In the past year, Ascendas India Trust ("a-iTrust" or the "Trust") has been growing income from its operating portfolio and by developing the land it owns. In addition, we are pleased to report that in Financial Year ended 31 March 2011 ("FY2010/2011"), a-iTrust made its first major conditional acquisition¹, which is expected to be accretive immediately on acquisition.

We were mindful that market sentiments remained cautious, with the world having only recently emerged from an exceptional economic crisis and digesting the effects of the conflict in the Middle East and Japan's earthquake. Hence, other than seeking growth during the financial year, we also focused on the stability of existing income stream by managing our properties and serving our tenants well.

a-iTrust's portfolio ended FY2010/2011 with a strong occupancy rate of 97%², which is significantly better than the market³. The high occupancy reflected an effective management of the leases that expired during FY2010/2011, which amounted to 33% of the portfolio⁴. Our tenant base continues to be diversified. As at 31 March 2011, our largest tenant comprised only 4.7%, while our ten largest tenants collectively represented only 31%, of a-iTrust's monthly portfolio base rent⁵.

Property consultants constantly tell us that the rental rates of our properties are at a premium to the market. We believe this is because our clients recognised the differentiation in our offering, not just in terms of the specifications of the space, but also the quality of amenities, services and lifestyle at our parks, and the manner in which the properties are managed.

In addition to regular direct feedback, we also seek the views of our customers through an independent survey. In the annual tenant survey by Nielsen for 2010, 88% of the respondents indicated that they were satisfied, while 65% expressed delight with the overall management of our parks⁶.

Our financial performance stayed resilient. Total property income for FY2010/2011 grew 1% from a year ago to S$ 121.5 million. Excluding the effect of foreign exchange movements, the growth of total property income in Indian Rupee terms was higher at 4%.

NPI and distributable income were S$ 70.6 million and S$ 50.3 million respectively for FY2010/2011. DPU made to Unitholders in FY2010/2011 amounted to 6.58 Singapore cents per Unit, which represents a yield of 6.9% over the closing price of a-iTrust Units of S$ 0.955 on 31 March 2011. DPU is 13% lower than the year before due to two reasons. Firstly, substantial unintended hedging gains were realised in the previous financial year, compared to marginal hedging losses realised in FY2010/2011⁷. Secondly, revenue was recognised only partially while cost was recognised fully for new space completed in December 2010, resulting in a temporary reduction in DPU for FY2010/2011 as the new buildings' occupancy levels stabilise.

Net asset value was S$ 609 million or S$ 0.80 per Unit at the end of FY2010/2011. Our gearing (loan-to-value) stood at 18%⁸ as at 31 March 2011, which offers flexibility for the funding of future portfolio growth, whether through development or acquisition.

GROWING THROUGH DEVELOPMENT

a-iTrust has on the onset distinguished itself from other listed property trusts by having a structure that allows it to actively seek growth through development. As a result, a-iTrust's completed space grew from 3.6 million sq ft at listing by 1.1 million sq ft in FY2007/2008 through development, which were almost fully committed on completion.

More recently, we completed the development of another 1.19 million sq ft in December 2010, comprising Park Square, a retail mall of 450,000 sq ft⁹ in ITPB, and Zenith, a multi-tenanted office building of 737,000 sq ft in ITPC. This increased our total portfolio size by 25%, from 4.75 million sq ft to 5.94 million sq ft at the end of FY2010/2011.

The pre-marketing of the 1.19 million sq ft of new space was carried out during a period when the general business environment remained cautious, as it overlapped with the global financial crisis. The tenancy commitments of Park Square and Zenith were 62% and 58% respectively today¹⁰. We will focus on leasing out the remaining space efficiently, and we expect the contribution from the 2 new buildings to Unitholders' distribution to be felt progressively over FY2011/2012.

Further development of the balance land a-iTrust owns is in progress.

GROWING THROUGH ACQUISITION

In addition to development, we seek acquisition as a concurrent way to grow our portfolio. We have been disciplined to consider only deals that are financially attractive to Unitholders.

We are pleased that our efforts had yielded results when, in February 2011, we inked a conditional agreement to purchase a portfolio of 5 buildings in Hitec City 2, an IT/ ITES¹¹ SEZ in Hyderabad, which will subsequently be rebranded as "aVance Business Hub".

We expect to complete the first phase of the transaction in June 2011, when a-iTrust would acquire 2 operating and fully occupied buildings (total 427,651 sq ft¹²) for S$ 50.4 million¹³. The remaining 3 buildings, with a total of 1.75 million sq ft, will be acquired as and when each building is completed and leased, at the same yield as the first 2 buildings. The 3 future buildings are expected to be completed over the next 4 years:



We expect the acquisition of the first 2 buildings to be immediately accretive to Unitholders' distribution, with further accretion from the 3 future buildings when acquired.

CLEAR AND PRESENT ADVANTAGE

We believe a-iTrust has a unique market position, built on a number of key strengths.

Strong corporate governance

a-iTrust is appropriately structured for its purpose. Instead of taking the obvious route of structuring as a Real Estate Investment Trust ("REIT"), a-iTrust is structured as a Business Trust ("BT") and voluntarily adopted the safeguarding provisions of REIT guidelines, such as permissible investments, gearing limit and minimum distribution rate. The key difference is that a-iTrust can develop space more actively than a REIT. As a result, a-iTrust can better meet the objectives of Unitholders who want to access India's growth story through property development and yet enjoy a stable dividend distribution. As a BT, a-iTrust has the added flexibility of adjusting its structure at any point in time so long as majority of Unitholders decide so in an Extraordinary General Meeting, whereas a REIT's provisions can only be altered by law.

To guide the management and see that Unitholders' interests are protected at all times, a-iTrust's trustee-manager, Ascendas Property Fund Trustee Pte Ltd ("APFT" or the "Trustee- Manager"), has an independent Board of Directors (the "Board"). 6 of the 8 directors of the Board are independent and bring with them vast and diverse experience. The Board is committed to consistently uphold the highest level of governance. In making investment, funding and operational decisions, the Board, together with the management, seeks to find the optimal balance between growth and financial prudence which maximises Unitholders' value.

This appropriate structure and strong corporate governance would allow a-iTrust to nimbly tap onto the growth of India.

One-stop business space solution

a-iTrust stands to benefit from the Ascendas Group's complete expertise in business space, from planning, developing, marketing and operating properties, to creating and managing property funds. This results in not just wellconsidered fund structures, but also complete business space solutions for the tenants. Hence, a-iTrust offers quality business space which continued to garner the appreciation of leading international and local corporations. In addition, we recognise that corporations and their employees are sophisticated and look beyond the physical space within which they operate. Therefore, we believe in providing complete ecosystems at our parks which promote the work-live-play lifestyle.

We offer an extensive array of amenities in our parks to support the every need of tenants, including retail outlets, restaurants, business centres, banks, gymnasiums and sport facilities. Every year, a vast variety of activities is held within park compounds, with diverse themes such as those relating to sports, art, festivities and charity. Such events are typically very well-received by the occupiers of our parks, and provide opportunities for occupiers to mingle with each other, hence eliciting a sense of belonging at the workplace.

We believe that our offering of complete business space solution contributes positively to our customers' staff retention.

Established reputation in India with international mindset

a-iTrust enjoys the benefit of Ascendas' pan-Asian experience of over 20 years, with presence in 30 cities across 10 countries. Since its first investment in India in 1994, Ascendas has accumulated 17 years of experience operating locally and built long-term partnerships on ground.

India, like most emerging markets, is often noted for the operational difficulties faced especially by foreign companies. The inter-play of Ascendas' regional and local experiences results in a powerful marketing network and a balanced mindset operating in India. Our understanding of international requirements, coupled with operational track record in India has been vital in us securing customers and giving confidence that we will provide solutions which allow them to focus on their businesses.

This balanced mindset and track record helps to assure our tenants that we understand and will meet their needs.

LOOKING FORWARD

We are mindful of the cautious outlook on the global economy due to the threat of inflation, rising oil price and political unrest in the Middle East and North Africa. We are, however, encouraged by the India Government's expressed intention to control inflation, reduce India's budget deficit-to-Gross Domestic Product ("GDP") ratio and develop infrastructure over the coming years. India's growth is expected to remain strong going into FY2011/2012, during which GDP growth is forecast by the Government at between 8.75% and 9.25%.

We seek to manage any uncertainties by continuing to focus on fundamentals and leverage on our "Clear and Present Advantage".

We ended FY2010/2011 with a portfolio of 5.94 million sq ft valued at $ 943 million¹⁵, across 4 IT parks situated in the first tier Indian cities of Bangalore, Chennai and Hyderabad. In FY2011/2012, we look forward to the stabilisation of 1.19 million sq ft of space completed late last year, and the resulting income contribution. In addition, the completion of the initial acquisition of 2 buildings in aVance Business Hub (427,651 sq ft) and the completion of Voyager (535,000 sq ft), a multi-tenanted building in ITPB's SEZ, will increase a-iTrust's portfolio size by 16% to 6.91 million sq ft.

Following Voyager's strong pre-commitment level of 68%¹⁶ ahead of its completion, a second multi-tenanted building (540,000 sq ft) is being planned in ITPB's SEZ, which is expected to complete around end-2013. Including this, ITPB still has additional development potential of approximately 2.5 million sq ft in its SEZ which can be developed over time, in addition to other acquisition rights¹⁷.

APPRECIATION

We take this opportunity to thank the Board for their unyielding commitment, and the management teams for their tireless efforts in the past year. We would also like to express our gratitude to all our Unitholders and tenants for their continued belief in the philosophy and prospects of a-iTrust.