07
Ascott Residence Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
The expedition reached out to over 500 students of Doi
Wiangpha Pittaya School through the iCare Thailand
Foundation where close to 50 staff volunteers helped
to improve the rural school’s facilities to create a better
study environment and brighter future for the students.
We have also been actively engaged in environmental
sustainability initiatives. Ascott Reit’s ser viced
residences adopt environmentally-friendly practices
such as water and electricity conservation, waste
reduction, and recycling that are initiated both by staff
of Ascott Reit properties as well as the guests. For the
first nine months of 2015, the reduction in energy usage
in KWh/m
2
was 18.3% and the reduction in water usage
in m
3
/m
2
was 28.6% from the 2008 baseline for the
serviced residences in Ascott Reit’s portfolio.
Looking Ahead
The path to global economic recovery is likely to
remain uneven. The World Bank and the International
Monetary Fund slashed their earlier forecasts on
global growth in 2016 to 2.4% and 3.4% respectively.
Notwithstanding the muted global growth outlook,
the United Nations World Tourism Organisation has
predicted a 4% growth in international visitor arrivals
in 2016. We therefore expect the demand for serviced
residences to remain stable. With our extended-stay
business model underpinned by master leases and
serviced residence management contracts with
minimum guaranteed income, we are confident that
Ascott Reit is well-positioned to continue to perform
well. We remain focused to actively pursue strategic
expansion opportunities, asset management and
reconstitution initiatives while maintaining a prudent
and disciplined approach to capital management.
On 2 July 2015, MAS refined its proposals to strengthen
the REITs market in Singapore, in response to industry
feedback received on its consultation paper of
9 October 2014 on “Enhancements to the Regulatory
Regime Governing REITs and REIT manager”.
Broadly, the key measures that will be phased in
aim to accord REIT unitholders better protection and
greater accountability while providing REIT managers
increased operational flexibility. We do not foresee
any material impact on Ascott Reit arising from the
implementation of these changes.
Acknowledgements and Board Appointments
As part of the board renewal process, Mr S. Chandra
Das and Mr Giam Chin Toon @ Jeremy Giam
stepped down from the Board of Ascott Residence
Trust Management Limited (ARTML) with effect from
24 April 2015. Mr S. Chandra Das had served as a
Non-Executive Independent Director and member of
the Audit Committee of ARTML since the inception of
Ascott Reit while Mr Giam Chin Toon @ Jeremy Giam
had served as a Non-Executive Independent Director
and member of the Audit Committee of ARTML since
2007. We would like to express our sincere thanks and
appreciation for their significant contributions to the
Board and invaluable guidance to the management
since the formative years of Ascott Reit. On the
same day, we welcomed Mr Tan Beng Hai, Bob as a
Non-Executive Independent Director and member
of the Audit Committee of ARTML. Mr Zulkifli Bin
Baharudin stepped down as a member of the
Corporate Disclosure Committee of ARTML and was
appointed as a member of the Audit Committee of
ARTML on 24 April 2015.
Finally, we would like to take this opportunity to thank
all our serviced residence guests, Unitholders and
business partners for their support in bringing Ascott
Reit to where it is today. Our appreciation and gratitude
also goes to all our staff and the Board of Directors for
their continued hard work and unwavering dedication
and commitment, without which we could not have
grown from strength to strength.
Lim Jit Poh
Chairman
Tay Boon Hwee, Ronald
Chief Executive Officer
25 February 2016
