Ascendas Reit is managed by Ascendas Funds Management (S) Limited ("AFM"), a wholly-owned subsidiary of Ascendas-Singbridge Group.
The Manager is fully committed towards Ascendas Reit’s mission of delivering predictable distributions and long-term capital stability to Unitholders.
This is achieved through a three-pronged strategy of :
1) Proactive portfolio management
The Manager’s primary strategy is to maximise the organic growth potential of the portfolio through active asset management. Key areas of focus of portfolio and asset management include:
- proactive marketing and leasing of spaces to achieve a healthy occupancy;
- delivery of quality property and customer services to tenants;
- improvement of operational efficiency and optimise operating costs; and
- implementation of asset enhancement initiatives.
The Manager works closely with its Property Manager to ensure delivery of above strategies and to enhance portfolio returns.
2) Disciplined value-adding investments
The Manager is committed to undertake disciplined and value-adding investments through acquisitions and development of high quality properties and will continue to focus on the following key areas of activities:
- acquisition of income-producing properties with established tenants;
- acquisition of good quality multi-tenant properties with strong income stream and/or asset enhancement potential;
- built-to-suit development projects to cater to prospective tenants' operational requirements and specifications;
- selective redevelopment and government land sales to capitalise on the Manager’s development capabilities; and
- sourcing of investment opportunities beyond Singapore to enhance portfolio diversification and resilience.
3) Prudent capital and risk management
The Manager regularly reviews Ascendas Reit's debt and capital management as well as financing policy so as to optimise Ascendas Reit's funding structure and costs. The Manager also monitors Ascendas Reit's exposure to various risk elements and externally-imposed requirements by closely adhering to clearly established management policies and procedures.
Ascendas Reit has a system of controls in place to create an acceptable balance between the benefits derived from managing risks and the cost of managing those risks. The Manager also monitors Ascendas Reit's risk management process closely to ensure that an appropriate balance between control and business objectives is achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and Ascendas Reit's strategic direction.
The key aspects of the capital and risk management strategies are as follows:
- maintain a strong balance sheet and optimise the capital structure;
- diversify the sources of funding; and
- manage interest rate risk, liquidity risk, credit risk and foreign currency risk.