Overv i ew
what af f ect s us
what we do
our p e r formance
Q&A with CEO
constructing a new 0.4 million square
feet multi-tenanted building in The
V at Hyderabad and this should be
completed by the second half of 2017.
Our ability to grow with our tenants
is a key factor in strengthening our
customer relationships, and that is
reflected in the high retention ratio of
86% recorded in FY15/16.
With the Indian commercial market
looking set for stable growth, we
are confident that our balanced
strategy of acquiring high-quality
commercial properties and developing
buildings to cater to tenants¡¯ growth
will provide our Unitholders with
attractive and sustained returns.
The progress we have made over the
year has been possible because of the
unwavering support of our tenants,
Unitholders, and dedicated staff.
We thank our tenants, Unitholders
and staff for their commitment
to Ascendas India Trust.
We thank our fellow directors for
their guidance and counsel to
management. We record our gratitude
and appreciation to Mr Rakesh Kumar
Aggarwal who has retired from
the Board. Mr Aggarwal has made
invaluable contributions to Ascendas
India Trust over the last six years. We
warmly welcome our new directors
Mr Chiang Chie Foo and Mr Alan
Nisbet to the Board. Mr Chiang and
Mr Nisbet have extensive experience
in the public and private sectors which
will help Ascendas India Trust in the
years ahead.
On behalf of the Board
Philip Yeo
Sanjeev Dasgupta
Chairman
CEO
1
Source: International Monetary Fund, World Economic Outlook Update, April 2016
2
Source: National Association of Software and Services Companies (¡°NASSCOM¡±)
1. How have the reforms
implemented by the Modi
Government benefited
Ascendas India Trust?
Investor interest in India has been
reinvigorated by broad economic
reforms introduced by the Modi
Government. Campaigns such as
¡°Make in India¡± are also helping
to drive economic growth, making
India an attractive investment
destination for global companies.
Due to these factors, the currency
has also been relatively stable which
is beneficial for the Trust. We have
seen increased demand for high
quality commercial space as existing
companies expand their operations
while new companies enter the Indian
market. This gives us the confidence
to continue growing our portfolio.
2. What is your outlook on
the Indian economy?
India has overtaken China to become
the world¡¯s fastest growing major
economy in 2015. The Indian GDP is
forecast to grow at 7.3% in 2015
1
despite a poor monsoon season
which had adverse implications on
the agriculture sector. The economy
is set to grow at 7.5% in 2016
1
with
services and agriculture sectors
leading the growth. Low inflation, a
stable Indian Rupee, and enhanced
regulatory clarity are some of the key
factors behind the positive outlook.
On the tenant side, revenue growth
for the IT and Business Process
Management sector is expected
to remain robust at 10-12% in
FY16/17
2
, as India continues to be
in a leading position as a global IT
offshoring and outsourcing hub.
3. How does the new Indian
REIT regulation announced in
the latest India Union Budget
affect Ascendas India Trust?
In the latest Union Budget, the Indian
Government took a significant step to
further increase tax transparency by
exempting Indian REITs from dividend
distribution taxes. The market views
this development as the removal of
the final hurdle to the listing of REITs in
India. While this makes listing in India
an option for Indian REIT sponsors,
we have to consider key strategic
factors such as lower financing costs,
structuring risks etc. in evaluating the
possibility of an Indian listing. We will
continue to monitor the Indian REIT
space closely and would update our
Unitholders at the appropriate time.
Sanjeev Dasgupta,
CEO
.5
ASCENDAS india trust ANNUAL REPORT
2015/2016
