Strategies for
Sustained Growth
IREIT Global
annual report 2014
Preferred Office Landlord
The Manager is also committed to implementing
processes that will encourage organic growth. To
achieve this vision, the Manager is set to carry out
asset management initiatives in order to improve gross
rental income and net property income. Some of these
initiatives include building stronger tenant relationships,
providing value-added property-related services and
actively maintaining strong occupancy rates.
Building stronger tenant relationships will help the
Manager understand IREIT’s tenants and enable the
Manager to work proactively with the tenants so that
their plans for expansion and growth may be achieved.
Providing value-added property-related services will
help us achieve our targets on tenant retention. These
efforts are focused on making IREIT the office landlord
of choice in the geographies where it has a foothold in.
Other asset enhancement initiatives that the Manager
may undertake to improve income include space
optimisation and, creating areas that are easier to lease.
Identifying sub-optimal and ancillary areas that can be
converted for higher returns and, therefore improving
the efficiency and running of the building.
It is the Manager’s intention to undertake asset
enhancement initiatives to the extent possible, subject
to laws and permitted by law and regulations, as well as
the improvements required to satisfy projected levels of
feasibility and profitability.
Effective and Efficient Operating Costs
The Manager will also work closely with the property
manager to improve efficiency and keep the property
operating and maintenance costs low. All efforts will
also bemade tomaintain a high level of service, enabling
IREIT to deliver optimal returns to Unitholders.
The Manager will constantly review cost-effectiveness
and cost-efficiency of the property operations. Cost
management initiatives will include:
• constant review of the workflow process to boost
productivity;
• lower operational costs;
• close partnership with service providers to control
costs and potential escalation; and
• exploit the economies of scale associated with
operating a portfolio of properties by, for
example, the bulk purchasing of supplies and
cross-implementation of successful cost-saving
programmes.
Strengthening of IREIT’s financial position through
careful and prudent capital management is as important
as improving revenue and managing costs. It is,
therefore, vital to the long-term sustainability of IREIT
that the Manager have strategies in place to deal with
this.
