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In the best interest of unitholders, we have decided
to adopt the prudent approach of considering shorter
term funding options until the outcome of the strategic
review exercise is clear. To this end, we have refinanced
S$190 million of short-term loans due in end May
2008 to end September 2008.
In December 2007, to increase returns to investors
and to improve the Trust’s NAV per Unit and DPU in
an expedient, effective and cost-efficient way, MMP
REIT became the first Singapore REIT to initiate a
Unit Buy-back Scheme. The scheme was subsequently
approved by unitholders in January 2008, reflecting
their confidence in the quality of the Trust’s portfolio.
Given the strategic review, the Unit Buy-back Scheme
will be deferred until further notice.
Keeping Our Focus while Laying a Strong
Foundation for Future Growth
Through acquisitions, tenancy remixing and asset
enhancement initiatives undertaken in 2007, we have
laid a strong foundation for organic growth in the next
couple of years. We remain focused in our vision to
deliver long-term superior returns to our unitholders.
The year 2007 saw MMP REIT seizing opportunities to
diversify and expand its income stream through strategic
acquisitions in Japan and China. More importantly, by
securing a foothold in the gateway cities of Tokyo and
Chengdu, MMP REIT is well-positioned to develop
strategic relationships with key players in both markets.
Based on present demand, we are targeting an increase
in rental performance in 2008. With some 100,000
square feet of office space due for renewal in 2008,
and another 68,000 square feet in 2009, MMP REIT’s
prime Grade-A office properties are well placed to take
advantage of the robust office market. Further, we
believe that the tenancy remix and asset enhancement
initiatives carried out in Wisma Atria in 2007, in
anticipation of increasing competition along Orchard
Road, will allow us to maintain our properties’ relevance
as the leading malls on Singapore’s iconic shopping
street. Lastly, we expect an increase in rental income
from Ngee Ann City when the rent review is finalised
with our master lessee in June 2008 and 17,000 square
feet of retail space on Level 5 is relaunched as a beauty
and wellness precinct in the second quarter of 2008.
Acknowledgements
We wish to express our appreciation to our fellow
directors and the management team for their
commitment, contributions and guidance in the past
year. We thank Mr Timothy Chia who relinquished
his appointment as a non-executive director for his
contributions and welcome Mr Keith Tay Ah Kee on
our board. We also thank our investors, tenants and
business partners for their ongoing support, confidence
and trust in us.
MESSAGE FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Stephen Girdis
Chairman
Franklin Heng
Chief Executive Officer
5 March 2008
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