Tenant concentration risk
We minimise tenant concentration risk by
diversifying our tenant base extensively. We had
in total 297 tenants as at 31 March 2016. On
average, a single tenant takes up 28,800 sq ft
of space. Our largest tenant accounted for 5%
of portfolio base rents. Collectively, the top 10
tenants contributed 34% of portfolio base rents.
Our tenants come from a wide range of industries.
IT & Software development companies make
up around 45% of our tenant base. The rest of
our tenants come from diverse industries such
as banking, gaming and automotive sectors.
In terms of the type of business activity that is
undertaken in our portfolio, 43% of our tenants
conduct IT-related work solely. The IT category
refers to services rendered at the top end
of the IT value chain, including software and
application development, animation, and gaming
design. BPM, which means Business Process
Management, captures lower value-added
services such as business process outsourcing
functions. Since listing, we have been reducing
our reliance on BPM customers as they tend
to be more cost concious and require office
space with lower specifications. The segment
IT-BPM refers to tenants which undertake both
types of activities within their premise.
Banking &
Financial Services
16%
Automobile
8%
Electronics,
Semiconductor
& Engineering
7%
Design, Gaming
& Media
7%
Healthcare &
Pharmaceutical
4%
IT, Software
& Application
Development
and Service
Support
45%
F&B
2%
Retail
2%
Telecommunication
& Network
4%
Others
3%
Oil & Gas
2%
tenant
core
business
(by Base Rental)
IT-BPM
40%
BPM
8%
Retail & F&B
4%
IT
43%
R&D
3%
Others
2%
tenant
activity
(by Base Rental)
Operational review
.50
ASCENDAS india trust ANNUAL REPORT
2015/2016
Ove r v i ew
what af f ect s us
what we do
our per formance
