A-REIT's performance fee structure could stunt future growth

Possibly limited to between 2-8% growth.

"Although Ascendas REIT (A-REIT) continues to own one of the best industry REIT portfolios in Singapore, its ability to grow further is hindered by the structure of its performance fees," according to CIMB in a note after A-REIT released its 2QFY14 results, which were pretty much in line with the research firm's expectations.

"According to our estimate, DPU is poised to grow yoy by c.4% in FY14 and c.12% in FY15. However, AREIT’s growth will be limited to 2% and 8% in the respective years if performance fees kicks in (0.1% of AUM if DPU grows by more than 2.5% and 0.2% of AUM if growth exceeds 5%)," CIMB added.

This led CIMB to also downgrade A-REIT from Outperform to Neutral with a slightly lower target price as the research firm factored the performance fees into its estimates.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia