Trust Strategy and Structure
Management Philosophy
The REIT Manager is committed to providing Unitholders with attractive total returns in the form of stable and sustainable Distribution per Unit and long-term growth in Net Asset Value per Unit. It will achieve this through proactive asset management and selective acquisition of properties.
Asset Management Strategy
The REIT Manager, working closely with the Property Management Team, will proactively manage its properties to achieve the following goals:
Build a strong corporate culture that integrates sustainability, and climate change considerations into decision-making processes. Such a culture will create sustainable business growth and long-term values for our stakeholders.
Sustainability FocusBuild a strong corporate culture that integrates sustainability, and climate change considerations into decision-making processes. Such a culture will create sustainable business growth and long-term values for our stakeholders.
Maximise Rental IncomeOptimise the rental income from each tenancy and, where possible, augment rental income through additional floor area, asset enhancements, and turnover rent.
High Occupancy LevelsKeep occupancy levels high by maintaining high-quality services and technical standards, capitalising on targeted tenants’ requirements, and actively managing tenancy expiries.
High Tenancy Renewal RatesMaintain high tenancy renewal rates through proactive tenant relationship management and anticipation of future tenant needs. These measures will minimise rental losses due to downtime and lead to lower expenses and agency fees incurred for new tenancies.
A Quality and Diversified Tenant BaseRetain a quality tenant base built upon high covenant, multinational office occupiers and well recognised retail tenants in order to maintain a premium image for the Trust’s properties and to minimise default rates.
Acquisition Strategy
The REIT Manager intends to actively pursue yield-enhancing opportunities through the addition of income-producing commercial properties. The following investment criteria will be used in the evaluation of acquisition opportunities globally:
Properties to be acquired should have either a high existing rental income or the potential for higher rental income.
Yield AccretionProperties to be acquired should have either a high existing rental income or the potential for higher rental income.
Potential for Asset GrowthMacro economic factors and the potential for future changes in asset value will be assessed.
Tenant CharacteristicsRent and occupancy trends will be assessed with an emphasis on good tenant retention and default rates.
Location and AccessibilityProperties that have convenient access to public transportation networks, major roads, and pedestrian thoroughfares will be favoured.
Value-adding OpportunitiesOpportunities to add value through renovation will be scrutinised. Other enhancements and proactive property management practices will also be assessed.
Building SpecificationsThe building specifications should be top-quality. Other aspects such as building condition, sustainability performance and climate resilience, and compliance with regulations will also be examined.
