logistics Corporate HQ

67 LogisTech

68 TT International Tradepark

69 Changi Logistics Centre

70 Nan Wah Building

71 C&P Logistics Hub

72 Xilin Districentre Building A&B

73 MacDermid Building

74 Xilin Districentre Building

Building D

75 Freight Links (Changi) Building

76 Freight Links (Toh Guan) Building

77 Xilin Districentre Building

Building C

78 Senkee Logistics Hub

79 1 Changi South Lane

80 LogisHub @ Clementi

81 JEL Centre

82 Logistics 21

83 Sembawang Kimtrans

Logistics Centre

84 Goldin Logistics Hub

85 Sim Siang Choon Building

86 15 Changi North Way

87 Pioneer Hub

LOGISTICS &DISTRIBUTION CENTRES

88 Courts Megastore

89 Giant Hypermart

WAREHOUSERETAIL FACILITIES

5253

Business & Science Park Properties

Wee Soon Mey

Lease Management

Pamela Tan

Lease ManagementJeannie Wong

Marketing

Teu Lee Chen

Asset Management

Esther Aw

Lease Management

Roy Koh

Property Management

Tan Siew Cheng

Asset Management Foo Pei Teng

Portfolio Management

Steven Leow

Property Management

Ng Kok Hua

Analyst

The Business & Science Parks Team


GROSS RENTAL INCOME BY TENANT’S INDUSTRY

1%Fashion

14%Others*

9%Mechanical andEngineering

9%Financal

16%Telecoms

4%Chemical

12%Electronics

2%Food/Flavours

/Fragrances

11%Life Science

GROSS RENTAL INCOME BY TENANT’S COUNTRY OF ORIGIN

* Europe includes Switzerland, Austria, Germany, UK, Sweden, France & Belgium

* Others include Retail,testing and assembly as well as recruitment firm

5455

Singapore 49%

Australia 1%

Europe* 13%

Japan 7%

USA 28%

Others 2%

Business & Science Park PropertiesPortfolio At A Glance

Book Value/

Purchase Price Valuation as at Gross Floor Net Lettable

Property Acquisition Date (S$m) 31 Mar 09 (S$m) Area (sqm) Area (sqm)

01. The Alpha 19 Nov 02 52.3 96.8 28,533 21,563

02. The Aries 19 Nov 02 39.4 51.1 14,695 13,441

03. The Capricorn 19 Nov 02 71.8 104.9 28,602 21,598

04. The Gemini 19 Nov 02 72.9 93.5 32,629 27,251

05. Honeywell Building 19 Nov 02 32.8 59.7 18,123 14,681

06. Ultro Building 30 Oct 03 18.0 38.3 11,450 10,127

07. Telepark 02 Mar 05 186.0 235.0 40,555 24,635

08. Techquest 05 Oct 05 7.5 20.7 7,920 6,576

09. PSB Science Park Building 18 Nov 05 35.0 64.3 32,013 21,689

10. 13 International Business Park 10 Oct 06 20.0 30.1 10,116 8,202

11. iQuest @ IBP 12 Jan 07 18.6 31.2 12,143 9,064

12. HansaPoint @ CBP 22 Jan 08 26.1 80.9 19,448 17,310

13. Acer Building 19 Mar 08 75.0 76.3 29,185 21,193

14. Science Hub & Rutherford 26 Mar 08 51.5 58.5 26,283 21,718

15. 31 International Business Park 26 Jun 08 246.8 228.6 61,720 50,286

Vendor: Creative Technology Pte Ltd

16. 3 Changi Business Park Crescent 16 Feb 09 59.0 72.9 21,023 18,604

TOTAL (BUSINESS & SCIENCE PARK PROPERTIES) 1,012.7 1,342.6 394,438 307,938

Note: The valuations for these properties were based on Direct Comparison Method, Capitalization Approach and Discounted Cash Flow Analysis


Gross Revenue Occupancy Rate

for the Year Ended as at

Address 31 Mar 09 (S$m) 31 Mar 09 (%) Major Tenants

10 Science Park Road 9.2 96.2 • F J Benjamin (S) Pte Ltd

• Maccine Pte. Ltd.

• National Starch Pte. Ltd.

51 Science Park Road 3.8 96.5 • Verizon Communications (S) Pte. Ltd.

• Teradyne (Asia) Pte. Ltd.

• Denso International (Asia) Pte. Ltd.

1 Science Park Road 10.7 96.8 • Oerlikon Assembly Equipment Pte. Ltd.

• Pfizer Private Limited

• S*Bio Pte Ltd

41 Science Park Road 8.5 94.8 • A-Bio Pharma Pte. Ltd.

• International Flavors & Frangrances

(Asia Pacific) Pte Ltd

• Aibel Pte. Ltd.

17 Changi Business Park Central 1 6.9 100.0 • Honeywell Pte Ltd

• Pall Filtration Pte Ltd

• Honeywell (S) Pte Ltd

1 Changi Business Park Ave 1 2.1 100.0 • Ultro Technologies Limited

5 Tampines Central 6 17.1 100.0 • Singapore Telecommunications Ltd

• DBS Bank Ltd

• Marie France Bodyline (S) Pte Ltd

7 International Business Park 1.6 59.5 • YKK AP Singapore Pte Ltd

• Cambridge Solutions Pte Ltd

1 Science Park Drive 3.4 100.0 • TUV SUD PSB Pte Ltd

13 International Business Park 2.3 100.0 • LabOne Singapore Pte Ltd

27 International Business Park 3.7 78.3 • Emerson Network Power (Singapore) Pte. Ltd.

• I-Flex Solutions Pte Ltd

• Bio-Rad Laboratories Pte Ltd

10 Changi Business Park Central 2 8.7 100.0 • Credit Suisse

• Citco Fund Services (S) Pte Ltd

• Rohde & Schwarz Systems &

Communications Asia Pte. Ltd.

29 International Business Park 7.8 87.3 • Jacobs Engineering Singapore Pte Ltd

• Acer Computer (Singapore) Pte Ltd

• Logistron Services Pte Ltd

87/89 Science Park Drive 5.7 99.1 • Avaya Singapore Pte Ltd

• Pacific Internet (S) Ltd

• Quintiles East Asia Pte Ltd

31 International Business Park 11.2 100.0 • Creative Technology Centre Pte Ltd

3 Changi Business Park Crescent 0.4 100.0 • Citibank N.A.

103.1 96.4

5657

Hi-Tech Industrial PropertiesThe Hi-Tech Industrial Team

Jean Lau

Lease Management

Wendy Tan

Lease Management

Steven Leow

Property Management

See Thoo Mei Ching

Lease Management

Tan Peng Guan

Property Management

Kevin Lee


Leong Sai Keong

Portfolio Operations

Doris Lim

Asset Management

Vivian Goi

Marketing


15%Telecommunication& Datacentre

7%Information Technology& Related Activities

33%Electronic Products

& Components

3%Electronic Machinery

& Apparatus

18%Machinery

& Equipment

17%Others*

5%Textiles &

Waering Apparels

2%Printing & Reproductionof Recorded Media

Singapore 37%

USA 33%

Germany 18%

France 5%

Japan 2%

Others* 5%

GROSS RENTAL INCOME BY TENANT’S INDUSTRYGROSS RENTAL INCOME BY TENANT’S COUNTRY OF ORIGIN

5859

* Others include Switzerland, Canada, UK, Netherlands, Scotland, Malaysia, Korea, Taiwan,India, Hong Kong, Italy and Australia

* Others include Fabricated Metal Products, Rubber and Plastic Products, Medical,Precision & Optical Instruments, Clocks, Supporting & Auxillary Transport Activities,Transport Equipment and Construction

Hi-Tech Industrial PropertiesPortfolio At A Glance

Book Value/



17. Techlink 19 Nov 02 69.8 97.8 48,007 34,472

18. Siemens Center 12 Mar 04 65.8 88.1 36,529 27,781

19. Infineon Building 01 Dec 04 50.9 67.5 27,278 27,278

20. Techpoint 01 Dec 04 75.0 114.2 56,107 42,276

21. Wisma Gulab 01 Dec 04 55.7 60.1 15,557 11,821

22. KA Centre 02 Mar 05 19.2 27.7 19,638 13,555

23. KA Place 02 Mar 05 11.1 12.8 10,163 6,652

24. Kim Chuan 02 Mar 05 100.0 111.9 35,456 25,129

Telecommunications Complex

25. Pacific Tech Centre 01 Jul 05 62.0 76.4 25,718 19,637

26. Techview 05 Oct 05 76.0 99.5 50,985 38,995

27. 1 Jalan Kilang 27 Oct 05 18.7 21.5 7,158 6,025

28. 30 Tampines Industrial Ave 3 15 Nov 05 22.0 23.4 9,593 9,593

29. 50 Kallang Avenue 27 Feb 06 28.6 33.2 18,584 14,267

30. 138 Depot Road 15 Mar 06 42.3 62.0 29,626 26,485

31. 2 Changi South Lane 01 Feb 07 30.0 32.9 26,300 20,939

32. CGG Veritas Hub 25 Mar 08 18.3 17.7 9,797 8,671

TOTAL (HI-TECH INDUSTRIAL) 745.4 946.7 426,496 333,576






31 Kaki Bukit Road 3 13.6 96.8 • Federal Express Pacific Inc

• StarHub Ltd

• Areva T&D Pte Ltd

60 MacPherson Road 9.6 97.1 • Siemens Pte Ltd

• Novacitynets Pte Ltd

• Risis Pte Ltd

8 Kallang Sector 6.0 100.0 • Infineon Technologies (Asia Pacific) Pte Ltd

10 Ang Mo Kio Street 65 15.5 96.1 • American Power Conversion Singapore Pte Ltd

• Schneider Electric South East Asia (HQ) Pte Ltd

• Mediacorp Publishing Pte Ltd

190 MacPherson Road 3.8 100.0 • RSH Holdings Pte Ltd

150 Kampong Ampat 3.7 82.8 • Cavu Corp Pte Ltd

• Netstar Network Integration Singapore Pte Ltd

• Comstor Pte Ltd

159 Kampong Ampat 1.7 98.4 • FCI (Asia) Pte Ltd

• Foster Electric (S) Pte Ltd

• America II Asia Pte Ltd

38 Kim Chuan Road 9.2 100.0 • Singapore Telecommunications Ltd

1 Jalan Kilang Timor 6.7 98.2 • Singapore Exhibition Services (Pte) Limited

• SA SA Cosmetics Co. (S) Pte Ltd

• Amway (S) Pte Ltd

1 Kaki Bukit View 17.2 85.6 • IBM International Holdings B.V.

• Amkor Technology (S) Pte Ltd

• Bio-Rad Laboratories (S) Pte Ltd

1 Jalan Kilang 2.0 88.8 • Transtel Engineering Pte Ltd

• Quintiles East Asia Pte Ltd

• Aptuit (S) Pte Ltd

30 Tampines Industrial Ave 3 1.8 100.0 • MBE Technology Pte Ltd

50 Kallang Avenue 4.6 68.7 • GE Pacific Private Limited

• New Creation Church

• Avnet Azure Pte Ltd

138 Depot Road 6.6 100.0 • Hewlett Packard Singapore (Private) Limited

2 Changi South Lane 2.0 100.0 • Flextronics Plastics (S) Pte Ltd

9 Serangoon North Avenue 5 2.2 100.0 • Veritas Geophysical (Asia Pacific) Pte Ltd

106.2 95.3

6061

Light Industrial / Flatted Factories PropertiesThe Light Industrial Team

Agnes Ong

Lease Management

Steven Leow

Property Management

Adam Wu

Property Management

Lee Fei Lan

Lease Management

Dennis Pee

Marketing

Jean Lau

Lease Management

Carrie Chua

Asset Management

Leong Sai Keong

Portfolio OperationsWendy Tan

Lease Management

Kevin Lee



* Others include Food Products & Beverages, Chemicals & Chemical Products and Furniture & Manufacturing NEC, Paper products, Telecommunication, Cleaning services and non-metallic materials

* Europe include Germany, Belgium, Italy, France, UK & Switzerland, Sweden,Denmark, Austria** Asia includes China, Hong Kong, Taiwan,Indonesia & Malaysia


19%Others*

6%Transport Equipment

5%Repair and Servicingof Vehicles

5%Storage & Warehousing

5%Construction

14%Electronic Products& Components

5%HealthcareProducts

4%Electrical Machinery

& Apparatus

18%Machinery & Equipment

5%Fabricated Metal Products

9%Rubber & Plastic Products

2%Printing & Reproduction of

Recorded Media

3%Textiles &Wearing Apparels

6263

Australia 2%

USA 5%

Japan 3%

0.5%New Zealand

Singapore 84%

Europe* 5%

Asia** 0.5%

Light Industrial/Flatted Factories PropertiesPortfolio At A Glance

Book Value/



FLATTED FACTORIES

33. TechPlace I 19 Nov 02 105.3 117.0 81,981 59,632

34. TechPlace II 19 Nov 02 128.9 142.0 100,391 70,849

TOTAL (FLATTED FACTORIES) 234.2 259.0 182,372 130,481

35. Osim HQ Building 20 Jun 03 35.0 40.0 17,683 15,068

36. Ghim Li Building 13 Oct 03 13.5 15.6 8,046 7,230

37. Progen Building 29 Jul 04 24.8 29.3 19,887 17,267

38. SB Building 26 Nov 04 17.8 21.9 13,998 11,895

39. 247 Alexandra Road 01 Dec 04 44.8 55.0 13,699 12,803

40. Steel Industries Building 01 Dec 04 15.3 16.5 12,930 11,254

41. Volex Building 01 Dec 04 9.4 10.9 8,931 8,000

42. 53 Serangoon North Ave 4 27 Dec 04 14.0 17.3 10,589 8,329

43. Da Vinci Building 01 Apr 05 19.5 21.1 14,929 13,789

44. 27 Ubi Road 4 01 Apr 05 12.6 14.5 9,087 8,082

45. 52 Serangoon North Ave 4 04 Apr 05 14.0 17.5 14,767 11,799

46. Hyflux Building 04 Apr 05 19.0 22.4 20,465 16,980

47. Weltech Building 16 May 05 9.0 10.5 7,998 6,509

48. BBR Building 21 Jun 05 6.8 9.0 6,501 5,421

49. Tampines Biz-Hub 05 Oct 05 16.8 19.6 18,086 14,825

50. 84 Genting Lane 05 Oct 05 10.0 12.6 11,917 9,766





Block 4008-4012 11.5 96.8 • Univac Precision Engineering Pte Ltd;

Ang Mo Kio Ave 10 • Sunmicro FA Pte Ltd

• Hock Cheong Printing Pte Ltd

Block 5000-5012 13.1 97.1 • Heraeus Materials Singapore Pte. Ltd.

Ang Mo Kio Ave 5 • Venture Corporation Limited

• Kinergy Ltd

24.6 97.7

65 Ubi Ave 1 3.5 100.0 • OSIM International Ltd

41 Changi South Ave 2 1.6 100.0 • Ghim Li Global Pte Ltd

12 Woodlands Loop 3.3 100.0 • Progen Holdings Ltd

25 Changi South Street 1 2.2 100.0 • Soilbuild Group Holdings Ltd.

247 Alexandra Road 4.2 100.0 • Volkswagen Group Singapore Pte Ltd

• Wearnes Automotive Pte Ltd.

5 Tai Seng Drive 1.7 100.0 • Steel Industries Pte Ltd

35 Tampines Street 92 1.2 100.0 • Volex (Asia) Pte Ltd

53 Serangoon North Ave 4 1.9 100.0 • Autron Singapore (S) Pte Ltd

3 Tai Seng Drive 1.5 100.0 • Da Vinci Collection Pte Ltd

27 Ubi Road 4 1.8 97.5 • Geokinetics (S) Pte Ltd

• Celestica Services Singapore Pte. Ltd.

• OSV Air & Sea Pte Ltd

52 Serangoon North Ave 4 2.1 100.0 • AEM-Evertech Holdings Ltd

202 Kallang Bahru 1.6 100.0 • Hydrochem (S) Pte Ltd

25 Ubi Road 4 1.2 100.0 • Sunningdale Precision Industries Ltd

50 Changi South Street 1 0.9 100.0 • Singapore Piling & Civil Engineering Pte Ltd

11 Tampines Street 92 3.2 96.2 • Prop3 Corporation Pte. Ltd.

• Trivec Singapore Pte Ltd

• George Fischer Pte Ltd

84 Genting Lane 1.7 93.0 • Cityneon Holdings Limited

• Pigeon Singapore Pte. Ltd.

• Phoenix Contact (Sea) Pte Ltd

6465


Light Industrial/Flatted Factories PropertiesPortfolio At A Glance

Book Value/



51. Hoya Building 05 Oct 05 5.3 7.6 6,505 6,282

52. NNB Industrial Building 05 Oct 05 12.0 16.0 11,537 9,794

53. 37A Tampines Street 92 01 Dec 05 12.3 13.5 12,011 9,604

54. Hamilton Sunstrand Building 09 Dec 05 31.0 34.0 17,737 16,744

55. Thales Building (Phase I & II) 03 Jan 06 5.8 10.0 7,772 7,772

56. Aztech Building 21 Feb 06 23.0 24.4 15,934 13,807

57. Ubi Biz-Hub 27 Mar 06 13.2 16.5 12,978 10,932

58. 26 Senoko Way 08 Jan 07 15.5 15.4 12,616 10,723

59. Super Industrial Building 08 Jan 07 33.5 32.3 23,457 18,079

60. 1 Kallang Place 01 Feb 07 12.0 11.8 15,490 12,265

61. 18 Woodlands Loop 01 Feb 07 17.2 17.1 18,422 16,601

62. 9 Woodlands Terrace 01 Feb 07 1.9 1.9 2,774 2,341

63. 11 Woodlands Terrace 01 Feb 07 1.9 1.9 2,810 2,219

64. 1 Senoko Avenue 15 May 07 11.2 10.8 10,524 8,843

65. 8 Loyang Way 1 05 May 08 25.0 24.7 13,725 12,069

Vendor: Seow Khim Polythelene

Co Pte Ltd

TOTAL (LIGHT INDUSTRIAL / FLATTED FACTORIES) 737.3 830.7 576,177 467,573





455A Jalan Ahmad Ibrahim 0.9 100.0 • Hoya Medical Singapore Pte. Ltd.

10 Woodlands Link 1.6 100.0 • Ng Nam Bee Marketing Pte Ltd

37A Tampines Street 92 1.0 100.0 • Steel Industries Pte Ltd

11 Changi North Rise 2.9 100.0 • Hamilton Sunstrand Pacific

Aerospace Pte Ltd

21 Changi North Rise 1.3 100.0 • Thales Aerospace Asia Pte. Ltd.

31 Ubi Road 1 2.1 100.0 • Aztech Group Ltd

150 Ubi Avenue 4 1.9 100.0 • Sunlight Electrical Pte Ltd

• Blum South East Asia Pte Ltd

• Fisher & Paykel (S) Pte Ltd

26 Senoko Way 1.1 100.0 • Super Coffeemix Manufacturing Ltd

2 Senoko South Road 2.3 100.0 • Super Coffeemix Manufacturing Ltd

1 Kallang Place 1.0 100.0 • Flextronics Plastics (S) Pte Ltd

18 Woodlands Loop 1.1 100.0 • Flextronics Plastics (S) Pte Ltd

9 Woodlands Terrace 0.1 100.0 • Flextronics Mould Manufacturing Pte. Ltd.

11 Woodlands Terrace 0.1 100.0 • Flextronics Mould Manufacturing Pte Ltd

1 Senoko Avenue 0.9 100.0 • Heng Sheng Corporation Pte Ltd

8 Loyang Way 1 1.5 100.0 • Seow Khim Polythelene Co Pte Ltd

78.0 98.9

6667

Logistics & Distribution CentresThe Logistics Team

Heng Lee San

Lease ManagementWalter Liong

Property Management

Crystal Koh

Portfolio Operations

Pauline Low

Asset Management

Lee Yong Kian

Analyst

Shirley Teo

Marketing

Roy Teo


Toh Lay Gan

Asset Management


29%Distributors,Trading Company

10%Others

61%3rd Party Logistics,

Freight Forwarding, Shipping

76%Singapore

2%Europe*

9%Asia**

9%USA

3%Japan

Bermuda 1%

* Europe include Germany, Belgium, Italy, France, UK & Switzerland, Sweden,Denmark, Austria** Asia includes China, Hong Kong, Taiwan,Indonesia & Malaysia


6869


Logistics & Distribution CentresPortfolio At A Glance

Book Value/



66. IDS Logistics Corporate HQ 19 Feb 04 50.0 49.7 23,751 21,883

67. LogisTech 04 Mar 04 32.0 42.5 31,003 26,724

68. T.T. International Tradepark 05 Mar 04 92.0 104.1 52,156 42,765

69. Changi Logistics Centre 09 Mar 04 45.6 67.9 51,742 38,810

70. Nan Wah Building 31 May 04 23.3 26.3 18,794 15,580

71. C&P Logistics Hub 21 Jul 04 225.0 234.1 138,409 128,021

72. Xilin Districentre Building A&B 02 Dec 04 31.1 34.2 24,113 20,784

73. MacDermid Building 02 Dec 04 5.5 6.5 5,085 5,085

74. Xilin Districentre Building D 09 Dec 04 33.5 36.8 17,651 14,358

75. Freight Links (Changi) Building 28 Dec 04 32.0 37.5 23,208 20,724

76. Freight Links (Toh Guan) Building 28 Dec 04 36.4 40.8 29,741 23,723

77. Xilin Districentre Building C 05 May 05 30.6 36.3 18,708 13,660

78. Senkee Logistics Hub 23 Sep 05 & 105.2 107.0 74,591 71,748

(Phase I & II) 01 Feb 08

79. 1 Changi South Lane 05 Oct 05 34.8 39.5 25,768 23,513

80. LogisHub @ Clementi 05 Oct 05 18.1 25.1 26,505 22,481

81. JEL Centre 18 Nov 05 11.0 14.8 10,107 9,494

82. Logistics 21 14 Jun 06 58.4 61.1 48,140 47,616

83. Sembawang Kimtrans 14 Jun 06 19.6 21.9 16,353 15,410

Logistics Centre

84. Goldin Logistics Hub 05 Dec 07 22.5 21.2 20,094 19,171

85. Sim Siang Choon Building 19 Mar 08 31.9 31.1 13,171 11,309

86. 15 Changi North Way 29 Jul 08 36.2 40.9 31,953 28,691

87. Pioneer Hub 12 Aug 08 79.3 90.0 91,048 85,584

TOTAL (LOGISTICS & DISTRIBUTION CENTRES) 1,054.0 1,168.9 792,091 707,134





279 Jalan Ahmad Ibrahim 4.4 100.0 • LF (1937) Management Singapore Pte. Ltd.

3 Changi North Street 2 6.1 100.0 • Vishay Intertechnology Asia Pte Ltd

• Speedmark Logistics Pte Ltd

• JSI Shipping (S) Pte Ltd

10 Toh Guan Road 7.2 100.0 • T.T. International Tradepark Pte Ltd

19 Loyang Way 7.6 78.7 • Toll (S) Pte Ltd

• Daikin Asia Servicing Pte Ltd

• Future Electronics Inc

4 Changi South Lane 2.6 94.7 • Nan Wah Marketing Pte Ltd

• Certis Cisco Security Pte Ltd

40 Penjuru Lane 18.5 100.0 • C&P Holdings Pte Ltd

3 Changi South Street 2 4.6 100.0 • National Library Board

• “K” Line Air Service (S) Pte Ltd

• Faro (S) Pte Ltd

20 Tuas Ave 6 0.6 100.0 • MacDermid (S) Pte Ltd

6 Changi South Street 2 3.7 100.0 • Cargo Distribution Pte Ltd

• Federal Express (S) Pte Ltd

9 Changi South Street 3 2.6 100.0 • Freight Links Express Districentre Pte Ltd

5 Toh Guan Road East 2.8 100.0 • Freight Links Express Distripark Pte Ltd

7 Changi South Street 2 2.5 100.0 • Avenue Distribution Pte Ltd

19 & 21 Pandan Avenue 7.9 100.0 • Senkee Logistics Pte Ltd

1 Changi South Lane 4.1 100.0 • SKF South East Asia & Pacific Pte Ltd

• Avnet Asia Pte Ltd

2 Clementi Loop 4.1 100.0 • Logwin Air+Ocean Singapore Pte Ltd

• John Wiley & Sons (Asia) Pte Ltd

• Hub Distributors Services Pte Ltd

11 Changi North Way 0.8 100.0 • JEL Corporation (Holdings) Ltd

21 Jalan Buroh 4.0 100.0 • Logistics 21 Pte Ltd

30 Old Toh Tuck Road 1.4 100.0 • Toll Logistics (Asia) Limited

6 Pioneer Walk 1.7 100.0 • Goldin Enterprise Pte Ltd

21 Changi South Avenue 2 2.0 100.0 • Sim Siang Choon Hardware (S) Pte Ltd

15 Changi North Way 2.5 100.0 • Zuellig Pharma Pte Ltd

• Cold Storage Singapore (1983) Pte Ltd

15 Pioneer Walk 4.3 100.0 • Ameroid Logistics (S) Pte Ltd

• Equinix Singapore Pte Ltd

• Crown Worldwide Pte Ltd

96.0 98.7

7071


Warehouse Retail Facilities

Book Value/



88. Courts Megastore 30 Nov 06 46.0 60.9 28,410 28,410

89. Giant Hypermart 06 Feb 07 64.8 76.0 42,194 42,178

TOTAL (WAREHOUSE RETAIL FACILITIES) 110.8 136.9 70,604 70,588





50 Tampines North Drive 2 6.3 100.0 Courts (Singapore) Pte Ltd

21 Tampines North Drive 2 6.9 100.0 Cold Storage Singapore (1983) Pte Ltd

13.2 100.0

7273

Enhancing Corporate Social Responsibilities

Striking a balance between

hardware and “heart-ware” within

the business, the Manager

continues in its pursuit to build

strong partnerships with the

communities in which we serve.

Committed to manage all aspects

of our business in an ethical,

responsible and sustainable way,

we continue to show our

appreciation and do our part

through the support for the arts; to

continuously improve and sustain

the environment, and promote

initiatives that uphold health and

safety standards.

Together with the Ascendas Group,

the Manager is actively involved in

various community and customer care

programmes and activities to build

rapport with the community-at-large

as well as with our customers.

During the month, a roving

exhibition showcasing information

on global warming, climate issues,

green practices and a full-scale

eco-office cubicle made its rounds

at Ascendas’ properties in

Singapore. A dedicated website at

www.ascendas.com/greenmonth

was also published to facilitate

knowledge sharing on green

initiatives.

Healthy Lifestyle Week @

Singapore Science Park

All work and no play makes Jack a

dull boy! Promoting a healthy

lifestyle amongst people working

within the Singapore Science Park,

a series of competitive games and

lectures on healthy diet were

organized in the name of health,

fitness and fun in September 2008.

This is also in line with the objective

of providing a Live, Work and Play

lifestyle for tenants in the Singapore

Science Park. A series of bazaars was

also organised at the various buildings

located in the Singapore Science Park

to generate interest and vibrancy.

Ascendas Green Month

We recognise the impact our

business has on the environment.

In October 2008, the Ascendas

Green Movement, a month-long

campaign to promote green

practices and participation amongst

its tenants and employees in

Singapore was launched.

Tenants were treated to exciting

lunchtime entertainment, games

and bazaar featuring performances

and exhibits centred on the theme

of embracing green practices. Prior

to the launch, tenants were also

invited to participate in the

“Donate-a-Tree” programme, in

which companies and individuals

enthusiastically donated 76 tree

saplings to offset carbon dioxide

emissions. Ascendas matched the

donations one-for-one for a total of

152 trees that were planted at the

Kent Ridge Park.

In conjunction with the Healthy

Lifestyle week, the Ascendas

Charity Week was organized to

extend care and concern to those

in need. More than 65 Ascendas

staff and their children distributed

mooncakes and lanterns to senior

citizens registered with the Lions

Befrienders Association of

Singapore. Proceeds from the

bazaar were donated to the

President’s Challenge 2008.

Free health screening was

also provided at the Science Hub

in Singapore Science Park I over

a 4-day period. Over 150

participants received free health

examinations provided by the

Health Promotion Board.


Platinum Green Mark Certification

In April 2009, A-REIT’s sixth

development project, a business

park development for Citibank N.A.,

at 3 Changi Business Park

Crescent was awarded the

Platinum Green Mark Certification

by Singapore’s Building &

Construction Authority. This

development obtained its

Temporary Occupation Permit on

16 February 2009.

The Platinum Green Mark

Certification is the highest accolade

in Singapore for environmental

sustainability. The development

incorporates environmental-friendly

features such as Rain Water and

Grey Water collection systems as

well as motion detectors that activate

lighting in the toilets and stairwells

only when needed. These

environmental and energy-saving

features are expected to reduce

building energy consumption by up

to 33% compared to a conventional

building with similar functionalities.

It also provide a healthier indoor

environment as well as minimise any

adverse impacts of the development

on the environment.

This award further demonstrates

A-REIT’s design and development

capabilities and affirms its strong

commitment to work closely with

the end-user to achieve common

goals of both parties.

Bollywood @ Science Park

Resonating rhythmic drum beats

and Indian fusion music by local

Indian bands, Bollywood@Science

Park attracted about 300 tenants

and their families on 14 August

2008. This event, aimed at

promoting interaction and

camaraderie amongst tenants of

Science Park, saw bhangra

dancers, a snake charmer, Indian

classical dancers as well as booths

offering henna drawing. Attendees

got a treat with a wide variety of

authentic Indian food served in the

buffet line.

Oktober Fest @ Swiss Club

Some tenants from A-REIT’s

Logistics sector joined in the annual

Oktober Festival at the Singapore

Swiss Club in celebrating the Festival

of Beer. It was an evening of fun and

dance as tenants mingled freely as

they cheered to another year of joy

and laughter ahead.

Lion Dance Performance

A symbol of good luck and fortune,

a series of lion dance performances

were organized during the Lunar

New Year period for A-REIT’s

tenants in its Hi-Tech Industrial

and Light Industrial properties.

Staff from the Property Manager

was also at site to distribute

mandarin oranges to the tenants

to bring good cheer and prosperity

to all.

Ascendas CEO Night with CATS

Connecting fellow CEOs from an array

of industries, Ascendas held its annual

CEO Night at the Esplanade in April

2009. This event provided an

opportunity to get to know other fellow

CEOs and renew contacts in an

entertaining environment. Besides

good food and drinks, tenants and

business associates were invited to an

enjoyable and fun evening at the

spectacular musical sensation – CATS.

Enhancing Corporate Social Responsibilities

7475

Investor Relations

REINFORCING

COMMUNICATIONS

Since its listing in November 2002,

A-REIT is committed to delivering

timely disclosure and transparent

communications to Unitholders and

the investing community. Regular

communications are conducted via

telephone, publications on website,

annual report, investor meetings

and briefings as well as general

meetings in a timely and

professional manner.

We recognize that a transparent and

effective corporate governance

culture is critical to the performance

of the Manager and consequently,

the success of A-REIT. The Manager

adopts a comprehensive corporate

governance framework that meets

the prevailing best practice

principles. Our efforts in maintaining

an informative and transparent

channel of communication have

been recognized in the market

through numerous awards.

In October 2008, A-REIT was

awarded the “Most Transparent

Company Award” in the REIT

category in the SIAS’ investors’

choice awards for the second

consecutive year. The criteria for

this award were based on the

nominations received from analysts,

fund managers, financial journalists

and retail investors represented by

SIAS and endorsed and supported

by SGX, Standard & Poor’s,

PricewaterhouseCoopers, SID,

ICPAS, SSFA, the Business Times

& the Asian Corporate Governance

Association. The award is a

reflection that A-REIT more than

satisfies the requirements of the

Singapore Code of Corporate

Governance from the point of view

of investors.

In May 2009, A-REIT was voted

Singapore’s 7th best managed

companies and 2nd most

committed to a strong dividend

policy in the annual poll undertaken

by FinanceAsia. This is a vote of

confidence in the Manager’s

capability and expertise.

In addition, even though

Unitholders’ Meetings are not

mandatory by regulations, A-REIT

is the first and only REIT that has

been holding Unitholders’ Meeting

annually since 2007.

Regular briefings for representatives

from media and brokerage houses

are also held in conjunction with the

release of A-REIT’s semi-annual

and full year results.

Adopting a proactive approach, the

Manager will continue to actively

generate awareness and promote

interest in A-REIT through various

channels, including local and

overseas seminars and road-shows.


CBRE Market Study

Market Overview

Singapore entered a challenging

phase in its economy and slid into

a technical recession from Q3 2008.

Overall GDP growth in 2008 was

1.1% compared to the stellar

performance of 7.8% in 2007. MTI’s

advance GDP estimate indicated the

Singapore economy have shrunk by

some 11.5% in the first quarter of

2009, a far cry from the gain of 6.7%

in Q1 2008.

Similarly, the Industrial Production

Index which is highly correlated to

GDP; fell some 4.1% in 2008,

compared to the positive growth of

5.9% in 2007. Lower pharmaceuticals

output and weak global demand in

the fourth quarter have taken their

toll on the local manufacturing sector.

Given the uncertainty of the

economies worldwide and the weak

Q4 2008 economic results, MTI

projected a GDP contraction of 6.0%

to 9.0% for 2009. The manufacturing

sector performance is expected to

be lackluster in the near term on

Biomedical Precision Transport General

Electronics Chemicals Manufacturing Engineering Engineering Manufacturing Total

($bn) ($bn) ($bn) ($bn) ($bn) ($bn) ($bn)

2008 12.60 4.88 10.63 6.71 7.73 5.35 47.90

(26.3%) (10.2%) (22.2%) (14.0%) (16.1%) (11.2%) (100.0%)

2007 16.34 6.47 13.42 7.15 6.52 5.05 54.95

(29.7%) (11.8%) (24.4%) (13.0%) (11.9%) (9.2%) (100.0%)

account of the weak external

demand which has an adverse

impact on Singapore exports.

In view of the extraordinary

economic downturn, the Singapore

government announced a slew of

measures during Budget Day to

save jobs and help companies to

stay afloat. The initiatives that have

the most impact on the industrial

property market include a 40.0%

property tax rebate for industrial

and commercial properties for 2009.

JTC, HDB and SLA have committed

to providing their tenants a 15.0%

rental rebate. JTC also revealed that

its tenants can apply to sublet up

to 100.0% of their GFA until 31

December 2011. IRAS will also

bring forward its property tax

assessments for 2009 in view of the

changes in market conditions. This

will give landlords even greater

property tax saving.

Source: EDB, MTI, CBRE Research.

%

SINGAPORE ECONOMY GDP AND INDUSTRIAL PRODUCTION INDEX

20

15

10

5

0

-5

-10

-15

GDP

Industrial Production Index

Independent Market Research Report

All manufacturing clusters,

except transport engineering and

general manufacturing, have

reportedly shrunk in 2008 due to

unfavorable global economic climate.

In aggregate, the total value added

contributed by the manufacturing

sector stood at $47.9 billion in 2008,

12.8% lower than 2007.

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Q1

TOTAL VALUE ADDED BY INDUSTRY CLUSTER

Source: MTI, EDB, CBRE Research

7677


Business & Science Park Space

Stock and Future Supply

At the end of 2008, there was 1.037

million sqm of business & science

park space in Singapore with majority

(75.5%) of the stock coming from the

private sector and the remaining

24.5% from the public sector. In 2007,

there was 971,000 sqm of science &

business park space.

Some 674,200 sqm of business &

science park space is expected to

be completed in 2009 to 2013.

Majority of the upcoming supply of

space will be in Changi Business

Park (29.3%), followed by one-north

(25.5%), Alexandra Precinct (20.5%),

Singapore Science Park (15.9%) and

International Business Park (8.8%).

Demand Trends

Based on statistics provided by URA,

an average net take-up of business

& science parks was about 80,000

sqm from 2003 to 2008. Annual new

demand reached a peak of 148,000

sqm in 2007 before declining to

105,000 sqm in 2008.

The healthy demand for business

& science parks during the past two

years could be driven by the

government encouraging R&D

companies to set up facilities in

Singapore. Qualifying office tenants

moving to business parks could

have also boosted the demand for

business park space.

However, demand for business &

science park space is expected to

dip slightly in 2009 given the

weak economy.

Occupancy

URA statistics show that the

average occupancy rate for business

& science parks has been on a

steady upward climb since 2003.

The rate broke through the 80.0%

level in 2005 to reach 82.4%. It rose

by 3.4 percentage points to register

at 85.8% in 2006 before increasing

by another 3.6 percentage points to

89.4% in 2007. The occupancy rate

finally surpassed the 90.0% level in

2008 to reach 93.8%.

Rents

According to statistics provided by

URA, the median rent for business

& science parks reached $4.27 psf

at end-2008; the highest since 2004.

Rents fell to $3.93 psf in the first

quarter of 2009.

Source: CBRE Research.

SINGAPORE SCIENCE & BUSINESS PARKS MARKET MEDIAN RENT

4.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

4.273.93

$ psf per month

2004 2005 2006 2007 2008 2009Q1

SINGAPORE SCIENCE AND BUSINESS PARKS MARKET

CUMULATIVE SUPPLY, CUMULATIVE DEMAND AND OCCUPANCY RATE

Cumulative Supply

Source: URA CBRE Research.

million sm

1400

1200

1000

800

600

400

200

02003 2004 2005 2006 2007 2008

100

80

60

40

20

0

%

Cumulative Demand Occupancy Rate

Hi-Tech Space


Supply for hi-tech space increased

to 1.150 million sqm in 2008, up

from 1.109 million sqm in 2007. The

increase was due to the completion

of Boustead Hub located along Ubi

Avenue 1.

There are two major hi-tech

developments in the pipeline.

Golden Agri Plaza along Pasir

Panjang Road will add 28,300 sqm

to hi-tech stock when completed in

2009 and the 27,850-sqm One

Commonwealth, located along

Commonwealth Drive/Lane is

expected to be completed in 2010.

Demand Trends

Annual demand for hi-tech space

was a healthy 63,237 sqm in 2008,

an increase of 62.2% from the

annual demand achieved in 2007.

The increase in take-up could be

attributed to some qualifying office

tenants relocated to alternative

space. This was due to a steep

increase in prime office rents as

well as limited new supply of office

space in 2008.

Occupancy

The islandwide average occupancy

rate for hi-tech space has been on

an upward trend in the past five

years, surging from 70.4% in 2004

to 95.0% in 2008.

CBRE Market Study

The increase in average occupancy

rate in 2007 and 2008 could be

attributed to several factors. In the

past few years, the quality of new

hi-tech buildings has improved with

some buildings offering features

previously only found in office

buildings. On the other hand, supply

of office space was limited and office

rents remained significantly higher

than that of hi-tech space.

These factors encouraged some

qualifying companies to relocate

part of their backroom operations

to hi-tech buildings.

Given the slowdown in economic

growth and hence lower spillover

demand from qualifying office

tenants, the islandwide average

occupancy rate for hi-tech buildings

is expected to decline in 2009.

Rents

On the back of monthly robust

demand for hi-tech space, rents

surged by 37.5% y-o-y to arrive at

$2.75 psf in 2007. The average

monthly rent for hi-tech space rose

by 9.1% y-o-y to reach the peak of

$3.00 psf at the end of 2008 which

is $0.20 psf higher than the previous

peak of $2.80 psf in 2000.

However, due to the weakening

economy, rental level for hi-tech

space fell by $0.10 psf q-o-q to $2.90

psf in Q1 2009. Rents are expected

to soften further in the remaining

nine months of 2009.


SINGAPORE HI-TECH SPACE MARKET MEDIAN RENT

4.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

3.00

2.90

$ psf per month

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Q1

SINGAPORE HI-TECH SPACE MARKET


Cumulative Supply


million sm

1400

1200

1000

800

600

400

200

02003 2004 2005 2006 2007 2008

100

80

60

40

20

0

%


Note: Figures as at end of the period shown.


A Fine BalanceAscendas Real Estate Investment Trust . Annual Report 2008/09 78

79

Light Industrial Space


At end-2008, the cumulative supply

of light industrial space reached

28.699 million sqm, an increase of

641,000 sqm from the previous year.

Some 81.3% of the cumulative supply

came from the private sector with

the remaining from the public sector.

The jump in the supply of private

sector light industrial space is

largely the result of a divestment

by JTC. In July 2008, the government

statutory board sold a portfolio of

industrial properties to Mapletree

Industrial Trust for $1.71 billion.

Statistics provided by URA show

that the upcoming potential supply

of factory space in the years 2009

to 2013 and beyond amounts to

4.139 million sqm. Of this potential

supply, 71.9% is under construction

while the remaining 28.1% is still

at the planning stage. Of the known

major new supplies expected in

2009, about 81.0% has been slated

for multiple-users.

Demand Trends

An average of 655,000 sqm light

industrial space per annum was

taken up in the last 10 years.

In 2008, take-up was 1.056 million

sqm, the second highest in the

decade and was only 0.125 million

sqm less than the peak in 2000. The

robust annual demand in 2008 could

be attributed to the momentum

carried forward from the healthy

economic conditions in 2007 and in

the first half of 2008.

A less stellar performance is

expected in 2009 as the Singapore

economy is still suffering from the

impact of the financial woes that

originated from the US.

Occupancy

In 2008, the islandwide average

occupancy rate for light industrial

space increased by 1.6 percentage

points, reaching a peak of 93.4%.

Rent

In 2007, monthly rents increased by

$0.20 psf y-o-y to $1.45 psf for

ground floor units and $1.20 psf for

upper floor units. Rents increased

again in 2008 albeit at a slower pace.

At the end of 2008, light industrial

space was fetching monthly rents

of $1.55 psf and $1.30 psf for ground

and upper floor units respectively.

Weak global economic conditions

and depressed demand for

manufactured goods put a damper

on demand for light industrial

space. As such, rents fell by $0.10

psf q-o-q to $1.45 psf for ground

floor units and $1.20 psf for upper

floor units in the first quarter of

2009. Rents are expected to

continue on a downward trend for

the rest of 2009.


SINGAPORE LIGHT INDUSTRIAL SPACE MARKET MEDIAN RENT

2.00

1.50

1.00

0.50

0.00

$ psf per month

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Q1

SINGAPORE LIGHT INDUSTRIAL


Cumulative Supply


million sm

35

30

25

20

15

10

5

0

94

92

90

88

86

84

82

%


1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

1.551.45

1.301.20


W.e.f Q4 98, our figures have been statistically adjusted for newer buildings.

Ground Upper

CBRE Market Study

Distribution and

Logistics Space


Some 344,000 sqm of warehouse

space was added to the existing

stock in 2008, up from the 307,000

sqm of new supply in the previous

year. By contrast, only 178,000 sqm

and 52,000 sqm were added to the

stock in 2006 and 2005 respectively.

At end-2008, the cumulative supply

of space for distribution & logistics

parks stood at 6.604 million sqm,

of which only 0.6% came from the

public sector. According to data

provided by URA, a total of 834,000

sqm of warehouse space is

expected to come on stream in the

years 2009 to 2013 and beyond.

Of this future space, 77.1% is under

construction and the remaining

22.9% is under planning. Of the

known supply coming on stream in

2009, about 54.5% of the potential

space will be for multiple-users.

Demand Trends

The take-up for warehouse space

was exceptionally strong in 2007

and 2008. In 2007, annual take-up

was a record high of 443,000 sqm,

almost double the 257,000 sqm

recorded in the previous year.

Take-up dipped marginally to

402,000 sqm in 2008. At the end of

2008, cumulative demand for

distribution & logistic park space

was 6.127 million sqm.

The slowdown in economic growth

and the resulting lower demand for

consumer goods are likely to

moderate the demand for logistics

space in 2009. International bodies

like WTO and IMF have projected

negative growth for world trade.

Similarly the Singapore government

forecasted that Singapore’s export

will shrink in 2009 leading to lower

take-up rates and occupancy rates

for warehouses.

Occupancy

The robust take-up in 2007 and 2008

could be the reason for the

islandwide average occupancy rate

breaking through the 90.0% level in

each of the years. The occupancy

rate hit 92.8% at the end of 2008,

up from the 91.5% achieved in 2007.

In 2007, monthly rents for ground

floor grew by 16.0% y-o-y to $1.45

psf while rents for upper floor units

increased by 9.5% y-o-y to $1.15

psf. Rents reached its peak in 2008

with ground floor units leasing out

at $1.50 psf and upper floor units

achieving $1.20 psf.

Rents have come off its upward

climb in Q1 2009 on the back of

depressed global trade leading to

weak demand for warehouse space.

As at end-Mar 2009, ground floor

warehouse units were fetching rents

of $1.40 psf while upper floor units

rent is at $1.10 psf.

The weak economic and trade

conditions are expected to moderate

demand and thus rents for logistics

space. As such, rents are expected

to fall further in the remaining

months of 2009.

SINGAPORE DISTRIBUTION & LOGISTICS PARKS MARKET


Cumulative Supply


million sm

7

6

5

4

3

2

1

0

94

92

90

88

86

84

82

%


1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


SINGAPORE DISTRIBUTION & LOGISTICS PARKS MARKET MEDIAN RENT

1.80

1.70

1.60

1.50

1.40

1.30

1.20

1.10

1.00

$ psf per month

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Q1

1.55

1.40

1.20

1.10


Ground Upper


A Fine BalanceAscendas Real Estate Investment Trust . Annual Report 2008/09 80

81

Outlook

The economic crisis that started in

the US affected the rest of the world.

The global economy is said to be

now experiencing one of the

steepest economic downturn since

the World War II. Credit markets

are frozen and global trade and

manufacturing output has slowed

down greatly. Unemployment has

surged causing a plunge in

household consumption.

According to IMF, global recessions

associated with financial crises are

typically severe and protracted.

Recoveries from such recessions

are usually held back by weak

consumer demand and tight credit.

The international body emphasized

the importance of restoring the

health of the financial sector and

removing uncertainty about funding

before recovery is feasible.

In view of Singapore’s open

economy and heavy reliance on

trade, the city-state is not spared

the current financial turmoil. In Q1

2009, Singapore’ GDP shrank by an

estimated 11.5% and is expected to

contract by 6.0% to 9.0% for the

whole of 2009.

A survey conducted by EDB in

Dec 2008 and Jan 2009 showed that

more manufacturers expect

business conditions for the first half

of 2009 to be less favorable

compared to the earlier survey done

in the previous quarter. A net

weighted balance of 57% of

manufacturers expected business

conditions to be worse, a

deterioration from the previous

quarter when a net weighted

balance of 18% of manufacturers

expected business conditions to

become worse.

Occupancy rates and rents for

all industrial space are expected

to fall further in 2009 due to the

bearish economy and negative

business sentiment.

1 A “net weighted balance” refers to the difference between manufacturers who are upbeat and those who are not.

A FINE BALANCE - Ascendas REIT

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