A prevalent state, circumstance, opportunity or means favourable to success or desired interest. 01 Transparent & Disciplined Leadership Strong corporate governance One-stop business space solution In seeking sustainable growth for our Unitholders, a-iTrust has a unique market advantage that stems from three key pillars of strength – our transparent leadership, our proven expertise and our local and international perspective. Together, they add to a strong foundation for success and a reputation that is built to last. Established reputation in India with international mindset 02 Strong corporate governance As a Business Trust, a-iTrust has among its unique qualities the ability to pursue property development more actively, putting it in a better position to meet Unitholders’ objective of tapping into India’s growth story. Guided by an experienced Trustee-Manager, Ascendas Property Fund Trustee Pte Ltd, and an independent Board of Directors that is committed to upholding the highest level of governance, Unitholders can be assured that their interests are protected at all times. 04 05 One-stop business space solution With access to Ascendas Group’s complete expertise in business space solution, a-iTrust is able to provide high quality, one-stop service to its tenants. Recognising the importance of qualities beyond the physical space, the Trust seeks to provide comprehensive business park ecosystems that promote work-live-play lifestyles with amenities, facilities and activities that contribute positively to our tenants’ staff retention. 06 07 Established reputation in India with international mindset a-iTrust bene ts from over two decades of Ascendas’ pan-Asian experience which spans 30 cities across 10 countries. In India, Ascendas has been establishing long term partnerships for 17 years. This broad and deep understanding of international requirements coupled with operational track record in India have proven vital in securing the con dence of customers and achieving long term growth potential for Unitholders. 08 09 CONTENTS 11 Mission Statement 12 Financial Highlights 13 Key Milestones in FY2010/2011 Mission Statement 14 Note to Unitholders Deliver to our Unitholders stable and growing 17 Trust Structure distributions and returns, through portfolio growth and 18 Trustee-Manager’s Board of Directors prudent capital management. 22 Trustee-Manager’s Management Team 24 Property Manager’s Management Team 26 Operating & Financial Review 28 Portfolio Overview 42 Growth Strategies 44 Risk Management 46 Capital Management 48 Corporate Social Responsibility / Lifestyle Events Delivering Value 51 Event Calendar 52 Corporate Governance Report • Our assets are distinguished by the 60 Investor Relations “Ascendas Advantage” - 65 Financial Statements of a-iTrust quality space, reliable solutions and 122 Financial Statements of Ascendas Property Fund Trustee Pte Ltd (APFT) international business lifestyle; 146 Unitholding Statement as at 20 May 2011 148 Glossary • We generate income through active asset 150 Appendix - Independent Market Research Report management, an in-built development pipeline 188 Notice of Annual General Meeting and accretive acquisitions; and Proxy Form Corporate Information • Our Unitholders’ interests are safeguarded through prudent capital and risk management and disciplined corporate governance. 10 11 MAY 2010 TOTAL PROPERTY INCOME Sixth distribution to Unitholders for the period 1 October 2009 to 31 March 2010 of 3.64 Up marginally from the previous year, largely due to increase in energy billing and Singapore cents per Unit. S$ m car park income in International Tech Park Bangalore (“ITPB”). 121.5 Refi nancing of an existing S$ 50 million term loan ahead of expiry, to take advantage of the low interest rate environment and to extend the maturity profi le of outstanding debt obligations. NET PROPERTY INCOME (“NPI”) OCTOBER 2010 Down 4% from the previous year mainly because of higher property expenses from the December 2010 completion of two new buildings for which income contribution Ascendas Services (India) Pvt Ltd (“ASIPL” or the “Property Manager”) had its management S$70.6m has yet to fully stablise, and hikes in electricity tariff and cost of fuel. system upgraded from ISO 9001:2000 to ISO 9001:2008, a certifi cation standard which covers design, construction, marketing, operation and maintenance of commercial complexes. DISTRIBUTION PER UNIT (“DPU”) Distribution income is substantially based on the cash fl ow generated by the NOVEMBER 2010 portfolio’s assets, net of tax and non-controlling interests. DPU was lower due to Seventh distribution to Unitholders for the period 1 April 2010 to 30 September 2010 of 3.36 lower NPI and a marginal loss realised on fi nancial derivatives, compared to a gain Singapore cents per Unit. S$ c last year. 6.58 DECEMBER 2010 Completion of 1.19 million sq ft business space within the portfolio, comprising Park Square GEARING (450,000-sq ft retail mall in ITPB) and Zenith (737,000-sq ft multi-tenanted offi ce building in Down 1% from the previous year due to partial repayment of external commercial International Tech Park Chennai (“ITPC”)). 18% borrowings by Information Technology Park Ltd (“ITPL”). FEBRUARY 2011 Execution of a conditional agreement with Phoenix Infocity Private Limited to acquire a INTEREST COVERAGE RATIO portfolio of 5 buildings in Hitec City 2 Special Economic Zone (“SEZ”) in Hyderabad, which will subsequently be rebranded as “aVance Business Hub”. Refers to earnings before interest expense, tax, depreciation and changes in fair times value of investment properties (“EBITDA”) over interest expense for FY2010/2011. 4 CLOSING DISTRIBUTION CLOSING UNIT SGD FY2010/2011 FY2009/2010 Change % PER UNIT PERFORMANCE PRICE PERFORMANCE Total property income $ 121.5m $ 120.9m + 1% 8.00 – 7.54 7.55 1.10 – Net property income $ 70.6m $ 73.8m - 4% 7.00 – 1.06 Net pro t attributable to Unitholders $ 36.7m $ 49.6m - 26% 6.58 6.09 Distribution per Unit 6.58 cents 7.55 cents - 13% 6.00 – 1.00 – 5.00 – SGD FY2010/2011 FY2009/2010 Change % 0.98 Total assets $ 1,051.7m $ 1,146.6m - 8% 0.955 4.00 – S$ Total liabilities $ 401.8m $ 417.6m - 4% Total borrowings $ 181.5m - 8% S$ cents 3.00 – $ 165.9m 0.90 – Net asset value per Unit $ 0.90 - 11% 0.90 $ 0.80 2.00 – Gearing 18% 19% - 1% 1.00 – 0 – 0.80 – FY2007/08 FY2008/09 FY2009/10 FY2010/11 Apr Jun Sep Dec Mar 2010 2010 2010 2010 2011 12 13 million sq ft in FY2007/2008 through development, which We expect the acquisition of the fi rst 2 buildings to be were almost fully committed on completion. immediately accretive to Unitholders’ distribution, with further accretion from the 3 future buildings when acquired. More recently, we completed the development of another 1.19 million sq ft in December 2010, comprising Park CLEAR AND PRESENT ADVANTAGE Square, a retail mall of 450,000 sq ft9 in ITPB, and Zenith, a We believe a-iTrust has a unique market position, built on a multi-tenanted offi ce building of 737,000 sq ft in ITPC. This number of key strengths. increased our total portfolio size by 25%, from 4.75 million sq ft to 5.94 million sq ft at the end of FY2010/2011. Strong corporate governance a-iTrust is appropriately structured for its purpose. Instead The pre-marketing of the 1.19 million sq ft of new space of taking the obvious route of structuring as a Real Estate was carried out during a period when the general business Investment Trust (“REIT”), a-iTrust is structured as a Business environment remained cautious, as it overlapped with the Trust (“BT”) and voluntarily adopted the safeguarding global fi nancial crisis. The tenancy commitments of Park provisions of REIT guidelines, such as permissible Square and Zenith were 62% and 58% respectively today10. investments, gearing limit and minimum distribution rate. Dear Unitholders, views of our customers through an independent survey. In We will focus on leasing out the remaining space effi ciently, The key difference is that a-iTrust can develop space more In the past year, Ascendas India Trust (“a-iTrust” or the the annual tenant survey by Nielsen for 2010, 88% of the and we expect the contribution from the 2 new buildings actively than a REIT. As a result, a-iTrust can better meet “Trust”) has been growing income from its operating respondents indicated that they were satisfi ed, while 65% to Unitholders’ distribution to be felt progressively over the objectives of Unitholders who want to access India’s 6 portfolio and by developing the land it owns. In addition, expressed delight with the overall management of our parks . FY2011/2012. growth story through property development and yet enjoy a we are pleased to report that in Financial Year ended 31 stable dividend distribution. As a BT, a-iTrust has the added March 2011 (“FY2010/2011”), a-iTrust made its fi rst major Our fi nancial performance stayed resilient. Total property Further development of the balance land a-iTrust owns is in fl exibility of adjusting its structure at any point in time so 1 conditional acquisition , which is expected to be accretive income for FY2010/2011 grew 1% from a year ago to S$ progress. long as majority of Unitholders decide so in an Extraordinary immediately on acquisition. 121.5 million. Excluding the effect of foreign exchange General Meeting, whereas a REIT’s provisions can only be movements, the growth of total property income in Indian GROWING THROUGH ACQUISITION altered by law. We were mindful that market sentiments remained cautious, Rupee terms was higher at 4%. In addition to development, we seek acquisition as a with the world having only recently emerged from an concurrent way to grow our portfolio. We have been To guide the management and see that Unitholders’ interests exceptional economic crisis and digesting the effects of the NPI and distributable income were S$ 70.6 million and S$ disciplined to consider only deals that are fi nancially are protected at all times, a-iTrust’s trustee-manager, Ascendas confl ict in the Middle East and Japan’s earthquake.