Growing with India

GROWING WITH INDIA ANNUAL REPORT 2015/2016 WHY GO ONLINE? Our corporate website contains detailed information about the Trust and is frequently updated as additional details become available. You can sign up for email alerts of our latest news and keep track of the latest events on the Event Calendar page. Our corporate website: www.a-itrust.com Notes: • All information in this annual report is dated as at 31 March 2016 unless otherwise stated. • All measurements of floor area are defined herein as “Super Built-up Area” or “SBA”, which is the sum of the floor area enclosed within the walls, the area occupied by the walls, the common areas such as the lobbies, lift shafts, toilets, and staircases of that property, and in respect of which rent is payable. • The Indian Rupee and Singapore Dollar are defined herein as “INR/ ” and “SGD/S$” respectively. • Any discrepancy between the individual amounts and total shown in this annual report is due to rounding. WHO WE ARE Ascendas India Trust (“a-iTrust” or the “Trust”) is a property trust which owns six IT parks in India valued at S$1.1 billion as at 31 March 2016. With a 9.0 million sq ft portfolio spread across Bangalore, Chennai and Hyderabad, a-iTrust is well positioned to capitalise on the fast growing IT and business process management industries in India. Our strategy is simple – to generate attractive portfolio returns for Unitholders by investing in IT parks and office properties in key Indian cities. Our properties provide quality and reliable business space to our discerning tenants. This differentiation helps us attract and retain prominent tenants that commit to long leases, thereby fostering a stable income profile for the Trust. Our growth is founded on a prudent approach to capital management. We are geared towards maintaining a strong balance sheet that meets the liquidity needs of the business. OVERVIEW WHAT AFFECTS US WHAT WE DO OUR PERFORMANCE BUSINESS MODEL WHAT AFFECTS US EXTERNAL FACTORS Indian Economy IT-Business Process Office Market Management Industry WHAT WE DO KEY ELEMENTS Risk Management Investment Management Asset Management Capital Management Investor Relationship Sustainable Business Management Management OUR PERFORMANCE KEY MEASURES Operational Review Unit Price Review Earnings Review .2 ASCENDAS INDIA TRUST ANNUAL REPORT 2015/2016 OVERVIEW WHAT AFFECTS US WHAT WE DO OUR PERFORMANCE OVERVIEW OUR PERFORMANCE 02 Business Model 46 Performance Since Listing 04 Note to Unitholders 48 Operational Review 05 Q&A with CEO 51 Unit Price Review 06 At a Glance 52 Earnings Review 08 Portfolio 10 Trust Structure 12 Board of Directors REPORTS 18 Trustee-Manager 57 Corporate Governance Report 19 Property Manager 73 Trust Financial Statements 155 Trustee-Manager Financial Statements 186 Market Research Report WHAT AFFECTS US 20 Economic & Market Factors OTHER INFORMATION Indian Economy 183 Unitholding Statement IT-Business Process 185 Glossary Management Industry 244 Notice of AGM 247 Proxy Form Office Market 249 Corporate Information WHAT WE DO 22 Risk Management 24 Investment Management 28 Asset Management 30 Capital Management 34 Investor Relationship Management 36 Sustainable Business Management ASCENDAS INDIA TRUST ANNUAL REPORT 2015/2016 .3 OVERVIEW WHAT AFFECTS US WHAT WE DO OUR PERFORMANCE NOTE TO uniTHOLDERS Dear Unitholders Real Estate Investment Trusts (“REITs”) We are pleased to report a 13% a more feasible proposition for both growth in our distribution per unit for REIT sponsors and investors. Hence, the the financial year ended 31st March competition for assets is likely to increase. 2016 (“FY15/16”). Favourable market conditions and growth through recent Our pipeline of projects remains acquisitions contributed to our healthy strong. Our multi-pronged strategy of financial performance. We continue development, forward purchase and to enjoy a strong reputation as a market acquisitions will enable us to premium space provider because of our continue to steadily grow our portfolio. st commitment to deliver quality business As at 31 March 2016, the Trust has space solutions to our customers. This debt headroom of S$463 million to enabled us to achieve high occupancy acquire new assets. In Pune, our sponsor levels and good rental reversions. Ascendas-Singbridge Group has provided Ascendas India Trust with a right of India’s economic outlook has improved first refusal to acquire International in the last three years. Prudent monetary Tech Park Pune. This is an SEZ under policies from the Reserve Bank of development with a total floor area India together with business friendly of 2.3 million square feet. In addition, reforms by the Indian Government have we will be acquiring a property named stabilised the Indian economy and set BlueRidge 2 with over 1.5 million square Philip Yeo, Chairman it on the path to growth recovery. The feet of floor area in Pune. We expect to International Monetary Fund estimates complete this acquisition by December that India’s GDP grew by 7.3% in 20151, 2016. In Hyderabad, we have signed a making India the fastest growing major forward purchase agreement to acquire economy in the world. In 2015, a up to 2.4 million square feet in the record 41 million square feet of office aVance Business Hub property and will With the Indian commercial space was absorbed in the top seven progressively buy up completed space. market looking set cities in India2. More than half of that In Chennai, we have recently acquired the third building in CyberVale. for stable growth, we came from Bangalore, Chennai and Hyderabad, cities which we operate in. are confident that our Besides acquiring completed properties, balanced strategy of The brighter economic outlook in we are also growing by developing acquiring high-quality India has attracted a number of private our extensive land bank. When fully commercial properties equity and sovereign wealth funds to developed, our land bank will yield and developing buildings increase their capital allocation into additional floor area totalling 3.6 million square feet. In Bangalore, a 0.6 million to cater to tenants’ Indian income producing office assets. As a result, property prices in the market square feet multi-tenanted building growth will provide our have gone up. This is also reflected named Victor is likely to be completed Unitholders with attractive in the uplift in our portfolio valuation, by June 2016. Victor has been fully and sustained returns. which increased in Indian Rupee terms committed to a mix of existing and new by 23%3 compared to a year ago, and tenants before completion. In Hyderabad, stood at 56 billion as at 31st March we recently completed a new multi-level 2016. Recent changes to the Indian car park to meet the demand for car tax laws have also made the listing of park space from our tenants. We are also 1 Source: International Monetary Fund, World Economic Outlook Update, April 2016 2 Source: CBRE South Asia Pvt. Ltd. 3 Includes new acquisitions. .4 ASCENDAS INDIA TRUST ANNUAL REPORT 2015/2016 OVERVIEW WHAT AFFECTS US WHAT WE DO OUR PERFORMANCE Q&A WITH CEO constructing a new 0.4 million square feet multi-tenanted building in The 1. How have the reforms V at Hyderabad and this should be implemented by the Modi completed by the second half of 2017. Government benefited Our ability to grow with our tenants Ascendas India Trust? is a key factor in strengthening our Investor interest in India has been customer relationships, and that is reinvigorated by broad economic reflected in the high retention ratio of reforms introduced by the Modi 86% recorded in FY15/16. Government. Campaigns such as “Make in India” are also helping With the Indian commercial market to drive economic growth, making looking set for stable growth, we India an attractive investment are confident that our balanced destination for global companies. strategy of acquiring high-quality Due to these factors, the currency commercial properties and developing has also been relatively stable which buildings to cater to tenants’ growth is beneficial for the Trust. We have will provide our Unitholders with seen increased demand for high attractive and sustained returns. quality commercial space as existing companies expand their operations The progress we have made over the while new companies enter the Indian year has been possible because of the market. This gives us the confidence Sanjeev Dasgupta, CEO unwavering support of our tenants, to continue growing our portfolio. Unitholders, and dedicated staff. We thank our tenants, Unitholders 2. What is your outlook on and staff for their commitment the Indian economy? 3. How does the new Indian to Ascendas India Trust. REIT regulation announced in India has overtaken China to become the latest India Union Budget the world’s fastest growing major We thank our fellow directors for affect Ascendas India Trust? their guidance and counsel to economy in 2015. The Indian GDP is forecast to grow at 7.3% in 20151 In the latest Union Budget, the Indian management. We record our gratitude despite a poor monsoon season Government took a significant step to and appreciation to Mr Rakesh Kumar which had adverse implications on further increase tax transparency by Aggarwal who has retired from the agriculture sector. The economy exempting Indian REITs from dividend the Board. Mr Aggarwal has made is set to grow at 7.5% in 20161 with distribution taxes. The market views invaluable contributions to Ascendas services and agriculture sectors this development as the removal of India Trust over the last six years. We leading the growth. Low inflation, a the final hurdle to the listing of REITs in warmly welcome our new directors stable Indian Rupee, and enhanced India. While this makes listing in India Mr Chiang Chie Foo and Mr Alan regulatory clarity are some of the key an option for Indian REIT sponsors, Nisbet to the Board.

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