DELIVERING

INDUSTRIAL SOLUTIONS
ANNUAL REPORT 2012/2013
Contents
4 Financial Highlights
7 Significant Events
8 Letter to Unitholders
12 Organisation Structure
13 Corporate and Trust Structure
16 Board of Directors
20 Management Team
22 Corporate Services and Property Management Teams
24 The Manager
26 The Property Manager
30 Strategy
36 Operations Review
44 Property Portfolio
59 Singapore Industrial Property Market Overview
70 Financial Review
72 Corporate Liquidity and Capital Resources
74 Unit Performance
78 Corporate Governance
88 Risk Management
90 Investor Relations
93 Corporate Social Responsibility
97 Financial Statements
145 Statistics of Unitholdings
147 Interested Person Transactions
148 Notice of Annual General Meeting and Proxy Form
153 Corporate Directory
VISION
TO BE THE PREFERRED
INDUSTRIAL REAL ESTATE
SOLUTIONS PROVIDER

Mission
TO DELIVER SUSTAINABLE
AND GROWING RETURNS TO
UNITHOLDERS BY PROVIDING
QUALITY INDUSTRIAL REAL
ESTATE SOLUTIONS TO CLIENTS

Corporate Profile
Mapletree Industrial Trust (MIT) is a Singapore-focused Real Estate
Investment Trust (REIT) listed on the Main Board of Singapore
Exchange, with a large and diversified portfolio of industrial
properties.

MITs property portfolio, valued at S$2.9 billion as at 31 March

2013, comprises 83 industrial properties strategically located
across Singapore. These industrial properties include Flatted
Factories, Business Park Buildings, Stack-up/Ramp-up
Buildings, Light Industrial Buildings and a Warehouse.

MIT is managed by Mapletree Industrial Trust Management Ltd.

(Manager), a wholly-owned subsidiary of Mapletree Investments
Pte Ltd (Sponsor).
STABILITY
With a large tenant base of over 2,000 tenants and low dependence
on any particular trade sector, our diverse and resilient portfolio will
strengthen our ability to provide stable distributions to Unitholders.

Flatted Factory,
Kolam Ayer 5
Photo courtesy of Add-Plus, tenant at Woodlands Central cluster

Distributable Income FY12/13

Year-on-year

+14.6%
S$151.0 million

DPU FY12/13
Year-on-year

+9.9%
9.24 cents
FINANCIAL
HIGHLIGHTS

Financial Highlights
FY12/131 FY11/12

Gross Revenue (S$000) 276,433 246,371

Net Property Income (S$000) 195,436 171,320
Adjusted taxable income available for distribution to Unitholders (S$000) 150,961 131,699
Distribution per Unit (Singapore cents) 9.24 8.41

Balance Sheet
As at As at
31 March 2013 31 March 2012

Total Assets (S$000) 2,967,608 2,822,205

Total Liabilities (S$000) 1,163,918 1,167,669
Net Assets Attributable to Unitholders (S$000) 1,803,690 1,654,536
Total Units in Issue 1,641,481,571 1,628,822,170
Market Capitalisation (S$ billion) 2.31 1.79

Key Financial Ratios

As at As at
31 March 2013 31 March 2012

Net Asset Value per Unit (S$) 1.10 1.02

Aggregate Leverage (%) 34.8 37.8
Average Borrowing Costs for Financial Year (%) 2.4 2.2
Weighted Average Tenor of Debt (years) 2.7 3.0
Interest Cover Ratio for Financial Year (times) 6.4 6.4

FY12/13 denotes Financial Year 2012/2013 ended 31 March 2013.

1

4
Gross Revenue by Property Type Net Property Income by Property Type

6.2% 1.1% 7.0% 0.9%

13.8%
15.2%

Flatted Factories
FY12/13 FY12/13
Business Park Buildings

18.5% Stack-up/Ramp-up Buildings

16.1%
Light Industrial Buildings
60.4% 60.8% Warehouse

MITs Unit Price and Trading Volume in FY12/13

Opening price on 2 April 2012 S$1.100

Highest closing price S$1.440
Lowest closing price S$1.100
Average closing price S$1.305
Last done on 28 March 2013 S$1.405
Average daily trading volume 3.24 million units

MITs Trading Performance in FY12/13

Unit Price (S$) Volume (million units)

1.60 14

1.40 12

1.20
10
1.00
8
0.80
6
0.60
4
0.40

0.20 2

0.00 0
Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13

Price Volume

5
FINANCIAL
HIGHLIGHTS

Quarterly Results
1Q 2Q 3Q 4Q FY12/13

Gross Revenue (S$000) 66,864 68,218 69,230 72,121 276,433

Net Property Income (S$000) 48,344 48,414 49,100 49,578 195,436
Adjusted taxable income available for 36,897 37,470 37,663 38,931 150,961
distribution to Unitholders (S$000)
Distribution per Unit (Singapore cents) 2.26 2.29 2.32 2.37 9.24

Distributable Income (S$ million)

37.7 38.9
36.9 37.5
35.2 35.8
31.6
28.3 29.0

22.3

21 October 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2010 to FY10/11 FY11/12 FY11/12 FY11/12 FY11/12 FY12/13 FY12/13 FY12/13 FY12/13
31 December
20101

Distribution per Unit (Singapore cents)

2.32 2.37
2.22 2.26 2.29
2.16
1.98 2.05
1.93

1.52

21 October 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2010 to FY10/11 FY11/12 FY11/12 FY11/12 FY11/12 FY12/13 FY12/13 FY12/13 FY12/13
31 December
20101

MIT was listed on 21 October 2010.

1

6
Significant
Events

2012

MAY 2012 JULY 2012

Broke ground on S$50 million build-to-suit (BTS) Achieved Distribution per Unit (DPU) of 2.26 Singapore
development for Kulicke & Soffa (K&S) at Serangoon cents for 1QFY12/13, a year-on-year increase of
North 14.1%

SEPTEMBER 2012
Successfully issued S$45 million 10-year unsecured
Fixed Rate Notes

Fitch Ratings affirmed MITs Issuer Default Rating at

BBB+ with a Stable outlook

OCTOBER 2012
Delivered DPU of 2.29 Singapore cents for 2QFY12/13,
a year-on-year increase of 11.7%

An artists impression of K&Ss new global headquarters in Singapore

2013

janUARY 2013 APRIL 2013 (CONTINUED)

Achieved DPU of 2.32 Singapore cents for 3QFY12/13, DPU of 9.24 Singapore cents for FY12/13 registered a
a year-on-year increase of 7.4% year-on-year increase of 9.9%

Implemented a distribution reinvestment plan (DRP) for

the 3QFY12/13 distribution

MARCH 2013
Second BTS project secured by MIT to develop S$108
million data centre for Equinix at one-north

APRIL 2013
Achieved DPU of 2.37 Singapore cents for 4QFY12/13,
a year-on-year increase of 6.8%

Groundbreaking ceremony of new data centre for Equinix in April 2013

7
Wong Meng Meng Tham Kuo Wei
Chairman Chief Executive Officer
Letter to
UNITHOLDERS
DELIVERING
INDUSTRIAL SOLUTIONS
To be the preferred industrial real estate solutions provider
Dear Unitholders,
Achieving Results Amidst Economic Uncertainty
It was a challenging financial year clouded by concerns of
the protracted sovereign debt crisis in Europe. Uncertainties
loomed as the United States fiscal cliff of scheduled tax
increases and spending cuts were widely debated prior to
the passing of the legislation on 1 January 2013. In Asia,
growth in Chinas economy slowed to 7.8% in 2012 from
9.3% in 20111. External headwinds continued to be a drag
on the domestic economy as Singapores gross domestic
product (GDP) growth slowed to 1.3% in 2012 from 5.2%
in 2011. Growth in the manufacturing sector also declined
significantly to 0.1% in 2012 from 7.8% in 20112.
Despite the challenging business environment, MIT delivered
another year of strong financial performance. Gross revenue
and net property income for FY12/13 were S$276.4
million and S$195.4 million respectively. These are 12.2%
and 14.1% higher than the corresponding figures for the
preceding financial year. The DPU for FY12/13 was 9.24
Singapore cents, 9.9% higher than the DPU of 8.41 Singapore
cents in FY11/12. The strong performance was driven by
improved rental rates and occupancies.
Extending Growth through BTS Solutions
During the financial year, we successfully secured two BTS
projects, extending our track record of delivering quality and
customised industrial real estate solutions.
The S$50 million BTS development for K&S will be its new
global headquarters in Singapore, comprising facilities for
production as well as research and development. We will
also be developing a seven-storey data centre for Equinix
which is expected to cost at least S$108 million. The BTS
1
National Bureau of Statistics of China
Ministry of Trade and Industry (MTI)
2
projects for K&S and Equinix are slated for completion in the
second half of 2013 and second half of 2014 respectively.
The projects are expected to add approximately 715,000
square feet (sq ft) of gross floor area (GFA) to the portfolio
upon completion.
With this addition of tenants from high growth trade sectors,
the portfolio will benefit from the diversification of revenue
sources. The two high-quality tenants will also improve
the income stability and weighted average lease to expiry
(WALE) of the portfolio.
Delivering Robust Portfolio Performance
MITs portfolio continues to demonstrate its resilience,
registering an improvement in operational performance.
The average occupancy of the portfolio increased from
94.7% in FY11/12 to 95.2% in FY12/13. This was the highest
average occupancy rate since listing. The portfolios passing
rental rate in FY12/13 also increased by 6.6% to S$1.61
per square foot per month (psf/mth) with positive rental
revisions across all property segments. By engaging tenants
in advance for lease renewals, the portfolios retention rate
remained healthy at 73.2% in FY12/13.
MITs 83 investment properties were valued at S$2,879.9
million as at 31 March 2013. This represented an increase
of S$183.3 million over the previous valuation. The increase
was due to a portfolio revaluation gain of S$134.9 million
as well as capitalised development cost of S$48.4 million.
The revaluation gain was driven mainly by the improved
portfolio performance. Correspondingly, the net asset value
per Unit increased from S$1.02 as at 31 March 2012 to
S$1.10 as at 31 March 2013.
9
Letter to
UNITHOLDERS
Unlocking Value through Asset Enhancements
We review demand trends and property attributes of
the portfolio regularly to identify asset enhancement
opportunities. The asset enhancement initiatives (AEIs) at
Woodlands Central and Toa Payoh North 1 clusters are on
track for completion in the second and fourth quarter of 2013
respectively. When completed, these will add approximately
220,000 sq ft of GFA to the portfolio.
These initiatives reflect our continual effort to improve our
product offering to meet the changing needs of clients.
The repositioning of both clusters as high-tech industrial
clusters will cater to higher-value users like those in the
biomedical and high technology sectors.
An artists impression of the seven-storey data centre for Equinix
10
Enhancing Financial Flexibility
We actively seek to enhance MITs capital structure and
achieve a well-distributed debt maturity profile through
prudent capital management. In September 2012,
MIT issued S$45 million 10-year fixed rate notes at 3.65%
per annum, further extending MITs debt maturity profile
till 2022. The issuance underscored MITs ready access to
the debt capital market as well as the ability to manage risk
through staggered debt maturities and diversified sources
of funding.
In January 2013, we implemented a DRP for 3QFY12/13
distribution. The proceeds from the DRP were used to fund
the progressive requirements of the AEIs and BTS projects.
Following the positive response for the DRP in 3QFY12/13,
we have also announced the application of a DRP for the
4QFY12/13 distribution.
MITs aggregate leverage was 34.8% as at 31 March 2013,
well within the Monetary Authority of Singapores (MAS)
Property Fund Guidelines aggregate leverage limit of 60%.
The weighted average all-in funding cost remained low at
2.4% in FY12/13 while interest cover ratio remained strong
at 6.4 times. Weighted average tenor of debt was 2.7 years
as at 31 March 2013. Approximately 88% of MITs gross
borrowings of S$1,035.0 million had been hedged through
interest rate swaps and fixed interest rate borrowings.
This minimises MITs exposure to market volatility and
provides stability of distributions to Unitholders.
Committing to Environmental Sustainability
Our commitment to be environmentally responsible is
reflected in the sustainable practices adopted for our
business activities. The development project for Toa Payoh
North 1 cluster was conferred the Green Mark Gold Award
by the Building and Construction Authority of Singapore.
In addition, our implementation of water and electricity
conservation measures has resulted in an overall reduction
of energy consumption. In FY12/13, 15 clusters achieved the
Public Utilities Board Water Efficient Buildings Certification
in recognition of our contribution towards protecting
Singapores water resources.
Building Resilience to Deliver Sustainable and
Growing Returns
MTI expects the global economic growth to remain subdued
in view of the uncertainties arising from the sovereign debt
crisis in Europe and United States fiscal tightening. Against
this backdrop, MTI forecasts Singapores economy to
register a muted growth of between 1.0% and 3.0% in 2013.
Following the economic restructuring mapped out in the
Singapore Budget 20133, there may be some re-adjustment
in and dislocation to various industry sectors, especially
in the labour-intensive ones. Some of the fall-out may
affect some of our tenants, but it is too early to say how
extensive the effects will be, and how our tenants will cope.
We have continued to offer longer lease packages with
more moderate rental escalations to tenants, enabling them
to have longer-term rental certainty for their businesses.
Singapore Budget 2013 Debate round-up speech by Deputy Prime Minister and Minister for Finance, Mr Tharman Shanmugaratnam on 7 March 2013.
3
MIT is well-positioned to withstand a downturn with its
diverse portfolio of properties. With over 2,000 tenants,
no single tenant and trade sector accounted for more than
4.5% and 13.7% of the portfolios monthly gross rental
revenue respectively (as at 31 March 2013). The AEIs and
BTS projects we have embarked on allow us to diversify
rental revenue streams by attracting industrial users from
high-value market segments.
In line with our ongoing efforts to drive organic growth,
we will continue to explore asset enhancement opportunities
to enhance the portfolios value and ensure our product
offering remains relevant as Singapores economy evolves.
We will also leverage on our BTS track record to seek
development opportunities to grow the portfolio.
Appreciation Note
On behalf of the Board, we welcome Ms Mary Yeo Chor
Gek who was appointed Independent Director of the
Manager on 15 March 2013. Her extensive experience in the
transportation and logistics industry will bring diversity and
augment the capabilities of the Board. We look forward to
her counsel and contributions in the coming years.
We wish to thank our Unitholders, tenants and business
associates for their invaluable commitment and support.
We would also like to express our appreciation to the fellow
Board members for their guidance and to the staff for their
hard work and dedication.
Wong Meng Meng Tham Kuo Wei
Chairman Chief Executive Officer
29 May 2013
11
ORGANISATION
STRUCTURE

Mapletree Industrial Trust Management Ltd.

Board of Directors
Mr Wong Meng Meng Mr Wee Joo Yeow Mr Wong Mun Hoong
(Chairman and Non-Executive Director) (Independent Director) (Non-Executive Director)
Mr Soo Nam Chow Ms Mary Yeo Chor Gek Mr Phua Kok Kim
(Independent Director) (Independent Director) (Non-Executive Director)
Mr Seah Choo Meng Mr John Koh Tiong Lu Mr Tham Kuo Wei
(Independent Director) (Non-Executive Director) (Executive Director and
Chief Executive Officer)
Mr Hiew Yoon Khong
(Non-Executive Director)

Audit and Risk Committee

Mr Soo Nam Chow
(Chairman)
Mr Seah Choo Meng Chief Executive Officer
Mr John Koh Tiong Lu Mr Tham Kuo Wei

Joint Company Secretaries

Mr Wan Kwong Weng
Ms See Hui Hui

Chief Financial Head of Asset Head of Investor Relations,

Officer Management Investment Vice President

Ms Ler Lily Mr Lee Seng Chee Mr Peter Tan Che Heng Ms Melissa Tan Hwei Leng

Finance Asset Management Investment

Ms Charmaine Lum Sheh Min Ms Serene Tam Mei Fong Ms Sandra Loke Oi Leng
(Vice President) (Vice President) (Senior Manager)
Ms Charlene Zhang Shixin Mr Cheng Hsing Yuen Mr Ho Tai Wing
(Senior Manager) (Senior Manager) (Manager)
Mr Kelvin Kuah Kiang Hua Mr Martin Kung Boon Keat
(Senior Manager) (Manager)
Mr Alvin Tay Kian Siong
(Senior Manager)
Treasury
Mr Zhou Yong Cheng
Mr Miguel Vega Sun (Senior Manager)
(Assistant Manager) Mr Steven Chew Chee Song
(Manager)
Mr Lee Yong Kian
(Manager)
Ms Jan Yan Weiyun
(Assistant Manager)

12
CORPORATE AND
TRUST STRUCTURE

Mapletree Facilities Services Pte. Ltd.

Board of Directors
Mrs Lee Pheck Yan
Ms Shirley Tay Bee Hong

Head of Regional Development Head of Head of Property

Management Marketing Management
Mr Tan Wee Seng Ms Chng Siok Khim Mr Paul Tan Tzyy Woon

Corporate Structure

Mapletree Industrial Trust

Mapletree Singapore Mapletree Industrial Trust

Industrial Trust Treasury Company Pte. Ltd.

Trust Structure

Sponsor
Other Unitholders
Mapletree Investments Pte Ltd

Ownership Distributions
of Units
Manager Management Trustee Trustee
Services Fees
Mapletree Industrial Trust DBS Trustee Limited
Management Ltd.
Management Acts on behalf
Fees industrialtrust of Unitholders
100% Ownership of
MSIT Units
Mapletree Singapore
Industrial Trust (MSIT)*
Distributions

Property Net Property Ownership of

Management Income Assets Net Property Ownership of
Services Income Assets
Property Manager

Mapletree Facilities Property Properties MSIT Portfolio*

Services Pte. Ltd. Management
Fees

* Mapletree Singapore Industrial Trust (MSIT) was constituted as a private trust on 27 March 2006. The MSIT Portfolio comprises six Light Industrial Buildings
in Singapore. MIT acquired MSIT on Listing Date, 21 October 2010.

13
KNOWLEDGE
Our in-depth knowledge of our tenants needs and diverse offering of
strategically located industrial properties give us the competitive edge
to deliver quality industrial real estate solutions to our clients.
Flatted Factory,
Redhill 1

47.6%
of the tenants
have leased the properties for more
than 4 years (vs FY11/12: 44.9%)

Occupancy rate of

95.2%
in FY12/13 (vs FY11/12: 94.7%)
Board of
Directors

01
Mr Wong Meng Meng 02
Mr Soo Nam Chow
Chairman and Non-Executive Director Independent Director

03
Mr Seah Choo Meng 04
Mr Wee Joo Yeow
Independent Director Independent Director

05
Ms Mary Yeo Chor Gek 06
Mr John Koh Tiong Lu
Independent Director Non-Executive Director

16
 07
Mr Hiew Yoon Khong
Non-Executive Director
09
Mr Phua Kok Kim
Non-Executive Director
01. Mr Wong Meng Meng
Chairman and Non-Executive Director
Mr Wong Meng Meng, Senior Counsel, is the Chairman and a
Non-Executive Director of the Manager.
He is also a Non-Executive Director of the Sponsor and a
member of its Audit and Risk Committee and of its Transaction
Review Committee. In addition, Mr Wong is a Director of
United Overseas Bank Ltd., the Chairman of Energy Market
Company Pte. Ltd. and of FSL Trust Management Pte. Ltd..
Mr Wong founded WongPartnership in 1992, which ranks
amongst the top law firms in Singapore today. He is the
immediate past President of The Law Society of Singapore
and a Member of the Advisory Board of the Faculty of
Law, National University of Singapore. Mr Wong is also an
accredited Adjudicator under the Building and Construction
Industry Security of Payment Act 2004, and a member of the
Competition Appeal Board set up under the Competition Act.
Mr Wong has consistently been acknowledged as one
of the worlds leading lawyers in The International Whos
Who of Commercial Litigators, Asialaw Leading Lawyers,
PLC Cross-border Dispute Resolution: Arbitration Handbook,
The International Whos Who of Construction Lawyers and
08
Mr Wong Mun Hoong
Non-Executive Director
10
Mr Tham Kuo Wei
Executive Director and Chief Executive Officer
Best Lawyers, amongst others. He is also recognised for
Corporate Governance work in Singapore by PLC Which
Lawyer Directors Duties & Liabilities.
02. Mr Soo Nam Chow
Independent Director
Mr Soo Nam Chow is an Independent Director of the Manager
and the Chairman of its Audit and Risk Committee.
Mr Soo has worked in the auditing and accounting industry
in Singapore for over 35 years and has been with KPMG
Singapore since 1974. Prior to his retirement from KPMG
in September 2009, Mr Soo was the partner in charge of
Risk Management, and was a member of the Management
Committee of KPMG in Singapore. His other leadership
roles included heading the Japanese Practice and Securities
Industry Group, as well as a member of the Accounting &
Audit Practice Committees.
Mr Soo obtained his professional qualification as a Certified
Accountant from the Association of Chartered Certified
Accountants in 1983. He is a non-practising member of the
Institute of Certified Public Accountants of Singapore.
17
Board of
Directors
03. Mr Seah Choo Meng
Independent Director
Mr Seah Choo Meng is an Independent Director and a member
of the Audit and Risk Committee of the Manager.
Mr Seah joined Langdon & Seah Singapore in 1968 and is
currently a Director of Langdon & Seah Singapore Pte. Ltd.,
an independent firm of construction cost consultants and
project managers providing professional consultancy services
to the developers, architectural and engineering sectors of the
construction industry.
Mr Seah is also a Director in L&S Contract Advisory & Dispute
Management Services Pte. Ltd. and Langdon & Seah Project
Management Pte. Ltd. as well as an Advisor to the Arcadis
Supervisory Board.
Mr Seah is a Board Member of the Singapore Green Building
Council and is also a Trustee of SGBC Pte Ltd. Mr Seah is
a Member of the Construction Adjudicator Accreditation
Committee.
Mr Seah is a Fellow of the Royal Institution of Chartered
Surveyors as well as a Fellow of the Singapore Institute of
Surveyors and Valuers. He is also an Accredited Mediator,
Neutral Evaluator and Adjudicator with the Singapore
Mediation Centre.
04. Mr Wee Joo Yeow
Independent Director
Mr Wee Joo Yeow is an Independent Director of the Manager.
Mr Wee was also the Managing Director, Head, Corporate
Banking Singapore of the UOB Group until his recent
retirement. Mr Wee has more than 30 years of corporate
banking experience. He joined UOB in 2002. Prior to that,
Mr Wee was with Overseas Union Bank from 1981 to 2001
and held senior appointments in Overseas Union Bank
before its merger into UOB.
Mr Wee is a director of a number of private companies.
He holds a Bachelor of Business Administration (Honours)
degree from the University of Singapore and a Master of
Business Administration from New York University, USA.
05. Ms Mary Yeo Chor Gek
Independent Director
Ms Mary Yeo Chor Gek is an Independent Director of the
Manager.
Ms Yeo is the Vice President, South Asia Pacific Supply Chain
Operations of UPS Asia Group, the worlds largest package
delivery company and a leading global provider of specialised
18
transportation and logistics services. She joined UPS Asia
Group in 1988 and has been with UPS Asia Group for more
than 24 years. She has more than 28 years of experience in
the transportation and logistics industry.
Ms Yeo is also a Non-Executive Director of Singapore
Institute of Technology, Infocomm Development Authority of
Singapore, Central Provident Fund Board, National Family
Council and Employment and Employability Institute Pte Ltd.
She holds a Master of Business Administration degree from
the Northumbria University.
06. Mr John Koh Tiong Lu
Non-Executive Director
Mr John Koh Tiong Lu is a Non-Executive Director and a
member of the Audit and Risk Committee of the Manager.
Mr Koh was a Managing Director and a Senior Advisor of the
Goldman Sachs Group until 2006. Mr Koh is also a Director
and Chairman of the Investment Committee of Mapletree
Industrial Fund Ltd., a private real estate fund managed by
the Sponsor.
Mr Koh has over 25 years of experience in investment banking
and law. Prior to joining the Goldman Sachs Group in 1999,
Mr Koh spent 18 years as a lawyer at various firms, including
J. Koh & Co (a Singapore firm founded by Mr Koh) as well as
serving in the Singapore Attorney-Generals Chambers office.
Mr Koh also sits on various boards of directors including NSL
Ltd (Singapore) and China Lumena New Materials Corp.,
which is listed on the Hong Kong Stock Exchange. He serves
as the Chairman of the Audit Committees of both companies.
Mr Koh holds a Bachelor of Arts degree and a Master of Arts
degree from the University of Cambridge and is a graduate of
Harvard Law School.
07. Mr Hiew Yoon Khong
Non-Executive Director
Mr Hiew Yoon Khong is a Non-Executive Director of the
Manager.
Mr Hiew is currently the Executive Director and Group Chief
Executive Officer of the Sponsor since 2003.
In addition, he is a Director of Mapletree Logistics Trust
Management Ltd. (the manager of Mapletree Logistics
Trust), of Mapletree Commercial Trust Management Ltd. (the
manager of Mapletree Commercial Trust) and of Mapletree
Greater China Commercial Trust Management Ltd. (the
manager of Mapletree Greater China Commercial Trust).
From 2003 to 2011, Mr Hiew was concurrently Senior
Managing Director (Special Projects) in Temasek Holdings
(Private) Limited. From 1996 to 2003, Mr Hiew held various
senior positions in the CapitaLand group of companies,
including the positions of Chief Financial Officer of the
CapitaLand group and Chief Executive Officer of CapitaLand
Commercial Ltd and CapitaLand Financial Ltd. Prior to joining
the CapitaLand group, he held various positions in the areas
of corporate finance, management consultancy and project
financing over a 10-year period.
Mr Hiew holds a Master of Arts degree in Economics from the
University of Warwick as well as a Bachelor of Arts degree in
Economics from the University of Portsmouth.
08. Mr Wong Mun Hoong
Non-Executive Director
Mr Wong Mun Hoong is a Non-Executive Director of the
Manager.
Mr Wong is currently the Group Chief Financial Officer and
a member of the Executive Management Committee of
the Sponsor. He is responsible for Finance, Tax, Treasury,
Private Funds & Investor Relations, Risk Management
and Information System & Technology of the Sponsor.
In addition, he is a Director of Mapletree Logistics Trust
Management Ltd. (the manager of Mapletree Logistics
Trust), of Mapletree Commercial Trust Management Ltd.
(the manager of Mapletree Commercial Trust) and of
CapitaLand Township Development Fund Pte. Ltd..
Mr Wong had over 14 years of investment banking experience
in Asia before he joined the Sponsor. He was with Merrill Lynch
& Co. for the 10 years immediately prior to joining the Sponsor,
where he worked in Singapore, Hong Kong and Tokyo. He was
a Director and the Head of its Singapore Investment Banking
Division prior to leaving Merrill Lynch & Co. in late 2005.
Mr Wong graduated with a Bachelor of Accountancy
(Honours) degree from the National University of Singapore
in 1990. He is a non-practising member of the Institute of
Certified Public Accountants of Singapore. He also holds
the professional designation of Chartered Financial Analyst
from the CFA Institute of the United States. He attended
the Advanced Management Programme at INSEAD
Business School.
09. Mr Phua Kok Kim
Non-Executive Director
Mr Phua Kok Kim is a Non-Executive Director of the Manager.
Mr Phua is currently the Regional Chief Executive Officer,
South East Asia of the Sponsor. Mr Phua heads the
Groups businesses in Southeast Asia, excluding Logistics
real estate. He has direct responsibility over the Groups
non-REIT assets in these markets. He is concurrently involved
in various Mapletree real estate capital management initiatives
such as sitting on the Investment Committee of Mapletrees
joint-venture fund with CIMB of Malaysia.
Mr Phua joined Temasek Holdings (Private) Limited in February
2000 where he worked on corporate finance transactions and
private equity investments in a diversity of sectors, including
telecommunications, media, transportation, logistics
and financial services. He was seconded to the Sponsor
from Temasek Holdings (Private) Limited on 1 May 2005.
The secondment was converted to a transfer on 1 October
2008. During that time, Mr Phua was also a Director of
Singapore Post Limited from 2004 to 2006.
A Colombo Plan scholar, Mr Phua studied economics at
the University of Adelaide, Australia and worked in the
Administrative Service of the Singapore Government after
graduation. He also held various positions in the private
sector covering equity and economic research in Singapore
and Indonesia.
10. Mr Tham Kuo Wei
Executive Director and Chief Executive Officer
Mr Tham Kuo Wei is both an Executive Director and the Chief
Executive Officer of the Manager.
Prior to joining the Manager, he was the Deputy Chief
Executive Officer (from August 2009) and Chief Investment
Officer (from April 2008 to August 2009) of the Sponsors
Industrial Business Unit where he was responsible for
structuring, setting up and managing real estate investment
platforms in Singapore and the region.
Prior to this, Mr Tham was the Chief Investment Officer of
CIMB-Mapletree Management Sdn. Bhd. in Malaysia from July
2005, and he was responsible for setting up and managing the
private equity real estate fund. He was instrumental in securing
investments from institutional investors in Malaysia and
overseas. He was also responsible for sourcing and acquiring
completed assets as well as managing development projects
across the office, retail, industrial and residential sectors.
Before Mr Thams secondment to CIMB-Mapletree
Management Sdn. Bhd., he was Senior Vice President of
Asset Management in the Sponsor and was responsible for
the Sponsors portfolio of Singapore commercial, industrial
and residential assets. He joined the Sponsor in June 2002
as Project Director for its new Business and Financial Centre
project at the New Downtown in Singapore. Prior to joining the
Sponsor, Mr Tham held various positions in engineering and
logistics management in PSA Corporation from 1993 to 2002.
Mr Tham holds a Bachelor of Engineering degree from the
National University of Singapore.
19
MANAGEMENT
TEAM
Mr Tham Kuo Wei Ms Ler Lily
01 Executive Director and 02 Chief Financial Officer
Chief Executive Officer
01. Mr Tham Kuo Wei
Executive Director and Chief Executive Officer
Mr Tham Kuo Wei is the Executive Director and Chief
Executive Officer of the Manager. Please refer to his profile
under the Board of Directors section of this Annual Report
(see page 19).
She is a CFA charterholder and also a non-practising
02. Ms Ler Lily
Chief Financial Officer
Ms Ler Lily is the Chief Financial Officer of the Manager.
Ms Ler is responsible for financial reporting, budgeting,
treasury and taxation matters.
Prior to joining the Manager, Ms Ler was the Head of
Treasury and Investor Relations at Mapletree Logistics Trust
Management Ltd. (the manager of Mapletree Logistics
Trust) where she led the treasury team in treasury risk
management, debt and capital management and oversaw
the investor relations function since September 2009. She
has served in different roles within the Sponsor since she
joined in September 2001. Her last held position with the
Sponsor was Vice President (Treasury).
20
Mr Lee Seng Chee
03 Head of Asset
Management
Prior to joining the Sponsor, Ms Ler worked in Asia Food &
Properties Limited for about four years and also spent three
years as an external auditor with Deloitte & Touche LLP in
Singapore.
Ms Ler holds a Bachelor of Accountancy (Honours) degree
from the Nanyang Technological University, Singapore.
member of the Institute of Certified Public Accountants
in Singapore.
03. Mr Lee Seng Chee
Head of Asset Management
Mr Lee Seng Chee is the Head of Asset Management of the
Manager. Mr Lee is responsible for formulating and executing
strategies to maximise income from the assets.
Prior to joining the Manager, Mr Lee was the General Manager
of the Sponsors self-storage business since 2005. Before
that, he was Senior Vice President at FJ Benjamin Holdings
Ltd., where he spearheaded the groups venture into
 Mr Peter Tan Che Heng
04 Head of Investment

e-businesses, and was Vice President at Media Corporation
of Singapore where he initiated its interactive businesses.
He was also Vice President at Singapore Cablevision
(now part of StarHub) when it was first launched in 1992 and
was instrumental in starting and setting up the Operations
and Engineering Departments at Singapore Cablevision.
Mr Lee brings with him 27 years of experience in real estate,
business development and operations.
Mr Lee holds a Bachelor of Engineering (Honours) degree
from the National University of Singapore.
assets in Singapore and the region. He joined the Sponsor
in 2006 and was a key member of the investment team for
the pan-Asia Mapletree Industrial Fund. Mapletree Industrial
Fund closes its investment period in 2009 with investments in
Singapore, Malaysia, Japan and China.
Prior to joining the Sponsor, Mr Tan had worked at Boustead
Projects Pte Ltd and Ascendas Services Pte Ltd where he was
involved in business development, development management
and asset management of industrial facilities in Singapore and
the region.

Mr Tan holds a Bachelor of Science (Building) (Honours)

04. Mr Peter Tan Che Heng degree from the National University of Singapore.
Head of Investment
Mr Peter Tan Che Heng is the Head of Investment of the
Manager. Mr Tan is responsible for formulating and executing
investment strategies to enhance MITs portfolio returns.

Prior to joining the Manager, Mr Tan was Head of Investment,

Industrial of the Sponsor where he was responsible for the
acquisition and development of the Sponsors industrial

21
Corporate services and
Property management teams
Mr Wan Kwong Weng Ms See Hui Hui
01 Joint Company Secretary 02 Joint Company Secretary
01. Mr Wan Kwong Weng
Joint Company Secretary
Mr Wan Kwong Weng is the Joint Company Secretary of
the Manager. He is also the Group General Counsel of the
Sponsor, where he takes charge of all legal, compliance and
corporate secretarial matters.
Prior to joining the Sponsor in 2009, Mr Wan was Group
General Counsel - Asia at Inneon Technologies for 7 years,
where he was a key member of its Asia Pacic management
team. He started his career as a litigation lawyer with one of the
oldest law rm in Singapore, Wee Swee Teow & Co., and was
subsequently with the Corporate & Commercial/Private Equity
practice group of Baker & McKenzie in Singapore and Sydney.
Mr Wan has an LL.B. (Honours) (Newcastle upon Tyne),
where he was conferred the Wise Speke Prize, as well as an
LL.M. (Merit) (London). He also attended the INSEAD Asia
International Executive Program. He is called to the Singapore
Bar, where he was conferred the Justice FA Chua Memorial
Prize, and is also on the Rolls of Solicitors (England & Wales).
02. Ms See Hui Hui
Joint Company Secretary
Ms See Hui Hui is the Joint Company Secretary of the
Manager as well as the Vice President, Legal of the Sponsor.
Prior to joining the Sponsor in 2010, Ms See was in the
Corporate/Mergers & Acquisitions practice group of
22
Mr Tan Wee Seng
03 Head of Regional
Development Management
WongPartnership LLP, one of the leading law firms in
Singapore. She started her career as a litigation lawyer with
Tan Kok Quan Partnership.
Ms See holds an LL.B (Honours) from the National University
of Singapore, and is admitted to the Singapore Bar.
03. Mr Tan Wee Seng
Head of Regional Development Management
Mr Tan Wee Seng is the Head of Regional Development
Management of the Property Manager. Mr Tan oversees the
development projects including AEIs undertaken within the
Sponsor across all business units and countries excluding
China and Japan. He has over 22 years of experience in design,
project management and construction across the industrial,
logistics, pharmaceutical, telecommunications, institutional
and commercial sectors spanning various countries in Asia
including Singapore, China, Malaysia as well as the United
States of America, Ireland and Nigeria.
Prior to joining the Sponsor in February 2012, Mr Tan was the
Managing Director in Lend Lease Singapore. His responsibilities
included the execution of development projects in Lend
Leases portfolio and for various external clients.
Mr Tan holds a Bachelor of Science (Building) degree from the
National University of Singapore.
 Ms Chng Siok Khim Mr Paul Tan Tzyy Woon
04 Head of Marketing 05 Head of Property
Management

04. Ms Chng Siok Khim
Head of Marketing
Ms Chng Siok Khim is the Head of Marketing of the Property
Manager. Ms Chng oversees the lease management as well
as the formulation and execution of the marketing strategies
for all industrial properties of the Sponsor.
Prior to her current appointment, Ms Chng was also overseeing
the marketing of the Sponsors office and logistics space.
She was primarily responsible for the successful pre-leasing
of Bank of America Merrill Lynch Harbourfront in 2007.
Prior to joining the Sponsor in 2004, Ms Chng was the
Associate Director, Business Space with DTZ Debenham
Tie Leung for nine years. She was responsible for managing
all aspects of the departments marketing functions, which
included leasing and sales activities, accounts servicing and
sole agency project marketing.
Prior to his current appointment, Mr Tan was a Senior Asset
Manager of the Manager, where he was responsible for
optimising the performance of MITs properties under his
charge. Before joining the Manager, Mr Tan was the Senior
Manager (Corporate Marketing / Development Management)
of the Sponsor where he was responsible for the marketing of
an overseas project and asset management of the Singapore
properties under the pan-Asia Mapletree Industrial Fund.
Before joining the Sponsor in 2008, Mr Tan had worked at
JTC Corporation and Urban Redevelopment Authority
where he was involved in the planning, marketing, sale and
development of lands in Singapore.
Mr Tan holds a Bachelor of Science (Real Estate) (Honours)
degree from the National University of Singapore. He passed
Level III of the Chartered Financial Analyst Programme in 2009.

Ms Chng holds a Bachelor of Science (Estate Management)

(Honours) degree from the National University of Singapore.

05. Mr Paul Tan Tzyy Woon

Head of Property Management
Mr Paul Tan Tzyy Woon is the Head of Property Management
of the Property Manager. Mr Tan oversees the property
management functions for the portfolio, ensuring that all the
properties are safe, reliable and conducive for tenants to work in.

23
The
Manager
01. Mr Tham Kuo Wei
Chief Executive Officer
02. Ms Ler Lily
Chief Financial Officer
03. Ms Melissa Tan Hwei Leng
Vice President, Investor Relations
04. Ms Charlene Zhang Shixin
Senior Manager, Finance
05. Mr Martin Kung Boon Keat
Manager, Investment
24
06. Mr Ho Tai Wing
Manager, Investment
07. Ms Charmaine Lum Sheh Min
Vice President, Finance
08. Mr Miguel Vega Sun
Assistant Manager, Treasury
09. Ms Sandra Loke Oi Leng
Senior Manager, Investment
10. Mr Lee Seng Chee
Head of Asset Management
11. Ms Serene Tam Mei Fong
Vice President, Asset Management
12. Mr Steven Chew Chee Song
Manager, Asset Management
13. Mr Cheng Hsing Yuen
Senior Manager, Asset Management
14. Mr Zhou Yong Cheng
Senior Manager, Asset Management
15. Mr Alvin Tay Kian Siong
Senior Manager, Asset Management
16. Mr Lee Yong Kian 14 06
Manager, Asset Management
17. Mr Kelvin Kuah Kiang Hua 17 15 13 11 12 09 08 07 05 04
Senior Manager, Asset Management 16 02
03
Not in picture: 10 01
Mr Peter Tan Che Heng
(Head of Investment)
Ms Jan Yan Weiyun
(Assistant Manager, Asset Management)

25
The Property
Manager
A Regional Development Management Team

B Marketing Team

26
C Property Management Team

A Regional Development Management Team

01. Mr Tan Wee Seng 03. Mr Brandon Lai Choon Hiong
03 Head of Regional Development Senior Manager, Development
02 Management Management
01 04 02. Mr Koh Nghee Kwang 04. Ms Teh Huay Hoon
Director, Development Management Manager, Development Management

B Marketing Team
01. Ms Chng Siok Khim 06. Ms Philomena Loh Mui Hua
Head of Marketing Senior Manager, Marketing
06 08 10 02. Ms Mimi Wong Hui Mee 07. Mr Gary Chia Lip Gee
02 03 04 05
Senior Manager, Lease Management Vice President, Marketing
01 07 09 03. Ms Jasmine Toh Yeng Ling 08. Mr Leow Hock Seng
Assistant Manager, Marketing Manager, Marketing
04. Ms Karen Chan Yin Fung 09. Ms Leisha Tam Chai Len
Senior Manager, Marketing Assistant Manager, Marketing
05. Ms Toh Xinyi 10. Ms Kamie Seow
Assistant Manager, Marketing Assistant Manager, Lease Management

C Property Management Team

01. Mr Paul Tan Tzyy Woon 05. Ms Lim Qiuhui
Head of Property Management Manager, Property Management
02 04 05 07 02. Mr Teng Hong Choong 06. Ms Ng Kim Kee
03
Manager, Property Management Senior Manager, Property Management
01 06 08 03. Ms Jaclyn Chong Su Ying 07. Mr Palanisamy S/O Perumal
Assistant Manager, Property Management Assistant Manager, Property Management
04. Mr Jackson Chua Poh Hoong 08. Mr Alex Lim Teck Heng
Manager, Property Management Manager, Property Management

27
PARTNER
The art of becoming the preferred industrial real estate solutions
partner lies in understanding our clients real estate needs and
delivering build-to-suit solutions which meet their requirements.

An artists impression of K&Ss new global headquarters in Singapore

Photo courtesy of Kulicke & Soffa

We are proud of the strategic

partnership with Mapletree
Industrial Trust and look forward
to the completion of our new,
state-of-the-art headquarters.
The facility will give us the
infrastructure and scale needed
to accommodate our existing
operations and on-going
expansion of our business.

Mr Bruno Guilmart
President and Chief Executive
Officer of Kulicke & Soffa
STRATEGY

VISION MISSION

To deliver sustainable
and growing returns
To be the preferred
to Unitholders by
industrial real estate
providing quality
solutions provider
industrial real estate
solutions to clients

Proactive Asset
Management
Value-creating
Investment Management
Prudent Capital
Management

ST
R AT E G Y

Proactive Asset Value-creating Investment Prudent Capital

Management Management Management
Maximise organic growth potential of Secure investments to deliver growth Optimise capital structure to provide
properties and diversification financial flexibility

Proactive leasing and marketing Pursue yield-accretive Maintain a strong balance

initiatives acquisitions and developments sheet
Deliver quality service and Secure BTS projects with Diversify sources of funding
customised solutions pre-commitment from quality
Active interest rate
tenants
Improve operational efficiency to management
mitigate rising operating costs Consider opportunistic
divestments
Unlock value through AEIs

30
 Business Park Building, The Signature
The Manager aims to deliver sustainable and growing returns
to Unitholders by proactively managing MITs portfolio
of properties, seeking value-creating investments and
maintaining a sustainable capital structure. Underlying the
three-pronged strategy is the commitment to provide quality
industrial real estate solutions to its clients through in-depth
understanding of their requirements and delivery of innovative
real estate solutions to meet their evolving business needs.
Proactive Asset Management
Through proactive asset management, the Manager is able to
capture opportunities for organic growth while maintaining a
diversified portfolio that considers the strategic positioning of
MITs properties in the long term.
Proactive Leasing and Marketing Initiatives
The Manager is proactive in the management of lease renewals
and prospecting for new tenants to minimise downtime and
maximise returns for the portfolio. Negotiations for lease
renewals begin as early as six months before the expiry of
each lease. When sourcing for new tenants, the Manager
considers the desired tenant mix in each property cluster
and strives to attract tenants in similar or complementary
businesses to increase tenant stickiness; while ensuring no
significant concentration of a single tenant or tenant trade
sector. To maintain the relevance of the portfolio, the Manager
also monitors the developments in the industrial sector and
prospects for new tenants in growing trade sectors.
Leasing strategies are tailored to meet the changing
requirements of tenants. The Manager offers longer lease
packages beyond the standard three-year lease structure
to tenants who prefer lower rental volatility and certainty
in rental rates. Such packages typically have fixed rental
adjustments over the lease term. This also enables the
Manager to strengthen tenant relationships while extending
the portfolios WALE. In FY12/13, more than 50% of tenants
who have been offered the longer lease package have opted
for the scheme.
Diversification of the tenant base remains a key pillar of the
portfolios resilience. In managing the portfolio, the Manager
balances between the key characteristics of the portfolio,
such as the nature of the tenants underlying trade sectors,
tenants concentration and a well-distributed lease expiry
profile. As at 31 March 2013, the top ten tenants contributed
less than 20% of the portfolios gross rental income. With over
2,000 tenants, no single tenant and trade sector accounted
for more than 4.5% and 13.7% of the portfolios gross rental
revenue respectively.
The Manager also monitors tenants arrears closely as the
extent of arrears can be a leading indicator of potential
defaults by tenants. A Credit Control Committee comprising
representatives from Asset Management, Property
Management, Finance, Legal, Marketing and Lease
Management meets fortnightly to review payment trends of
tenants. The regular meetings instill a disciplined approach
for the Manager to anticipate and initiate necessary actions
to address potential arrears cases.
Deliver Quality Service and Customised Solutions
The Manager is committed to provide high quality asset
management services to maintain a high tenant retention
rate. This includes improving responsiveness to tenants
requirements and reviewing facility management services
regularly to ensure service standards are met. The Manager
actively engages existing and prospective tenants for
feedback through various channels.
The Manager considers tenants needs and offers
customised solutions for their evolving business
requirements. MITs diverse offering of industrial properties,
which are strategically located across Singapore, is able
to support tenants expansion or relocation requirements.
This increases tenant stickiness within the portfolio and
strengthens long-term relationships with the tenants. As a
result, tenants who have been leasing space from MIT for
more than four years increased from 44.9% as at 31 March
2012 to 47.6% as at 31 March 2013.
31
STRATEGY
Improve Operational Efficiency to Mitigate Rising
Operating Costs
The Manager actively monitors the trends of key cost
components of the portfolio. In the current environment
of rising costs due to inflation and tightening government
policies on foreign labour, the Manager strives to improve
operational efficiency and minimise operating costs by
leveraging on the economies of scale of the large portfolio.
The Manager intensified efforts to reduce energy
consumption in FY12/13. Amongst the initiatives
implemented were the installation of motion-activated light
controls and alternate lighting circuits at the common areas
in various properties. Fluorescent lights were replaced
with more energy efficient ones. A water conservation
campaign was also undertaken at selected clusters and
water-efficient taps were installed. The results have been
encouraging and the Manager plans to roll-out more such
initiatives across the portfolio.
Unlock Value through AEIs
The Manager constantly reviews the portfolio to identify
opportunities to unlock value from its existing assets.
Dedicated Asset Managers are assigned to manage
each property cluster and to identify asset enhancement
opportunities while considering the strategic positioning
of the product offering in the long term. The Manager has
undertaken initiatives to reposition property clusters to cater
to higher-value industrial uses, to enhance existing business
space with improved specifications, as well as to reconfigure
unusable or under-utilised space into leasable area.
For example, the Manager embarked on two major AEIs in
January 2012, which are on track for completion in FY13/14.
The first AEI at Woodlands Central cluster includes the
development of a six-storey extension wing as well as a multi-
storey carpark with canteen, adding approximately 70,000
sq ft of GFA to the cluster. Common facilities in the existing
buildings, including the restrooms, lift lobbies and walkways
will also be improved to enhance the attractiveness of the
entire cluster. Upon completion, Woodlands Central cluster
will be repositioned into a high-tech industrial space for
biomedical and medical technology companies.
The second AEI at the Toa Payoh North 1 cluster involves the
development of a new high-tech industrial building and an
amenity block on the existing open space car park, adding
approximately 150,000 sq ft of GFA. The initiative will also
include improvement works to the faade of the existing
buildings and landscaped areas. Following the completion of
the AEI, Toa Payoh North 1 cluster will be well-positioned to
32
cater to the needs of high-tech companies from the clean and
light manufacturing sectors.
These AEIs reflect the Managers continual efforts to
improve MITs product offering to meet the needs of
clients. These initiatives will enable MIT to attract tenants
in the high-growth market segments.
Value-creating Investment Management
The Manager explores acquisition and development
opportunities that add value or provide strategic benefits to the
existing portfolio. The Manager leverages on its existing client
network, the Sponsors network of real estate industry players
and public agencies in addition to referrals for acquisition and
development leads.
Pursue Yield-accretive Acquisitions and Developments
The Manager recognises the importance of financial
discipline in its evaluation of acquisition targets and
development projects; and considers factors such as
impact to distributions, long-term total returns, potential
of returns enhancement, impact to portfolio profile, asset
quality as well as diversification effects.
Secure BTS Projects with Pre-commitment from Quality
Tenants
The Manager continues to explore BTS opportunities
from new prospects and existing tenants. BTS solutions
allow clients to focus on their core businesses while
MIT manages the capital expenditure and development
process. BTS projects usually come with long-term
committed leases that provide income stability and
increase the portfolios WALE. They also allow the
Manager to focus on securing established tenants from
growing industries. For more complex and larger scale
development projects, the Manager leverages on the
capabilities and expertise of the Sponsors in-house
development team.
In FY12/13, the Manager secured two BTS projects;
one for K&S and one for Equinix. The BTS facility for K&S in
Serangoon North will serve as its new global headquarters
and is expected to be completed in the second half of
2013. K&S has committed to a minimum 10-year lease.
The second BTS project is the development of a new data
centre for Equinix in one-north for a minimum lease of 20
years. It is slated for completion in the second half of 2014.
With these two BTS projects anchored by established
tenants in growing sectors of precision engineering and
info-communications, MIT will benefit from new quality
income streams to the portfolio upon completion of these
developments.
 Flatted Factory, Chai Chee Lane
Consider Opportunistic Divestments
The Manager also reviews the competitiveness and potential
of each property within the portfolio on a regular basis.
Properties with lower long term relevance to the portfolio
may be considered for divestment, allowing capital to be
redeployed to better investment opportunities.
Prudent Capital Management
The Manager adopts a prudent capital management
strategy in order to deliver stable distributions to Unitholders.
The Manager strives to optimise its capital structure to
maximise returns, while maintaining financial flexibility to
support organic and inorganic growth initiatives.
Maintain a Strong Balance Sheet
Key objectives of the capital management strategy include
maintaining a strong balance sheet with an appropriate
mix of debt and equity, expanding and diversifying the
funding sources from banks and capital markets, as well
as minimising the cost of funding. Appropriate interest rate
hedging strategies are adopted to minimise exposure to
market volatility.
The Manager secures both committed and uncommitted
facilities, striking a balance between the availability of the
funds and the maintenance cost of committed facilities.
The Manager consciously expands its network of banks to
reduce concentration risk.
Light Industrial Building, Tata Communications Exchange
Diversify Sources of Funding
To further augment its funding sources, a DRP was applied to
MITs 3QFY12/13 and 4QFY12/13 distributions. The proceeds
from the DRP helped to strengthen MITs balance sheet and
financed the progressive funding needs of the AEIs and
development projects.
As part of its efforts to maintain a resilient balance sheet,
the Manager ensures sufficient liquidity with debt maturities
that are well-distributed over the years. The debt that was
due in September 2012 was refinanced with a combination
of cash and bank borrowings. Leveraging on the strong
demand for its maiden issue of S$125 million 7-year fixed
rate notes in March 2012 under the S$1 billion Multi-Currency
medium term note (MTN) Program, MIT issued S$45 million
10-year fixed rate notes in September 2012 to refinance in
advance part of the borrowings due in September 2013. The
Manager will continue to spread out the debt maturity profile
while minimising the cost of debt financing.
Active Interest Rate Management
To ensure stability of distributions to Unitholders, the Manager
adopts interest rate hedging strategies to minimise exposure
to market volatility. As at 31 March 2013, about 88% of the
borrowings are hedged through interest rate swaps or drawn
on fixed rate basis. The Manager closely monitors the money
market to extend these hedges, capitalising on opportunities
that may arise.
33
Strategic locations
across singapore

7.5% 1.0%

13.6%

Flatted Factories
Portfolio Value Business Park Buildings
S$2.9 billion
Stack-up/Ramp-up Buildings
Light Industrial Buildings
17.9%
Warehouse
60.0% As at 31 March 2013

Property Clusters1

Flatted Factories Business Park Buildings

1 Chai Chee Lane 28. The Signature
2. Changi North 29. The Strategy
3. Kaki Bukit 30. The Synergy
4. Kallang Basin 1 Tuas
5. Kallang Basin 2 Stack-up/Ramp-up Buildings Second Link Jurong
6. Kallang Basin 3 31. Woodlands Spectrum East
Region
7. Kallang Basin 4
8. Kallang Basin 5 Light Industrial Buildings International
9. Kallang Basin 6 32. 19 Changi South Street 1 Business Park
10. Kampong Ampat 33. 19 Tai Seng Drive
11. Kampong Ubi 34. Tata Communications Exchange
12. Kolam Ayer 1 35. 65 Tech Park Crescent
35
13. Kolam Ayer 2 36. 45 Ubi Road 1
14. Kolam Ayer 5 37. 26 Woodlands Loop
15. Loyang 1
Seaport
16. Loyang 2 Warehouse
17. Redhill 1 38. Clementi West
18. Redhill 2
19. Serangoon North Under Development
20. Tanglin Halt 39. 23A Serangoon North Avenue 5
21. Telok Blangah (Build-to-suit project for Kulicke
22. Tiong Bahru 1 & Soffa)
23. Tiong Bahru 2 40. Ayer Rajah Crescent
24. Toa Payoh North 1 (Build-to-suit project for Equinix)
25. Toa Payoh North 2
26. Toa Payoh North 3
27. Woodlands Central

A property cluster consists of one or more individual buildings situated on the same land lot or adjoining land lots.
1

34
 Diverse Portfolio of Large Tenant Base of

83 2,255
Properties Tenants

Flatted Factories
Business Park Buildings
Stack-up/Ramp-up Buildings
Causeway
to Malaysia Light Industrial Buildings
Warehouse
31
Woodlands 37 Under Development
Central 27 Major Expressways

Woodlands
Region

Serangoon
North
39 Tampines 15
19 Region
16
Loyang
Toa Payoh Kampong
North Ampat 2 Changi
25 24 34 33 Airport
10 Kampong Ubi
26 Changi North
12 32
29 Kolam 14 11 3 Kaki Bukit 28
30 36
38 Ayer 13 1 Changi
Clementi 4 Business
West 6 5 Park
Chai Chee Lane
Tanglin 7
20
Halt 8 9 Kallang
40 Tiong
Redhill Basin
23 Bahru
17
18 22
21
Telok
Blangah
Central
Business
Seaport
District

Seaport

35
OPERATIONS
REVIEW

Key Statistics
Portfolio As at 31 March 2013 As at 31 March 2012

65 64
Flatted
Factories (grouped into 27 clusters) (grouped into 27 clusters)
Business Park Buildings 3 3
7 7
Stack-up/Ramp-up
Buildings (grouped into 1 cluster) (grouped into 1 cluster)
Light Industrial Buildings 72 62
Warehouse 1 1
Total 833 81

1
A property cluster consists of one or more individual buildings situated on the same land lot or adjoining land lots.
2
Includes a property comprising 3 individual buildings at 26 Woodlands Loop.
3
Excludes BTS development for Equinix.

MITs portfolio comprises 83 properties in five property Property Type (By Valuation)
types. The properties in the portfolio are located in
established industrial estates and business parks,
which are served by good transportation infrastructure. 7.5% 1.0%
Many of these properties are also located near residential
housing estates, providing tenants easy access to a skilled 13.6%
and educated workforce. The widespread and well-located
properties offer customers a wide product range that
can meet their needs and priorities. The portfolio has an
Portfolio Value
aggregate GFA of approximately 19.1 million sq ft and net S$2,879.9 million
lettable area (NLA) of approximately 14.2 million sq ft.
17.9%
MITs portfolio continued to deliver strong operating
performance in FY12/13, demonstrating its robustness 60.0%
As at 31 March 2013
and resilience amid the volatile economic conditions. As at
31 March 2013, MITs 83 investment properties were valued
6.9% 1.0%
at S$2,879.9 million, representing an increase of 6.8% over
the previous valuation. The increase was attributed to a
13.6%
portfolio revaluation gain of S$134.9 million and capitalised
development cost of S$48.4 million. The revaluation gain was
driven mainly by improved rental rates and occupancies of
the properties. Portfolio Value
S$2,696.5 million

18.5%

60.0%
As at 31 March 2012

Flatted Factories
Business Park Buildings
Stack-up/Ramp-up Buildings
Light Industrial Buildings
Warehouse

36
Robust Growth Potential Average Occupancy Rates and Passing Rents4
The average occupancy rate of the portfolio increased
marginally to 95.2% in FY12/13 from 94.7% in FY11/12, Occupancy (%) Passing Rent (S$)
representing the highest average occupancy rate since 100% 94.7% 95.2% $1.80
listing. The portfolios passing rental rate in FY12/13 also 91.7%
$1.60
increased by 6.6% to S$1.61 psf/mth. $1.61
80% $1.51 $1.40
$1.45
Backed by a stable portfolio of properties strategically
$1.20
located across Singapore, MITs key property types 60%
continued to enjoy healthy occupancy rates. The drop in $1.00
occupancy of the Warehouse was due to a non-renewal by $0.80
a major tenant in 1QFY12/13. However, new leases for the 40%
Warehouse were secured at higher rates. The occupancies $0.60
across key property types remained high, underscoring $0.40
20%
the Managers proactive lease management efforts as well
$0.20
as property improvement initiatives to keep the properties
relevant and attractive to its tenants. 0% $0.00
FY10/11 FY11/12 FY12/13
Occupancy Passing Rent

4
All figures include properties as and when acquired by MIT and MSIT.

Segmental Occupancy Rates

Occupancy (%)
98.2% 98.6% 100.0% 100.0%
96.8% 94.7% 95.2%
100% 93.2% 94.4% 93.5% 92.0%
82.2%
80%

60%

40%

20%

0%
Flatted Factories Business Park Stack-up/Ramp-up Light Industrial Warehouse Portfolio
Buildings Buildings Buildings
FY11/12 FY12/13

37
OPERATIONS
REVIEW

Positive Rental Revisions5

Gross Rental Rate (S$ psf/mth)

$4.00 $3.88
$3.71
$3.50 $3.36
$3.58
$3.00

$2.50

$2.00 $1.87 $1.78

$1.62
$1.50 $1.29 $1.33 $1.30
$1.53 $1.12 $1.08
$1.00 $0.90 $1.26
$1.05
$0.50
Flatted Factories Business Park Buildings Stack-up/Ramp-up Warehouse
Buildings
Before Renewal After Renewal New Lease Passing Rent For the financial year ended 31 March 2013

No lease was renewed under Light Industrial Buildings.

5

For the year, MITs portfolio achieved positive rental revisions Gross Revenue Contribution (Multi-Tenanted
of between 10.4% and 25.6% across various property types. Buildings vs Single-User Buildings)
The passing rents for the various property types are generally
lower than the rates secured for new leases. The Manager
will continue to narrow the gap between the passing rent of 6.2%
the portfolio and market rent.

For FY12/13, the gross revenue contribution from

Multi-Tenanted Buildings (MTB) increased to 93.8% from
93.3% in FY11/12. While Single-User Buildings (SUB) have
longer lease periods with built-in rent escalations to provide FY12/13
stable income streams for the portfolio, MTB provides
organic rental revenue growth potential due to the shorter
lease durations.
93.8%

6.7%

FY11/12

93.3%

MTB
SUB

38
Healthy Tenant Retention
Tenants continued to display a high degree of stickiness to 4 years. Out of which, 11.0% have been in the portfolio for more
the portfolio in FY12/13. As at 31 March 2013, 47.6% of the than 10 years. For FY12/13, 73.2% of the leases which were
tenants have been leasing space in the portfolio for more than due for renewal were renewed.

Long Staying Tenants

30% 28.5%

25% 22.8%

20%
19.2%
17.4%
15.7%
15% 14.2%
11.7% 11.7% 11.9%
10% 8.5% 9.1% 8.1%
5.7% 6.4%
4.5% 4.6%
5%

0%
Up to 1 yr >1 to 2 yrs >2 to 3 yrs >3 to 4 yrs >4 to 5 yrs >5 to 10 yrs >10 to 15 yrs >15 yrs

As at 31 March 2012 As at 31 March 2013

Retention Rate6 (Based on NLA)

100% 92.8%
91.4%
82.6% 80.6% 82.0% 82.9%
80% 73.2%
63.5% 61.9%
60%

40% 34.0%

20%

0%
Flatted Factories Business Park Buildings Stack-up/Ramp-up Warehouse Portfolio
Buildings
FY11/12 FY12/13

Not meaningful for Light Industrial Buildings as there were no leases due for renewal in FY11/12 and only one lease due for renewal in FY12/13.
6

39
OPERATIONS
REVIEW

Diversification and Resilience

With a tenant base of 2,255 multinational companies,
listed companies and local enterprises, MITs tenant base
remains the largest among the industrial REITs in Singapore.
MITs gross rental income was well-distributed within its
portfolio of 3,119 leases. As at 31 March 2013, the top 10
tenants contributed to only 19.6% of the portfolios monthly
gross rental revenue.
No single trade sector accounted for more than 13.7% of the
portfolios monthly gross rental revenue. The diversification
across trade sectors and low dependence on any particular
customer provides MIT with greater portfolio stability and
reduces its concentration risk.
The weighted average unexpired lease term for underlying
land for the properties is 43.7 years as at 31 March 2013.

Top 10 Tenants (By Gross Rental Income)

Gross Rental Income (%)

5%
4.5%

4%
3.5%

3%
2.2%
2% 1.8% 1.7%
1.5%
1.3% 1.2%
1.0% 0.9%
1%

0%
Credit Tata Johnson & Celestica HGST Dell Global Sony Kulicke Lucasfilm Research
Suisse Communications Johnson Electronics Singapore Electronics & Soffa in Motion
International As at 31 March 2013

Tenant Diversification across Trade Sectors (By Gross Rental Income)

Precision Engineering, 13.61% Professional, Scientific and 5.69%

Electrical, Machinery and Technical Activities
Transportation Products Admin and Support Service 4.46%
Printing, Recorded Media & 9.84% Real Estate 0.74%
Essential Products
Others Financial Services 6.30%
(10.46%) Computer, Electronic 8.77%
& Optical Products Wholesale of Machinery, 7.45%
Pharmaceutical & Biological 3.42% Equipment and Supplies
Refined Petroleum & Chemicals 2.12% General Wholesale 7.44%
Wholesale & Manufacturing Trade & Services
Retail Trade (38.59%) Food & Beverage 0.83%
(24.68%) Wholesale Trade 3.84%
Telecommunications 4.60% Specialised Wholesale 1.95%
Computer Programming 2.63% Wholesale of F&B 1.04%
Financial & and Consultancy
Business Retail Trade 2.96%
Publishing 1.28%
Services InfoComm
(17.19%) (9.08%) Other Infomedia 0.31% Education, Health & 4.14%
Radio & TV Broadcasting 0.26% Social Services, Arts,
Entertainment & Recreation
Transportation & Storage 1.48%
Food Services 2.53%
Construction & Utilities 2.31%

As at 31 March 2013

40
Remaining Years to Expiry of Underlying Land Leases (By Land Area)

60% 57.8% 57.0%

50%

40%

30% 25.7% 26.6%

20%

9.9% 9.8%
10% 5.7% 5.7%
0.9% 0.9%
0%
0 to 20 years >20 to 30 years >30 to 40 years >40 to 50 years More than 50 years

As at 31 March 2012 As at 31 March 2013

Lease Expiry Profile (By Gross Rental Income) Stability from Extended Leases and Low Arrears
The lease duration for MITs properties is generally three
years, and lease renewals are well distributed over the
Expiring Leases by Gross Rental Income (%)
upcoming years. As at 31 March 2013, the WALE for the
30%
0.6% portfolio is 2.4 years, with 27.7% and 26.8% of the leases
27.1% 26.8%
due for renewal in FY13/14 and FY14/15 respectively.
25%
0.4%
Since 3QFY11/12, the Manager had introduced longer lease
20% 21.5% 4.9% packages (beyond the typical 3-year leases) for both new and
renewal tenancies, which help tenants to have longer-term
15% rental certainty for their business planning. It also enables
13.3% the Manager to deepen relationships with tenants while
10% extending the lease expiry profile of the portfolio. In FY12/13,
more than 50% of tenants who have been offered this option
5% have opted for it.
5.4%

0% The Manager adopts a disciplined approach to anticipate

FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 & and initiate necessary action to address potential arrears
Beyond case. A Credit Control Committee meets fortnightly to review
payment trends of tenants to minimise potential defaults
MTB SUB As at 31 March 2013 by tenants. As a result of the Managers active arrears
management, the total arrears outstanding as at 31 March
2013 remained low at approximately 0.2% of gross revenue
for FY12/13.

41
OPERATIONS
REVIEW
An artists impression of the improved
building facade of The Signature
An artists impression of the improved
An artists impression of the completed development at Woodlands Central cluster
drop-off area at The Signature
Sustaining Organic Growth through Active Asset
Management
The Manager continued to leverage on its experience in
extracting value through proactive asset management.
The Manager has undertaken three AEIs at Woodlands
Central, Toa Payoh North 1 clusters and The Signature.
Collectively, these initiatives will add more than 220,000
sq ft of GFA to the portfolio.
The Woodlands Central cluster, which is located next
to Woodlands Regional Centre, is being enhanced and
repositioned to cater to the needs of biomedical and high
technology industries. The AEI involves the building of a
six-storey extension wing, a new multi-storey car park
building with canteen, as well as the upgrading of common
facilities. It is on track for completion in the second quarter
of 2013. Upon completion, it will add 70,000 sq ft of GFA
to the portfolio.
The Toa Payoh North 1 cluster is strategically located along
Braddell Road and within the mature Toa Payoh estate.
The Manager has commenced asset enhancement works
in July 2012 to add approximately 150,000 sq ft of GFA
to the cluster and to reposition it as a high-tech industrial
42
building. When completed in the fourth quarter of 2013,
the new development will offer a new eight-storey high-
tech industrial building and a new five-storey amenity block
comprising production units, canteen and a multi-storey
car-park.
The Signature is a nine-storey iconic building with atrium
lobbies and convenient amenities such as food court, cafe,
and banking kiosks located within the Changi Business Park.
In January 2013, the Manager initiated asset enhancement
works to improve the competitiveness of the property.
The works include the conversion of gymnasium space to
business park space, the enhancement of the frontage with
a larger main lobby and improved drop-off area. An escalator
will also be added to improve the accessibility to the retail
shops at Level 1. When completed in the second quarter of
2013, the works would have also added another 3,000 sq ft
of GFA to the cluster.
Strengthening our Foothold in BTS Projects with
Quality Income Streams
Following the successful completion of Tata Communications
Exchange in 2010 at Paya Lebar iPark, the Manager
successfully secured two new BTS projects in FY12/13.

An artists impression of the completed development at Toa Payoh North 1 cluster
In May 2012, the Manager secured a S$50 million BTS
project to develop a global headquarters within the
Serangoon North Industrial Estate for K&S. The five-
storey high-specification building comprises facilities
for production, research and development with a total
GFA of 330,000 sq ft. K&S, a global leader in the design
and manufacture of semiconductor and LED assembly
equipment, will occupy 69% of the NLA for a 10-year lease
term, with the option to renew for two additional 10-year
terms. MIT was allocated the land by JTC Corporation
(JTC) with lease commencement on 1 July 2012. The
tenure of the underlying land is 30 years with an option to
renew for an additional 28.5 years. The building is slated for
completion by the second half of 2013.
In March 2013, the Manager sealed an agreement with
Equinix, a global interconnection and data centre company,
to develop its third data centre. The seven-storey facility will
have a GFA of 385,000 sq ft and is scheduled to complete
in the second half of 2014. MIT will develop the base
building for Equinix at an estimated cost of S$108 million.
In addition to the design and construction of the base
building, MIT has granted Equinix options to enhance two
floors of the building with additional infrastructure to support
An artists impression of K&Ss new global
headquarters in Singapore
An artists impression of the seven-storey
data centre for Equinix
data centre activities (Infrastructure Options). Should the
Infrastructure Options be exercised, the estimated total
cost will be S$217 million and additional rent would be
payable by Equinix. MIT was allocated the land within one-
north by JTC. The tenure of the underlying land is 30 years
commencing from 22 May 2013. Equinix has committed
to lease the entire building for an initial tenure of 20 years
with an option to renew for two additional 5-year terms,
or any other duration depending on the remaining land lease.
The Manager celebrated the groundbreaking together with
Equinix in April 2013.
Both developments attest to the development capability
of MIT, affirming its proven track record in delivering
quality and customised industrial real estate solutions.
BTS solutions allow companies to enjoy customised
industrial facilities on long-term lease basis without the
capital expenditure associated with the development
process. Companies are able to focus on their core
businesses while MIT manages the capital expenditure
and development process. These development projects
offer income stability from high-quality tenants as well as
diversification into growing trade sectors such as precision
engineering and data centres.
43
FLATTED
FACTORIES

Top Five Tenants in Flatted Factories

% of Gross Monthly
Property/ Tenant Trade Rental Income
No Tenant Cluster Name Sector (as at 31 March 2013)
1 Celestica Electronics (S) Pte. Ltd. Serangoon North / Manufacture of Computer, Electronic and 1.8
Woodlands Central Optical Products
2 HGST Singapore Pte. Ltd. Kaki Bukit Manufacture of Computer, Electronic and 1.7
Optical Products
3 Kulicke & Soffa Pte. Ltd. Serangoon North Manufacture of Precision Engineering, 1.2
Machinery and Transportation Products
4 Breadtalk Pte. Ltd. Kampong Ampat Wholesale of Food and Beverages 0.7
5 Life Technologies Holdings Woodlands Central Other Industries including Education, 0.6
Pte. Ltd. Health and Social Services

Flatted Factory,
Kaki Bukit
 Flatted Factories
Flatted Factories comprise multi-tenanted high-rise buildings. Standard units range from 1,000 sq ft to 10,000 sq ft, sharing
naturally ventilated corridors and lift lobbies. Other common facilities include car parks, loading/unloading areas and cargo lifts.
Selected Flatted Factories enjoy amenity centres located within the cluster.

Many of MITs Flatted Factories are located near public housing estates, giving tenants easy access to a ready labour pool, shops
and services of suburban town centres. Most of the Flatted Factories are also well-connected to major roads, expressways and
Mass Rapid Transit system, making them convenient for tenants.

Tenant Business Sector Key Statistics

(by Gross Rental Income) (as at 31 March 2013)

9.7% Number of Properties 65 (grouped into 27 clusters1)

Gross Floor Area 12,727,529 sq ft

27.6% 43.1%
Number of Tenants 1,957

Gross Revenue (for FY12/13) S$167.0 million

Occupancy (for FY12/13) 94.4%

Valuation S$1,727.9 million

13.1% 6.5% % of Portfolio (by Valuation) 60.0%

1
A property cluster consists of one or more individual buildings situated on the same land lot or
Manufacturing
adjoining land lots.
Information and Communications
Financial and Business Services
Wholesale and Retail Trade
Other Trade Sectors

Flatted Factory, Kallang Basin 4

45
 FLATTED
FACTORIES

Detailed Property Information

Gross Average
Valuation Valuation revenue Occupancy
Remaining Purchase as at as at for Rate for
Description of Acquisition Term of term of GFA NLA Price3 31/03/12 31/03/13 FY12/13 FY12/13
property date lease2 lease2 Location (sq ft) (sq ft) S$000 S$000 S$000 S$000 %
Chai Chee Lane 26/08/2011 60 years 58 years 510, 512 & 514 973,647 789,151 133,300 136,350 142,670 8,844 88.0
Chai Chee Lane
Singapore
Changi North 01/07/2008 60 years 55 years 11 Changi North 121,278 73,553 18,200 19,720 19,860 1,801 99.3
Street 1
Singapore
Kaki Bukit 01/07/2008 60 years 55 years 2,4,6,8 & 10 Kaki 1,341,959 960,155 147,600 168,610 179,500 16,617 97.9
Bukit Avenue 1
Singapore
Kallang Basin 1 26/08/2011 20 years 18 years 5 & 7 Kallang 190,663 133,343 23,200 22,110 22,150 2,436 98.6
Place
Singapore
Kallang Basin 2 26/08/2011 20 years 18 years 9 & 11 Kallang 366,234 251,417 44,500 41,320 41,380 4,340 98.2
Place
Singapore
Kallang Basin 3 26/08/2011 30 years 28 years 16 Kallang Place 504,315 407,083 74,000 73,480 73,570 6,211 93.3
Singapore
Kallang Basin 4 01/07/2008 33 years 28 years 26, 26A, 28 & 30 573,958 383,226 50,000 68,110 71,490 7,735 97.7
Kallang Place
Singapore
Kallang Basin 5 01/07/2008 33 years 28 years 19,21 & 23 Kallang 442,422 281,129 44,300 50,210 52,750 5,745 93.7
Avenue
Singapore
Kallang Basin 6 01/07/2008 33 years 28 years 25 Kallang Avenue 312,694 208,240 30,900 35,720 39,040 4,259 96.1
Singapore
Kampong 01/07/2008 60 years 55 years 171 Kampong 456,708 294,841 60,300 69,770 80,540 8,502 99.3
Ampat Ampat
Singapore
Kampong Ubi 26/08/2011 60 years 58 years 3014A, 3014B & 723,427 535,901 125,300 117,500 119,470 8,507 93.7
3015A Ubi Road 1
Singapore
Kolam Ayer 1 01/07/2008 43 years 38 years 8, 10 & 12 Lorong 478,901 339,706 49,300 58,060 62,610 6,218 92.6
Bakar Batu
Singapore
Kolam Ayer 2 01/07/2008 43 years 38 years 155, 155A & 161 506,726 349,610 46,100 54,350 59,480 6,364 92.1
Kallang Way
Singapore
Kolam Ayer 5 01/07/2008 43 years 38 years 1,3 & 5 Kallang 670,586 447,410 71,900 73,360 78,510 7,620 86.8
Sector
Singapore
Loyang 1 01/07/2008 60 years 55 years 30 Loyang Way 524,842 379,348 29,000 49,430 53,740 5,549 96.6
Singapore
Loyang 2 01/07/2008 60 years 55 years 2,4 & 4A Loyang 324,253 236,388 16,800 29,110 30,270 3,513 99.4
Lane
Singapore

46
 Detailed Property Information
Gross Average
Valuation Valuation revenue Occupancy
Remaining Purchase as at as at for Rate for
Description of Acquisition Term of term of GFA NLA Price3 31/03/12 31/03/13 FY12/13 FY12/13
property date lease2 lease2 Location (sq ft) (sq ft) S$000 S$000 S$000 S$000 %
Redhill 1 01/07/2008 30 years 25 years 1001, 1001A & 420,184 312,539 41,500 50,760 55,040 6,172 95.8
1002 Jalan Bukit
Merah
Singapore
Redhill 2 01/07/2008 30 years 25 years 1003 & 3752 Bukit 307,657 220,476 37,500 43,670 48,690 5,415 96.1
Merah Central
Singapore
Serangoon 01/07/2008 60 years 55 years 6 Serangoon 784,534 588,774 129,900 148,550 149,720 16,708 98.8
North North Avenue 5
Singapore
Tanglin Halt 01/07/2008 56 years 51 years 115A/B 242,384 171,688 28,900 36,310 36,420 3,708 100.0
Commonwealth
Drive
Singapore
Telok Blangah 01/07/2008 60 years 55 years 1160, 1200 & 437,266 285,245 44,000 51,980 52,610 5,112 92.7
1200A Depot Road
Singapore
Tiong Bahru 1 01/07/2008 30 years 25 years 1090 Lower Delta 159,835 110,574 14,500 18,130 18,180 2,184 99.9
Road
Singapore
Tiong Bahru 2 01/07/2008 30 years 25 years 1080,1091,1091A, 465,554 341,671 45,800 56,170 59,640 6,818 96.2
1092 & 1093
Lower Delta Road
Singapore
Toa Payoh 01/07/2008 30 years 25 years 970, 978, 988 & 503,327 341,976 43,400 55,940 65,580 6,700 97.5
North 1 998 Toa Payoh
North
Singapore
Toa Payoh 01/07/2008 30 years 25 years 1004 Toa Payoh 167,186 108,665 13,700 18,240 19,130 2,271 99.5
North 2 North
Singapore
Toa Payoh 01/07/2008 30 years 25 years 1008 & 1008A 192,320 137,120 16,400 22,140 22,530 2,678 96.7
North 3 Toa Payoh North
Singapore
Woodlands 01/07/2008 60 years 55 years 33 & 35 Marsiling 534,669 349,227 39,400 49,130 73,330 4,929 76.0
Central Ind Estate Road 3
Singapore
Subtotal Flatted Factories 12,727,529 9,038,456 1,419,700 1,618,230 1,727,900 166,956 94.44

2
Refers to the tenure of underlying land.
3
Excludes stamp duties and other acquisition related costs.
4
Refers to the aggregate occupancy for the property type.

47
BUSINESS PARK
BUILDINGS

Top Five Tenants in Business Park Buildings

% of Gross Monthly
Property/ Tenant Trade Rental Income
No Tenant Cluster Name Sector (as at 31 March 2013)
1 Credit Suisse AG The Signature Financial and Insurance Activities 4.5
2 Johnson & Johnson Pte. Ltd. The Strategy Manufacture of Pharmaceuticals and 2.2
Biological Products
3 Dell Global B.V. The Strategy Wholesale of Machinery, Equipment and 1.5
(Singapore Branch) Supplies
4 Sony Electronics (Singapore) The Strategy Manufacture of Precision Engineering, 1.3
Pte. Ltd. Machinery and Transportation Products
5 Lucasfilm Animation Company The Signature Business Services: Professional, Scientific 1.0
Singapore B.V. and Technical Activities

Business Park Building,

The Signature
 Business Park Buildings
Business Park Buildings are multi-tenanted high-rise buildings within a landscaped environment. Fitted with air-conditioned
lift lobbies and common areas, each unit can be customised to meet the requirements of tenants. Suitable businesses include
non-pollutive industries and businesses that engage in high technology, research and development, high value-added and
knowledge intensive activities. Tenants in business park buildings are provided with basic security features.

Business Park Buildings are located within a government identified zone called Business Park. Each Business Park zone
accommodates various amenities and facilities such as food and beverage outlets, fitness centres, convenience outlets and
childcare centres. Business Park Buildings are served by good public transportation network and well-connected to major roads
and expressways.

Tenant Business Sector Key Statistics

(by Gross Rental Income) (as at 31 March 2013)

12.0% Number of Properties 3

24.0%
Gross Floor Area 1,675,535 sq ft

Number of Tenants 112

25.7%
Gross Revenue (for FY12/13) S$51.1 million
4.6%
Occupancy (for FY12/13) 92.0%

Valuation S$515.6 million

33.7% % of Portfolio (by Valuation) 17.9%

Manufacturing
Information and Communications
Financial and Business Services
Wholesale and Retail Trade
Other Trade Sectors

Detailed Property Information

Gross Average
Valuation Valuation revenue Occupancy
Remaining Purchase as at as at for Rate for
Description of Acquisition Term of term of GFA NLA Price2 31/03/12 31/03/13 FY12/13 FY12/13
property date lease1 lease1 Location (sq ft) (sq ft) S$000 S$000 S$000 S$000 %
The Signature 01/07/2008 60 years 55 years 51 Changi Business 505,133 358,020 98,500 130,820 133,860 16,904 97.1
Park Central 2
Singapore
The Strategy 01/07/2008 60 years 55 years 2 International 725,171 575,291 213,900 254,950 268,390 23,693 94.4
Business Park
Singapore
The Synergy 01/07/2008 60 years 55 years 1 International 445,231 282,074 91,000 113,150 113,340 10,471 80.6
Business Park
Singapore
Subtotal Business Park Buildings 1,675,535 1,215,385 403,400 498,920 515,590 51,068 92.03

1
Refers to the tenure of underlying land.
2
Excludes stamp duties and other acquisition related costs.
3
Refers to the aggregate occupancy for the property type.

49
STACK-UP/
RAMP-UP BUILDINGS

Top Five Tenants in Stack-up/Ramp-up Buildings

% of Gross Monthly
Property/ Tenant Trade Rental Income
No Tenant Cluster Name Sector (as at 31 March 2013)
1 Univac Precision Engineering Woodlands Manufacture of Precision Engineering, 0.7
Pte. Ltd. Spectrum Machinery and Transportation Products
2 Arvato Digital Services Pte. Ltd. Woodlands Manufacture of Computer, Electronic and 0.5
Spectrum Optical Products
3 IIa Technologies Pte. Ltd. Woodlands Manufacture of Computer, Electronic and 0.4
Spectrum Optical Products
4 MClean Technologies Pte. Ltd. Woodlands Other Industries including Education, Health 0.3
Spectrum and Social Services
5 RED Equipment Pte. Ltd. Woodlands Wholesale of Machinery, Equipment and 0.3
Spectrum Supplies

Stack-up/Ramp-up Building,
Woodlands Spectrum
 Stack-up/Ramp-up Buildings
MITs Stack-up/Ramp-up Buildings are multi-storey developments, which are designed to serve a wide range of industrial
activities. The principal activities carried out are manufacturing of products like dies, moulds, tools and machinery related to
precision engineering, manufacturing of machinery, electronics and electrical products such as semiconductor assembly and
testing equipment as well as manufacturing of commodities (e.g. plastics, paper and metal products).

Each unit within the six-storey stack-up buildings is a standalone factory with its own dedicated loading area and car park lots.
The eight-storey ramp-up building is designed such that each level of the building is similar to a typical Flatted Factorys ground
floor with units located next to each other. Most units have its own exclusive loading and unloading area.

Tenant Business Sector Key Statistics

(by Gross Rental Income) (as at 31 March 2013)

13.5% Number of Properties 7 (grouped into 1 cluster1)

Gross Floor Area 3,703,171 sq ft

18.4% 57.5%
Number of Tenants 151

Gross Revenue (for FY12/13) S$38.0 million

Occupancy (for FY12/13) 98.6%

8.6%
Valuation S$392.9 million
2.0%
% of Portfolio (by Valuation) 13.6%

1
A property cluster consists of one or more individual buildings situated on the same land lot or
Manufacturing
adjoining land lots.
Information and Communications
Financial and Business Services
Wholesale and Retail Trade
Other Trade Sectors

Detailed Property Information

Gross Average
Valuation Valuation revenue Occupancy
Remaining Purchase as at as at for Rate for
Description of Acquisition Term of term of GFA NLA3 Price4 31/03/12 31/03/13 FY12/13 FY12/13
property date lease2 lease2 Location (sq ft) (sq ft) S$000 S$000 S$000 S$000 %
Woodlands 01/07/2008 60 years 55 years 201,203,205,207,209 & 3,703,171 3,024,955 265,000 366,430 392,920 38,045 98.6
Spectrum 211 Woodlands Avenue
9 and 2 Woodlands
Sector 1
Singapore
Subtotal Stack-up/Ramp-up Buildings 3,703,171 3,024,955 265,000 366,430 392,920 38,045 98.6

2
Refers to the tenure of underlying land.
3
NLA excludes long strata leases at Woodlands Spectrum.
4
Excludes stamp duties and other acquisition related costs.

51
LIGHT INDUSTRIAL
BUILDINGs

Top Five Tenants in Light Industrial Buildings

% of Gross Monthly
Property/ Tenant Trade Rental Income
No Tenant Cluster Name Sector (as at 31 March 2013)
1 Tata Communications Tata InfoComm : Telecommunications 3.5
International Pte. Ltd. Communications
Exchange
2 Centurion Corporation Limited 45 Ubi Road 1 Financial and Insurance Activities 0.6
3 Starhub Ltd. 19 Tai Seng Drive InfoComm : Telecommunications 0.6
4 Cal-Comp Precision (Singapore) 19 Changi South Business Services: Administrative and 0.5
Limited Street 1 Support Service Activities
5 Metech International Limited1 65 Tech Park Business Services: Administrative and 0.4
Crescent Support Service Activities

1
The company was formerly known as Centillion Environment & Recycling Limited and changed its name to Metech International Limited in May 2012.

Light Industrial Building,

Tata Communications Exchange
 Light Industrial Buildings
MITs Light Industrial Buildings consist of medium to high rise developments. They are located in central locations or in areas
with good access to other parts of Singapore via the major expressways.

Each building is occupied by an anchor tenant who is involved in a light industrial activity such as precision engineering,
multimedia manufacturing or data centre operations. The tenants include multinational corporations and Singapore-listed
companies who are committed to long term leases with built-in rent escalations.

Tenant Business Sector Key Statistics

(by Gross Rental Income) (as at 31 March 2013)

0.1% Number of Properties 72

3.4% 0.3%
Gross Floor Area 754,287 sq ft
25.5%
Number of Tenants 9

Gross Revenue (for FY12/13) S$17.2 million

Occupancy (for FY12/13) 100.0%

Valuation S$215.1 million

70.7%
% of Portfolio (by Valuation) 7.5%

2
Includes 26 Woodlands Loop, which is a Property comprising three individual buildings.
Manufacturing
Information and Communications
Financial and Business Services
Wholesale and Retail Trade
Other Trade Sectors

Detailed Property Information

Gross Average
Valuation Valuation revenue Occupancy
Remaining Purchase as at as at for Rate for
Description of Acquisition Term of term of GFA NLA Price 31/03/12 31/03/13 FY12/13 FY12/13
property date lease3 lease3,4 Location (sq ft) (sq ft) S$000 S$000 S$000 S$000 %
19 Changi South 21/10/2010 30+30 44 years 19 Changi South 74,900 74,900 12,400 13,220 13,800 1,240 100.0
Street 1 years Street 1
Singapore
19 Tai Seng Drive 21/10/2010 30+30 38 years 19 Tai Seng Drive 92,641 92,641 13,700 14,290 14,720 1,574 100.0
years Singapore
Tata 21/10/2010 30+30 56 years 35 Tai Seng Street 172,945 144,295 95,000 96,030 95,560 9,968 100.0
Communications years Singapore
Exchange
65 Tech Park 21/10/2010 60 years 40 years 65 Tech Park Crescent 107,373 107,373 13,200 13,960 14,080 1,024 100.0
Crescent Singapore
45 Ubi Road 1 21/10/2010 30+30 40 years 45 Ubi Road 1 150,610 150,610 23,500 24,660 24,670 1,654 100.0
years Singapore
26 Woodlands 21/10/2010 30+30 42 years 26 Woodlands Loop 155,818 149,096 21,900 23,270 25,480 1,764 100.0
Loop years Singapore
23A Serangoon 30+28.5 58 years 23A Serangoon North - - - - 26,820 - -
North Avenue 5 years Avenue 5
(Property under Singapore
Development)
Subtotal Light Industrial Buildings 754,287 718,915 179,700 185,430 215,130 17,224 100.05

3
Refers to the tenure of underlying land.
4
Remaining term of lease includes option for MSIT to renew the land leases.
5
Refers to the aggregate occupancy for the property type.

53
WAREHOUSE

Top Five Tenants in Warehouse

% of Gross Monthly
Property/ Tenant Trade Rental Income
No Tenant Cluster Name Sector (as at 31 March 2013)
1 Tech-Log Services International Clementi West Transportation and Storage 0.1
Pte. Ltd.
2 Mirar Laboratories Pte. Ltd. Clementi West Other Industries including Education, 0.1
Health and Social Services
3 Princeton Pharmacy (S) Clementi West Retail Trade: Pharmacies 0.1
Private Limited
4 Comtech Oil Separator and Plate Clementi West General Wholesale Trade and Services 0.1
Heat Exchangers Spares Pte. Ltd.
5 Teo Soon Kiat trading as Soon Clementi West Manufacture of Furniture, Printing, 0.1
Kiat Furniture Industry Trading Recorded Media and Essential Products

Warehouse,
Clementi West
 Warehouse
MITs only warehouse is located in the Western part of Singapore. The warehouse facility is equipped with loading and docking
bays for the storage and distribution of goods and merchandise.

Tenant Business Sector Key Statistics

(by Gross Rental Income) (as at 31 March 2013)

Number of Properties 1
18.8%

34.6% Gross Floor Area 251,038 sq ft

Number of Tenants 26
8.4%
Gross Revenue (for FY12/13) S$3.1 million

Occupancy (for FY12/13) 82.2%

Valuation S$28.3 million

38.2%
% of Portfolio (by Valuation) 1.0%

Manufacturing
Financial and Business Services
Wholesale and Retail Trade
Other Trade Sectors

Detailed Property Information

Gross Average
Valuation Valuation revenue Occupancy
Remaining Purchase as at as at for Rate for
Description of Acquisition Term of term of GFA NLA Price2 31/03/12 31/03/13 FY12/13 FY12/13
property date lease1 lease1 Location (sq ft) (sq ft) S$000 S$000 S$000 S$000 %
Clementi West 01/07/2008 30 years 25 years 1 Clementi Loop 251,038 212,740 22,200 27,500 28,330 3,140 82.2
Singapore
Subtotal Warehouse 251,038 212,740 22,200 27,500 28,330 3,140 82.2

1
Refers to the tenure of underlying land.
2
Excludes stamp duties and other acquisition related costs.

55
Property portfolio
at a glance

Flatted Factories

01 Chai Chee Lane 02 Changi North 03 Kaki Bukit

04 Kallang Basin 1 05 Kallang Basin 2 06 Kallang Basin 3

07 Kallang Basin 4 08 Kallang Basin 5 09 Kallang Basin 6

10 Kampong Ampat 11 Kampong Ubi 12 Kolam Ayer 1

13 Kolam Ayer 2 14 Kolam Ayer 5 15 Loyang 1

56
16 Loyang 2 17 Redhill 1 18 Redhill 2

19 Serangoon North 20 Tanglin Halt 21 Telok Blangah

22 Tiong Bahru 1 23 Tiong Bahru 2 24 Toa Payoh North 1

25 Toa Payoh North 2 26 Toa Payoh North 3 27 Woodlands Central

57
Property portfolio
at a glance

Business Park Buildings

28 The Signature 29 The Strategy 30 The Synergy

Stack-up/Ramp-up Buildings Light Industrial Buildings

31 Woodlands Spectrum 32 19 Changi South Street 1 33 19 Tai Seng Drive

Light Industrial Buildings

34 Tata Communications Exchange 35 65 Tech Park Crescent 36 45 Ubi Road 1

Light Industrial Buildings Warehouse

37 26 Woodlands Loop 38 23A Serangoon North Avenue 5 39 Clementi West

58
SINGAPORE INDUSTRIAL
PROPERTY MARKET OVERVIEW
Colliers International Consultancy & Valuation (Singapore) Pte Ltd
29 May 2013

1 Macroeconomic Trends
1.1 Review of Economic Performance in the Past Year
According to MTI, Singapores GDP slowed to 1.3% in 2012 from 5.2% in 2011. The slower economic growth was mainly
due to weakness in the externally-oriented sectors such as manufacturing as well as wholesale and retail trade.

Specifically, Singapores manufacturing sector growth slowed significantly from 7.8% in 2011 to 0.1% in 2012 due to the
11.3% year-on-year (YoY) decline in the electronics clusters output. Over the same period, the wholesale and retail trade
sector also contracted by 0.7% in 2012, compared to the 1.6% growth in the preceding year.

The latest statistics released by MTI showed Singapores economy grew by a mere 0.2% YoY in 1Q 2013, compared to
the 1.5% growth in 4Q 2012. This was due mainly to the 6.8% YoY contraction in manufacturing sector output in 1Q 2013,
which was steeper compared to the 1.1% YoY decline registered in 4Q 2012.

Year-on-Year Growth in Gross Domestic Product

16%
14%

12%

10%

8%

6%

4%

2%

0%
-2%

-4%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12 1Q13

Source: Singapore Department of Statistics

1.2 Economic Outlook

The outlook of Singapores economy is cautiously optimistic. Although the global macroeconomic conditions have
stabilised in recent months, global economic risks like the fiscal uncertainties in the United States and a potential flare-
up of the Eurozones sovereign debt crisis remained. There are also other uncertainties such as the risk of an escalation
in regional geopolitical tensions, and a possible global outbreak of respiratory viruses.

Nevertheless, MTI expects Singapores economic growth to improve gradually over the remaining three quarters
of 2013 as externally-oriented sectors like manufacturing are foreseen to pick up in line with the gradual recovery
in external demand. At the same time, growth will be supported by the construction and key services sectors.
Against this backdrop, and barring any downside risks, MTI maintained its growth forecast at 1.0% to 3.0% for
2013.

59
SINGAPORE INDUSTRIAL
PROPERTY MARKET OVERVIEW
Colliers International Consultancy & Valuation (Singapore) Pte Ltd
29 May 2013

2 Recent Government Policies and Measures

The following are some of the recent Government policies and measures that will help to regulate the Singapore
industrial property market and ensure that the needs of industrialists are better met:

Short-Tenure Industrial Sites

To enable industrialists to develop their own customised land-based facilities at more affordable prices, the Government
will continue to cap the land tenure of industrial sites to be released under its Industrial Government Land Sales (IGLS)
programme for the first half of 2013 at 30 years. Smaller sites and sites with shorter land tenure of about 22 years,
targeted at small and medium enterprises (SMEs) will also be released.

However, the reduction of the tenure of new IGLS sites to a maximum of 30 years may lead to a short-term boost in
purchase demand for industrial properties with longer land tenures and in turn inflate the value of existing properties
with longer or 60-year tenures, as these would now be considered limited in the industrial market. Also, with a
30-year leasehold tenure cap, institutional investors with a medium-term to long-term business horizon are generally
not expected to participate in IGLS tenders as the expected return over a shortened time frame is less accretive.

New Development Guidelines for Industrial Properties

To ensure that developers design and build industrial facilities that cater to the needs of industrialists, the Government
introduced development guidelines for industrial properties. All developers/investors of new industrial properties are
hence required to adhere to these guidelines:
To cater to the needs of SMEs requiring bigger industrial premises, successful bidders of selected industrial sites sold
under the IGLS programme from 1 January 2013 will be required to build a minimum number of large factory units.
The stipulated number and size of these large factory units will be released when a site is launched for tender.

With effect from 1 January 2012, all land parcels released for sale that are zoned Business 1 (B1)1 and Business 2
(B2)2 are subjected to new conditions. These include the prohibition of strata subdivision for selected sites near mass
rapid transit stations or as decided by the Government for a period of 10 years from the date of the issue of
Temporary Occupation Permit, the imposition of a minimum GFA requirement of 150 square metres (sqm)
(approximately 1,615 sq ft) on strata units in multi-user developments as well as stipulating the number of good lifts
and loading bays that must be provided in accordance to the maximum permissible GFA of the land parcel for
multi-storey industrial developments3.

With effect from 1 January 2011, the Project Completion Period was shortened to five years for IGLS sites with a
maximum permissible GFA of less than 50,000 sq m (approximately 538,185 sq ft) and to seven years for IGLS
sites with a maximum permissible GFA of equal or more than 50,000 sq m (approximately 538,185 sq ft).

Better Clarity on Allowable Uses in Industrial Properties

To provide better clarity on the allowable use of industrial properties and to eradicate unauthorised uses of industrial
space, the following guidelines were introduced:
With effect from June 2012, estate agents and salespersons are expected to advertise the use of the property as
approved by the Urban Redevelopment Authority (URA). For example, developments on land zoned B1 or B2 under
URAs Master Plan 2008 are approved and allowed primarily for industrial use (e.g. manufacturing and warehousing
activities). Such industrial properties should not be marketed for business (which may be misinterpreted as offices)
or for offices which are not allowed in industrial buildings. As such, developers and investors of industrial properties
should also ensure that buyers are aware of the industrial allowable uses and that space occupants are authorised users
under the prevailing industrial use definitions.

Under the guidelines on the non-exclusive and limited use of industrial premises for religious activities, announced on
12 June 2012, religious activities in industrial premises are limited to only certain days in a week and occupy only part of
the industrial premises within the ancillary use quantum. Additionally, existing religious organisations that are using
factory units for religious uses on an exclusive basis will be granted a three-year grace period with effect
from 12 June 2012. As such, landlords/investors of industrial properties need to ensure that these guidelines are
adhered to.

1
Business 1 (B1): These are areas used or intended to be used mainly for clean industry, light industry, warehouse, public utilities and telecommunication uses
and other public installations for which the relevant authority does not impose a nuisance buffer greater than 50 metres. Certain general industrial uses that meet
the nuisance buffer requirements of not more than 50 metres imposed by the relevant authority may be allowed in the B1 zones, subject to evaluation by the
relevant authority and the competent authority.
2
Business 2 (B2): These are areas used or intended to be used for clean industry, light industry, general industry, warehouse, public utilities and telecommunication
uses and other public installations. Special industries such as manufacture of industrial machinery, shipbuilding and repairing, may be allowed in selected areas
subject to evaluation by the competent authority.
3
This applies to all high-rise industrial developments, regardless of it being a single or multi-user development.

60
 Cooling Measures for the Industrial Property Market: Sellers Stamp Duty
To rein in short-term speculative activity, the Government introduced a Sellers Stamp Duty (SSD) of 15%, 10% and 5%
on industrial properties sold within one, two and three years of purchase on or after 12 January 2013, respectively.

This measure is not expected to affect institutional investors of properties as these investors such as REITs typically
have a longer investment horizon. Meanwhile, while it will take some time for the effects of the SSD to filter through the
industrial property market, the strata-titled industrial sales market is expected to experience an immediate knee-jerk
reaction as both buyers and sellers step back to assess the impact. However, the strata-titled industrial sales market is
expected to see continued support from end-users and investors with a longer investment horizon after the initial knee-
jerk reaction. The industrial property market is expected to be more stable in 2013 with minimal fluctuations in industrial
property prices.

Change in Mode of Payment for Third Party Facility Assignment of JTC Lease
With effect from 1 January 2013, the payment scheme for new assignment contracts under JTC leased sites involving
third party facility providers has been revised to upfront land premium. As such, the option of paying land rental now
remains open only to buyers who are industrialists.

Institutional investors such as REITs and property funds buying industrial building from sellers on JTC-leased sites will
now need to incur an upfront land premium for the remaining part of the lease term on top of the acquisition cost for the
property.

Reduction of Minimum GFA Requirement for New Anchor Tenant Applications of Third Party Facility Providers
With effect from 5 April 2013, JTC has relaxed its sub-letting rule for third-party facility providers. While lessees of
JTC property wishing to sub-let their GFA to other tenants would have to sub-let at least 50% of the buildings GFA
to one or more JTC-approved anchor tenants, the minimum GFA for an anchor tenant has been halved to 1,500 sq m
(approximately 16,146 sq ft).

The change is expected to encourage more flexibility and space efficiency for industrial developers and landlords.
For instance, REITs will have the opportunity to expand their tenant base and secure higher rents when the space
is up for renewal. Prospective anchor tenants with smaller space requirements too, stand to benefit from the rule
change.

3 Multi-User Factory Market Overview

3.1 Existing and Potential Supply
As of 4Q 2012, the stock of completed multi-user factory space in Singapore stood at 97.1 million sq ft, up 4.3% YoY.
This followed the net addition of 4.0 million sq ft of new multi-user factory space in 2012. The net addition of another
approximate 269,000 sq ft of multi-user factory space in 1Q 2013 raised the total multi-user factory stock to 97.3 million
sq ft by the end of March 2013.

Based on available information as of 1Q 2013, an estimated 19.3 million sq ft4 (net floor area) of new multi-user
factory space is expected to be completed from 2Q 2013 to 2016. Including the 269,000 sq ft completed in 1Q 2013,
this translates to an average supply of approximately 4.9 million sq ft per annum for the four years from 2013 to 2016,
which is 172.2% higher than the annual average net new supply of 1.8 million sq ft, and 104.2% above the annual
average net new demand of 2.4 million sq ft for the period from 2003 to 2012.

4
Potential supply includes space under construction and planned but the actual level of new supply could increase / decrease due to changes in the status of
planned projects.

61
SINGAPORE INDUSTRIAL
PROPERTY MARKET OVERVIEW
Colliers International Consultancy & Valuation (Singapore) Pte Ltd
29 May 2013

Net New and Potential Supply of Multi-User Factory Space (as of 1Q 2013)

Net Floor Area (000 sq ft)

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

-1,000

-2,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F

Completed Uncompleted F: Forecast Source: URA/Colliers International Singapore Research, May 2013

3.2 Demand and Occupancy

Although total net new demand of multi-user factory space fell by about 8.0% YoY to 3.2 million sq ft in 2012, it is still
about 68.4% above the annual average net new demand of 1.9 million sq ft for the period from 2002 to 2011.

As net new supply exceeded net new demand in 2012, this exerted some downward pressure on the average occupancy
rate which slipped by 0.5-percentage point YoY, to 90.3% as of 4Q 2012.

URAs data showed that the average occupancy rate of multi-user factory space inched up to 90.5% as of 1Q 2013. This
came on the back of a 40.0% quarter-on-quarter (QoQ) increase in net new demand to approximately 377,000 sq ft,
which was higher than the net new supply of about 269,000 sq ft during the quarter.

Net Demand and Occupancy Rate of Multi-User Factory Space (as of 1Q 2013)

Net Floor Area (000 sq ft) Occupancy Rate (%)

4,000 94%

3,500 92%

90%
3,000
88%
2,500
86%
2,000
84%
1,500
82%
1,000
80%
500 78%

0 76%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12 1Q13

Net New Demand Occupancy Rate Source: URA/Colliers International Singapore Research, May 2013

62
3.3 Rents of Multi-User Factory Space
According to URA, the monthly 25th percentile5 rent of multi-user factory space rose by 3.7% YoY to S$1.70 per sq ft
as of 4Q 2012, on the back of healthy occupancies. However, the rate of growth has slowed from the 9.3% gain seen
in 2011, in line with the moderation in demand.

Similarly, the monthly median and 75th percentile rents registered slower annual growth of 5.3% and 6.4% respectively,
to S$2.00 per sq ft and S$2.50 per sq ft as of 4Q 2012. Comparatively, the median rent gained 9.2% while the
75th percentile rent rose by 6.8% in 2011.

URAs records for 1Q 2013 showed rents exhibiting greater stability compared to the previous quarter.
Although the monthly 25th percentile rent eased by 1.8% QoQ to S$1.67 per sq ft, reversing 4Q 2012s 3.0% rise,
the monthly median and 75th percentile rents stayed constant at S$2.00 per sq ft and S$2.50 per sq ft, respectively.
In comparison, the monthly median rent rose by 1.5% QoQ in 4Q 2012 while the 75th percentile rent was stable during
the same quarter.

Rents of Multi-User Factory Space (as of 1Q 2013)

(S$ per sq ft per month)

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12 1Q13

25th Percentile Median 75th Percentile Source: URA/Colliers International Singapore Research, May 2013

3.4 Outlook
Going forward, the prevailing macroeconomic challenges, the substantial amount of space in the pipeline, as well
as the Governments clamp down on illegal industrial space users and stricter enforcement of its guidelines on the
legitimate use of industrial space could result in the average occupancy rate of multi-user factory space softening in
2013. And with tenants foreseen to remain cost sensitive due to the overall rise in business operating cost, this could
place some downward pressure on islandwide rents of conventional multi-user factory space in 2013.

5
As the stock of multi-user factories comprises developments with varying building specifications to which rents are sensitive, the 25th percentile rents from
URAs Real Estate Information System would be reflective of conventional flatted factories with basic specifications.

63
SINGAPORE INDUSTRIAL
PROPERTY MARKET OVERVIEW
Colliers International Consultancy & Valuation (Singapore) Pte Ltd
29 May 2013

4 Stack-Up6 Factory Market Overview

4.1 Existing and Potential Supply
According to Colliers Internationals research, Singapores total estimated stock of stack-up factory space remained
stable at about 6.0 million sq ft as of 1Q 2013. The last known project addition was the completion of West Park
BizCentral at Tanjong Kling in December 2011. Going forward, the stock of stack-up factory space is expected to remain
stable as there are no known new stack-up factory projects in the supply pipeline7, based on available information as
of 1Q 2013.

4.2 Demand and Occupancy

Demand for stack-up factory space was healthy in 2012. According to Colliers Internationals estimates,
the average occupancy rate of stack-up factory space in Singapore rose from 82.2% as of 4Q 2011 to 96.3%
as of 4Q 2012. This was due to the 206.5% increase in net new demand for stack-up factory space from about
279,000 sq ft in 2011 to about 855,000 sq ft in 2012, as supply remained stable.

Supported by the net absorption of another approximate 32,000 sq ft of space amid stable supply, the average
occupancy rate of stack-up factory space inched up to approximately 96.6% as of 1Q 2013.

4.3 Rents of Stack-Up Factory Space

Monthly gross rents of islandwide stack-up factory space are estimated to range from S$1.07 per sq ft to S$2.20 per sq ft
as of 4Q 2012, depending on the location, age, as well as design and functional specifications of the stack-up factory
buildings. This rental range translates to an average monthly gross rent of S$1.64 per sq ft as of 4Q 2012. While the
average rent as of 4Q 2012 was 2.5% higher YoY, the pace of growth has moderated from the 16.4% recorded in 2011.

In 1Q 2013, the monthly gross rents for stack-up factory in Singapore ranged from S$1.09 per sq ft to S$2.20 per sq ft.
Although the average monthly gross rent of stack-up factory space rose marginally by another 0.6% QoQ to S$1.65 per
sq ft as of 1Q 2013, the rate of rental growth was limited to some extent by competition from new ramp-up industrial
facilities.

4.4 Outlook
Taking into account the relative scarcity of land-based industrial facilities, the lack of new upcoming stack-up
developments, and the expected competition from ramp-up factories, the average occupancy rate of stack-up factory
space is expected to remain relatively stable in 2013. Consequently, rents for stack-up factory premises are forecast to
rise at a moderated pace in 2013, supported by modest new take-up and lease renewals.

5 Single-User8 Factory Market Overview

5.1 Existing and Potential Supply
Singapores islandwide stock of single-user factory space rose 1.4% YoY to 231.3 million sq ft as of 4Q 2012,
following the net addition of some 3.2 million sq ft in 2012. The completion of 904,000 sq ft in 1Q 2013 raised the
overall stock of single-user factory space to 232.2 million sq ft as of the end of March 2013.

Based on URAs statistics and Colliers Internationals estimates as of 1Q 2013, an estimated 19.0 million sq ft9 (net floor
area) of new single-user factory space is expected to be completed from 2Q 2013 to 2016. Including the 904,000 sq ft
completed in 1Q 2013, this translates to an average supply of around 5.0 million sq ft per annum, which is 28.2% and
8.7% higher than the respective annual average net new supply and net new demand of 3.9 million sq ft and 4.6 million
sq ft for the 10 years from 2003 to 2012.

6
This is a type of multi-user factory with ramp access.
7
Potential supply includes space under construction and planned but the actual level of new supply could change due to changes in the status of planned projects.
8
Single-user factories are occupied predominantly by a single party and used for purposes solely related to that occupier. These are typically land-based
properties comprising a mix of standard factories or purpose-built facilities. Land-based properties are often the preferred building forms for firms engaged
in the manufacturing or storage of bulky goods. The single-user factory market may be used as a benchmark for MITs portfolio of Light Industrial Buildings.
9
Potential supply includes space under construction and planned but the actual level of new supply could increase / decrease due to changes in the status of
planned projects.

64
Net New and Potential Supply of Single-User Factory Space (as of 1Q 2013)

Net Floor Area (000 sq ft)

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F

Completed Uncompleted F: Forecast Source: URA/Colliers International Singapore Research, May 2013

5.2 Demand and Occupancy

Compared to 2011, the quantum of space physically occupied by firms rose by 29.3% to 3.4 million sq ft in 2012.
However, total net new demand in 2012 is 19.0% lower than the annual net new demand of around 4.2 million sq ft
for the period from 2002 to 2011.

With net new demand surpassing net new supply, the average occupancy rate of single-user factory space crept up
to 95.1% as of 4Q 2012, from 94.9% in the preceding year. However, the average occupancy rate eased marginally
to a still healthy 94.8% as of 1Q 2013 as the net absorption of single-user factory space which slowed to around
280,000 sq ft, from last quarters 1.9 million sq ft, was substantially lower than the net addition of about 904,000 sq ft
during the quarter ended March 2013.

Net New Demand and Occupancy Rate of Single-User Factory Space (as of 1Q 2013)

Net Floor Area (000 sq ft) Occupancy Rate (%)

9,000 100%
99%
8,000
98%
7,000 97%
6,000 96%
95%
5,000 94%
4,000 93%
92%
3,000 91%
2,000 90%
89%
1,000
88%
0 87%
-1,000
-2,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12 1Q13

Net New Demand Occupancy Rate Source: URA/Colliers International Singapore Research, May 2013

65
SINGAPORE INDUSTRIAL
PROPERTY MARKET OVERVIEW
Colliers International Consultancy & Valuation (Singapore) Pte Ltd
29 May 2013

5.3 Rents of Single-User Factory Space

According to URA, rents of single-user factory space continued to rise albeit at a slower pace in 2012 on the back of
healthy demand, which is similar to rents of multi-user factory space.

Specifically, the rate of increase in the average monthly gross median rent of single-user factories moderated to
2.3% YoY in 2012, from 18.8% YoY in 2011. Likewise, the monthly 25th and 75th10 percentile rents registered slower
annual growth of 3.8% and 0.7% respectively in 2012, compared to 7.4% and 20.4% in 2011.

Following the latest increase, the 25th percentile, median and 75th percentile rents of single-user factory premises
stood at S$1.65 per sq ft, S$2.20 per sq ft and S$3.09 per sq ft, respectively, as of 4Q 2012.

Rents continued to rise in 1Q 2013 on the back of healthy occupancy, with the monthly 25th percentile and median
rents registering quarterly growths of 1.8% and 3.6%, to S$1.68 per sq ft and S$2.28 per sq ft, respectively. However,
the 75th percentile rent lost 2.9% QoQ to S$3.00 per sq ft over the same period.

Median Rents of Single-User Factory Space (as of 1Q 2013)

(S$ per sq ft per month)

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12 1Q13

25th Percentile Median 75th Percentile Source: URA/Colliers International Singapore Research, May 2013

5.4 Outlook
As single-user factories are predominantly built for owner-occupation purposes, they are expected to weather
downside risks better than multi-user factories. And with Singapore remaining an attractive investment destination
for regional headquarters and a springboard into the region, this will help to support the take-up of single-user factory
space.

Although the islandwide average occupancy rate of single-user factory space may ease slightly in 2013 due to supply
pressure, rents of single-user factory premises are expected to experience some upside potential during the year.

10
The median and 75th percentile rents would be reflective of those commanded by high-tech and high-specifications factories, respectively.

66
6 Business Park Market Overview
6.1 Existing and Potential Supply
URAs data as of 4Q 2012 showed the islandwide stock of business park space amounted to about 16.7 million sq ft,
which accounted for 3.9% of the existing islandwide supply of industrial space. Net new supply of business park
space amounted to 1.4 million sq ft in 2012, which is more than 1.5 times above the annual average supply of about
931,675 sq ft from 2003 to 2011, and 7.3 times above the 194,000 sq ft added in 2011. The net withdrawal of about
97,000 sq ft in the first three months of 2013 led to a slight decline in the total stock of business park space to about
16.6 million sq ft as of 1Q 2013.

Based on latest available information from the URA and Colliers Internationals estimates as of 1Q 2013, approximately
5.3 million sq ft11 (net floor area) of new business park space are expected to be completed from 2Q 2013 to 2016.
Taking into consideration the 97,000 sq ft withdrawn in 1Q 2013, this works out to an annual average supply of about
1.3 million sq ft from 2003 to 2016. This is about 33.9% higher than the annual average supply of 980,591 sq ft for
the period from 2003 to 2012. As at 1Q 2013, it is estimated that more than 50% of the upcoming supply had been
pre-committed ahead of building completions.

Net New and Potential Supply of Business Park Space (as of 1Q 2013)

Net Floor Area (000 sq ft)

2,500

2,000

1,500

1,000

500

0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F

Completed Upcoming F: Forecast Source: URA/Colliers International Singapore Research, May 2013

6.2 Demand and Occupancy

Demand for business park space stayed healthy in 2012, with URAs figures reflecting a net absorption of about
872,000 sq ft, which is 7.3% higher than the annual average net absorption of about 813,000 sq ft from 2002 to 2011.
However, overall net absorption of business park space in 2012 is about 30.2% lower than the 1.2 million sq ft that
was physically occupied in 2011.

With net new supply outpacing net new demand in 2012, the average occupancy rate eased from 82.8% as of 4Q
2011 to 80.9% as of 4Q 2012. However, due to the net withdrawal of about 97,000 sq ft and the continued take-up
of some 237,000 sq ft of space in the first three months of 2013, the average occupancy rate improved to 82.8% as
of 1Q 2013.

11
Potential supply includes space under construction and planned but the actual level of new supply could change due to changes in the status of
planned projects.

67
SINGAPORE INDUSTRIAL
PROPERTY MARKET OVERVIEW
Colliers International Consultancy & Valuation (Singapore) Pte Ltd
29 May 2013

Net New Demand and Occupancy Rate of Business Park Space (as of 1Q 2013)

Net Floor Area (000 sq ft) Occupancy Rate (%)

2,000 100%

90%

1,500 80%

70%

1,000 60%

50%

500 40%

30%

0 20%

10%

-500 0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12 1Q13

Net New Demand Occupancy Rate Source: URA/Colliers International Singapore Research, May 2013

6.3 Rents of Business Park Space

Based on actual rental transaction records from URA, the monthly median rent for business park space on an
islandwide basis rose from S$3.90 per sq ft as of 2Q 2012 to S$4.10 per sq ft in 3Q 2012. However, due to the
increase in vacant stock following the completion of new projects, the median rent eased to S$3.81 per sq ft per
month as of 4Q 2012, down 2.3% YoY.

On the back of higher rental expectations from landlords and the reduction in vacant space, the monthly median rent
of business park space gained 6.3% QoQ to S$4.05 per sq ft as of 1Q 2013.

Median Rents of Business Park Space (as of 1Q 2013)

(S$ per sq ft per month)

$5.50

$5.00

$4.50

$4.00

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12 1Q13

25th Percentile Median 75th Percentile Source: URA/Colliers International Singapore Research, May 2013

68
6.4 Outlook
Taking into consideration the potential supply of new business park space as of 1Q 2013, the progressive shifting
in of tenants in both completed and upcoming single-user and multi-user business park developments as well as
the prevailing global and local economic situation, the average annual occupancy rate of business park space is
expected to ease slightly in 2013.

However, rents could rise on the back of higher rental expectations from landlords. This is due to the lack of new
upcoming multi-user business park developments. Moreover, landlords who carried out asset enhancement works at
some of the existing buildings are also expected to raise their rental expectations for these buildings. As such, overall
business park rents are forecast to register growth of up to 5% in 2013.

7 Limiting Conditions
The content of this report is for information only and should not be relied upon as a substitute for professional advice,
which should be sought from Colliers International prior to acting in reliance upon any such information.

The opinions, estimates and information given herein or otherwise in relation hereto are made by Colliers International
and affiliated companies in their best judgement, in the utmost good faith and are as far as possible based on data or
sources which they believe to be reliable in the context hereto. Notwithstanding this, Colliers International disclaims
any liability in respect of any claim that may arise from any errors or omissions, or from providing such advice,
opinion, judgement or information.

All rights are reserved. No part of this report may be reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written
permission of Colliers International.

69
FINANCIAL
REVIEW

FY12/13 FY11/12 Change

S$000 S$000 %

Gross revenue 276,433 246,371 12.2

Property operating expenses (80,997) (75,051) 7.9
Net property income 195,436 171,320 14.1
Interest income 329 244 34.8
Borrowing costs (27,129) (23,573) 15.1
Managers management fees (21,212) (19,034) 11.4
Trustees fee (432) (410) 5.4
Other trust expenses (1,432) (2,210) (35.2)
Net income 145,560 126,337 15.2

Amount available for distribution 150,961 131,699 14.6

Distribution per Unit (Singapore cents) 9.24 8.41 9.9

Gross Revenue (By Property Type) Gross Revenue

Gross revenue of S$276.4 million for FY12/13 increased
by S$30.1 million from FY11/12. The improvement against
6.2% 1.1% FY11/12 was partly attributed to the additional revenue
13.8%
contribution of S$13.5 million from the acquisition of 11
Flatted Factories and amenity centres (Acquisition Portfolio)
from JTC on 26 August 2011. Excluding the contributions
from the Acquisition Portfolio, gross revenue increased by
S$16.6 million due to higher rental rates secured and higher
FY12/13 occupancies achieved for the Flatted Factories and Stack-up/
Ramp-up Buildings during the financial year.
18.5%

60.4%

1.3%
6.8%

14.3%

FY11/12

19.9%
57.7%

Flatted Factories
Business Park Buildings
Stack-up/Ramp-up Buildings
Light Industrial Buildings
Warehouse

70
Net Property Income (By Property Type) Net Property Income
Net property income increased by S$24.1 million to S$195.4
million in FY12/13 as a result of higher gross revenue, offset
7.0% 0.9% partly by higher property operating expenses.

15.2% Property operating expenses of S$81.0 million were 7.9%

or S$5.9 million higher than that incurred in FY11/12.
This was largely attributed to additional property operating
expenses for the Acquisition Portfolio as well as higher
FY12/13 property maintenance expenses, property tax expenses and
staff costs. Despite escalating operating expenses, the net
16.1% property income margin for the portfolio remained at around
71% as a result of prudent expense management.
60.8%
The relative contributions from the various property types
8.1% 1.0% to the gross revenue and net property income for FY12/13
remained largely similar as FY11/12 with Flatted Factories
being the largest contributor. Flatted Factories contributed
15.9% about 60.4% and 60.8% of the gross revenue and net property
income respectively.

FY11/12 Net Income and Distributions

Distributable income of S$151.0 million achieved for FY12/13
was an increase of S$19.3 million or 14.6% as compared to
FY11/12. This translated to a DPU of 9.24 Singapore cents
16.7% for FY12/13 which is 9.9% as compared to the DPU of
58.3%
8.41 Singapore cents in FY11/12. The increase was mainly
attributed to the higher net property income offset by the
Flatted Factories higher borrowing costs and managers management fees.
Business Park Buildings The higher borrowing costs arose from full year interest
incurred on the additional borrowings taken to finance the
Stack-up/Ramp-up Buildings
acquisition of the Acquisition Portfolio as well as utilisation of
Light Industrial Buildings longer tenor MTN to refinance part of the existing borrowings.
Warehouse Actual weighted average interest rate achieved for FY12/13
was 2.4% as compared to 2.2% in FY11/12.

Net Assets Attributable To Unitholders

As at 31 March 2013 As at 31 March 2012 Change
S$000 S$000 %

Total Assets 2,967,608 2,822,205 5.2

Total Liabilities 1,163,918 1,167,669 (0.3)
Net Assets Attributable to Unitholders 1,803,690 1,654,536 9.0
Net Asset Value per Unit (S$) 1.10 1.02 7.8

Total assets increased by 5.2% to S$2,967.6 million as at
31 March 2013 as compared to S$2,822.2 million as at
31 March 2012. The increase was primarily attributed to a
portfolio revaluation gain of S$134.9 million and capitalised
development cost of S$48.4 million. The revaluation gain
was driven mainly by the improved portfolio performance.
Correspondingly, net assets attributable to Unitholders
increased by 9.0% to S$1,803.7 million over the previous
financial year, reflecting a higher net asset value per unit of
S$1.10 as at 31 March 2013.

71
CORPORATE LIQUIDITY
AND CAPITAL RESOURCES

As at 31 March 2013 As at 31 March 2012

Debt facilities (S$ million)

Total debt outstanding 1,035.0 1,069.2
Unutilised bank facilities 404.4 304.4

Debt securities issued and capacity (S$ million)

Debt securities outstanding 170.0 125.0
Debt securities capacity 830.0 875.0

Ratios
Aggregate leverage 34.8% 37.8%
Weighted average tenor of debt 2.7 years 3.0 years
Average borrowing costs for the financial year 2.4% 2.2%
Interest cover ratio for the financial year 6.4 times 6.4 times
Hedged borrowings 88.0% 85.0%

The Manager manages MITs capital resources proactively. With
additional bank facilities procured in FY12/13, MIT has in place
readily available facilities totalling S$404.4 million to support its
BTS projects, AEIs as well as any potential opportunities that
may arise.
Of its total outstanding debt of S$1,035.0 million,
about 16% were securities issued in the debt capital
market and 84% were loans from its broad base of banks.
The Manager recognises the importance of diversifying
MITs funding sources and will continue to tap the debt
capital market and to strengthen its relationships with its
expanding network of banks.
To further augment its funding sources, MIT implemented a
DRP for the 3QFY12/13 distribution of 2.32 Singapore cents
per unit in MIT. A total of 11,074,385 new units were listed
at the unit price of S$1.3721 on 6 March 2013 pursuant
to the DRP, raising total proceeds of about S$15.2 million.
The proceeds were deployed to fund the progressive
requirements of MITs AEIs and BTS projects. Following
the positive response for the DRP in 3QFY12/13, MIT has
announced the application of a DRP for the 4QFY12/13
distribution at an issue price of S$1.5263 per unit.
Aggregate leverage ratio at 31 March 2013 decreased to
34.8% from 37.8% as at 31 March 2012 mainly due to the
revaluation gain recorded on investment properties and
investment property under development. With a lower
aggregate leverage ratio, MIT has higher financial capacity to
support its growth strategy.
All borrowings continue to be unsecured and bear minimal
financial covenants. The financial position of the Group
remained robust with interest cover ratio kept at 6.4 times.
Fitch Ratings affirmed MITs Issuer Default Rating at BBB+
with a Stable outlook in September 2012, reflecting MITs
granular industrial property portfolio across Singapore with
a diversified tenant base and access to main transport
links, its stable operating performance, high occupancy
rates, adequate debt service coverage, and an experienced
management team.

72
Debt Maturity Profile

Gross Debt (S$ million)

400
344.0
350

300

250
206.1
200

150 139.3
125.6 125.0
100
50.0 45.0
50

0
FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23

Bank Borrowings MTN

During the financial year, MIT refinanced the debt maturing
in September 2012 with a combination of cash and bank
borrowings of a 5-year tenor.
Leveraging on the strong demand for its maiden issuance
of S$125.0 million 7-year fixed rate notes in March 2012,
MIT successfully completed the second issuance of
S$45.0 million 10-year fixed rate notes at 3.65% per annum
under the S$1.0 billion Multi-Currency MTN Programme in
September 2012. The proceeds were used for refinancing
part of the borrowings due in FY13/14, reducing the
proportion of debt due in FY13/14 and extending the debt
maturity profile to FY22/23.
As a result, the weighted average tenor of debt as at
31 March 2013 was 2.7 years. MIT has sufficient
facilities to refinance the remaining S$206.1 million bank
borrowings due in FY13/14.
As part of its proactive capital management strategy,
the Manager will continue to optimise cost of debt
financing and diversify funding sources to access both
equity and debt capital.

Hedging Profile

12.0% 15.0%

FY12/13 FY11/12

88.0% 85.0% Hedged Unhedged

borrowings borrowings

MIT hedged against interest rate fluctuations through
interest rate swaps and fixed rate borrowings. As at
31 March 2013, about 88.0% of the borrowings were
hedged through interest rate swaps or were drawn on
fixed rate basis. The Manager closely monitors the money
market to extend these hedges, capitalising on windows
of opportunity that may arise amidst uncertainties.
The Manager will continue to actively pursue the
management of MITs hedge profile to ensure the stability
of distributions to its Unitholders.

73
UNIT
PERFORMANCE

During the financial year, MITs unit price increased 27.7% to
close the period at S$1.405, with an average closing price of
S$1.305. The increase in unit price was driven by investors
seeking high-yield and defensive investments amid the global
market volatility and low interest rate environment. A total of
806.54 million units were traded, with an average daily trading
volume of 3.24 million units.
The increase in MITs unit price was in line with the rise in the
FTSE Straits Times Index and FTSE Singapore REITs Index
during the financial year, which increased 9.9% and 30.7%
respectively.
MITs unit price has increased by 51.1% since its listing on
21 October 2010. Market capitalisation increased from
S$1.36 billion at listing to S$2.31 billion as at 31 March 2013.

MITs Unit Price and Trading Volume

FY12/13 FY11/12 FY10/111

IPO issue price (S$) 0.93

Opening price for the period (S$) 1.100 1.050
Highest closing price (S$) 1.440 1.225 1.160
Lowest closing price (S$) 1.100 1.040 1.010
Average closing price (S$) 1.305 1.118 1.070
Closing price for the period (S$) 1.405 1.100 1.050
Average daily trading volume (million units) 3.24 3.44 11.30
FY10/11 denotes the period from 21 October 2010 (listing date) to 31 March 2011.
1

Return on Investment (From 1 April 2012 to 31 March 2013)

%

Total Return 36.12

Capital Appreciation 27.7
Distribution Yield 8.4
Sum of distributions and capital appreciation for FY12/13 over the opening price of S$1.100 on 2 April 2012.
2

Return on Investment (Since listing on 21 October 2010 to 31 March 2013)

%

Total Return 73.83

Capital Appreciation 51.1
Distribution Yield 22.7
Sum of distributions and capital appreciation for the period over the issue price of S$0.93.
3

MITs Trading Performance in FY12/13

Unit Price (S$) Volume (million units)

1.60 14

1.40 12

1.20
10
1.00
8
0.80
6
0.60
4
0.40

0.20 2

0.00 0
Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13

Price Volume Source: Bloomberg

74
MITs Trading Performance since IPO4

Unit Price (S$) Volume (million units)

1.60 30

1.40
25
1.20
20
1.00

0.80 15

0.60
10
0.40
5
0.20

0.00 0
Oct 10 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Mar 13

Price Volume Source: Bloomberg

Excludes first five days of trading to remove IPO effect.

4

Comparative Trading Performance in FY12/135

140
S-REIT +30.7%
130

120
MIT +27.7%

110
STI +9.9%
100

90

80
Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13

Rebased MIT Price Rebased FTSE STI Rebased FTSE SREIT Index Source: Bloomberg

Rebased closing price on 30 March 2012 to 100.

5

Comparative Yields6

MITs Distribution Yield7 6.6%

FTSE SREIT Index 4.7%
FTSE STI 2.8%
CPF (ordinary) account 2.5%
10-year Government Bond 1.5%
Bank Fixed Deposit (12-month) 0.3%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

All information as at 31 March 2013. Sources: Bloomberg, MAS and Central Provident Fund (CPF) Board.
6

MITs distribution yield is based on FY12/13 DPU of 9.24 Singapore cents over closing price of S$1.405 on 28 March 2013.
7

75
SUSTAINABILITY
We aim to build a business that will sustain the test of time by delivering long-term
economic value. Our focus will be on essential areas like corporate governance,
risk management, investor relations and corporate social responsibility.

MITs AEI development project at Toa Payoh North 1 cluster was conferred the Green Mark Gold Award by the Building and Construction Authority.
(An artists impression of the completed development at Toa Payoh North 1 cluster)
Our commitment to be
environmentally responsible
is reflected in the sustainable
practices adopted for
our business activities.
The development project for
Toa Payoh North 1 cluster
was conferred the Green Mark
Gold Award by the Building
and Construction Authority of
Singapore. In FY12/13, 15 clusters
achieved the Public Utilities
Board Water Efficient Buildings
Certification in recognition of our
contribution towards protecting
Singapores water resources.
CORPORATE
GOVERNANCE

The Manager of MIT has responsibility over the strategic direction and management of the assets and liabilities of MIT and its
subsidiaries (collectively, the Group).

The Manager discharges its responsibility for the benefit of MITs unitholders (Unitholders), in accordance with the applicable
laws and regulations as well as the trust deed constituting MIT (Trust Deed). To this end, the Manager sets the strategic direction
of the Group and gives recommendations to DBS Trustee Limited, in its capacity as trustee of MIT (Trustee), on the acquisition,
divestment or enhancement of assets of the Group. As a REIT Manager, the Manager is licensed by MAS and granted a Capital
Markets Services Licence (CMS Licence).

The Managers roles and responsibilities include:

using its best endeavours to carry on and conduct the Groups business in a proper and efficient manner and to conduct all
transactions with or for the Group on an arms length basis and on normal commercial terms;
preparing annual property plans, proposals and forecast on gross revenue, capital expenditure, sales and valuation,
explanations of major variances to previous forecasts, written commentaries on key issues and any other relevant
assumptions. The purpose of such plans is to explain the performance of MITs properties; and
ensuring compliance with the applicable laws and regulations, including the Securities and Futures Act of Singapore (Chapter
289), the Listing Manual, the Code on Collective Investment Schemes, the Singapore Code on Takeovers and Mergers, the
Trust Deed, the CMS Licence and any tax rulings and all relevant contracts.

The Manager is committed to apply the principles and the spirit of the Code of Corporate Governance (Code). The Code was
revised by the MAS in May 20121 and takes effect in respect of annual reports relating to financial years commencing from 1
November 2012. Nonetheless and in the spirit of our commitment to high standards of corporate governance, we have, as far
as practicable, endeavoured to comply with the revised Code during FY12/13.

The Board of Directors and employees of the Manager are remunerated by the Manager, and not by MIT.

(A) Board Matters

Boards Conduct of its Affairs
Principle 1: Effective board

Our Policy and Practices

The Manager applies the principle that an effective Board of Directors (Board) for the Manager is one constituted with the right
core competencies and diversity of experience, so that the collective wisdom of the Board can give guidance and provide
insights as well as strategic thinking to Management.

The key roles of the Board are to:

guide the corporate strategy and direction of the Manager;
ensure that Senior Management discharges business leadership and demonstrates the highest quality of management skills
with integrity and enterprise; and
oversee the proper conduct of the Manager.

The positions of Chairman and Chief Executive Officer (CEO) are held by two separate persons in order to maintain effective
oversight.

The Board comprises ten Directors, of whom nine are Non-Executive Directors and four are Independent Directors.

The following sets out the composition of the Board:

Mr Wong Meng Meng, Chairman and Non-Executive Director
Mr Soo Nam Chow, Chairman of the Audit and Risk Committee and Independent Director
Mr Seah Choo Meng, Member of the Audit and Risk Committee and Independent Director
Mr John Koh Tiong Lu, Member of the Audit and Risk Committee and Non-Executive Director
Mr Wee Joo Yeow, Independent Director
Ms Mary Yeo Chor Gek, Independent Director
Mr Hiew Yoon Khong, Non-Executive Director
Mr Wong Mun Hoong, Non-Executive Director
Mr Phua Kok Kim, Non-Executive Director
Mr Tham Kuo Wei, Executive Director and Chief Executive Officer
1
The revised Code will take effect in respect of annual reports relating to financial years commencing from 1 November 2012, except the following changes:
(a) Board composition changes should be made at the annual general meetings (AGMs) following the end of the relevant financial year; and
(b) The requirement for independent directors to make up at least half of the board in specified circumstances (Guideline 2.2 of the revised Code) should be
made at the AGMs following the end of the financial year commencing on or after 1 May 2016.
78
The Board consists of business leaders and distinguished professionals in their respective fields. Each Director is appointed on
the strength of his or her calibre, experience, stature, and potential to give proper guidance to the Manager for the business of
the Group. Their profiles are found on pages 16 to 19 of this Annual Report. They meet regularly, at least once every quarter,
to review the business performance and outlook of the Group, as well as to deliberate on business strategy, including any
significant acquisitions, disposals, fundraising and development projects of the Group.

The meeting attendance of the Board and the Audit and Risk Committee for FY12/13 is as follows:

Board Audit and Risk

Committee

Number of meetings held in FY12/13 5 5

Board Members(1) Membership

Mr Wong Meng Meng Chairman and Non-Executive Director 5 N.A.

(Appointed on 7 September 2010)

Mr Soo Nam Chow Chairman of the Audit and Risk 5 5

(Appointed on 7 September 2010) Committee and Independent Director

Mr Seah Choo Meng Member of the Audit and Risk 5 5

(Appointed on 7 September 2010) Committee and Independent Director

Mr John Koh Tiong Lu Member of the Audit and Risk 5 5

(Appointed on 7 September 2010) Committee and Non-Executive Director

Mr Wee Joo Yeow Independent Director 5 N.A.

(Appointed on 7 September 2010)

Mr Hiew Yoon Khong Non-Executive Director 5 N.A.

(Appointed on 7 September 2010)

Mr Wong Mun Hoong Non-Executive Director 4 4 (2)

(Appointed on 7 September 2010)

Mr Phua Kok Kim Non-Executive Director 5 5 (2)

(Appointed on 23 July 2010)

Mr Tham Kuo Wei Executive Director and Chief Executive 5 5 (2)

(Appointed on 23 July 2010) Officer

Notes:
(1)
This table does not include Ms Mary Yeo Chor Gek who was appointed as an Independent Director on 15 March 2013.
(2)
Attendance was by invitation.
(3)
N.A. means not applicable.

The Board has approved a set of delegations of authority which sets out approval limits for operational and capital expenditures,
investments and divestments, bank borrowings and cheque signatory arrangements. Approval sub-limits are also provided at
various management levels to facilitate operational efficiency as well as provide a system of checks and balances.

Boards approval is required for material transactions, including the following:

equity fundraising;
acquisition, development and disposal of properties above the Board prescribed limits;
overall project budget variance and ad hoc development budget above the Board prescribed limits;
credit facilities above the Board prescribed limits; and
derivative contracts above the Board prescribed limits.

79
CORPORATE
GOVERNANCE

The Board is updated on any change to relevant laws, regulations and accounting standards by way of briefings by professionals
or by updates issued by Management. In FY12/13, seminars were held to update the Board on the following matters:
the relevant amendments to the Code and the Singapore Code on Take-Overs and Mergers;
the risk governance guidance of listed boards; and
the implications of a landmark judgement on directors duties.

Ms Mary Yeo Chor Gek, who was appointed on 15 March 2013, attended an orientation programme conducted by the CEO
and Senior Management where she was briefed on the businesses, strategic directions, the regulatory environment in which the
Group operates and governance practices of the Group and the Manager.

Board Composition and Balance

Principle 2: Strong and independent element on the board

Our Policy and Practices

The Manager applies the principle that at least one-third of its Directors are independent and the majority of its Directors are
non-executive. This allows the Directors to engage in robust deliberations with Management and provide external, diverse and
objective insights into issues brought before the Board. Further, such composition and separation of the roles of the Chairman
and the CEO, provides oversight to ensure that Management discharges its roles with integrity.

The appointment of Ms Mary Yeo Chor Gek as an Independent Director increases the number of independent directors on the
Board. Ms Yeos appointment brings diversity in experience and augments the skill set of the Board.

Chairman and Chief Executive Officer

Principle 3: Clear division of responsibilities

Our Policy and Practices

The Manager applies the principle of clear separation of the roles and responsibilities between the Chairman of the Board and
the CEO of the Manager. The Chairman guides the Board in constructive debates on the strategic direction, management of
assets and governance matters. He is non-executive, and is free to act independently in the best interests of the Manager and
Unitholders. The Chairman and the CEO are not related to each other.

The CEO is responsible for the running of the Managers business operations. He has full executive responsibilities over the
business and operational decisions of the Group. The CEO is also responsible for ensuring compliance with the applicable laws
and regulations in the daily operations of the Group.

Board Membership
Principle 4: Formal and transparent process for appointments

Our Policy and Practices

As the Manager is not a listed entity, it does not have a nominating committee. However, the Manager applies the principle that
Board renewal is an ongoing process to ensure good governance and maintain relevance to the changing needs of the Manager
and the Groups business. All appointments and resignations of Board members are approved by the Board.

The composition of the Board is determined using the following principles:

the Chairman of the Board should be a non-executive director of the Manager;
the Board should comprise directors with a broad range of commercial experience including expertise in funds management,
law, finance, audit, accounting and the property industry; and
at least one-third of the Board should comprise independent directors.

The Manager does not, as a matter of policy, limit the maximum number of listed company board representations its Board
members may hold as long as each of the Board members is able to commit his/her time and attention to the affairs of
the Group, including attending Board and Audit and Risk Committee (AC) meetings and to contribute constructively to the
management of the Manager and the Group.

As a principle of good corporate governance, all Board members are required to submit themselves for re-nomination and re-
election at regular intervals. The CEO, as a Board member, is subject to retirement and re-election.

80
Board Performance
Principle 5: Formal assessment of the effectiveness of the board

Our Policy and Practices

The Manager applies the principle that the Boards performance is ultimately reflected in the performance of the Manager and
the Group. The Manager conducted a formal assessment of the Boards and the ACs performance in FY11/12 and will conduct
another such assessment in the next financial year. The assessment is conducted by way of a confidential survey questionnaire
and thereafter the results of the survey are evaluated by the Board.

Each Board member is given sufficient time to bring to the Board his or her perspective to enable balanced and well considered
decisions to be made.

Access to Information
Principle 6: Complete, adequate and timely access to information

Our Policy and Practices

The Manager applies the principle that the Board shall be provided with timely and complete information prior to Board meetings
and as well as when the need arises.

Management is required to provide adequate and timely information to the Board, which includes matters requiring the Boards decision
as well as on-going reports relating to the operational and financial performance of the Group. Management is also required to provide
any additional information, when so requested by the Board, in a timely manner in order for the Board to make informed decisions.

The Board has separate and independent access to Management and the Company Secretary.

The Company Secretary attends to the administration of corporate secretarial matters and attends all Board and committee
meetings. The Company Secretary also provides assistance to the Chairman in ensuring adherence to Board procedures.

The Board takes independent professional advice as and when necessary to enable it or the Independent Directors to discharge
their responsibilities effectively. The AC meets the external and internal auditors separately at least once a year, without the
presence of Management.

(B) Remuneration Matters

Procedures for Developing Remuneration Policies
Principle 7: Formal and transparent procedure for fixing the remuneration of directors
Level and Mix of Remuneration
Principle 8: Appropriate level of remuneration
Disclosure on Remuneration
Principle 9: Clear disclosure of remuneration matters

Our Policy and Practices

The Manager applies the principle that remuneration matters are to be sufficiently structured and benchmarked to good market
practices, in order to attract suitably qualified talent, so as to grow and manage its business.

The Manager applies the principle that remuneration for the Board and Senior Management should be viewed in totality.
The remuneration structure is linked to the continuous development of the management bench strength to ensure that there
is robust talent management and succession cover, as well as to the concerted pursuit of strong and ethical leadership for
the success of the Groups business and the Manager.

As the Manager is not a listed entity, it is not presently considered necessary for it to have a remuneration committee.
However, as a subsidiary of the Sponsor, the Manager takes its reference from the remuneration policies and practices of
the Sponsor in determining the remuneration of the Board and key executives. The Executive Resources and Compensation
Committee (Mapletrees ERCC) of the Sponsor at group level serves the crucial role of helping to ensure that the Manager is
able to recruit and retain the best talents to drive its business forward.

The members of the Mapletrees ERCC are:

Mr Edmund Cheng Wai Wing (Chairman)
Mr Paul Ma Kah Woh (Member)
Ms Chan Wai Ching, Senior Managing Director, Temasek Holdings (Private) Limited (Co-opted Member)

81
CORPORATE
GOVERNANCE

All the members of the Mapletrees ERCC are independent of Management. The Mapletrees ERCC oversees executive
compensation and development of the management bench strength, so as to build and augment a capable and dedicated
management team, and gives guidance on progressive policies which can attract, motivate and retain a pool of talented
executives for the present and future growth of the Manager.

Specifically, the Mapletrees ERCC:

establishes compensation policies for key executives;
approves salary reviews, bonuses and incentives for key executives;
approves key appointments and reviews succession plans for key positions; and
oversees the development of key executives and younger talented executives.

Mapletrees ERCC conducts, on an annual basis, a succession planning review of the CEO and selected key positions in the
Manager. In this regard, potential internal and external candidates for succession are reviewed for immediate, medium term and
longer term needs. A total of three meetings were held by the Mapletrees ERCC in FY12/13.

The remuneration of the Board and the employees of the Manager is paid by the Manager from the fees it receives from MIT,
and not by MIT. Since MIT does not bear the remuneration of the Managers Board and employees, the Manager does not consider
it necessary to include information (other than as set out below) on the remuneration of its Directors and its key executives.

The Chairman and the Non-Executive Directors have no service contracts with the Manager. Save for Mr Hiew Yoon Khong,
Mr Wong Mun Hoong, Mr Phua Kok Kim, and Mr Tham Kuo Wei, all the Directors receive a basic fee and, where applicable,
an additional fee for serving on the AC.

Mr Hiew Yoon Khong, Mr Wong Mun Hoong and Mr Phua Kok Kim, respectively the Group Chief Executive Officer, the Group
Chief Financial Officer and the Regional Chief Executive Officer, South-East Asia of the Sponsor, also not receive directors fees
for serving as Non-Executive Directors of the Manager.

The CEO, as an Executive Director, does not receive directors fees. He is a lead member of Management. His compensation
consists of salary, allowances, bonuses and share appreciation awards from the Sponsor. The latter is conditional upon him
meeting certain performance targets. The CEO is not present during the discussions relating to his own compensation and
terms and conditions of service, and the review of his performance.

Directors fees are subject to the approval of the Managers shareholder and the directors fees paid to the Board for FY12/13
are as follows:

Board Members (1) Membership FY12/13

Mr Wong Meng Meng Chairman and Non-Executive Director S$110,000

Mr Soo Nam Chow Chairman of the Audit and Risk S$85,000

Committee and Independent Director
Mr Seah Choo Meng Member of the Audit and Risk Committee S$72,500
and Independent Director
Mr John Koh Tiong Lu Member of the Audit and Risk Committee S$72,500
and Non-Executive Director
Mr Wee Joo Yeow Independent Director S$50,000

Mr Hiew Yoon Khong Non-Executive Director Nil

Mr Wong Mun Hoong Non-Executive Director Nil

Mr Phua Kok Kim Non-Executive Director Nil

Mr Tham Kuo Wei Executive Director and Chief Executive Nil

Officer

Note:
(1)
This table does not include Ms Mary Yeo Chor Gek who was appointed as an Independent Director on 15 March 2013.

82
(C) Accountability and Audit
Accountability
Principle 10: Balanced and understandable assessment of the companys performance, position and prospects

Our Policy and Practices

The Manager applies the principle that to build confidence among stakeholders, there is a need to deliver maximum sustainable
value.

The Manager complies with statutory and regulatory requirements as well as adopts best practices in the Groups business
processes. The Board is also apprised of the performance of the Group and the business and market outlook on a regular basis
to enable the Board to make a balanced and informed assessment of the Groups performance, position and prospects.

Internal Controls
Principle 11: Sound system of internal controls

Our Policy and Practices

The Manager is committed to the principle of a sound system of internal controls.

The Manager, working with the Sponsor, has established an internal control framework which addresses the operational,
financial and compliance risks applicable to the Groups business and operating environment. These internal controls provide
reasonable but not absolute assurance on the achievement of their intended control objectives.

The key elements of the Groups system of controls are as follows:

Operating Structure
The Manager has a defined operating structure with lines of responsibility and delegated authority, as well as reporting
mechanisms to Senior Management and the Board. This structure includes certain functions, such as Human Resources,
Information Technology, Internal Audit, Legal and Risk Management, which are outsourced to the Sponsor.

Policies, Procedures and Practices

Controls are detailed in formal procedures and manuals. For example, the Board has approved a set of delegations of authority
which sets out approval limits for operational and capital expenditures, investments and divestments, bank borrowings and
cheque signatory arrangements. Approval sub-limits are also provided at various management levels to facilitate operational
efficiency as well as provide a system of checks and balances.

Boards approval is required for material transactions, including the following:

equity fundraising;
acquisition, development and disposal of properties above the Board prescribed limits;
overall project budget variance and ad hoc development budget above the Board prescribed limits;
credit facilities above the Board prescribed limits; and
derivative contracts above the Board prescribed limits.

The Groups procedures and practices are regularly reviewed and revised where necessary to enhance controls and efficiency.
A Control Self Assessment programme was implemented to promote accountability, control and risk ownership, in order to
cultivate a stronger sense of risk awareness within Management.

The Internal Audit department of the Sponsor verifies compliance with these control procedures and manuals.

Whistle-blowing Policy
To reinforce a culture of good business ethics and governance, the Manager has a Whistle-blowing Policy to encourage the
reporting in good faith of any suspected improper conduct, including possible financial irregularities, whilst protecting the
whistleblowers from reprisals. Any reporting shall be notified to the AC Chairman for investigation and to the AC for deliberation
on the findings.

Risk Management
Risk management is an integral part of business management by the Manager. In order to safeguard and create value for
Unitholders, the Manager proactively manages risks and requires the risk management process to be part of the Managers
planning and decision making process.

In this regard, the Sponsors Risk Management department oversees the risk management framework, reviews the adequacy
and effectiveness of the risk management system and monitors the key risks faced by the Group. It reports to the AC and the
Board on material findings and recommendations in respect of significant risk matters.
83
CORPORATE
GOVERNANCE

The risk management system is dynamic and evolves with the business. The Sponsors Risk Management department works
closely with Management to review and enhance the risk management system to be in line with market practices and regulatory
requirements. One such initiative is the implementation of a Control Self Assessment programme, which promotes accountability,
control and risk ownership, thereby cultivating a stronger sense of risk awareness within Management.

The Managers policies and procedures relating to risk management can be found on pages 88 to 89 of this Annual Report.

Information Technology (IT) Controls

As part of the operational risk process, IT general controls have been put in place and are periodically reviewed to ensure that
IT risks are identified and mitigated. In addition, as part of the Managers business continuity plan, IT disaster recovery planning
and tests are conducted to ensure that critical IT systems remain functional in a crisis situation.

Financial Reporting
The Board is regularly updated on the Groups financial performance via quarterly reports. These reports provide explanations
for significant variances of financial performance and updated full year forecast, in comparison with budgets and financial
performance of corresponding periods in the preceding year. In addition, the Board is provided with quarterly updates on key
operational activities.

A management representation letter is provided in connection with the preparation of the Groups financial statements presented
to the AC and Board quarterly. The representation letter is supported by declarations made individually by the various Heads
of Department. Compliance checklists on announcement of financial statements, which are required for submission to the
SGX-ST, are reviewed and confirmed by the Chief Financial Officer (CFO).

The Groups financial results are reported to Unitholders quarterly in accordance with the requirements of the SGX-ST.
These results announcements provide analysis of significant variances in financial performance and commentary on the
industrys competitive conditions in which the Group operates and any known factors or events that may affect the Group in the
next reporting period and the next 12 months.

Detailed disclosure and analysis of the full year financial performance of the Group are in the Annual Report.

Financial Management
Management reviews the performance of the MIT portfolio properties on a monthly basis to instill financial and operational
discipline at all levels of the Manager.

The key financial risks to which the Group is exposed, comprise interest rate risk, liquidity risk and credit risk. Where necessary
and appropriate, the Manager hedges the Group against interest rate fluctuations. In addition, the Manager proactively manages
liquidity risk by ensuring that sufficient working capital lines and loan facilities are maintained. The Managers capital management
strategy can be found on pages 72 to 73 of this Annual Report. The Manager also has in place credit control procedures for
managing tenant credit risk and monitoring of debt collection.

Internal Audit
On an annual basis, the Sponsors Internal Audit department prepares a risk-based audit plan to review the adequacy and
effectiveness of the Groups system of internal controls. The Internal Audit department is also involved during the year in
conducting system or process reviews that may be requested by the AC or Management on specific areas of concern. In doing
so, the Internal Audit department obtains reasonable assurance that business objectives for the process under review are being
achieved and key control mechanisms are in place.

Upon completion of each review, a formal report detailing the audit findings and the appropriate recommendations will be issued
to the AC. The Internal Audit department monitors and reports on the timely implementation of the action plans to Management
and the AC on a quarterly basis.

The external auditors provide an independent perspective on certain aspects of the internal financial controls system arising
from their work and annually report their findings to the AC.

Interested Person Transactions

For all interested person transactions, they are undertaken only on normal commercial terms and the AC regularly reviews
all related party transactions to ensure compliance with the internal control system as well as with relevant provisions of the
Listing Manual and Appendix 6 of the Code on Collective Investment Schemes issued by the MAS (Property Funds Appendix).
In addition, the Trustee also has the right to review such transactions to ascertain that the Property Funds Appendix has been
complied with.

84
Furthermore, the following procedures are also undertaken:
transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party
during the same financial year) equal to or exceeding S$100,000 in value but below 3.0% of the value of the Groups net
tangible assets will be subject to review by the AC at regular intervals;

transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party
during the same financial year) equal to or exceeding 3.0% but below 5.0% of the value of the Groups net tangible assets
will be subject to the review and prior approval of the AC. Such approval shall only be given if the transactions are on normal
commercial terms and are consistent with similar types of transactions made by the Trustee with third parties which are
unrelated to the Manager; and

transactions (either individually or as part of a series or if aggregated with other transactions involving the same related party
during the same financial year) equal to or exceeding 5.0% of the value of the Groups net tangible assets will be reviewed
and approved prior to such transactions being entered into, on the basis described in the preceding paragraph, by the AC
which may, as it deems fit, request advice on the transaction from independent sources or advisers, including the obtaining
of valuations from independent professional valuers. Further, under the Listing Manual and the Property Funds Appendix,
such transactions would have to be approved by the Unitholders at a meeting of the Unitholders.

The interested person transactions undertaken by the Group in FY12/13 subject to disclosure requirements under the Listing
Manual can be found on page 147 of this Annual Report.

Dealing in MIT units

The Manager adopts the best practices on dealings in securities set out in the Listing Manual. All Directors are required to
disclose their interests in MIT and are also provided with disclosures of interests by other Directors as well as reminders on
trading bans.

On trading in MIT units, the Directors and employees of the Manager are reminded not to deal in MIT units on short term
considerations and are prohibited from dealing in MIT units:
in the period commencing one month before the public announcement of the Groups annual and semi-annual results;
in the period commencing two weeks before the public announcement of the Groups quarterly results; and
at any time whilst in possession of price-sensitive information.

Each Director is required to give notice to the Manager of his or her acquisition of MIT units or of changes in the number of MIT
units which he or she holds or in which he or she has an interest, within two business days of such acquisition or change of
interest. In addition, employees of the Manager and the Sponsor are to give pre-trading notifications before any dealing in MIT
units.

Role of the Board and AC

The Board recognises the importance of maintaining a sound internal controls system to safeguard the assets of the Group and
Unitholders interests, through a framework that enables risk to be assessed and managed.

The AC provides oversight of the financial reporting risks, accounting policies and the adequacy and effectiveness of the
Groups internal controls and compliance systems.

The Board and the AC also took into account the Control Self Assessment programme implemented in this financial year, which
requires the respective departments of the Manager to review and report on control environment of their processes.

It should be recognised that all internal control systems contain inherent limitations and, accordingly, the internal control systems
can only provide reasonable but not absolute assurance.

Based on the internal controls established and maintained by the Manager and the Sponsor, work performed by the Sponsors
Internal Audit and Risk Management departments as well as by the external auditors, and reviews performed by Management,
the Board, with the concurrence of the AC, is of the opinion that in the absence of evidence to the contrary, the Groups
internal controls, addressing key financial, operational, compliance risks which the Group considers relevant and material to its
operations, were adequate as at 31 March 2013.

Audit and Risk Committee

Principle 12: Written terms of reference

Our Policy and Practices

The Board is supported by the AC to allow deeper overview of financial, risks and audit matters, so as to maximise the
effectiveness of the Board and foster active participation and contribution.
85
CORPORATE
GOVERNANCE

The Manager applies the principle that the AC shall have at least three members, all of whom must be non-executive and the
majority of whom must be independent.

The AC consists of three members. They are:

Mr Soo Nam Chow, Chairman
Mr Seah Choo Meng, Member
Mr John Koh Tiong Lu, Member

The AC has a set of Terms of Reference dealing with its scope and authority, which include:
review of annual internal and external audit plans;
examination of Interested Person Transactions;
review of audit findings of internal and external auditors as well as management responses to them;
evaluation of the nature and extent of non-audit services performed by external auditors. In this regard, for the financial year
ended 31 March 2013, MIT paid S$128,450 to the external auditors PricewaterhouseCoopers LLP (PwC) for audit services.
There were no payments made for any non-audit services;
review of the quality and reliability of information prepared for inclusion in financial reports;
recommendation of the appointment and re-appointment of external auditors; and
approval of the remuneration and terms of engagement of external auditors.

In addition, the AC also:

meets with the external and internal auditors, without the presence of Management, at least once a year to review and
discuss the financial reporting process, system of internal controls (including financial, operational and compliance controls),
significant comments and recommendations; and
reviews and, if required, investigates the matters reported via the whistle-blowing mechanism, by which staff may,
in confidence, raise concerns about suspected improprieties including financial irregularities.

The objective is to ensure that arrangements are in place for independent investigations of any matters arising from such
meetings and reviews, to ensure appropriate follow-up actions.

A total of five AC meetings were held in FY12/13.

The Manager, on behalf of the Group, confirms that the Group has complied with Rules 712 and 715 of the Listing Manual in
relation to the Groups auditing firm.

Internal Audit
Principle 13: Independent internal audit function

Our Policy and Practices

The Manager applies the principle that a robust system of internal audits is required to safeguard Unitholders interests,
the Groups assets, and to manage risks. Apart from the AC, other Board committees may be set up from time to time to
address specific issues or risks.

The internal audit function of the Group is outsourced to the Internal Audit department (IA) of the Sponsor and the IA reports
directly to the Chairman of the AC of both the Manager and the Sponsor.

The role of IA is to conduct internal audit work in consultation with, but independently of, Management. Its annual audit plan and
audit findings are submitted to the AC. The AC also meets with the IA at least once a year without the presence of Management.

The Internal Auditor is a corporate member of the Singapore branch of the Institute of Internal Auditors Inc. (IIA), which has its
headquarters in the USA. IA subscribes to, and is in conformance with, the Standards for the Professional Practice of Internal
Auditing (Standards) developed by the IIA and has incorporated these standards into its audit practices.

The Standards set by the IIA cover requirements on:

independence & objectivity;
proficiency & due professional care;
managing the internal audit activity;
engagement planning;
performing engagement; and
communicating results.

86
IA staff involved in IT audits are Certified Information System Auditors and members of the Information System Audit and Control
Association (ISACA) in the USA. The ISACA Information System Auditing Standards provide guidance on the standards and
procedures to be applied in IT audits.

To ensure that the internal audits are performed by competent professionals, IA recruits and employs qualified staff. In order
that their technical knowledge remains current and relevant, IA identifies and provides training and development opportunities
to the staff.

In compliance with IIA, an external assessment of IA is conducted at least once every five years by a qualified, independent
reviewer.

(D) Shareholder Rights and Responsibilities

Shareholder Rights
Principle 14: Fair and equitable treatment of all shareholders
Communication with Shareholders
Principle 15: Regular, effective and fair communication with shareholders
Conduct of Shareholder Meetings
Principle 16: Greater shareholder participation at AGMs

Our Policy and Practices

The Manager is committed to the principle that all Unitholders should be treated fairly and equitably and their ownership rights
arising from their unitholdings should be recognised.

To this end, the Manager issues via SGXNET announcements and press releases on the Groups latest corporate developments
on an immediate basis where required under the Listing Manual. Where immediate disclosure is not practicable, the relevant
announcement will be made as soon as possible to ensure that all stakeholders and the public have equal access to the
information.

All Unitholders are entitled to receive the annual report in digital format packaged in a compact disc with the option of receiving
a printed version. The annual report encloses a notice of AGM and a proxy form with instructions on the appointment of
proxies. The notice of AGM for each AGM is also published via SGXNET. An AGM is held once a year to provide a platform for
Unitholders to interact with the Board, in particular the Chairman of the Board and the Chairman of the AC, CEO and CFO. The
external auditors are also present to address Unitholders queries about the audit and the financial statements of the Group.

Similarly, where a general meeting is convened, all Unitholders are entitled to receive a circular enclosing a proxy form with
instructions on the appointment of proxies. Prior to voting at an AGM or any other general meeting, the voting procedures will
be made known to the Unitholders to facilitate them in exercising their votes.

The Chairman of the Board will usually demand for a poll to be taken for resolutions proposed at an AGM and any other general
meeting and thereafter voting will be conducted by electronic polling. The Manager will announce the results of the votes cast
for and against each resolution and the respective percentages and prepare minutes of such meetings.

The Manager has an Investor Relations department which works with the Legal and Corporate Secretariat department of the
Sponsor to ensure the Groups compliance with the legal and regulatory requirements applicable to listed REITs, as well as to
incorporate best practices in its investor relations programme.

The Manager regularly communicates major developments in the Groups businesses and operations to Unitholders, analysts,
the media and its employees through the issuance of announcements and press releases. In addition, all announcements and
press releases are first made on SGXNET and subsequently on MITs website.

Investors can subscribe to email alerts of all announcements and press releases issued by MIT through its website. Live
webcast of analyst briefings are conducted, where practicable.

The Manager also communicates with MITs investors on a regular basis through group/individual meetings with investors,
investor conferences and non-deal roadshows. The Managers CEO, CFO and Senior Management are present at briefings and
communication sessions to answer questions.

MITs distribution policy is to distribute at least 90% of its taxable income, comprising substantially its income from the letting
of its properties and related property service income after deduction of allowable expenses, and such distributions are typically
paid on a quarterly basis. For FY12/13, MIT has made four distributions to Unitholders.
87
Risk
Management
Risk Management Approach and Mindset
Risk Management is integral to MITs business strategy and
culture. The Manager seeks to ensure that risk management
practices are integrated with operations and processes
throughout the organisation. The risk management framework
aims to preserve capital, ensure business resilience in an
economic downturn and provide support to Managements
decision making.
Risk Management Framework Supports Portfolio
Management
The Managers risk measurement framework is based on
Value-at-Risk (VaR), a methodology which measures the
volatilities of individual market and property risk drivers such
as rental rates, occupancy rates, interest rates and inflation.
To further complement the VaR methodology, other risks
such as refinancing, customer credit standing and industry
concentration risks are also assessed, monitored and as far
as possible, measured as part of the framework.
Risks are measured consistently across the portfolio,
enabling the Manager to quantify the benefits that arise from
diversification across the portfolio, as well as to assess risk by
asset class or by risk type.
Risk assessment is a dynamic process in MIT and takes into
consideration changes in market conditions and asset cash
flows as they occur. The Manager recognises the limitations of
any statistically-based system that relies on historical market
data. To ensure the business is robust and able to withstand
extreme market shocks, the portfolio is subject to further
stress testing and scenario analyses.
Based on agreed portfolio risk thresholds, the Manager has
developed a set of risk indicators to monitor portfolio risk.
This serves as an early risk warning system which highlights
to Management when risks have escalated beyond the risk
tolerance level set by Management. The Manager is required
to take action to reduce risk exposure should agreed risk
indicator thresholds be breached.
On a quarterly basis, the Sponsors Risk Management team
submits a comprehensive risk report, which measures the
aforementioned risk drivers and risk indicators to the Board
and AC. The Board and AC are also kept abreast of any
material changes in MITs risk profile and activities.
Property Market Risks
MITs portfolio is subject to real estate market risks such as
rental rate and occupancy volatilities in Singapore, as well
as specific factors including competition, supply, demand
and regulations. Such risks are quantified, aggregated and
monitored on a quarterly basis for both existing assets and
new acquisitions. Significant changes to MITs risk profile
or new emerging trends are highlighted and reported to the
Manager for assessment and action where required.
88
Operational Risks
The Manager has established operating, reporting and
monitoring guidelines to manage day-to-day activities
and mitigate operational risks that may arise. To ensure
relevance, Standard Operating Procedures (SOPs) are
reviewed regularly and benchmarked against industry
practices. Compliance to SOPs is ensured through the
implementation of the Control Self-Assessment framework,
an initiative undertaken by the Manager to promote
accountability, control and risk ownership throughout the
respective departments of the Manager. Compliance is
further reinforced through training of employees and regular
checks by the Sponsors Internal Audit Department (MIIA).
MIIA plans its internal audit work in consultation with
Management, but works independently by submitting its
plans to the AC for approval at the beginning of each year.
For catastrophic events such as acts of terrorism or natural
disasters, the Manager has put in place and tested a
comprehensive Business Continuity Plan to ensure that
the Manager is able to continue operations should such an
event occur. MITs properties are insured in accordance with
industry practices in Singapore.
Credit Risks
Credit risks are mitigated from the outset by conducting
tenant credit assessment during the investment stage prior to
acquisition. For new and sizeable leases, credit assessments
of prospective tenants are undertaken prior to signing of
lease agreements. On an ongoing basis, tenant credit is
closely monitored by the Managers Asset Management team
and arrears are managed by the Managers Credit Control
Committee which meets fortnightly to review debtor balances.
To further mitigate risks, security deposits in the form of cash
or bankers guarantees are collected from prospective tenants
prior to commencement of leases.
Financial Market Risks
Financial market risks and capital structure are closely
monitored and actively managed by the Manager and reported
quarterly to the Board.
At the portfolio level, the risk impact of interest rate volatility
on value is quantified, monitored and reported quarterly using
the VaR methodology. Refinancing risk is also quantified and
included in VaR, taking into account the concentration of the
loan maturity profile and credit spread volatility.
MIT hedges its portfolio exposure to interest rate volatility
arising from its floating rate borrowings by way of interest rate
swaps. As at 31 March 2013, about 88% of MITs debts were
hedged or drawn on fixed rate basis.
Liquidity Risks
The Manager actively monitors MITs cash flow position
and requirements so as to ensure sufficient liquid reserves
to fund operations and meet any short term obligations
(see Corporate Liquidity and Capital Resources section
on pages 72 and 73). In addition, the Manager actively
tracks and monitors bank concentration risks to ensure
that MIT has a well-diversified funding base. The limit on
total borrowings is observed and monitored to ensure
compliance with Appendix 6 of the Code on Collective
Investment Schemes (the Property Funds Appendix)
issued by the MAS.

Investment Risks
All investment proposals are subject to vigorous scrutiny
by the Board (or delegated to the Management Committee)
based on relevant investment criteria including, but not limited
to yield accretion, property, location, building specifications,
quality of customer base, lease structure and internal rate
of return.

The risks arising from investment activities are managed

through a rigorous and disciplined investment approach,
particularly in the area of asset evaluation and pricing.
All acquisitions have to be yield accretive and meet MITs
internal return requirement. Sensitivity analysis is also
performed for each acquisition on all key project variables
to test the robustness of the assumptions used. Significant
acquisitions are further subject to independent review by
the Sponsors Risk Management team and the findings
are included in the Investment Proposal submitted to the
Managers Board for approval.

On receiving the Boards or Management Committees

approval, the investment proposals are then submitted to the
Trustee, who is the final approving authority for all investment
decisions.

The Trustee also monitors the compliance of the Managers

executed investment transactions with the restrictions and
requirements of the Listing Manual of the Singapore Exchange
Securities Trading Limited, Property Funds Appendix and the
provisions in the Trust Deed.

89
INVESTOR
RELATIONS
The Manager actively maintains regular, effective and
fair communications with its key stakeholders including
Unitholders, prospective investors, analysts and the media,
with the objective of building and maintaining long-term
relationships.
Timely, Clear and Objective Disclosures
The Manager recognises the importance of providing timely
and clear information on MITs developments and activities.
All financial results, announcements and press releases
are promptly released through the SGXNET and MITs
website. Investor presentations, annual reports, webcast
recordings, MITs portfolio information as well as pertinent
information about the Manager and the Property Manager
can be accessed easily through MITs website. In addition,
MITs email alerts allow stakeholders to receive the latest
updates on MIT. Stakeholders can also contact the investor
relations team for queries pertaining to MIT through a
dedicated email address.
Analyst teleconferences and briefings are held every quarter
following the release of MITs financial results. Live audio
webcasts of the analyst briefings are organised for MITs
half-year and full-year financial results, extending MITs
reach to local and overseas investors as well as the media.
The audience are able to participate in the live webcasts
and interact with Management by submitting their questions
online. Such events provide effective avenues for interactions
and communications with investors, analysts and the media
on MITs results, strategies and outlook.
The AGM provided a platform for the Board of Directors and Senior Management to address Unitholders queries about MITs performance.
90
The investor relations team is committed to provide
timely and equal access of information to the investment
community. For the BTS developments for K&S and Equinix,
the Manager issued announcements as soon as practicable
to communicate the details for both transactions. The team
was available to explain the rationale of the transactions
and clarify questions from stakeholders.
Active Outreach to Stakeholders
As part of its efforts to diversify MITs investor base and
generate interest in MIT, the Manager proactively interacts
with the investment community through one-on-one meetings,
investor conferences, investor luncheons, teleconferences
and investor roadshows. In FY12/13, the Manager met with
over 200 fund managers and analysts and participated in
investor conferences and investor roadshows in Singapore,
Hong Kong and Tokyo. These events enabled Management
to communicate MITs growth strategy and developments as
well as market outlook. The Manager also conducted property
tours for investors to provide them insights to MITs portfolio
and operations.
At the second AGM on 20 July 2012, the CEO and CFO
updated Unitholders about MITs operating and financial
performance as well as growth prospects. Electronic polling
was used during the meeting to promote greater accuracy
and transparency as results of each resolution were displayed
after voting for each resolution had concluded. The meeting
was well-attended by 167 Unitholders and Unitholder proxies
whose queries were addressed by the Board of Directors and
Senior Management.
Investor Relations Calendar in FY12/13

1st Quarter

FY11/12 Analyst Briefing and Live Audio Webcast 25 April 2012

Macquarie Post-Results Investor Luncheon, Singapore 25 April 2012

dbAccess Asia Conference, Singapore 29 to 30 May 2012

2nd Quarter

DBS Vickers Pulse of Asia Conference, Singapore 3 July 2012

MITs AGM 2011/2012, Singapore 20 July 2012

1QFY12/13 Analyst Teleconference 25 July 2012

Investor Roadshow, Hong Kong 21 to 22 August 2012

UBS ASEAN Conference 2012, Singapore 4 September 2012

3rd Quarter

2QFY12/13 Analyst Briefing and Live Audio Webcast 24 October 2012

J.P. Morgan Post-Results Investor Luncheon, Singapore 25 October 2012

Morgan Stanley 11th Annual Asia Pacific Summit, Singapore 7 November 2012

Investor Roadshow, Tokyo 27 to 28 November 2012

4th Quarter

3QFY12/13 Analyst Teleconference 23 January 2013

Nomura ASEAN All Access 2013, Singapore 28 January 2013

The Chairman and CEO interacting with Unitholders at MITs second AGM.

91
INVESTOR
RELATIONS

Financial Calendar

FY12/13 FY13/14*

Announcement of First Quarter Financial Results 24 July 2012 July 2013

Payment of First Quarter Distribution to Unitholders 29 August 2012 August 2013

Announcement of Second Quarter Financial Results 23 October 2012 October 2013

Payment of Second Quarter Distribution to Unitholders 29 November 2012 November 2013

Announcement of Third Quarter Financial Results 22 January 2013 January 2014

Payment of Third Quarter Distribution to Unitholders 5 March 2013 February 2014

Announcement of Full Year Financial Results 23 April 2013 April 2014

Payment of Final Distribution to Unitholders 4 June 2013 May 2014

* Subject to changes

To subscribe to the latest news on MIT, please visit www.mapletreeindustrialtrust.com.

For enquiries, please contact:

Ms Melissa Tan Unit Registrar Unitholder Depository

Vice President Boardroom Corporate & For depository-related matters such as change
Investor Relations Advisory Services Pte Ltd. of details pertaining to Unitholders investment
Mapletree Industrial Trust 50 Raffles Place #32-01 records, please contact:
Management Ltd. Singapore Land Tower
10 Pasir Panjang Road #13-01 Singapore 048623 The Central Depository (Pte) Limited
Mapletree Business City T : (65) 6536 5355 4 Shenton Way
Singapore 117438 F : (65) 6536 1360 #02-01 SGX Centre 2
T : (65) 6377 6113 Singapore 068807
F : (65) 6273 0525 T : (65) 6535 7511
E : ir_industrial@mapletree.com.sg F : (65) 6535 0775
W : www.sgx.com/cdp

92
Corporate Social
Responsibility
Guided by the vision to deliver sustainable and growing
returns to Unitholders, the Manager is committed to the
sustainable development of its business, the well-being of
its people and the communities in which it operates in.
Community Engagement
The Manager has various programmes to build cohesive
communities, strengthen tenant relationships and create
conducive work environments.
Building Cohesive Communities
The Manager partnered with carollers from Raffles Hall,
National University of Singapore to spread the festive
cheer to tenants at the three Business Park Buildings and
Serangoon North clusters. These lunchtime performances
have garnered strong interest from tenants.
Through the Sponsors Corporate Social Responsibility
programme, the Manager has also been active in participating
with numerous group-wide social initiatives, which focus
on empowering individuals and enriching communities.
Following a joint contribution of S$500,000 to Boys Town
Home and Assumption Pathway School in March 2012,
the Sponsors Corporate Social Responsibility committee
Carollers bringing the Christmas spirit to tenants at Serangoon North cluster.
and Senior Management visited both beneficiaries in July
to follow up on their developments. Staff was encouraged
to participate in the friendly futsal challenge with
Assumption Pathway School students and Boys Town
Homes fundraising Flag Day.
Strengthening Tenant Relations
The Manager organised regular networking events to
engage its tenants and foster cohesion among them.
The inaugural Mapletree Industrial CXO Event was held
at Marina at Keppel Bay, which provided a valuable
platform for the Manager to interact with its tenants
executive management. The Manager also conducted
regular dialogues with tenants to elicit feedback on
property management matters and update them on the
improvement works in the clusters.
As part of its efforts to encourage a healthier lifestyle
for tenants, the Manager converted an open space
into a new bicycle bay at the Kampong Ampat cluster.
This encouraged tenants to cycle to work as well as offered
them greater convenience to secure their bicycles at a
designated area.
93
Corporate Social
Responsibility
Embracing Safety at Work
The Manager is working at creating conducive work
environments for its tenants through workplace safety
education and training. The Manager collaborated with the
Workplace Safety and Health Council (WSHC) to conduct a
Go-To initiative at selected MIT properties. This initiative
raised awareness and promoted workplace safety through
roadshows and educational visits, reaching out to more
than 100 companies and their employees.
Another community outreach initiative was the Agri-Food
& Veterinary Authority of Singapore (AVA) Food Safety
Roadshow at MITs dedicated food facility KAFoodlink,
Kampong Ampat cluster. The campaign was part of AVAs
efforts to promote food safety awareness among workers
in the food manufacturing industry. Through exhibitions
and demonstrations, the AVA Food Safety Roadshow
provided tenants useful information on maintaining proper
hygiene standards.
Tenants at Tiong Bahru 1 and 2 as well as Woodlands
Spectrum clusters participated in the annual Mass Fire
Evacuation Drills, which were organised by The National Fire
WSHC Workplace Safety exhibition AVA Food Safety Roadshow Bus
94
and Civil Emergency Preparedness Council. The objective of
the event is to promote emergency evacuation awareness
among tenants. The Singapore Civil Defence Force (SCDF)
also conducted demonstrations on the proper use of the fire
extinguishers for tenants at Woodlands Spectrum cluster.
People Development
In line with its business objectives, the Manager put in place
talent management and development initiatives to further
develop capabilities, strengthen employee engagement and
create a positive work environment.
Developing Capabilities
The Manager leverages on the Sponsors leadership
programmes to develop management capability. The
Leadership Foundation Programme underpins good
managerial practices for new managers while the Leadership
Excellence Programme broadens the skill sets of middle
management in managing larger or cross-boundary
teams. Both programmes help managers to gain a better
understanding of their roles and responsibilities as well as
strengthen their communications skills.
The Manager recognises the importance of training and
development opportunities for employees to acquire the
relevant knowledge and skills for business excellence.
The Mapletree Investment Training Programme is a
three-day programme to enhance employees technical
competencies, which is customised to Mapletrees business
model and strategies.
The Manager motivates its employees to plan their personal
learning and development journey. Employees are
encouraged to improve their core competencies or obtain
professional qualifications through co-payment of course
fees and learning materials. As part of its efforts to cultivate a
learning culture, the Sponsors inaugural Learning Fiesta also
encouraged employees to continuously improve their personal
effectiveness through attending seminars and book fairs.
Engagement and Employee Wellness
The Manager is focused on enriching workplace experiences
to foster team bonding and positive work attitudes. Team
building activities, staff townhalls and feedback sessions
were conducted to connect staff at all levels and across the
SCDF personnel demonstrating the proper use of fire extinguishers for tenants at Woodlands Spectrum cluster.
multifaceted workgroups. Regular communication sessions
between line managers and staff helped to reinforce the
right corporate values and attitudes for success. Employee
recognition awards were given out to exemplary staff for
demonstrating values such as teamwork and innovation.
In addition, networking sessions with senior leaders including
the board members also provided the platform for managers
to tap into their wealth of experience and knowledge.
The Manager endeavours to create a pro-family work
environment through family-friendly workplace policies
such as paternity and family care leave. In support of the
annual national Eat with Your Family Day on 25 May 2012,
employees were encouraged to leave the office earlier to
spend quality time over dinner with their family members.
To create a holistic work environment, the Sponsor organised
recreational activities for employees through the Workplace
Health Promotion programmes. The myriad of activities
included community outreach, volunteer work, team sports
and lunchtime talks, which helped to create a healthier
workforce and improve productivity at work.
95
Corporate Social
Responsibility
Environment
The Manager actively advocates and involves its
stakeholders to incorporate environmentally sustainable
practices in their business operations.
Building a Green Culture
As part of its efforts to promote a green culture,
the Manager has placed recycling bins at prominent
locations in its three Business Park Buildings. In addition,
recycling boxes were distributed to all tenants of the
Business Park Buildings for them to separate recyclable
materials into the respective bins. These encouraged
greater tenant involvement and awareness in recycling
programmes across MITs properties.
Together with the Sponsor, the Manager has made a
concerted effort to implement more green business
practices through Mapletree Goes Green programme.
To reduce electricity consumption and greenhouse emissions,
lightings were switched off from 12.30pm to 1.30pm daily
and computers were automatically put into hibernation
mode after 6pm. In addition, staff was encouraged to
incorporate green measures into their work practices such
as using refillable water bottles, duplex-printing and utilising
Mapletrees eco-friendly bags.
The Manager implemented various green initiatives to encourage greater
tenant and staff involvement in reducing its ecological footprint.
96
Spearheading Green Initiatives
Besides cultivating a green culture, the Manager has also
embarked on a water conservation initiative. These involved
the replacement of water-efficient taps across 15 property
clusters. All 15 clusters were certified as Water Efficient
Buildings by the Public Utilities Board, which recognised
their effective application of the 3Rs (Reviewing, Reducing
and Repairing) strategy of water conservation in the
management and use of water.
The Manager also implemented new energy saving initiatives
to reduce its carbon footprint and improve operational
efficiency. These included the installation of motion-
activated light control at staircase landings and replacement
of existing T8 fluorescent bulbs with more energy efficient T5
ones at common areas. Such measures helped to minimise
energy wastage, which in turn reduced the overall energy
consumption and improved cost efficiency.
Green Building
In FY12/13, MITs AEI development project at Toa Payoh
North 1 cluster was conferred the Green Mark Gold Award
by the Building and Construction Authority. The accolade
affirmed the Managers commitment in incorporating best
practices in environmental design and adopting green
building technology.
Loyang 1 cluster was among the 15 clusters to be certified as Water
Efficient Buildings.
FINANCIAL
STATEMENTS

IMPORTANT NOTE
All currencies are denoted in Singapore dollar.

CONTENTS
98 Report of the Trustee
99 Statement by the Manager
100 Independent Auditors Report
101 Statements of Total Return
102 Balance Sheets
103 Distribution Statements
104 Consolidated Statement of Cash Flows
105 Statements of Changes in Unitholders Funds
106 Portfolio Statement
114 Notes to the Financial Statements

97
REPORT OF
THE TRUSTEE
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

DBS Trustee Limited (the Trustee) is under a duty to take into custody and hold the assets of Mapletree Industrial Trust
(MIT) and its subsidiaries (the Group) in trust for the holders (Unitholders) of units in MIT. In accordance with the Securities
and Futures Act (Cap. 289), its subsidiary legislation and the Code on Collective Investment Schemes (collectively referred
to as the laws and regulations), the Trustee shall monitor the activities of Mapletree Industrial Trust Management Ltd.
(the Manager) for compliance with the limitations imposed on the investment and borrowing powers as set out in the trust deed
dated 29 January 2008 (as amended) (the Trust Deed) between the Trustee and the Manager in each annual accounting
period and report thereon to Unitholders in an annual report which shall contain the matters prescribed by the laws and
regulations as well as the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework
for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore and the provisions of the Trust Deed.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed MIT and the Group during
the financial year covered by these financial statements, set out on pages 101 to 144, comprising the Balance Sheets and
Portfolio Statement for MIT and the Group as at 31 March 2013, the Statements of Total Return, Distribution Statements and
Statements of Changes in Unitholders Funds for MIT and the Group, the Consolidated Statement of Cash Flows for the Group
and Notes to the Financial Statements for the year then ended in accordance with the limitations imposed on the investment
and borrowing powers set out in the Trust Deed, laws and regulations and otherwise in accordance with the provisions of
the Trust Deed.

For and on behalf of the Trustee

DBS Trustee Limited

Jane Lim
Director

Singapore, 23 April 2013

98
STATEMENT BY
THE MANAGER
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

In the opinion of the directors of Mapletree Industrial Trust Management Ltd., the accompanying financial statements of
Mapletree Industrial Trust (MIT) and its subsidiaries (the Group), set out on pages 101 to 144, comprising the Balance
Sheets and Portfolio Statement for MIT and the Group as at 31 March 2013, the Statements of Total Return, Distribution
Statements and Statements of Changes in Unitholders Funds for MIT and the Group, the Consolidated Statement of Cash
Flows for the Group and Notes to the Financial Statements for the year then ended are drawn up so as to present fairly, in all
material respects, the financial position of MIT and of the Group as at 31 March 2013 and the total return, amount distributable,
movements in Unitholders funds of MIT and of the Group and cash flows of the Group for the year then ended in accordance
with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued
by the Institute of Certified Public Accountants of Singapore. At the date of this statement, there are reasonable grounds to
believe that MIT will be able to meet its financial obligations as and when they materialise.

For and on behalf of the Manager

Mapletree Industrial Trust Management Ltd.

Tham Kuo Wei

Director

Singapore, 23 April 2013

99
INDEPENDENT
AUDITORS REPORT
TO THE UNITHOLDERS OF MAPLETREE INDUSTRIAL TRUST
(CONSTITUTED UNDER A TRUST DEED IN THE REPUBLIC OF SINGAPORE)

Report on the Financial Statements

We have audited the accompanying financial statements of Mapletree Industrial Trust (MIT) and its subsidiaries
(the Group), set out on pages 101 to 144, which comprise the Balance Sheets and Portfolio Statement of MIT and the Group
as at 31 March 2013, the Statements of Total Return, Distribution Statements and Statements of Changes in Unitholders
Funds for MIT and the Group and Consolidated Statement of Cash Flows of the Group for the financial year then ended, and
a summary of significant accounting policies and other explanatory information.

Managers Responsibility for the Financial Statements

The Manager of MIT (the Manager) is responsible for the preparation and fair presentation of these financial statements
in accordance with the recommendations of Statement of Recommended Accounting Practice 7 Reporting Framework
for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore, and for such internal control as the
Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.

Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entitys preparation of financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of MIT and of the Group
as at 31 March 2013, the total return, amount distributable and movements in Unitholders funds of MIT and the Group and
consolidated cash flows of the Group for the financial year ended 31 March 2013 in accordance with the recommendations of
Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute of Certified
Public Accountants of Singapore.

PricewaterhouseCoopers LLP
Public Accountants and Certified Public Accountants

Singapore, 23 April 2013

100
STATEMENTS OF
TOTAL RETURN
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

Group MIT
FY12/13 FY11/12 FY12/13 FY11/12
Note $000 $000 $000 $000

Gross revenue 3 276,433 246,371 259,209 229,535

Property operating expenses 4 (80,997) (75,051) (77,488) (72,087)
Net property income 195,436 171,320 181,721 157,448

Interest income 329 244 327 241

Dividend income - - 12,290 12,370
Borrowing costs 5 (27,129) (23,573) (27,129) (23,573)
Managers management fees (21,212) (19,034) (19,754) (17,563)
Trustees fees (432) (410) (432) (410)
Other trust expenses 6 (1,432) (2,210) (1,362) (2,163)

Net income 145,560 126,337 145,661 126,350

Net appreciation on revaluation of
investment properties and
investment property under development 12/13 134,906 94,092 132,026 93,262

Total return for the financial year

before income tax 280,466 220,429 277,687 219,612
Income tax expense 7 (1,195) - (1,195) -

Total return for the financial year
after income tax before distribution 279,271 220,429 276,492 219,612

Earnings per unit
- Basic (cents) 8
17.13 14.10 16.96 14.05
- Diluted (cents) 8
17.13 14.10 16.96 14.05

The accompanying notes form an integral part of these financial statements.

101
BALANCE
SHEETS
AS AT 31 MARCH 2013

Group MIT
FY12/13 FY11/12 FY12/13 FY11/12
Note $000 $000 $000 $000

ASSETS
Current assets
Cash and cash equivalents 9 72,331 122,177 66,019 114,140
Trade and other receivables 10 3,065 1,510 4,807 4,587
Other current assets 11 12,332 1,902 11,222 709
87,728 125,589 82,048 119,436

Non-current assets
Investment properties 12 2,853,050 2,695,982 2,664,740 2,510,552
Investment property under development 13 26,820 627 26,820 627
Plant and equipment 14 10 7 10 7
Investment in subsidiaries 15 - - * *
Loan to a subsidiary 16 - - 179,794 179,794
2,879,880 2,696,616 2,871,364 2,690,980

Total assets 2,967,608 2,822,205 2,953,412 2,810,416

LIABILITIES
Current liabilities
Trade and other payables 17 80,835 58,785 75,895 54,965
Borrowings 18 205,945 84,180 205,945 84,180
Current income tax liabilities 7 1,659 4,950 1,690 4,412
Derivative financial instruments 19 3,021 - 3,021 -
291,460 147,915 286,551 143,557

Non-current liabilities
Other payables 17 42,614 31,261 41,820 29,544
Borrowings 18 826,426 981,224 656,924 856,657
Derivative financial instruments 19 3,418 7,269 3,418 7,269
Loans from a subsidiary 18 - - 169,502 124,567
872,458 1,019,754 871,664 1,018,037

Total liabilities
1,163,918 1,167,669 1,158,215 1,161,594

Net assets attributable to Unitholders 1,803,690 1,654,536 1,795,197 1,648,822

Represented by:
Unitholders funds 1,810,129 1,661,805 1,801,636 1,656,091
Hedging reserve 20 (6,439) (7,269) (6,439) (7,269)
1,803,690 1,654,536 1,795,197 1,648,822

UNITS IN ISSUE (000) 21

1,641,481 1,628,822 1,641,481 1,628,822

NET ASSET VALUE PER UNIT ($) 1.10 1.02 1.09 1.01

* Amount is less than $1,000

The accompanying notes form an integral part of these financial statements.

102
DISTRIBUTION
STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

Group MIT
FY12/13 FY11/12 FY12/13 FY11/12
$000 $000 $000 $000

Amount available for distribution to Unitholders

at beginning of the year 36,217 28,370 36,217 28,370

Total return for the year 279,271 220,429 276,492 219,612

Adjustment for net effect of non-tax chargeable items
and other adjustments (Note A) (128,310) (88,730) (125,531) (87,913)
Amount available for distribution 150,961 131,699 150,961 131,699

Distribution to Unitholders:
Distribution of 2.32 cents per unit for the period from
01 October 2012 to 31 December 2012 * (37,817) - (37,817) -
Distribution of 2.29 cents per unit for the period from
01 July 2012 to 30 September 2012 (37,320) - (37,320) -
Distribution of 2.26 cents per unit for the period from
01 April 2012 to 30 June 2012 (36,822) - (36,822) -
Distribution of 2.22 cents per unit for the period from
01 January 2012 to 31 March 2012 (36,160) - (36,160) -
Distribution of 2.16 cents per unit for the period from
01 October 2011 to 31 December 2011 - (35,172) - (35,172)
Distribution of 0.91 cents per unit for the period from
23 August 2011 to 30 September 2011 - (14,816) - (14,816)
Distribution of 1.14 cents per unit for the period from
01 July 2011 to 22 August 2011 - (16,674) - (16,674)
Distribution of 1.98 cents per unit for the period from
01 April 2011 to 30 June 2011 - (28,961) - (28,961)
Distribution of 1.93 cents per unit for the period from
01 January 2011 to 31 March 2011 - (28,229) - (28,229)

Total Unitholders distribution (including capital return) (Note B) (148,119) (123,852) (148,119) (123,852)

Amount available for distribution to Unitholders

at end of the year 39,059 36,217 39,059 36,217

* This amount includes $15.2 million distributed by the issuance of 11,074,385 new MIT units pursuant to its Distribution Reinvestment Plan (DRP).

Note A:
Adjustment for net effect of non-tax deductible/(chargeable)
items and other adjustments comprise:
Major non-tax deductible/(chargeable) items:
- Trustees fees 432 410 432 410
- Financing fees 1,985 1,849 1,985 1,849
- Net appreciation on revaluation of investment
properties and investment property
under development (134,906) (94,092) (132,026) (93,262)
- Management fees paid in units 1,957 1,208 1,957 1,208
- Expense capital item 761 878 761 878
- Fund raising cost 148 745 148 745
- Income tax expense 1,195 - 1,195 -
Other non-tax deductible items and other adjustments 118 272 17 259
(128,310) (88,730) (125,531) (87,913)

Note B:
Total Unitholders distribution

- From operations (136,061) (110,810) (136,061) (110,810)
- From Unitholders contribution (12,058) (13,042) (12,058) (13,042)
(148,119) (123,852) (148,119) (123,852)

The accompanying notes form an integral part of these financial statements.

103
CONSOLIDATED STATEMENT OF
CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

FY12/13 FY11/12
Note $000 $000

Cash flows from operating activities

Total return for the financial year after income tax before distribution 279,271 220,429
Adjustments for
- Reversal for impairment of trade receivables (11) (52)
- Income tax 1,195 -
- Net appreciation on revaluation of investment properties and
property under development (134,906) (94,092)
- Interest income (329) (244)
- Borrowing costs 27,129 23,573
- Managers management fees paid/payable in units 1,956 1,208
- Depreciation 5 2
Operating cash flow before working capital changes 174,310 150,824

Change in operating assets and liabilities
- Trade and other receivables (1,559) 642
- Trade and other payables 15,859 20,272
- Other current assets (10,555) 30
Interest received 344 231
Income tax paid (4,486) (10,135)
Net cash generated from operating activities 173,913 161,864

Cash flows from investing activities
Additions to investment properties (17,196) (404,790)
Additions to investment property under development (13,444) (609)
Purchase of plant and equipment (8) (7)
Net cash used in investing activities (30,648) (405,406)

Cash flows from financing activities
Repayment of borrowings (142,750) (125,000)
Net proceeds from bank loans 63,341 230,407
Net proceeds from issuance of Notes 44,865 124,554
Net proceeds from issuance of new units - 174,545
Distribution to Unitholders (132,918) (123,852)
Interest paid (25,649) (22,151)
Net cash (used in)/generated from financing activities (193,111) 258,503

Net (decrease)/increase in cash and cash equivalents (49,846) 14,961

Beginning of financial year 9 122,177 107,216
End of financial year 9 72,331 122,177

The accompanying notes form an integral part of these financial statements.

104
STATEMENTS OF
CHANGES IN UNITHOLDERS FUNDS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

Group MIT
FY12/13 FY11/12 FY12/13 FY11/12
$000 $000 $000 $000

OPERATIONS
Balance at beginning of year 226,144 129,567 220,430 124,670
Total return for the year 279,271 220,429 276,492 219,612
Distributions (148,119) (123,852) (148,119) (123,852)
Balance at end of year 357,296 226,144 348,803 220,430

UNITHOLDERS CONTRIBUTION
Balance at beginning of year 1,435,661 1,260,406 1,435,661 1,260,406
Creation of new units arising from:
- equity fund raising - 176,899 - 176,899
- Distribution Reinvestment Plan (Note 21) 15,201 - 15,201 -
Managers management fees paid in units 1,971 710 1,971 710
Issue expenses - (2,354) - (2,354)
Balance at end of year 1,452,833 1,435,661 1,452,833 1,435,661

HEDGING RESERVE
Balance at beginning of year (7,269) (6,143) (7,269) (6,143)
Changes in fair value 830 (1,126) 830 (1,126)
Balance at end of year
(6,439) (7,269) (6,439) (7,269)

Total Unitholders funds at the end of the year 1,803,690 1,654,536 1,795,197 1,648,822

The accompanying notes form an integral part of these financial statements.

105
PORTFOLIO
STATEMENT
AS AT 31 MARCH 2013

Remaining
Acquisition Term of term of
Description of property date lease* lease* Location

INVESTMENT PROPERTIES HELD UNDER MIT

Flatted Factories

Chai Chee Lane 26/08/2011 60 years 58 years 510, 512 & 514
Chai Chee Lane
Singapore

Changi North 01/07/2008 60 years 55 years 11 Changi North Street 1

Singapore

Kaki Bukit 01/07/2008 60 years 55 years 2, 4, 6, 8 & 10

Kaki Bukit Avenue 1
Singapore

Kallang Basin 1 26/08/2011 20 years 18 years 5 & 7 Kallang Place

Singapore

Kallang Basin 2 26/08/2011 20 years 18 years 9 & 11 Kallang Place

Singapore

Kallang Basin 3 26/08/2011 30 years 28 years 16 Kallang Place

Singapore

Kallang Basin 4 01/07/2008 33 years 28 years 26, 26A, 28 & 30 Kallang Place
Singapore

Kallang Basin 5 01/07/2008 33 years 28 years 19, 21 & 23 Kallang Avenue

Singapore

Kallang Basin 6 01/07/2008 33 years 28 years 25 Kallang Avenue

Singapore

Kampong Ampat 01/07/2008 60 years 55 years 171 Kampong Ampat

Singapore

Kampong Ubi 26/08/2011 60 years 58 years 3014A, 3014B & 3015A

Ubi Road 1
Singapore

Kolam Ayer 1 01/07/2008 43 years 38 years 8, 10 & 12 Lorong Bakar Batu

Singapore

Kolam Ayer 2 01/07/2008 43 years 38 years 155, 155A & 161 Kallang Way
Singapore

Kolam Ayer 5 01/07/2008 43 years 38 years 1, 3 & 5 Kallang Sector

Singapore

The accompanying notes form an integral part of these financial statements.

106
 Percentage Percentage
of total of total
net assets net assets
Gross Gross attributable attributable
revenue for revenue for Average Average At At to to
the year the year occupancy occupancy Latest valuation valuation Unitholders Unitholders
ended ended rate rate valuation as at as at as at as at
31/03/2013 31/03/2012 FY12/13 FY11/12 date 31/03/2013 31/03/2012 31/03/2013 31/03/2012
$000 $000 % % $000 $000 % %

8,844 4,937 88.0 90.8 31/03/2013 142,670 136,350 7.9 8.2

1,801 1,723 99.3 98.7 31/03/2013 19,860 19,720 1.1 1.2

16,617 14,831 97.9 92.2 31/03/2013 179,500 168,610 9.9 10.2

2,436 1,287 98.6 98.0 31/03/2013 22,150 22,110 1.2 1.3

4,340 2,390 98.2 99.6 31/03/2013 41,380 41,320 2.3 2.5

6,211 3,519 93.3 96.3 31/03/2013 73,570 73,480 4.1 4.4

7,735 7,162 97.7 96.5 31/03/2013 71,490 68,110 4.0 4.1

5,745 5,510 93.7 95.5 31/03/2013 52,750 50,210 2.9 3.0

4,259 4,054 96.1 97.5 31/03/2013 39,040 35,720 2.2 2.2

8,502 7,432 99.3 96.6 31/03/2013 80,540 69,770 4.5 4.2

8,507 4,711 93.7 97.5 31/03/2013 119,470 117,500 6.6 7.1

6,218 5,727 92.6 91.5 31/03/2013 62,610 58,060 3.5 3.5

6,364 5,644 92.1 88.0 31/03/2013 59,480 54,350 3.3 3.3

7,620 7,303 86.8 85.0 31/03/2013 78,510 73,360 4.4 4.4

107
PORTFOLIO
STATEMENT
AS AT 31 MARCH 2013

Remaining
Acquisition Term of term of
Description of property date lease* lease* Location

INVESTMENT PROPERTIES HELD UNDER MIT

Flatted Factories
Loyang 1 01/07/2008 60 years 55 years 30 Loyang Way
Singapore

Loyang 2 01/07/2008 60 years 55 years 2, 4 & 4A Loyang Lane

Singapore

Redhill 1 01/07/2008 30 years 25 years 1001, 1001A & 1002

Jalan Bukit Merah
Singapore

Redhill 2 01/07/2008 30 years 25 years 1003 & 3752

Bukit Merah Central
Singapore

Serangoon North 01/07/2008 60 years 55 years 6 Serangoon North Avenue 5

Singapore

Tanglin Halt 01/07/2008 56 years 51 years 115A/B Commonwealth Drive

Singapore

Telok Blangah 01/07/2008 60 years 55 years 1160, 1200 & 1200A

Depot Road
Singapore

Tiong Bahru 1 01/07/2008 30 years 25 years 1090 Lower Delta Road

Singapore

Tiong Bahru 2 01/07/2008 30 years 25 years 1080, 1091, 1091A, 1092 &
1093 Lower Delta Road
Singapore

Toa Payoh North 1 01/07/2008 30 years 25 years 970, 978, 988 & 998
Toa Payoh North
Singapore

Toa Payoh North 2 01/07/2008 30 years 25 years 1004 Toa Payoh North
Singapore

Toa Payoh North 3 01/07/2008 30 years 25 years 1008 & 1008A Toa Payoh North
Singapore

Woodlands Central 01/07/2008 60 years 55 years 33 & 35

Marsiling Ind Estate Road 3
Singapore

The accompanying notes form an integral part of these financial statements.

108
 Percentage Percentage
of total of total
net assets net assets
Gross Gross attributable attributable
revenue for revenue for Average Average At At to to
the year the year occupancy occupancy Latest valuation valuation Unitholders Unitholders
ended ended rate rate valuation as at as at as at as at
31/03/2013 31/03/2012 FY12/13 FY11/12 date 31/03/2013 31/03/2012 31/03/2013 31/03/2012
$000 $000 % % $000 $000 % %

5,549 5,006 96.6 95.6 31/03/2013 53,740 49,430 3.0 3.0

3,513 3,046 99.4 93.3 31/03/2013 30,270 29,110 1.7 1.8

6,172 5,486 95.8 90.4 31/03/2013 55,040 50,695 3.1 3.1

5,415 4,864 96.1 93.7 31/03/2013 48,690 43,670 2.7 2.6

16,708 15,969 98.8 95.8 31/03/2013 149,720 148,550 8.3 9.0

3,708 3,460 100.0 99.4 31/03/2013 36,420 36,310 2.0 2.2

5,112 4,924 92.7 94.2 31/03/2013 52,610 51,980 2.9 3.1

2,184 2,025 99.9 99.1 31/03/2013 18,180 18,130 1.0 1.1

6,818 6,405 96.2 96.7 31/03/2013 59,640 56,170 3.3 3.4

6,700 6,210 97.5 97.8 31/03/2013 65,580 55,781 3.6 3.4

2,271 2,015 99.5 99.2 31/03/2013 19,130 18,240 1.1 1.1

2,678 2,486 96.7 99.3 31/03/2013 22,530 22,140 1.2 1.3

4,929 4,084 76.0 68.4 31/03/2013 73,330 48,826 4.1 3.0

109
PORTFOLIO
STATEMENT
AS AT 31 MARCH 2013

Remaining
Acquisition Term of term of
Description of property date lease* lease* Location

INVESTMENT PROPERTIES HELD UNDER MIT

Business Park Buildings

The Signature 01/07/2008 60 years 55 years 51 Changi Business Park
Central 2
Singapore

The Strategy 01/07/2008 60 years 55 years 2 International Business Park

Singapore

The Synergy 01/07/2008 60 years 55 years 1 International Business Park

Singapore

Stack-up/Ramp-up Buildings
Woodlands 01/07/2008 60 years 55 years 201, 203, 205, 207, 209 & 211
Spectrum 1 & 2 Woodlands Avenue 9 and 2
Woodlands Sector 1
Singapore

Warehouse
Clementi West 01/07/2008 30 years 25 years 1 Clementi Loop
Singapore
Subtotal Investment properties held under MIT

INVESTMENT PROPERTY UNDER DEVELOPMENT HELD UNDER MIT

Light Industrial Buildings

23A Serangoon Ave 5 - 30 + 28.5 years 58 years 23A Serangoon Ave 5
Singapore
Subtotal Investment property under development held under MIT

Subtotal MIT

The accompanying notes form an integral part of these financial statements.

110
 Percentage Percentage
of total of total
net assets net assets
Gross Gross attributable attributable
revenue for revenue for Average Average At At to to
the year the year occupancy occupancy Latest valuation valuation Unitholders Unitholders
ended ended rate rate valuation as at as at as at as at
31/03/2013 31/03/2012 FY12/13 FY11/12 date 31/03/2013 31/03/2012 31/03/2013 31/03/2012
$000 $000 % % $000 $000 % %

16,904 15,248 97.1 97.8 31/03/2013 133,860 130,820 7.4 7.9

23,693 21,613 94.4 91.8 31/03/2013 268,390 254,950 14.8 15.5

10,471 12,110 80.6 91.5 31/03/2013 113,340 113,150 6.3 6.8

38,045 35,199 98.6 98.2 31/03/2013 392,920 366,430 21.7 22.1

3,140 3,155 82.2 96.8 31/03/2013 28,330 27,500 1.6 1.7

259,209 229,535 2,664,740 2,510,552

N.A. N.A. N.A. N.A. 31/03/2013 26,820 - 1.5 -

- - 26,820 -

259,209 229,535 2,691,560 2,510,552

111
PORTFOLIO
STATEMENT
AS AT 31 MARCH 2013

Remaining
Acquisition Term of term of
Description of property date lease* lease* Location

INVESTMENT PROPERTIES HELD UNDER MSIT

Light Industrial Buildings

19 Changi South Street 1 21/10/2010 30 + 30 years 44 years 19 Changi South Street 1
Singapore

19 Tai Seng Drive 21/10/2010 30 + 30 years 38 years 19 Tai Seng Drive

Singapore

Tata Communications Exchange 21/10/2010 30 + 30 years 56 years 35 Tai Seng Street

Singapore

65 Tech Park Crescent 21/10/2010 60 years 40 years 65 Tech Park Crescent

Singapore

45 Ubi Road 1 21/10/2010 30 + 30 years 40 years 45 Ubi Road 1

Singapore

26 Woodlands Loop 21/10/2010 30 + 30 years 42 years 26 Woodlands Loop

Singapore
Subtotal - MSIT

Gross revenue/investment properties

and investment property under
development - Group1
Other assets and
liabilities (net) - Group
Net assets attributable to
Unitholders - Group

* Refers to the tenure of underlying land. Remaining term of lease includes option to renew the land leases.
1 Investment properties comprise a portfolio of industrial buildings that are leased to external customers.

The carrying amounts of the Singapore investment properties were based on independent valuations as at 31 March 2013. The valuations were undertaken
by Knight Frank Pte Ltd, an independent valuer. Knight Frank Pte Ltd has appropriate professional qualifications and experience in the location and category
of the properties being valued. The valuations of the investment properties were based on the income capitalisation method, discounted cashflow method and
direct comparison method. The valuation of the investment property under development was based on the residual land value method. The net movement
in valuation has been taken to the Statement of Total Return. It is the intention of the Group and MIT to hold the investment properties for the long term.

The accompanying notes form an integral part of these financial statements.

112
 Percentage Percentage
of total of total
net assets net assets
Gross Gross attributable attributable
revenue for revenue for Average Average At At to to
the year the year occupancy occupancy Latest valuation valuation Unitholders Unitholders
ended ended rate rate valuation as at as at as at as at
31/03/2013 31/03/2012 FY12/13 FY11/12 date 31/03/2013 31/03/2012 31/03/2013 31/03/2012
$000 $000 % % $000 $000 % %

1,240 1,218 100.0 100.0 31/03/2013 13,800 13,220 0.8 0.8

1,574 1,544 100.0 100.0 31/03/2013 14,720 14,290 0.8 0.9

9,968 9,772 100.0 100.0 31/03/2013 95,560 96,030 5.3 5.8

1,024 1,003 100.0 100.0 31/03/2013 14,080 13,960 0.8 0.8

1,654 1,621 100.0 100.0 31/03/2013 24,670 24,660 1.4 1.5

1,764 1,678 100.0 100.0 31/03/2013 25,480 23,270 1.4 1.4

17,224 16,836 188,310 185,430

276,433 246,371 2,879,870 2,695,982 159.7 162.9

(1,076,180 ) (1,041,446 ) (59.7 ) (62.9)

1,803,690 1,654,536 100.0 100.0

113
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1. GENERAL
Mapletree Industrial Trust (MIT) is a Singapore-domiciled private trust constituted pursuant to the Trust Deed dated
29 January 2008 (as amended) between Mapletree Industrial Fund Management Pte. Ltd. and Mapletree Trustee Pte.
Ltd.. The Trust Deed is governed by the laws of the Republic of Singapore. Mapletree Industrial Trust Management Ltd.
(the Manager) replaced Mapletree Industrial Fund Management Pte. Ltd. as Manager of MIT on 27 September 2010
and DBS Trustee Limited (the Trustee) replaced Mapletree Trustee Pte. Ltd. as Trustee of MIT on 27 September 2010.

MIT was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (SGX-ST) on
21 October 2010 (Listing Date) and was included under the Central Provident Fund (CPF) Investment Scheme on
6 September 2010.

The principal activity of MIT and its subsidiaries (the Group) is to invest in a diverse portfolio of industrial properties
with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth.

MIT has entered into several service agreements in relation to the management of MIT and its property operations.
The fee structures for these services are as follows:

(A) Trustees fees

The Trustees fees shall not exceed 0.1% per annum of the value of all the assets of MIT (Deposited Property)
(subject to a minimum of $12,000 per month) or such higher percentage as may be fixed by an Extraordinary
Resolution of a meeting of Unitholders. The Trustees fees are payable out of the Deposited Property of MIT
monthly, in arrears. The Trustee is also entitled to reimbursement of expenses incurred in the performance of its
duties under the Trust Deed.

Based on the current arrangement between the Manager and the Trustee, the Trustees fees are charged on a
scaled basis of up to 0.02% per annum of the value of the Deposited Property (subject to a minimum of $12,000
per month).

(B) Managers Management fees

The Manager is entitled under the Trust Deed to receive the following remuneration:

(i) A base fee of 0.5% per annum of the value of MITs Deposited Property or such higher percentage as may
be approved by an Extraordinary Resolution of a meeting of Unitholders; and

(ii) A performance fee of 3.6% per annum of the net property income of MIT or such higher percentage as may
be approved by an Extraordinary Resolution of a meeting of Unitholders.

The management fees payable to the Manager will be paid in the form of cash and/or Units. Where the
management fees are paid in cash, the amounts are paid monthly, in arrears. Where the management fees
are paid in the form of Units, the amounts are paid quarterly, in arrears.

(C) Acquisition, Divestment and Development Management fees

The Manager is entitled to receive the following fees (if not prohibited by the Property Funds Appendix or if
otherwise permitted):

(i) an acquisition fee not exceeding 1.0% of the acquisition price of real estate or real estate-related assets
acquired directly or indirectly, through one or more Special Purpose Vehicles (SPV), pro-rated if applicable
to the proportion of MITs interest. For the purposes of this acquisition fee, real estate-related assets include
all classes and types of securities relating to real estate; and

(ii) a divestment fee not exceeding 0.5% of the sale price of real estate-related assets disposed, pro-rated if
applicable to the proportion of MITs interest. For the purposes of this divestment fee, real estate-related
assets include all classes and types of securities relating to real estate; and

114
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

1. GENERAL (Contd)
(C) Acquisition, Divestment and Development Management fees (Contd)
(iii) a development management fee not exceeding 3.0% of the total project costs incurred in a development
project undertaken by the Manager on behalf of MIT.

The acquisition and divestment management fees will be paid in the form of cash and/or Units and is payable
as soon as practicable after completion of the acquisition and disposal respectively.

The development management fees will be paid in the form of cash and/or units and is payable in equal
instalments based on the Managers best estimates of the total project cost over the period of the development.

(D) Fees under the Property Management Agreement

(i) Property management services
The Trustee will pay Mapletree Facilities Services Pte. Ltd. (the Property Manager), for each fiscal year
(as defined in the Property Management Agreement), a fee of up to 2.0% per annum of the gross revenue
of each Property.

(ii) Lease management services

The Trustee will pay the Property Manager, for each fiscal year, a fee of up to 1.0% per annum of the gross
revenue of each property.

(iii) Marketing services

The Trustee will pay the Property Manager, the following commissions:

Up to 1 months gross rent inclusive of service charge, for securing a tenancy of 3 years or less;

Up to 2 months gross rent inclusive of service charge, for securing a tenancy of more than 3 years;

Up to 0.5 months gross rent inclusive of service charge, for securing a renewal of tenancy of 3 years
or less; or

Up to 1 months gross rent inclusive of service charge, for securing a renewal of tenancy of more than
3 years.

If a third party agent secures a tenancy, the Property Manager will be responsible for all marketing services
commission payable to such third party agent, and the Property Manager will be entitled to a marketing
services commission of;

Up to 1.2 months gross rent inclusive of service charge, for securing a tenancy of 3 years or less; or

Up to 2.4 months gross rent inclusive of service charge, for securing a tenancy of more than 3 years;

115
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

1. GENERAL (Contd)
(D) Fees under the Property Management Agreement (Contd)
(iv) Project management services
The Trustee will pay the Property Manager, for each development or redevelopment, the refurbishment,
retrofitting and renovation work of a property located in Singapore, the following fees:

Where the construction costs are $2.0 million or less, a fee of 3.0% of the construction costs;

Where the construction costs exceed $2.0 million but do not exceed $20.0 million, a fee of 2.0% of the
construction costs or $60,000, whichever is the higher;

Where the construction costs exceed $20.0 million but do not exceed $50.0 million, a fee of 1.5% of
the construction costs or $400,000, whichever is the higher; and

Where the construction costs exceed $50.0 million, a fee to be mutually agreed by the Manager, the
Trustee and the Property Manager.

The Property Managers fees will be paid in the form of cash and is payable monthly, in arrears.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation
The financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice
7 (RAP 7) Reporting Framework for Unit Trusts issued by the Institute of Certified Public Accountants of Singapore,
the applicable requirements of the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore
(MAS) and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted should generally comply
with the recognition and measurement principles of Singapore Financial Reporting Standards (FRS).

These financial statements, which are expressed in Singapore Dollar and rounded to the nearest thousand, have been
prepared under the historical cost convention, except as disclosed in the accounting policies below.

The preparation of financial statements in conformity with RAP 7 requires management to exercise its judgement in the
process of applying the Groups accounting policies. It also requires the use of certain critical accounting estimates and
assumptions. Information about an area involving a higher degree of judgment, where assumptions and estimates are
significant to the financial statements, is disclosed in Note 12 Investment Properties. The assumptions and estimates
were used by the independent valuers in arriving at their valuations.

Interpretations and amendments to published standards effective in 2012

On 1 April 2012, the Group adopted the new or amended FRS and Interpretations to FRS (INT FRS) that are mandatory
for application for the financial year. Changes to the Groups accounting policies have been made as required,
in accordance with the relevant transitional provisions in the respective FRS and INT FRS.

The adoption of these new or amended FRS and INT FRS did not result in substantial changes to the accounting policies
of the Group and MIT and had no material effect on the amounts reported for the current or prior financial years.

116
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

2. SIGNIFICANT ACCOUNTING POLICIES (Contd)

2.2 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the rendering of services and is presented
net of goods and services tax, rebates and discounts.

Revenue is recognised as follows:

(a) Rental income and service charges from operating leases

Rental income and service charges (net of any incentives given to the lessees) from operating leases on the
investment properties are recognised on a straight-line basis over the lease term.

(b) Interest income

Interest income is recognised on a time-proportion basis using the effective interest method.

(c) Dividend income

Dividend income is recognised when the right to receive payment is established.

2.3 Expenses
(a) Property operating expenses
Property operating expenses are recognised on an accrual basis. Included in property expenses are Property
Managers fees which are based on the applicable formula stipulated in Note 1(D).

(b) Managers management fees

Managers management fees are recognised on an accrual basis using the applicable formula stipulated in Note 1(B).

2.4 Income tax

Taxation on the return for the year comprises current and deferred income tax. Income tax is recognised in the Statements
of Total Return.

Current income tax for current and prior periods is recognised at the amount expected to be paid to or recovered from
the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance
sheet date.

Deferred income tax is recognised for all temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit
or loss at the time of the transaction.

A deferred income tax liability is recognised on temporary differences arising from investments in subsidiaries, except
where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.

A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised.

Deferred income tax is measured at the tax rates that are expected to apply when the related deferred income tax
asset is realised or deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date, and based on the tax consequence that will follow from the manner in
which the Group expects, at the balance sheet date, to recover or settle the carrying amounts of its assets and liabilities.

117
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

2. SIGNIFICANT ACCOUNTING POLICIES (Contd)

2.4 Income tax (Contd)
The Inland Revenue Authority of Singapore (IRAS) has issued a tax ruling on the taxation of MIT for the income earned
and expenditure incurred after its listing on the SGX-ST. Subject to meeting the terms and conditions of the tax ruling
which include a distribution of at least 90% of the taxable income of MIT, the Trustee will not be taxed on the portion
of taxable income of MIT that is distributed to Unitholders. Any portion of the taxable income that is not distributed to
Unitholders will be taxed on the Trustee. In the event that there are subsequent adjustments to the taxable income when
the actual taxable income of MIT is finally agreed with the IRAS, such adjustments are taken up as an adjustment to the
taxable income for the next distribution following the agreement with the IRAS.

Although MIT is not taxed on its taxable income distributed, the Trustee and the Manager are required to deduct income
tax at the applicable corporate tax rate from the distributions of such taxable income of MIT (i.e. which has not been
taxed in the hands of the Trustee) to certain Unitholders. The Trustee and the Manager will not deduct tax from the
distributions made out of MITs taxable income to the extent that the beneficial Unitholder is:

An individual (excluding partnerships);

A tax resident Singapore-incorporated company;
A body of persons registered or constituted in Singapore (e.g. town council, statutory board, registered charity,
registered co-operative society, registered trade union, management corporation, club and trade and industry
association); and
A Singapore branch of a foreign company which has presented a letter of approval from the IRAS granting waiver
from tax deduction at source in respect of distributions from MIT.

The above tax transparency ruling does not apply to gains from sale of real properties. Such gains, if they are considered
as trading gains, are assessable to tax on the Trustee. Where the gains are capital gains, the Trustee will not be assessed
to tax and may distribute the gains without tax being deducted at source.

2.5 Group accounting

(a) Subsidiaries
(i) Consolidation
Subsidiaries are entities (including special purpose entities) over which the Group has power to govern
the financial and operating policies so as to obtain benefits from its activities, generally accompanied by a
shareholding giving rise to a majority of the voting rights. The existence and effect of potential voting rights
that are currently exercisable or convertible are considered when assessing whether the Group controls
another entity. Subsidiaries are consolidated from the date on which control is transferred to the Group.
They are de-consolidated from the date on which control ceases.

In preparing the consolidated financial statements, transactions, balances and unrealised gains on transactions
between group entities are eliminated. Unrealised losses are also eliminated but are considered an impairment
indicator of the asset transferred. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the Group.

(ii) Acquisition of businesses

The acquisition method of accounting is used to account for business combinations by the Group.

The consideration transferred for the acquisition of a subsidiary or business comprises the fair value of the
assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration
transferred also includes the fair value of any contingent consideration arrangement and the fair value of any
pre-existing equity interest in the subsidiary.

Acquisition-related costs are expensed as incurred.

118
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

2. SIGNIFICANT ACCOUNTING POLICIES (Contd)

2.5 Group accounting (Contd)
(a) Subsidiaries (Contd)
(ii) Acquisition of businesses (Contd)
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are,
with limited exceptions, measured initially at their fair values at the acquisition date.

On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree
at the date of acquisition either at fair value or at the non-controlling interests proportionate share of the
acquirees net identifiable assets.

The excess of (i) the consideration transferred, the amount of any non-controlling interest in the acquiree and
the acquisition-date fair value of any previous equity interest in the acquiree over the (ii) fair value of the net
identifiable assets acquired is recorded as goodwill.

(iii) Disposals
When a change in MITs ownership interest in a subsidiary results in a loss of control over the subsidiary,
the assets and liabilities of the subsidiary including any goodwill are derecognised.

Any retained interest in the entity is remeasured at fair value. The difference between the carrying amount
of the retained interest at the date when control is lost and its fair value is recognised in the Statements of
Total Return.

Please refer to the paragraph Investments in subsidiaries for the accounting policy on investments in
subsidiaries in the separate financial statements of MIT.

(b) Transactions with non-controlling interests

Changes in MITs ownership interest in a subsidiary that do not result in a loss of control over the subsidiary are
accounted for as transactions with equity owners of the Group. Any difference between the change in the carrying
amounts of the non-controlling interest and the fair value of the consideration paid or received is recognised within
equity attributable to the Unitholders of MIT.

2.6 Investments in subsidiaries

Investments in subsidiaries are carried at cost less accumulated impairment losses (Note 2.12) in MITs balance sheet.
On disposal of investments in subsidiaries, the difference between the disposal proceeds and the carrying amounts of
the investments are recognised in the Statements of Total Return.

2.7 Financial assets

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. They are presented as current assets, except for those expected to be realised later than 12 months
after the balance sheet date which are presented as non-current assets. Loans and receivables are presented as
Cash and cash equivalents (Note 9) and Trade and other receivables (Note 10) on the balance sheet, except for
non-current interest-free loan to subsidiary (Note 16) which have been accounted for in accordance with Note 2.6.

These financial assets are initially recognised at fair value directly attributable plus transaction costs and subsequently
carried at amortised cost using the effective interest method, less accumulated impairment losses.

The Group assesses at each balance sheet date whether there is objective evidence that these financial assets are
impaired and recognises an allowance for impairment when such evidence exists.

Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy and default or significant
delay in payments are objective evidence that these financial assets are impaired.

119
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

2. SIGNIFICANT ACCOUNTING POLICIES (Contd)

2.7 Financial assets (Contd)
The carrying amount of these assets is reduced through the use of an impairment allowance account which is calculated
as the difference between the carrying amount and the present value of estimated future cash flows, discounted at the
original effective interest rate. When the asset becomes uncollectible, it is written off against the allowance account.
Subsequent recoveries of amounts previously written off are recognised against the same line item in the Statements
of Total Return.

The impairment allowance is reduced through the Statements of Total Return in a subsequent period when the amount
of impairment loss decreases and the related decrease can be objectively measured. The carrying amount of the asset
previously impaired is increased to the extent that the new carrying amount does not exceed the amortised cost had no
impairment been recognised in prior periods.

2.8 Borrowing costs

Borrowing costs are recognised in the Statements of Total Return using the effective interest method except for those
costs that are directly attributable to the construction or development of properties and assets under construction. This
includes those costs on borrowings acquired specifically for the construction or development of properties and assets
under construction, as well as those in relation to general borrowings used to finance the construction or development
of properties and assets under construction.

The actual borrowing costs incurred during the period up to the issuance of the temporary occupation permit less any
investment income on temporary investment of these borrowings, are capitalised in the cost of the property under
development. Borrowing costs on general borrowings are capitalised by applying a capitalisation rate to construction
or development expenditures that are financed by general borrowings.

2.9 Investment properties

Investment properties are properties that are held for long-term rental yields and/or for capital appreciation. Investment
properties under development include property that is being constructed or developed for future use as investment
properties.

Investment properties are accounted for as non-current assets and are initially recognised at cost including transaction
costs and borrowing costs and subsequently carried at fair value. Fair values are determined in accordance with the
Trust Deed, which requires the investment properties to be valued by independent registered valuers at least once a
year, in accordance with the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore.
Changes in fair values are recognised in the Statements of Total Return.

Investment properties are subject to renovations or improvements at regular intervals. The costs of major renovations,
improvements and initial direct costs incurred in negotiating and arranging operating leases are capitalised and the
carrying amounts of the replaced components are written off to the Statements of Total Return. The costs of maintenance,
repairs and minor improvements are charged to the Statements of Total Return when incurred.

On disposal of an investment property, the difference between the net disposal proceeds and the carrying amount is
taken to the Statements of Total Return.

If an investment property becomes substantially owner-occupied, it is reclassified as property, plant and equipment,
and its fair value at the date of reclassification becomes its cost for accounting purpose.

2.10 Cash and cash equivalents

For the purposes of presentation in the consolidated statement of cash flows, cash and cash equivalents include cash
on hand and deposits with financial institutions which are subject to an insignificant risk of change in value.

120
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

2. SIGNIFICANT ACCOUNTING POLICIES (Contd)

2.11 Plant and equipment
(a) Measurement
Plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated depreciation
and accumulated impairment losses.

The cost of an item of plant and equipment initially recognised includes its purchase price and any cost that is
directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating
in the manner intended by management.

(b) Depreciation
Depreciation on plant and equipment is calculated using the straight-line method to allocate their depreciable
amounts over their estimated useful lives as follows:

Useful life

Plant and equipment 3 years

The residual values, estimated useful lives and depreciation method of plant and equipment are reviewed,
and adjusted as appropriate, at each balance sheet date. The effects of any revision are included in the Statements
of Total Return for the financial year in which the changes arise.

(c) Subsequent expenditure

Subsequent expenditure relating to plant and equipment that has already been recognised is added to the carrying
amount of the asset only when it is probable that future economic benefits in excess of the originally assessed
standard of performance of the existing asset will flow to the Group and the cost can be reliably measured.
Other subsequent expenditure is recognised as an expense during the financial year in which it is incurred.

(d) Disposal
On disposal of an item of plant and equipment, the difference between the net disposal proceeds and its carrying
amount is taken to the Statements of Total Return.

2.12 Impairment of non-financial assets

Plant and equipment
Investments in subsidiaries
Plant and equipment and investments in subsidiaries are tested for impairment whenever there is any objective evidence
or indication that these assets may be impaired.

For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the
value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely
independent of those from other assets. If this is the case, the recoverable amount is determined for the Cash Generating
Unit (CGU) to which the asset belongs.

If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of
the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable
amount is recognised as an impairment loss in the Statements of Total Return.

An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine
the assets recoverable amount or if there is a change in the events that had given rise to the impairment since the last
impairment loss was recognised. The carrying amount of this asset is increased to its revised recoverable amount,
provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated
amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment
loss for an asset is recognised in the Statements of Total Return.

121
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

2. SIGNIFICANT ACCOUNTING POLICIES (Contd)

2.13 Borrowings
Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least
12 months after the balance sheet date, in which case they are presented as non-current liabilities.

Borrowings are initially recognised at fair value (net of transaction costs) and subsequently carried at amortised cost.
Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statements
of Total Return over the period of the borrowings using the effective interest method.

2.14 Trade and other payables

Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial
year which are unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal
operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost using the
effective interest method.

2.15 Derivative financial instruments and hedging activities

A derivative financial instrument is initially recognised at its fair value on the date the contract is entered into and is
subsequently carried at its fair value. The method of recognising the resulting gain or loss depends on whether the
derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates
each hedge as a cash flow hedge.

Fair value changes on derivatives that are not designated or do not qualify for hedge accounting are recognised in the
Statements of Total Return when the changes arise.

The Group documents at the inception of the transaction the relationship between the hedging instruments and hedged
items, as well as its risk management objective and strategies for undertaking various hedge transactions. The Group
also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives designated
as hedging instruments are highly effective in offsetting changes in cash flows of the hedged items.

The carrying amount of a derivative designated as a hedge is presented as a non-current asset or liability if the remaining
expected life of the hedged instrument is more than 12 months and as a current asset or liability if the remaining expected
life of the hedged instrument is less than 12 months. The fair value of a trading derivative is presented as a current asset
or liability.

Cash flow hedge

Interest rate swaps
The Group has entered into interest rate swaps that are cash flow hedges for the Groups exposure to interest rate risk
on its borrowings. These contracts entitle the Group to receive interest at floating rates on notional principal amounts
and oblige the Group to pay interest at fixed rates on the same notional principal amounts, thus allowing the Group to
raise borrowings at floating rates and swap them into fixed rates.

The fair value changes on the effective portion of interest rate swaps designated as cash flow hedges are recognised
in the hedging reserve and transferred to the Statements of Total Return when the interest expense on the borrowings
is recognised in the Statements of Total Return. The fair value changes on the ineffective portion of interest rate swaps
are recognised immediately in the Statements of Total Return.

122
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

2. SIGNIFICANT ACCOUNTING POLICIES (Contd)

2.16 Fair value estimation of financial assets and liabilities
The fair values of financial instruments that are not traded in an active market are determined by using valuation techniques.
The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each
balance sheet date. Where appropriate, quoted market prices or dealer quotes for similar instruments are used. Valuation
techniques, such as discounted cash flow analyses, are also used to determine the fair values of the financial instruments.

The fair values of interest rate swaps are calculated as the present value of the estimated future cash flows discounted
at actively quoted interest rates.

The fair values of current financial assets and current and non-current financial liabilities carried at amortised cost
approximate their carrying amounts.

2.17 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events,
it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been
reliably estimated.

2.18 Leases
(a) When the Group is a lessee:
Leases of assets where substantially all risks and rewards incidental to ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases (net of any incentives received from the
lessor) are taken to the Statements of Total Return on a straight-line basis over the period of the lease.

When an operating lease is terminated before the lease period expires, any payment made (or received) by the
Group as penalty is recognised as an expense (or income) in the period in which termination takes place.

(b) When the Group is a lessor:

Leases of investment properties where the Group retains substantially all risks and rewards incidental to ownership
are classified as operating leases. Rental income from operating leases (net of any incentives given to the lessees)
is recognised in the Statements of Total Return on a straight-line basis over the period of the lease.

2.19 Currency translation

(a) Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency of the
primary economic environment in which the entity operates (functional currency). The financial statements are
presented in Singapore Dollars, which is the functional currency of MIT.

(b) Transactions and balances

Transactions in a currency other than the functional currency (foreign currency) are translated into the functional
currency using the exchange rates at the dates of the transactions. Currency translation differences resulting from
the settlement of such transactions and from the translation of monetary assets and liabilities denominated in
foreign currencies at the closing rates at the balance sheet date are recognised in the Statements of Total Return.

2.20 Units and unit issuance expenses

Proceeds from the issuance of Units in MIT are recognised as Unitholders funds. Incremental costs directly attributable
to the issuance of new Units are deducted directly from the net assets attributable to the Unitholders.

123
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

2. SIGNIFICANT ACCOUNTING POLICIES (Contd)

2.21 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Manager who is
responsible for allocating resources and assessing performance of the operating segments.

2.22 Distribution policy

MITs distribution policy is to distribute at least 90% of its Adjusted Taxable Income, comprising substantially its income
from the letting of its properties and related property services income after deduction of allowable expenses and
allowances, as well as interest income from the placement of periodic cash surpluses in bank deposits. Distributions,
when paid, will be in Singapore Dollars.

3. GROSS REVENUE

Group MIT
FY12/13 FY11/12 FY12/13 FY11/12
$000 $000 $000 $000

Rental income 220,977 195,391 204,055 178,848

Service charges 40,833 37,735 40,616 37,522
Other operating income 14,623 13,245 14,538 13,165
276,433 246,371 259,209 229,535

4. PROPERTY OPERATING EXPENSES

Group MIT
FY12/13 FY11/12 FY12/13 FY11/12
$000 $000 $000 $000

Operation and maintenance 45,455 43,316 44,057 42,672

Property and lease management fees 7,384 6,886 6,866 6,381
Property tax 21,186 18,394 20,410 17,102
Marketing and legal expenses 6,532 6,037 5,772 5,572
Other operating expenses 440 418 383 360
80,997 75,051 77,488 72,087

All of the Groups investment properties generate rental income and the above expenses are direct operating expenses
arising from its investment properties.

5. BORROWING COSTS

Group MIT
FY12/13 FY11/12 FY12/13 FY11/12
$000 $000 $000 $000

Bank borrowings 21,189 15,332 15,574 15,019

Loans from a subsidiary - - 5,615 313
Cash flow hedges recognised as borrowing costs
(Note 20) 5,940 8,241 5,940 8,241
27,129 23,573 27,129 23,573

124
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

6. OTHER TRUST EXPENSES

Group MIT
FY12/13 FY11/12 FY12/13 FY11/12
$000 $000 $000 $000

Audit fee 128 126 117 115

Other consultancy fees 1,304 2,084 1,245 2,048
1,432 2,210 1,362 2,163

7. INCOME TAX
(a) Income tax expense

Group and MIT

FY12/13 FY11/12
$000 $000

Tax expense attributable to profit is made up of:

- Current financial year - -
- Under provision in prior year 1,195 -
1,195 -

The tax on the results for the financial year differs from the theoretical amount that would arise using the Singapore
standard rate of income tax as follows:

Group
FY12/13 FY11/12
$000 $000

Total return before tax 280,466 220,429

Tax calculated at a tax rate of 17% 47,679 37,473
Effects of:
- Expenses not deductible for tax purposes 918 912
- Income not subjected to tax due to tax transparency ruling (Note 2.4) (25,663) (22,389)
- Net appreciation on revaluation of investment properties and
investment property under development (22,934) (15,996)
- -

MIT
FY12/13 FY11/12
$000 $000

Total return before tax 277,687 219,612

Tax calculated at a tax rate of 17% 47,207 37,334
Effects of:
- Expenses not deductible for tax purposes 900 910
- Income not subjected to tax due to tax transparency ruling (Note 2.4) (25,663) (22,389)
- Net appreciation on revaluation of investment properties and
investment property under development (22,444) (15,855)
- -

125
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

7. INCOME TAX (Contd)

(b) Movements in current income tax liabilities

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Beginning of financial year 4,950 15,085 4,412 14,163

Under provision in prior year 1,195 - 1,195 -
Income tax paid (4,486) (10,135) (3,917) (9,751)
End of financial year 1,659 4,950 1,690 4,412

The income tax liabilities refer to income tax provision based on taxable income made when MIT and MSIT were
held as taxable private trusts.

8. EARNINGS PER UNIT

Group MIT
FY12/13 FY11/12 FY12/13 FY11/12

Total return attributable to

Unitholders of the Group ($000) 279,271 220,429 276,492 219,612
Weighted average number of units
outstanding during the year (000) 1,630,490 1,563,194 1,630,490 1,563,194

Basic and diluted earnings per unit (cents per unit) 17.13 14.10 16.96 14.05

Diluted earnings per unit is the same as the basic earnings per unit as there were no dilutive instruments in issue during
the financial year.

9. CASH AND CASH EQUIVALENTS

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Cash at bank 19,131 51,177 16,019 43,140

Short-term bank deposits 53,200 71,000 50,000 71,000
72,331 122,177 66,019 114,140

126
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

10. TRADE AND OTHER RECEIVABLES

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Trade receivables 1,517 1,058 1,516 1,055

Less : Allowance for impairment of receivables (58) (131) (58) (131)
Trade receivables net 1,459 927 1,458 924
Interest receivable 3 17 3 17
Dividend receivable - - 2,854 3,070
Other receivables 1,128 5 17 15
Other assets 475 561 475 561
3,065 1,510 4,807 4,587

11. OTHER CURRENT ASSETS

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Deposits 9 91 9 91
Prepayments 12,323 1,811 11,213 618
12,332 1,902 11,222 709

Included in the prepayment is an amount of $10,082,124 (31 March 2012: $nil) being down payment for land premium
paid to JTC Corporation.

12. INVESTMENT PROPERTIES

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Beginning of financial year 2,695,982 2,197,100 2,510,552 2,012,500

Acquisition - 404,790 - 404,790
Additions 28,652 - 28,652 -
Net appreciation on revaluation of investment properties 128,416 94,092 125,536 93,262
End of financial year 2,853,050 2,695,982 2,664,740 2,510,552

Investment properties are carried at fair values at the balance sheet date as determined by an independent professional
valuer. In determining fair value, the valuer has used valuation methods which involve certain estimates.

The fair values are determined annually using the Income Capitalisation method, Discounted Cash Flow method and
Direct Comparison method. The Income Capitalisation and Discounted Cash Flow methods involve the estimation of
income and expenses, taking into account expected future changes in economic and social conditions, which may
affect the value of the properties. The Direct Comparison method involves the comparison of recent sales transactions
of similar properties. The Manager is of the view that the valuation methods and estimates are reflective of the current
market conditions.

Investment properties are leased to both related and non-related parties under operating leases (Note 22 (c)).

Details of the investment properties are shown in the Portfolio Statement.

127
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

13. INVESTMENT PROPERTY UNDER DEVELOPMENT

Group and MIT

31 March 31 March
2013 2012
$000 $000

Beginning of financial year 627 18

Costs incurred during the financial year 19,703 609
Net appreciation on revaluation of investment property under development 6,490 -
End of financial year 26,820 627

Investment property under development is carried at fair value at the balance sheet date as determined by an independent
professional valuer. In determining fair value, the valuer has used the Residual Land Value Method which involves certain
estimates.

It involves the estimation of costs to completion and other relevant costs from gross development value of the development
assuming satisfactory completion. Gross development value is arrived at by Income Capitalisation Method and Discounted
Cash Flow Method as explained in Note 12.

14. PLANT AND EQUIPMENT

Group and MIT

31 March 31 March
2013 2012
$000 $000

Cost
Beginning of financial year 20 13
Additions 8 7
End of financial year 28 20

Accumulated depreciation
Beginning of financial year 13 11
Depreciation charge 5 2
End of financial year 18 13

Net book value
End of financial year 10 7

15. INVESTMENT IN SUBSIDIARIES

MIT
31 March 31 March
2013 2012
$000 $000

Equity investments at cost

Beginning of financial year * *
Additions - *
End of financial year * *

* Amount is less than $1,000

128
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

15. INVESTMENT IN SUBSIDIARIES (Contd)

Details of the subsidiaries are as follows:

Name of Principal Country of business/ Equity

Subsidiary activities incorporation holding
31 March 31 March
2013 2012
% %

Mapletree Singapore Industrial Trust Property Singapore 100 100

(MSIT)** investment

Mapletree Industrial Trust Treasury Provision of Singapore 100 100

Company Pte. Ltd. treasury services
(MITTC)**

** Audited by PricewaterhouseCoopers LLP, Singapore

16. LOAN TO A SUBSIDIARY

MIT has extended an interest-free loan to one of its subsidiaries, MSIT, amounting to $179,794,000 (31 March 2012:
$179,794,000). This loan has no fixed terms of repayment and is intended to be a long-term source of additional capital
for the subsidiary. Settlement of this loan is neither planned nor likely to occur in the foreseeable future.

As a result, the Manager considers this loan to be in substance part of the MITs net investment in MSIT and has accounted
for this loan in accordance with Note 2.6.

17. TRADE AND OTHER PAYABLES

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Current
Trade payables 5,154 1,054 5,153 1,052
Accrued operating expenses 20,057 19,140 18,509 18,420
Accrued retention sum 4,238 160 4,230 152
Accrued development cost 14,241 1,127 14,148 577
Amount due to related parties (trade) 6,055 3,816 5,386 3,555
Tenancy related deposits 20,607 22,995 20,248 22,637
Rental received in advance 3,284 2,541 1,225 866
Net Goods and Services Tax payable 2,627 2,976 2,424 2,730
Interest payable 4,572 4,976 4,151 4,668
Interest payable to subsidiary - - 421 308
80,835 58,785 75,895 54,965
Non-Current
Tenancy related deposits 42,614 31,261 41,820 29,544

123,449 90,046 117,715 84,509

129
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

18. BORROWINGS

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Current
Bank loans (unsecured) 206,100 84,250 206,100 84,250
Transaction cost to be amortised (155) (70) (155) (70)
205,945 84,180 205,945 84,180
Non-Current
Bank loans (unsecured) 658,850 859,950 658,850 859,950
Transaction cost to be amortised (1,926) (3,293) (1,926) (3,293)
656,924 856,657 656,924 856,657

Medium-term notes (unsecured) 170,000 125,000 - -

Transaction cost to be amortised (498) (433) - -
169,502 124,567 - -

Loans from a subsidiary - - 170,000 125,000
Transaction cost to be amortised - - (498) (433)
- -
169,502 124,567
826,426 981,224 826,426 981,224

1,032,371 1,065,404 1,032,371 1,065,404

The above loans and notes are unsecured, and except for loans from a subsidiary, are subject to negative pledge.

(a) Maturity of borrowings

Current bank loans mature in approximately 6 months (31 March 2012: 6 months) from the end of the financial year.

The non-current bank loans, medium term notes and loans from a subsidiary mature between 2014 and 2022
(31 March 2012: between 2013 and 2019).

(b) Effective interest rates

The weighted average effective interest rates of total borrowings at the balance sheet date were as follows:

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
% % % %

Bank loans (current) 1.40 1.43 1.40 1.43

Bank loans (non-current) 1.51 1.61 1.51 1.61
Medium term notes (non-current) 3.76 3.79 - -
Loans from a subsidiary (non-current) - - 3.76 3.79

130
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

18. BORROWINGS (Contd)

(c) Medium-term notes
In March 2012, the Group established a $1,000,000,000 Multicurrency Medium Term Note Programme (MTN
Programme), via a subsidiary, MITTC. Under the MTN Programme, MITTC may, subject to compliance with all
relevant laws, regulations and directives, from time to time issue notes in series or tranches in Singapore Dollars
or any other currency (MTN Notes).

Each series or tranche of notes may be issued in various amounts and tenors, and may bear fixed, floating or
variable rates of interest. Hybrid notes or zero coupon notes may also be issued under the MTN Programme.

The MTN Notes shall constitute direct, unconditional, unsecured and unsubordinated obligations of MITTC ranking
pari passu, without any preference or priority among themselves and pari passu with all other present and future
unsecured obligations of MITTC. All sums payable in respect of the notes will be unconditionally and irrevocably
guaranteed by DBS Trustee Limited, in its capacity as Trustee of MIT.

Total notes outstanding as at 31 March 2013 under the MTN Programme is $170.0 million (31 March 2012: $125.0
million), consisting of:

(i) $125.0 million (31 March 2012: $125.0 million) Fixed Rate Notes due 2019. The $125.0 million MTN Notes
will mature on 8 March 2019 and bears an interest of 3.75% per annum payable semi-annually in arrears;
and

(ii) $45.0 million (31 March 2012: nil) Fixed Rate Notes due 2022. The $45.0 million MTN notes will mature on
7 September 2022 and bears an interest of 3.65% per annum payable semi-annually in arrears.

(d) Loans from a subsidiary

MITTC has on-lent the proceeds from the issuance of the above MTN Notes to MIT, who has in turn used these
proceeds to refinance its floating-rate borrowings.

These loans are unsecured and repayable in full; consisting of:

(i) $125.0 million (31 March 2012: $125.0 million) maturing on 8 March 2019 and bears an interest of 3.75% per
annum payable semi-annually in arrears; and

(iii) $45.0 million (31 March 2012: nil) maturing on 7 September 2022 and bears an interest of 3.65% per annum
payable semi-annually in arrears.

(e) Carrying amount and fair value

The carrying amount and fair value of the fixed-rate non-current borrowings are as follows:

Carrying amounts Fair values

31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Group
Medium-term notes (non-current) 170,000 125,000 175,616 125,965

MIT
Loans from a subsidiary 170,000 125,000 175,616 125,965

The fair value above is determined from the cash flow analysis, discounted at market borrowing rates of an equivalent
instrument at the balance sheet date at which the Manager expects to be available to the Group.

131
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

18. BORROWINGS (Contd)

(f) Interest rate risks
The exposure of the borrowings of the Group and MIT to interest rate changes and the contractual repricing dates
at the balance sheet dates after taking into account derivatives to swap floating rates to fixed rates are as follows:

Group and MIT

31 March 31 March
2013 2012
$000 $000

6 months or less 124,950 164,200

The Group has entered into interest rate swaps which effectively converted its floating rate borrowings of
$740.0 million (31 March 2012: $780.0 million) to fixed interest rates (Note 19) for the duration of the swaps.

19. DERIVATIVE FINANCIAL INSTRUMENTS

Group and MIT

Contract
notional Fair value
amount liability
$000 $000

31 March 2013
Cash flow hedges
- Current derivative financial instruments 334,000 3,021
- Non-current derivative financial instruments 506,000 3,418
Total derivative financial instruments 840,000 6,439

31 March 2012
Cash flow hedges
- Current derivative financial instruments - -
- Non-current derivative financial instruments 930,000 7,269
Total derivative financial instruments 930,000 7,269

Period when the cash flows on cash flow hedges are expected to occur or affect the Statements of Total Return

The Group has entered into interest rate swap transactions for the purpose of fixing the interest rates of the Groups
floating rate borrowings. As at 31 March 2013, the various notional amounts and corresponding maturity dates of these
interest rate swaps are as follows:

$334.0 million maturing on 1 January 2014;

$192.0 million maturing on 1 July 2014;
$ 94.0 million maturing on 1 July 2015; and
$120.0 million maturing on 25 August 2016.

The Group has also entered into forward start interest rate swaps for the purpose of extending some of the interest rate
swaps. As at 31 March 2013, the various notional amounts and corresponding maturity dates of these forward start
interest rate swaps are as follows:

$50.0 million maturing on 1 January 2016; and

$50.0 million maturing on 1 January 2017.

Fair value gains and losses on the interest rate swaps recognised in the hedging reserve are transferred to the Statements
of Total Return as part of interest expense over the period of the borrowings.

132
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

20. HEDGING RESERVE

Group and MIT

31 March 31 March
2013 2012
$000 $000

Beginning of financial year 7,269 6,143

Fair value losses 5,110 9,367
Cash flow hedges recognised as borrowing costs (Note 5) (5,940) (8,241)
End of financial year 6,439 7,269

Hedging reserve is non-distributable.

21. UNITS IN ISSUE

Group and MIT

31 March 31 March
2013 2012
000 000

Units at beginning of financial year 1,628,822 1,462,664

Units issued due to private placement and preferential offering - 165,513
Units issued as settlement of managers management fees 1,585 645
Units issued from Distribution Reinvestment Plan 11,074 -
Units at end of the financial year 1,641,481 1,628,822

During the financial year, MIT issued the following units:

(a) 1,585,016 (FY11/12: 645,050) new Units at the issue price range $1.10 to $1.38 (FY11/12: $1.08 to $1.15) per unit,
in respect of the payment of the base management fees to the Manager in units. The issue prices were determined
based on the volume weighted average traded price for a unit for all trades done on SGX-ST in the ordinary course
of trading for the last 10 business days of the relevant period in which the management fees accrues.

(b) MIT has introduced and implemented Distribution Reinvestment Plan (DRP) whereby the Unitholders have the
option to receive their distribution in units instead of cash or a combination of units and cash.

11,074,385 new Units (FY11/12: nil) at an issue price of $1.3721 (FY11/12: nil) per unit were issued pursuant to
the DRP.

In the previous financial year, MIT issued 48,500,000 new units at $1.09 each under a private placement exercise and
117,013,120 new units at $1.06 each under a preferential offering exercise.

Each unit in MIT represents an undivided interest in MIT. The rights and interests of Unitholders are contained in the
Trust Deed and include the right to:

Receive income and other distributions attributable to the units held;

Participate in the termination of MIT by receiving a share of all net cash proceeds derived from the realisation of
the assets of MIT less any liabilities, in accordance with their proportionate interests in MIT. However, a Unitholder
does not have the right to require that any assets (or part thereof) of MIT be transferred to him; and

Attend all Unitholders meetings. The Trustee or the Manager may (and the Manager shall at the request in writing
of not less than 50 Unitholders or one-tenth in the number of Unitholders, whichever is lesser) at any time convene
a meeting of Unitholders in accordance with the provisions of the Trust Deed.

133
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

21. UNITS IN ISSUE (Contd)

The restrictions of a Unitholder include the following:

A Unitholders right is limited to the right to require due administration of MIT in accordance with the provisions of
the Trust Deed; and

A Unitholder has no right to request to redeem his units while the units are listed on SGX-ST.

A Unitholders liability is limited to the amount paid or payable for any units in MIT. The provisions of the Trust Deed
provide that no Unitholder will be personally liable to indemnify the Trustee or any creditor of the Trustee in the event
that the liabilities of MIT exceed its assets.

22. COMMITMENTS
(a) Capital commitments
Capital expenditures contracted for at the balance sheet date but not recognised in the financial statements are
as follows:

Group and MIT

31 March 31 March
2013 2012
$000 $000

Development expenditure contracted on investment properties

and investment property under development 117,956 24,825

(b) Operating lease commitments where the Group is a lessee

The Group leases land from non-related parties under non-cancellable operating lease agreements. The future
minimum lease payables under such non-cancellable operating leases contracted for at the balance sheet date
but not recognised as liabilities, are as follows:

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Not later than one year 1,388 1,000 660 -

Between two and five years 5,551 4,077 2,639 -
Later than five years 24,835 12,165 15,996 -
31,774 17,242 19,295 -

The operating leases are subjected to revision of land rents at periodic intervals. For the purpose of the above
disclosure, the prevailing land rent rates are used.

134
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

22. COMMITMENTS (Contd)

(c) Operating lease commitments where the Group is a lessor
The Group and MIT leases out its investment properties to related and non-related parties under non-cancellable
operating leases. The future minimum lease receivables under such non-cancellable operating leases contracted
for at the balance sheet date but not recognised as receivables, are analysed as follows:

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Not later than one year 262,740 247,809 245,485 230,645

Between two and five years 419,633 330,255 357,161 265,881
Later than five years 355,587 134,287 272,295 35,021
1,037,960 712,351 874,941 531,547

23. FINANCIAL RISK MANAGEMENT

The Groups activities expose it to a variety of financial risks, including the effects of changes in interest rates.

Risk management is carried out under policies approved by the Manager. The Manager provides written principles for
overall risk management as well as written policies covering specific areas, such as interest rate risk, credit risk and
liquidity risk. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and
the Groups activities.

(a) Market risk cash flow and fair value interest rate risks
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Fair value interest rate risk is the risk that the fair value of a financial instrument
will fluctuate due to changes in market interest rates. As the Group has no significant interest bearing assets,
the Groups income and operating cash flows are substantially independent of changes in market interest rates.

The Groups exposure to cash flow interest rate risks arises mainly from variable-rate bank borrowings. The Group
manages these cash flow interest rate risks using floating-to-fixed interest rate swaps.

Sensitivity analysis
The Groups and MITs borrowings at variable rates on which effective hedges have not been entered into are
denominated in SGD. If the SGD interest rates increase by 0.50% and decrease by 0.20% (31 March 2012: increase
by 0.50% and decrease by 0.20%) with all other variables including tax rate being held constant, the total return
and hedging reserve attributable to Unitholders will change by the amounts shown below, as a result of higher/lower
interest expense and higher/lower fair value of interest rate swaps designated as cash flow hedges respectively:

Group and MIT

Statements of Hedging
Total Return Reserve
31 March 31 March
FY12/13 FY11/12 2013 2012
$000 $000 $000 $000

Increase by 0.50%
Interest bearing borrowings (779) (1,172) - -
Interest rate swaps - - 5,903 6,890

135
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

23. FINANCIAL RISK MANAGEMENT (Contd)

(a) Market risk cash flow and fair value interest rate risks (Contd)
Sensitivity analysis (Contd)

Group and MIT

Statements of Hedging
Total Return Reserve
31 March 31 March
FY12/13 FY11/12 2013 2012
$000 $000 $000 $000

Decrease by 0.20%
Interest bearing borrowings 312 469 - -
Interest rate swaps - - (2,383) (2,806)

(b) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The major classes of financial assets of the Group and MIT are cash and bank deposits and
trade receivables. Cash and short-term bank deposits are placed with financial institutions which are regulated.
For trade receivables, the Group adopts the policy of dealing only with customers of appropriate credit history,
and obtaining sufficient security where appropriate to mitigate credit risk. For other financial assets, the Group
adopts the policy of dealing with counterparties of acceptable credit quality.

(i) Financial assets that are neither past due nor impaired
Trade receivables that are neither past due nor impaired are substantially companies with a good collection
track record with the Group. Bank deposits that are neither past due nor impaired are mainly deposits with
banks with acceptable credit-ratings assigned by international credit rating agencies.

(ii) Financial assets that are past due and/or impaired

There is no other class of financial assets that is past due and/or impaired except for trade receivables.

The age analysis of trade receivables past due but not impaired is as follows:

Group
31 March 31 March
2013 2012
$000 $000

Past due < 3 months 1,420 862

Past due 3 to 6 months 50 68
Past due over 6 months 47 128
1,517 1,058

MIT
31 March 31 March
2013 2012
$000 $000

Past due < 3 months 1,419 862

Past due 3 to 6 months 50 67
Past due over 6 months 47 126
1,516 1,055

136
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

23. FINANCIAL RISK MANAGEMENT (Contd)

(b) Credit risk (Contd)
(ii) Financial assets that are past due and/or impaired (Contd)
The carrying amount of trade receivables individually determined to be impaired and the movement in the
related allowance for impairment are as follows:

Group and MIT

31 March 31 March
2013 2012
$000 $000

Gross amount 129 162

Less: Allowance for impairment (58) (131)
71 31

Beginning of financial year (131) (356)
Allowance reversed 9 52
Allowance utilised 64 173
End of financial year (58) (131)

The Manager believes that no additional allowance is necessary in respect of the remaining trade receivables
as these receivables are mainly arising from tenants with good records with sufficient security in the form of
bankers guarantees, insurance bonds, or cash security deposits as collaterals.

(c) Liquidity risk

The Group and MIT adopt prudent liquidity risk management by maintaining sufficient cash to fund its working
capital and financial obligations.

The table below analyses the maturity profile of the non-derivative financial liabilities of the Group and MIT based
on contractual undiscounted cash flows prospectively for the next 5 years. Where it relates to a variable amount
payable, the amount is determined by reference to the last reference rate contracted.

Between
Less than 1 and 5 Over
1 year years 5 years
$000 $000 $000

Group
31 March 2013
Trade and other payables 76,263 41,125 1,489
Borrowings 206,100 658,850 170,000
Accrued interest and interest payable 20,997 38,653 11,682
303,360 738,628 183,171

31 March 2012
Trade and other payables 53,809 28,827 2,434
Borrowings 84,250 859,950 125,000
Accrued interest and interest payable 22,231 41,836 9,054
160,290 930,613 136,488

137
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

23. FINANCIAL RISK MANAGEMENT (Contd)

(c) Liquidity risk (Contd)

Between
Less than 1 and 5 Over
1 year years 5 years
$000 $000 $000

MIT
31 March 2013
Trade and other payables 71,744 40,457 1,363
Borrowings 206,100 658,850 -
Loans from a subsidiary - - 170,000
Accrued interest and interest payable 20,997 38,653 11,682
298,841 737,960 183,045

31 March 2012
Trade and other payables 50,297 28,077 1,467
Borrowings 84,250 859,950 -
Loan from a subsidiary - - 125,000
Accrued interest and interest payable 22,231 41,836 9,054
156,778 929,863 135,521

The table below analyses the Group and MITs derivative financial instruments for which contractual maturities
are essential for an understanding of the timing of the cash flows into relevant maturity groupings based on the
remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in the table
are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the
impact of discounting is not significant.

Group and MIT

Between
Less than 1 and 5
1 year years
$000 $000

At 31 March 2013
Net-settled interest rate swaps - cash flow hedges
- Net cash outflows 6,102 2,741

At 31 March 2012
Net-settled interest rate swaps - cash flow hedges
- Net cash outflows 6,318 4,580

138
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

23. FINANCIAL RISK MANAGEMENT (Contd)

(d) Capital risk
The Managers objective when managing capital is to optimise the Groups capital structure within the borrowing
limits set out in the Code on Collective Investment Scheme (CIS) by the Monetary Authority of Singapore to
fund future acquisitions and asset enhancement works. To maintain or achieve an optimal capital structure, the
Manager may issue new units or source additional borrowing from both financial institutions and capital markets.

The Manager monitors capital based on aggregate leverage limit. Under the CIS, all Singapore-listed real estate
investment trust (S-REITs) are given the aggregate leverage limit of 60% of its deposited property if a S-REIT
has obtained a credit rating from a major credit rating agency.

The aggregate leverage ratio is calculated as total borrowings plus deferred payments divided by total assets.
The Group does not have deferred payments.

Group
31 March 31 March
2013 2012
$000 $000

Total borrowings 1,032,371 1,065,404

Total assets 2,967,608 2,822,205

Aggregate leverage ratio 34.8% 37.8%

There were no changes in the Groups approach to capital management during the financial year.

The Group is in compliance with externally imposed capital requirements for the financial year ended 31 March 2013.

(e) Fair value measurements

FRS 107 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);

(b) inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (is as prices) or indirectly (i.e. derived from prices) (Level 2); and

(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

The fair value of the derivative financial instruments is made up of interest rate swaps obtained from independent
financial institutions. Valuation techniques using assumptions based on market conditions existing at balance sheet
date are used in the determination of the fair value of the interest rate swaps.

The fair value of the interest rate swaps are presented below:

Group and MIT

31 March 31 March
2013 2012
$000 $000

Level 2
Liabilities
Derivative financial instruments 6,439 7,269
Total liabilities 6,439 7,269

The carrying value of trade and other receivables, trade and other payables and borrowings approximate their
fair values.

139
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

23. FINANCIAL RISK MANAGEMENT (Contd)

(f) Financial instruments by category
The carrying amount of the different categories of financial instruments is as disclosed on the face of the balance
sheet and in Note 19 except for the following:

Group MIT
31 March 31 March 31 March 31 March
2013 2012 2013 2012
$000 $000 $000 $000

Loans and receivables 75,405 123,778 70,835 118,818

Financial liabilities at amortised cost 1,155,820 1,155,450 1,150,086 1,149,913

24. SIGNIFICANT RELATED PARTY TRANSACTIONS

For the purpose of these financial statements, parties are considered to be related to the Group when the Group has
the ability, directly or indirectly to control the party or exercise significant influence over the party in making financial
and operating decisions, or vice versa, or where the Group and the party are subject to common significant influence.
Related parties may be individuals and entities. The Manager (Mapletree Industrial Trust Management Ltd.) and the Property
Manager (Mapletree Facilities Services Pte Ltd.) are indirect wholly-owned subsidiaries of a substantial Unitholder of MIT.

During the financial year, in addition to the information disclosed elsewhere in the financial statements, the following
significant related party transactions took place at terms agreed between the parties as follows:

Group
FY12/13 FY11/12
$000 $000

Managers management fees paid/payable to the Manager 21,212 19,034

Acquisition fees paid/payable to the Manager - 4,003
Property and lease management fees paid/payable
(including reimbursable expenses) to a related company of the Manager 9,974 8,410
Marketing commission paid/payable to a related company of the Manager 5,531 5,444
Development management fees paid/payable to the Manager 2,310 60
Project management fees paid/payable to a related company of the Manager 991 -
Trustee fees paid/payable to the Trustee 432 410
Rental and other related income received/receivable from related parties 4,643 4,351
Other products and service fees paid/payable to related parties 11,604 15,408
Subscription to MTN by a related party - 1,504

MIT
FY12/13 FY11/12
$000 $000

Managers management fees paid/payable to the Manager 19,754 17,563

Acquisition fee paid/payable to the Manager - 4,003
Property and lease management fees paid/payable
(including reimbursable expenses) to a related company of the Manager 9,390 7,864
Marketing commission paid/payable to a related company of the Manager 5,531 5,444
Development management fees paid/payable to the Manager 2,310 60
Project management fees paid/payable to a related company of the Manager 991 -
Trustee fees paid/payable to the Trustee 432 410
Rental and other related income received/receivable from related parties 3,069 2,807
Other products and service fees paid/payable to related parties 11,592 14,985

140
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

25. FINANCIAL RATIOS

Group
FY12/13 FY11/12
% %

Ratio of expenses to weighted average net assets1

- including performance component of asset management fee 1.37 1.35
- excluding performance component of asset management fee 0.95 0.94
Portfolio Turnover Ratio2 - -

1 The annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore dated 25 May 2005.
The expenses used in the computation relate to expenses of the Group, excluding property expenses, borrowing costs and income tax expense.
2 In accordance with the formulae stated in the CIS, the ratio reflects the number of times per year that a dollar of assets is reinvested. The annualised
ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Group expressed as a percentage of daily
average net asset value.

26. SEGMENT INFORMATION

The operating segments have been determined based on the reports reviewed by the Chief Executive Officer,
the Chief Financial Officer and Head of Asset Management in making strategic decisions.

The Manager considers the business from a business segment perspective; managing and monitoring the business
based on property types.

The Manager assesses the performance of the operating segments based on a measure of Net Property Income (NPI).
Interest income and borrowing costs are not allocated to segments, as the treasury activities are centrally managed by
the Group.

(a) Segment assets

The amounts provided to the Manager with respect to total assets are measured in a manner consistent with that of
the financial statements. For the purposes of monitoring segment performance and allocating resources between
segments, the Manager monitors the trade receivables and investment properties attributable to each segment.
All assets are allocated to reportable segments other than cash and cash equivalents, other current assets and
other receivables and plant and equipment.

(b) Segment liabilities

The amounts provided to the Manager with respect to total liabilities are measured in a manner consistent with
that of the financial statements. These liabilities are allocated to the reportable segments other than income tax
liabilities, borrowings, derivative financial instruments and trade and other payables.

141
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

26. SEGMENT INFORMATION (Contd)

The segment information provided to the Manager for the reportable segments for year ended 31 March 2013 is as follows:

Business Stack-up/ Light

Flatted Park Ramp-up Industrial
Factories Buildings Buildings Buildings Warehouse Total
$000 $000 $000 $000 $000 $000

Gross revenue 166,956 51,068 38,045 17,224 3,140 276,433

Net property income 118,751 31,417 29,790 13,673 1,805 195,436
Interest and other income 329
Managers management fees (21,212)
Trustees fees (432)
Other trust expenses (1,432)
Borrowing costs (27,129)
Net income 145,560
Net appreciation on revaluation
of investment properties and
investment property under
development 82,633 15,583 26,490 9,370 830 134,906
Total return for the year
before income tax 280,466
Income tax (1,195)
Total return for the year
after income tax
before distribution 279,271

Segment assets
- Investment properties* 1,727,900 515,590 392,920 188,310 28,330 2,853,050
- Investment property
under development** 26,820 26,820
- Trade receivables 845 24 589 1 - 1,459
1,728,745 515,614 393,509 215,131 28,330 2,881,329

Unallocated assets
- Cash and cash equivalents 72,331
- Other receivables 1,606
- Other current assets 12,332
- Plant and equipment 10
Consolidated total assets 2,967,608

Segment liabilities 39,591 13,940 8,612 3,196 797 66,136
Unallocated liabilities
- Trade and other payables 57,313
- Borrowings 1,032,371
- Current income tax liabilities 1,659
- Derivative financial instruments 6,439
Consolidated total liabilities 1,163,918

* Additions to investment properties amount to $28,652,502 (31 March 2012: $404,789,800) during the year.
** Additions to investment property under development amount to $19,703,000 (31 March 2012: $608,936) during the year.

142
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

26. SEGMENT INFORMATION (Contd)

The segment information provided to the Manager for the reportable segments for year ended 31 March 2012 is as follows:

Business Stack-up/ Light

Flatted Park Ramp-up Industrial
Factories Buildings Buildings Buildings Warehouse Total
$000 $000 $000 $000 $000 $000

Gross revenue 142,210 48,971 35,199 16,836 3,155 246,371

Net property income 99,945 28,542 27,187 13,872 1,774 171,320
Interest and other income 244
Managers management fees (19,034)
Trustees fees (410)
Other trust expenses (2,210)
Borrowing costs (23,573)
Net income 126,337
Net appreciation on revaluation
of investment properties and
investment property under
development 46,912 23,920 21,430 830 1,000 94,092
Total return for the year
before income tax 220,429
Income tax -
Total return for the year
after income tax
before distribution 220,429

Segment assets
- Investment properties* 1,617,702 498,920 366,430 185,430 27,500 2,695,982
- Investment property
under development 627 - - - - 627
- Trade receivables 776 8 140 3 - 927
1,619,105 498,928 366,570 185,433 27,500 2,697,536
Unallocated assets
- Cash and cash equivalents 122,177
- Other receivables 583
- Other current assets 1,902
- Plant and equipment 7
Consolidated total assets 2,822,205

Segment liabilities 32,697 11,941 7,172 3,743 831 56,384
Unallocated liabilities
- Trade and other payables 33,662
- Borrowings 1,065,404
- Current income tax liabilities 4,950
- Derivative financial instruments 7,269
Consolidated total liabilities
1,167,669

143
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013

27. NEW OR REVISED ACCOUNTING STANDARDS, INTERPRETATIONS AND REVISED RECOMMENDED ACCOUNTING
PRACTICE
On 29 June 2012, ICPAS issued a revised version of RAP 7. RAP 7 (2012) will become effective for the financial statements
of the Group and of MIT for the year ending 31 March 2014, and has not been applied in preparing these financial
statements. The Manager does not expect the application of RAP 7 (2012) to have significant impact on the financial
statements of the Group and of MIT.

Below is the mandatory standard that has been published, and is relevant for the Groups accounting periods beginning
on or after 1 April 2013 or later periods and which the Group has not early adopted:

FRS 113 Fair value measurements (effective for annual periods beginning on or after 1 January 2013).

FRS 113 provides consistent guidance across IFRSs on how fair value should be determined and which disclosures
should be made in the financial statements. The Group has yet to assess the full impact of FRS 113 and intends
to adopt the standard from 1 April 2013.

The Manager anticipates that the adoption of the above FRS and RAP 7 (2012) in the future periods will not have a
material impact on the financial statements of the Group and of MIT in the period of their initial adoption.

28. EVENTS OCCURRING AFTER BALANCE SHEET DATE

Subsequent to the balance sheet date, the Manager announced a distribution of 2.37 cents per unit for the period from
1 January 2013 to 31 March 2013.

29. AUTHORISATION OF THE FINANCIAL STATEMENTS

The financial statements were authorised for issue by the Manager and the Trustee on 23 April 2013.

144
STATISTICS OF
UNITHOLDINGS
AS AT 29 MAY 2013

ISSUED AND FULLY PAID UNITS

1,641,829,973 units (voting rights: one vote per unit)
Market Capitalisation: S$2,364,235,161.12 (based on closing price of S$1.44 per unit on 29 May 2013)

DISTRIBUTION OF UNITHOLDERS

No. of No. of
Size of Unitholdings Unitholders % Units %

1 - 999 222 0.83 64,549 0.00

1,000 - 10,000 23,522 88.16 65,322,855 3.98
10,001 - 1,000,000 2,911 10.91 115,681,448 7.05
1,000,001 and above 26 0.10 1,460,761,121 88.97
Total 26,681 100.00 1,641,829,973 100.00

LOCATION OF UNITHOLDERS

No. of No. of
Country Unitholders % Units %

Singapore 26,365 98.82 1,637,510,662 99.74

Malaysia 212 0.79 2,473,049 0.15
Others 104 0.39 1,846,262 0.11
Total 26,681 100.00 1,641,829,973 100.00

TWENTY LARGEST UNITHOLDERS

No. of
No. Name Units %

1. Mapletree Dextra Pte. Ltd. 497,977,922 30.33

2. HSBC (Singapore) Nominees Pte Ltd 219,104,735 13.35
3. Citibank Nominees Singapore Pte Ltd 210,797,465 12.84
4. DBSN Services Pte. Ltd. 199,183,028 12.13
5. DBS Nominees (Private) Limited 183,309,495 11.16
6. Raffles Nominees (Pte.) Limited 52,991,754 3.23
7. United Overseas Bank Nominees (Private) Limited 25,571,902 1.56
8. Bank of Singapore Nominees Pte. Ltd. 20,480,662 1.25
9. DB Nominees (Singapore) Pte Ltd 9,062,572 0.55
10. BNP Paribas Securities Services 5,590,074 0.34
11. Merrill Lynch (Singapore) Pte. Ltd. 4,653,655 0.28
12. OCBC Securities Private Limited 3,469,130 0.21
13. Meren Pte Ltd 3,240,000 0.20
14. UOB Kay Hian Private Limited 3,168,755 0.19
15. BNP Paribas Nominees Singapore Pte Ltd 3,060,177 0.19
16. Mapletree Industrial Trust Management Ltd. 2,609,959 0.16
17. Cheng Wai Wing Edmund 2,490,855 0.15
18. OCBC Nominees Singapore Private Limited 2,223,967 0.14
19. Morgan Stanley Asia (Singapore) Securities Pte Ltd 1,922,971 0.12
20. Tan Toh Tee Martin 1,824,000 0.11
Total 1,452,733,078 88.49

145
STATISTICS OF
UNITHOLDINGS
AS AT 29 MAY 2013

SUBSTANTIAL UNITHOLDERS AS AT 29 MAY 2013

Direct Deemed % of Total

No. Name of Company Interest Interest Issued Capital

1. Temasek Holdings (Private) Limited (1) - 501,232,113 30.52

2. Fullerton Management Pte Ltd (2) - 500,587,881 30.48
3. Mapletree Investments Pte Ltd (2) - 500,587,881 30.48
4. Mapletree Dextra Pte. Ltd. 497,977,922 - 30.33
5. Schroders plc (3) - 140,700,225 8.56
6. AIA Company, Limited (4) 2,580,000 84,191,400 5.28
7. AIA Group Limited (5) - 86,771,400 5.28

Notes
(1) Temasek Holdings (Private) Limited (Temasek) is deemed to be interested in the 497,977,922 units held by Mapletree Dextra Pte. Ltd. (MDPL),
and 2,609,959 units held by Mapletree Industrial Trust Management Ltd. (MITM) in which Mapletree Investments Pte Ltd (MIPL) has an interest, and
644,232 units in which DBS Group Holdings Limited (DBSH) has an interest. MDPL and MITM are subsidiaries of MIPL which is in turn a subsidiary of
Fullerton Management Pte Ltd. Fullerton Management Pte Ltd is a subsidiary of Temasek and DBSH is an associated company of Temasek.
(2) MIPL as holding company of MDPL and MITM is deemed to be interested in the 500,587,881 units in which MDPL and MITM have an interest. Fullerton
Management Pte Ltd, through MIPL, is deemed to be interested in the 497,977,922 units and 2,609,959 units held by MDPL and MITM respectively.
(3) Schroders plc is deemed to be interested in the 140,700,225 units held on behalf of the clients as investment manager.
(4) AIA Company, Limited is deemed to be interested in the 66,772,080 units held by AIA Singapore Private Limited and 17,419,320 units held by AIA International
Limited.
(5) AIA Group Limited is deemed to be interested in the 86,771,400 units held by AIA Company, Limited.

UNITHOLDINGS OF THE DIRECTORS OF THE MANAGER AS AT 21 APRIL 2013

Direct Deemed % of Total

No. Name Interest Interest Issued Capital

1. Wong Meng Meng 268,000 - 0.01

2. Soo Nam Chow - 432,000 0.02
3. Seah Choo Meng 219,651 20,337 0.01
4. Koh Tiong Lu, John - 600,720 0.03
5. Wee Joo Yeow 540,000 - 0.03
6. Mary Yeo Chor Gek - - -
7. Hiew Yoon Khong 729,000 1,100,000 0.11
8. Wong Mun Hoong - - -
9. Phua Kok Kim 432,000 - 0.02
10. Tham Kuo Wei 439,303 - 0.02

FREE FLOAT
Based on the information made available to the Manager as at 29 May 2013, appromixately 55.32% of the units in MIT were
held in the hands of the public. Accordingly, Rule 723 of the Listing Manual of the SGX-ST has been complied with.

146
INTERESTED PERSON
TRANSACTIONS

The transactions entered into with interested persons during the financial year, which fall under the Listing Manual of the
SGX-ST and the Property Fund Guidelines, are as follows:

Aggregate value of all

interested person transactions
during the financial year review
(excluding transactions
less than S$100,000)
Transactions not conducted
under the shareholders mandate
pursuant to Rule 920
FY12/13 FY11/12
S$000 S$000

Mapletree Investments Pte Ltd and its subsidiaries or associates
- Managers management fees 21,212 19,034
- Acquisition fee - 4,003
- Property and lease management fees 7,384 6,886
- Marketing commission 5,531 5,444
- Development management fees 2,310 -
- Project management fees 991 -

DBS Trustee Limited
- Trustee fees 432 410

Singapore Technologies Engineering Ltd
- Lease related income 1,359 1,362

StarHub Ltd
- Lease related income 1,931 1,817

STATS Chippac Ltd
- Lease related income 698 628

NCS Pte Ltd
- Lease related income 396 323

Singapore Telecommunications Limited
- Lease related income 230 200

Surbana Technologies Pte Ltd
- Operation and maintenance expenses 267 270

Sembwaste Pte Ltd
- Operation and maintenance expenses 165 153

Singapore Power Limited
- Asset enhancement initiative works 219 -

Saved as disclosed above, there were no additional interested person transactions (excluding transactions of less than
S$100,000 each) entered into during the financial year under review.

As set out in MITs Prospectus dated 12 October 2010, fees and charges payable by MIT to the Manager under the
Trust Deed and to the Property Manager under the Property Management Agreement are not subject to Rule 905 and
Rule 906 of the Listing Manual.

MIT Group has not obtained a general mandate from Unitholders for any interested person transactions.

Please also see Significant Related Party Transactions in Note 24 to the Financial Statements.

147
NOTICE OF
ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the 3rd Annual General Meeting of the holders of units of Mapletree Industrial Trust
(MIT, and the holders of units of MIT, Unitholders) will be held at 10.00 a.m. on 19 July 2013 (Friday), at 10 Pasir Panjang
Road, Mapletree Business City, Multi Purpose Hall - Auditorium, Singapore 117438 to transact the following businesses:

(A) AS ORDINARY BUSINESS

1. To receive and adopt the Report of DBS Trustee Limited, as trustee of MIT (the Trustee), the Statement by
Mapletree Industrial Trust Management Ltd., as manager of MIT (the Manager), and the Audited Financial
Statements of MIT for the financial year ended 31 March 2013 and the Auditors Report thereon.

2. To re-appoint PricewaterhouseCoopers LLP as Auditors of MIT to hold office until the conclusion of the next
Annual General Meeting of MIT and to authorise the Manager to fix their remuneration.

(B) AS SPECIAL BUSINESS

To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution, with or without any modifications:

3. That approval be and is hereby given to the Manager, to

(a) (i) issue units in MIT (Units) whether by way of rights, bonus or otherwise; and/or

(ii) make or grant offers, agreements or options (collectively, Instruments) that might or would require
Units to be issued, including but not limited to the creation and issue of (as well as adjustments to)
securities, warrants, debentures or other instruments convertible into Units,

at any time and upon such terms and conditions and for such purposes and to such persons as the Manager
may in its absolute discretion deem fit; and

(b) issue Units in pursuance of any Instruments made or granted by the Manager while this Resolution was in
force (notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the
time such Units are issued),

provided that:

(1) the aggregate number of Units to be issued pursuant to this Resolution (including Units to be issued in
pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed fifty per cent. (50%)
of the total number of issued Units (excluding treasury Units, if any) (as calculated in accordance with sub-
paragraph (2) below), of which the aggregate number of Units to be issued other than on a pro rata basis
to Unitholders (including Units to be issued in pursuance of Instruments made or granted pursuant to this
Resolution) shall not exceed twenty per cent. (20%) of the total number of issued Units (excluding treasury
Units, if any) (as calculated in accordance with sub-paragraph (2) below);

(2) subject to such manner of calculation as may be prescribed by the SGX-ST for the purpose of determining
the aggregate number of Units that may be issued under sub-paragraph (1) above, the total number of issued
Units (excluding treasury Units, if any) shall be based on the number of issued Units (excluding treasury Units,
if any) at the time this Resolution is passed, after adjusting for:

(a) any new Units arising from the conversion or exercise of any Instruments which are outstanding or
subsisting at the time this Resolution is passed; and

(b) any subsequent bonus issue, consolidation or subdivision of Units;

148
NOTICE OF
ANNUAL GENERAL MEETING

(3) in exercising the authority conferred by this Resolution, the Manager shall comply with the provisions of the
Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the
SGX-ST) and the trust deed constituting MIT (as amended) (the Trust Deed) for the time being in force
(unless otherwise exempted or waived by the Monetary Authority of Singapore);

(4) unless revoked or varied by Unitholders in a general meeting, the authority conferred by this Resolution shall
continue in force until (i) the conclusion of the next Annual General Meeting of MIT or (ii) the date by which
the next Annual General Meeting of MIT is required by applicable regulations to be held, whichever is earlier;

(5) where the terms of the issue of the Instruments provide for adjustment to the number of Instruments or Units
into which the Instruments may be converted in the event of rights, bonus or other capitalisation issues or any
other events, the Manager is authorised to issue additional Instruments or Units pursuant to such adjustment
notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time
the Instruments or Units are issued; and

(6) the Manager and the Trustee, be and are hereby severally authorised to complete and do all such acts and
things (including executing all such documents as may be required) as the Manager or, as the case may
be, the Trustee may consider expedient or necessary or in the interest of MIT to give effect to the authority
conferred by this Resolution.

(Please see Explanatory Notes)

BY ORDER OF THE BOARD

Mapletree Industrial Trust Management Ltd.
(Company Registration No. 201015667D)
As Manager of Mapletree Industrial Trust

Wan Kwong Weng

Joint Company Secretary

Singapore
28 June 2013

Notes:
1. A Unitholder entitled to attend and vote at the Annual General Meeting is entitled to appoint not more than two proxies to attend and vote in his/her stead.
A proxy need not be a Unitholder.
2. Where a Unitholder appoints more than one proxy, the appointments shall be invalid unless he/she specifies the proportion of his/her holding (expressed as
a percentage of the whole) to be represented by each proxy.
3. The proxy form must be lodged at the Managers registered office at 10 Pasir Panjang Road, #13-01 Mapletree Business City, Singapore 117438 not later
than 10.00 a.m. on 17 July 2013 being 48 hours before the time fixed for the Annual General Meeting.

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NOTICE OF
ANNUAL GENERAL MEETING

Explanatory Notes:

Resolution 3
The Ordinary Resolution 3 above, if passed, will empower the Manager from the date of this Annual General Meeting until
(i) the conclusion of the next Annual General Meeting of MIT or (ii) the date by which the next Annual General Meeting of
MIT is required by the applicable regulations to be held, whichever is earlier, to issue Units and to make or grant instruments
(such as securities, warrants or debentures) convertible into Units and issue Units pursuant to such instruments, up to
a number not exceeding fifty per cent. (50%) of the total number of issued Units (excluding treasury Units, if any) with a
sub-limit of twenty per cent. (20%) for issues other than on a pro rata basis to Unitholders.

For determining the aggregate number of Units that may be issued, the percentage of issued Units will be calculated based
on the issued Units at the time the Ordinary Resolution 3 above is passed, after adjusting for new Units arising from the
conversion or exercise of any Instruments which are outstanding at the time this Resolution is passed and any subsequent
bonus issue, consolidation or subdivision of Units.

Fund raising by issuance of new Units may be required in instances of property acquisitions or debt repayments. In any event,
if the approval of Unitholders is required under the Listing Manual of the SGX-ST and the Trust Deed or any applicable laws
and regulations in such instances, the Manager will then obtain the approval of Unitholders accordingly.

150
 IMPORTANT

MAPLETREE INDUSTRIAL TRUST

(Constituted in the Republic of Singapore pursuant to
a Trust Deed dated 29 January 2008 (as amended))
1. For investors who have used their CPF monies to buy units in Mapletree
Industrial Trust, this Annual Report is forwarded to them at the request of
their CPF Approved Nominees and is sent FOR INFORMATION ONLY.
2. This Proxy Form is not valid for use by CPF investors and shall be ineffective
for all intents and purposes if used or is purported to be used by them.
3. CPF Investors who wish to attend the Annual General Meeting as observers
have to submit their requests through their CPF Approved Nominees within

PROXY FORM
the time frame specified. If they also wish to vote, they must submit their
voting instructions to the CPF Approved Nominees within the time frame
specified to enable them to vote on their behalf.
4. PLEASE READ THE NOTES TO THE PROXY FORM.
3RD ANNUAL GENERAL MEETING

I/We (Name(s) and NRIC/Passport/Company

Registration Number(s)) of (Address)

being a Unitholder/Unitholders of Mapletree Industrial Trust (MIT), hereby appoint:

Name Address NRIC/Passport Number Proportion of Units (%)

and/or (delete as appropriate)

Name Address NRIC/Passport Number Proportion of Units (%)

or, both of whom failing, the Chairman of the 3rd Annual General Meeting as my/our proxy/proxies to attend and to vote
for me/us on my/our behalf and if necessary, to demand a poll, at the 3rd Annual General Meeting of MIT to be held at
10.00 a.m. on 19 July 2013 (Friday), at 10 Pasir Panjang Road, Mapletree Business City, Multi Purpose Hall - Auditorium,
Singapore 117438 and at any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the resolutions
to be proposed at the 3rd Annual General Meeting as indicated hereunder. If no specific direction as to voting is given,
the proxy/proxies will vote or abstain from voting at his/her/their discretion, as he/she/they may on any other matter arising
at the 3rd Annual General Meeting.

No. Ordinary Resolutions For* Against*

ORDINARY BUSINESS

1. To receive and adopt the Trustees Report, the Managers Statement, the Audited
Financial Statements of MIT for the financial year ended 31 March 2013 and the
Auditors Report thereon.

2. To re-appoint PricewaterhouseCoopers LLP as Auditors and to authorise the

Manager to fix the Auditors remuneration.

SPECIAL BUSINESS

3. To authorise the Manager to issue Units and to make or grant convertible

instruments.

* If you wish to exercise all your votes For or Against, please tick () within the box provided. Alternatively, please indicate
the number of votes as appropriate.

Dated this day of 2013

Total number of Units held

Signature(s) of Unitholder(s) or
Common Seal of Corporate Unitholder

151
1st fold (this flap for sealing)

Postage will be
paid by
addressee.
For posting in
Singapore only.

BUSINESS REPLY SERVICE

PERMIT NO. 08737

MAPLETREE INDUSTRIAL TRUST MANAGEMENT LTD.

(As Manager of Mapletree Industrial Trust)
10 Pasir Panjang Road #13-01
Mapletree Business City
Singapore 117438

2nd fold

IMPORTANT: PLEASE READ THE NOTES TO PROXY FORM BELOW

Notes to Proxy Form

1. A unitholder of MIT (Unitholder) entitled to attend and vote at the Annual General Meeting is entitled to appoint one or two proxies
to attend and vote in his/her stead.
2. Where a Unitholder appoints more than one proxy, the appointments shall be invalid unless he/she specifies the proportion of his/her
holding (expressed as a percentage of the whole) to be represented by each proxy.
3. A proxy need not be a Unitholder.
4. A Unitholder should insert the total number of Units held. If the Unitholder has Units entered against his/her name in the Depository
Register maintained by The Central Depository (Pte) Limited (CDP), he/she should insert that number of Units. If the Unitholder
has Units registered in his/her name in the Register of Unitholders of MIT, he/she should insert that number of Units. If the Unitholder
has Units entered against his/her name in the said Depository Register and registered in his/her name in the Register of Unitholders,
he/she should insert the aggregate number of Units. If no number is inserted, this proxy form will be deemed to relate to all the Units
held by the Unitholder.
5. The instrument appointing a proxy or proxies (the Proxy Form) must be deposited at the Managers registered office at 10 Pasir
Panjang Road, #13-01 Mapletree Business City, Singapore 117438 not later than 10.00 a.m. on 17 July 2013, being 48 hours before
the time set for the Annual General Meeting.
6. Completion and return of the Proxy Form shall not preclude a Unitholder from attending and voting at the Annual General Meeting.
Any appointment of a proxy or proxies shall be deemed to be revoked if a Unitholder attends the Annual General Meeting in person,
and in such event, the Manager reserves the right to refuse to admit any person or persons appointed under the Proxy Form, to the
Annual General Meeting.
7. The Proxy Form must be executed under the hand of the appointor or of his/her attorney duly authorised in writing. Where the Proxy
Form is executed by a corporation, it must be executed either under its common seal or under the hand of its attorney or a duly
authorised officer.

3rd fold

8. Where the Proxy Form is signed on behalf of the appointor by an attorney or a duly authorised officer, the power of attorney or other
authority (if any) under which it is signed, or a notarially certified copy of such power or authority must (failing previous registration
with the Manager) be lodged with the Proxy Form, failing which the Proxy Form may be treated as invalid.
9. The Manager shall be entitled to reject a Proxy Form which is incomplete, improperly completed or illegible or where the true intentions
of the appointor are not ascertainable from the instructions of the appointor specified on the Proxy Form. In addition, in the case of
Units entered in the Depository Register, the Manager may reject a Proxy Form if the Unitholder, being the appointor, is not shown to
have Units entered against his/her name in the Depository Register as at 48 hours before the time appointed for holding the Annual
General Meeting, as certified by CDP to the Manager.
10. All Unitholders will be bound by the outcome of the Annual General Meeting regardless of whether they have attended or voted at the
Annual General Meeting.
11. At any meeting, a resolution put to the vote of the meeting shall be decided on a show of hands unless a poll is (before or on the
declaration of the result of the show of hands) demanded by the Chairman or by five or more Unitholders present in person or by proxy,
or holding or representing one-tenth in value of the Units represented at the meeting. Unless a poll is so demanded, a declaration
by the Chairman that such a resolution has been carried or carried unanimously or by a particular majority or lost shall be conclusive
evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution.
12. On a show of hands, every Unitholder who (being an individual) is present in person or by proxy or (being a corporation) is present by
one of its officers as its proxy shall have one vote. On a poll, every Unitholder who is present in person or by proxy shall have one vote
for every Unit of which he/she is the Unitholder. A person entitled to more than one vote need not use all his/her votes or cast them
the same way.

152
CORPORATE
DIRECTORY

MANAGER MANAGEMENT UNIT REGISTRAR

Mapletree Industrial Trust Mr Tham Kuo Wei Boardroom Corporate &
Management Ltd. Chief Executive Officer Advisory Services Pte. Ltd.
50 Raffles Place #32-01
REGISTERED OFFICE Ms Ler Lily Singapore Land Tower
10 Pasir Panjang Road #13-01 Chief Financial Officer Singapore 048623
Mapletree Business City T : (65) 6536 5355
Singapore 117438 Mr Lee Seng Chee F : (65) 6536 1360
T : (65) 6377 6111 Head of Asset Management
F : (65) 6273 0525 TRUSTEE
W : www.mapletreeindustrialtrust.com Mr Peter Tan Che Heng DBS Trustee Limited
E : ir_industrial@mapletree.com.sg Head of Investment 12 Marina Boulevard
#44-01/04
BOARD OF DIRECTORS CORPORATE SERVICES DBS Asia Central @ Marina Bay
Mr Wong Meng Meng Mr Wan Kwong Weng Financial Centre Tower 3
Chairman and Non-Executive Director Joint Company Secretary Singapore 018982
T : (65) 6878 8888
Mr Soo Nam Chow Ms See Hui Hui F : (65) 6878 3977
Independent Director and Chairman of Joint Company Secretary
Audit and Risk Committee AUDITOR
PROPERTY MANAGER PricewaterhouseCoopers LLP
Mr Seah Choo Meng Mr Tan Wee Seng 8 Cross Street #17-00
Independent Director and Audit and Head of Regional PWC Building
Risk Committee Member Development Management Singapore 048424
T : (65) 6236 3388
Mr Wee Joo Yeow Ms Chng Siok Khim F : (65) 6236 3300
Independent Director Head of Marketing
Partner-in-charge
Ms Mary Yeo Chor Gek Mr Paul Tan Tzyy Woon Mr Yee Chen Fah
Independent Director Head of Property Management (With effect from financial year ended
31 March 2011)
Mr John Koh Tiong Lu
Non-Executive Director and Audit
and Risk Committee Member

Mr Hiew Yoon Khong

Non-Executive Director

Mr Wong Mun Hoong

Non-Executive Director

Mr Phua Kok Kim

Non-Executive Director

Mr Tham Kuo Wei

Executive Director and
Chief Executive Officer
MAPLETREE INDUSTRIAL TRUST MANAGEMENT LTD.
As manager of Mapletree Industrial Trust
(Company Registration Number: 201015667D)

10 Pasir Panjang Road #13-01

Mapletree Business City
Singapore 117438
T: (65) 6377 6111
F: (65) 6273 0525
W: www.mapletreeindustrialtrust.com
E: ir_industrial@mapletree.com.sg