Trust Strategy and Structure

Management Philosophy

The REIT Manager is committed to providing Unitholders with attractive total returns in the form of a 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.

Trust Strategy and Structure

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 based on sustainability, and incorporate sustainability and climate change considerations into all decision-making processes. Such a culture will create sustainable business growth and long-term values for stakeholders.
Build a strong corporate culture based on sustainability, and incorporate sustainability and climate change considerations into all decision-making processes. Such a culture will create sustainable business growth and long-term values for stakeholders.
Optimise the rental income from each tenancy and, where possible, augment rental income through additional floor area, asset enhancements, and turnover rent.
Keep occupancy levels high by maintaining high-quality services and technical standards, capitalising on targeted tenants’ requirements, and actively managing tenancy expiries.
Maintain 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.
Retain 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.
Properties to be acquired should have either a high existing rental income or the potential for higher rental income.
Macro economic factors and the potential for future changes in asset value will be assessed.
Rent and occupancy trends will be assessed with an emphasis on good tenant retention and default rates.
Properties that have convenient access to public transportation networks, major roads, and pedestrian thoroughfares will be favoured.
Opportunities to add value through renovation will be scrutinised. Other enhancements and proactive property management practices will also be assessed.
The 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.
Trust Strategy and Structure