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MacarthurCook Investment Managers (Asia) Limited

1 Raffles Place #21–01 OUB Centre Singapore 048616

Level 4 30 Collins Street Melbourne VIC 3000 Australia

Investor Telephone Enquiries Singapore +65 6309 1050

Australia 1300 655 197 +61 3 9660 4555

Website www.macarthurcook.com.au

Email [email protected] [email protected]

MACARTHURCOOKINDUSTRIAL REIT SGX code: MacCookIREIT

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MacarthurCook Industrial REIT2008 Annual Report

STRONG FOUNDATIONS

THE MACARTHURCOOK INDUSTRIAL REIT HAS COMPLETED ITS FIRST YEAR WITH STRONG RESULTS. SINCE LISTING ON THE SINGAPORE EXCHANGE, IT HAS INCREASED ITS PORTFOLIO ASSETS BY 75% AND EMBARKED ON ITS PAN-ASIAN STRATEGY BY ACQUIRING ITS FIRST PROPERTY OUTSIDE OF SINGAPORE IN JAPAN.

WITH THIS FIRM FOUNDATION, THE TRUST IS WELL POISED FOR THE NEXT STAGE OF ITS GROWTH.

About MacarthurCook Industrial REIT (the “Trust” )MacarthurCook Industrial REIT (SGX Code: MacCookIREIT) was listed on the main board of the Singapore Exchange Securities Trading Limited on 19 April 2007. Established with the principal investment objective of owning and investing in a diversified portfolio of income-producing real estate located throughout Asia, MacarthurCook Industrial REIT owns 21 properties valued at S$555.4 million as at 31 March 2008.

CONTENTS

02 Financial Highlights 2008

04 Chairman’s Report

06 Chief Executive Officer’s Report

09 MacarthurCook Investment Approach

12 MacarthurCook Industrial REIT Investment Portfolio

22 Board of Directors of the Manager

24 Senior Management Team

26 Structure of MacarthurCook Industrial REIT

27 An Overview of the Asia-Pacific Industrial Market

30 Corporate Governance Statement

37 Financial Statements

75 Unitholder Information

77 Investor’s Summary

78 Investor Relations and Corporate Communications

79 Exchange Announcements

84 Financial Performance Summary

85 Corporate Directory

Corporate DirectoryMacarthurCook Industrial REIT

The Manager MacarthurCook Investment Managers (Asia) LimitedCompany Registration No. 200615904N1 Raffles Place, #21-01 OUB Centre Singapore 048616Telephone: (65) 6309 1050Fax: (65) 6534 3942Website: www.macarthurcook.com.au

TrusteeHSBC Institutional Trust Services (Singapore) Limited21 Collyer Quay#14-01 HSBC BuildingSingapore 049320

AuditorsKPMGCertified Public Accountants16 Raffles Quay#22-00 Hong Leong BuildingSingapore 048581Telephone: (65) 6213 3388Fax: (65) 6225 0984(Partner in charge: Leong Kok Keong)

Unit Registrar Boardroom Corporate & Advisory Services Pte. Ltd.3 Church Street #08-01Samsung HubSingapore 049483Telephone: (65) 6536 5355Fax: (65) 6536 1360Website: www.boardroomlimited.com

Directors of the ManagerMr Richard Michael Haddock Mr Craig Mathew DunstanMr Alastair Hugh GurnerMr Lim How TeckMr Tan Kai Seng

Audit CommitteeMr Richard Michael Haddock Mr Lim How TeckMr Tan Kai Seng

Nominating and Remuneration CommitteeMr Richard Michael Haddock Mr Alastair Hugh GurnerMr Tan Kai Seng

Company SecretaryMs Tang Buck Kiau

Designed by motivo creative media


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ABOUT MACARTHURCOOK INVESTMENT MANAGERS (ASIA) LIMITED (THE “MANAGER”)MacarthurCook Investment Managers (Asia) Limited was incorporated on 25 October 2006 and is the Manager of MacarthurCook Industrial REIT. The Manager is committed to delivering long-term, stable distributions to Unitholders, as well as long-term capital growth. MacarthurCook Limited owns 92.5% of the Manager, with the remaining 7.5% owned by United Engineers Development Pte Ltd, a wholly owned subsidiary of United Engineers Limited.

ABOUT MACARTHURCOOK LIMITED (“MacarthurCook”)MacarthurCook Limited is an Australian Securities Exchange listed company with offi ces in Australia and Singapore, specialising in the investment management of real estate, real estate securities and mortgage assets.

MacarthurCook manages approximately A$1.5 billion on behalf of over 25,000 investors and is a quality endorsed company (ISO 9001:2000 international standard accreditation). It is the investment manager for thirteen funds, of which several are listed on the Australian Securities Exchange, the Singapore Securities Exchange and the American Stock Exchange. In 2005, 2006 and 2007, BRW magazine named MacarthurCook as one of Australia’s fastest-growing companies in its Fast 100 list.

For more details, please refer to MacarthurCook’s website at www.macarthurcook.com.au

ACHIEVEMENTS SINCE INITIAL PUBLIC OFFER ON 19 APRIL 2007

Achieved investment grade Baa3 rating from Moody’s Investors Service.

Distribution per unit outperforms forecast by 6.7% to 7.52 cents Increased size of portfolio by 75%, to 21

properties with a value of S$555.4 million as at 31 March 2008 from an initial portfolio of 12 properties valued at S$316.5 million.

Net property income reaches S$25.1 million, exceeding forecast by 11.2%. Portfolio is 100% leased.

Gross revenue exceeds forecast by 2.0% to S$32.2 million Acquired S$91.0 million offi ce and

technology park property that is pending completion in December 2009

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02 MacarthurCook Industrial REIT Annual Report 2008

Financial Highlights 2008In its debut year, MacarthurCook Industrial REIT has delivered strong results for Unitholders

For the year ended 31 March 2008

As at 31 March 2008 Forecast1 Actual Variance (%)

Gross revenue (S$’000) 31,578 32,214 +2.0

Net property income (S$’000) 22,596 25,120 +11.2

Total amount available for distribution (S$’000) 18,359 19,611 +6.8

Distribution per unit (“DPU”) (cents) 7.052 7.523 +6.7

Annualised DPU (cents) 7.41 7.91 +6.7

Annualised distribution yield4 (%) 7.52 8.03 +6.7

1 No comparisons against a corresponding period in previous years can be made as no pro forma financials are available. SGX-ST had granted MI-REIT a waiver from the requirement to prepare historical pro forma statements for the purpose of its initial public offering. The forecast figures are extracted from the Prospectus dated 12 April 2007.

2 Comprised 1.47 cents for the period from 19 April to 30 June 2007(1QFY08), 1.86 cents for 2QFY08, 1.86 cents for 3QFY08 and 1.86 cents for 4QFY08. 3 Comprised 1.52 cents for the period from 19 April to 30 June 2007(1QFY08), 1.86 cents for 2QFY08, 1.92 cents for 3QFY08 and 2.22 cents for 4QFY08.4 Based on MacarthurCook Industrial REIT’s closing price of S$0.985 per unit as at 31 March 2008.

Balance Sheet as at 31 March 2008

Total assets (S$’000) 569,332

Total liabilities (S$’000) 231,708

Total borrowings (S$’000) 220,499

Net assets attributable to Unitholders (S$’000) 337,624

Number of units in issue (‘000) 260,963

Market capitalisation (S$‘000)1 257,048

1 Based on MacarthurCook Industrial REIT’s closing price of S$0.985 per unit as at 31 March 2008.

Financial ratios as at 31 March 2008

Earnings per unit (cents)1 28.22

Net asset value (“NAV”) per unit (S$) 1.29

Aggregate leverage ratio (%) 40.0

Interest coverage ratio (times)2 9.80

Management expense ratio (%)3 1.02

1 Calculated based on total returns (including net appreciation in the value of investment properties). 2 Ratio of EBITDA over interest expense. 3 Expenses to weighted average net assets (excludes performance-related fee): The expenses refers to the expenses of the Group excluding property related

expenses, borrowing costs and foreign exchange gain/(losses).

Net property income (S$m)

Forecast Actual

22.625.1

0

10

20

30

40

Gross revenue (S$m)

Forecast Actual

31.6 32.2

0

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Distributions per Unit (cents)

Forecast Actual

7.057.52

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1

2

3

4

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6

7

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Attractive Annualised Yield for MI-REIT (%)

MI-REIT annualised yield1

10 year government bond yield2

Interbank 3-month rate3

Interbank overnight interest rate4

Bank fixed deposit (12 months)5

Bank savings deposit

8.03

2.44

0.63

0.71

0.24

1.31

1 Yield based on MI-REIT’s closing price of S$0.985 on 31 March 2008 and annualised FY2008 DPU of 7.72 cents.2 10 Year government bond yield as at 31 March 2008. Source: MAS website.3 Interbank 3 month rate as at 31 March 2008. Source: MAS website.4 Interbank overnight interest rate as at 31 March 2008. Source: MAS website.5 Bank fixed deposit rate (12 months) as at 31 March 2008. Source: MAS website.

MacarthurCook Industrial REIT unit price

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0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60S$

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000VolumeClosing unit price

Daily trading volume

Apr

il 20

07

May

200

7

June

200

7

July

200

7

Aug

ust 2

007

Sep

tem

ber

2007

Oct

ober

200

7

Nov

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r 20

07

Dec

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07

Janu

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2008

Febr

uary

200

8

Mar

ch 2

009

Unit price performance

Closing price on 31 March 2008 S$0.985

Highest closing price (15 June 2007) S$1.470

Lowest closing price (22 January 2008) S$0.880

Source: Bloomberg.



Chairman’s Report

Mr Richard Haddock Independent Non-executive Chairman

On behalf of the Board of MacarthurCook Investment Managers (Asia) Limited, the Manager of MacarthurCook Industrial REIT ( the “Trust” ), I am delighted to present the inaugural Annual Report of the Trust. This Annual Report covers the financial period from the Trust’s Initial Public Offer on 19 April 2007 to 31 March 2008.

MacarthurCook Industrial REIT, the fourth industrial real estate investment trust to be listed on the Singapore Exchange, is the direct result of MacarthurCook Limited’s desire to extend its real estate fund management capabilities beyond Australia and to establish in Asia a real estate investment trust that generates stable returns to Unitholders. MacarthurCook Industrial REIT’s Initial Public Offer attracted strong demand totalling S$312.5 million from retail and institutional investors. The retail and institutional offerings were oversubscribed by 37 times and 2.1 times, respectively.

Chief among our reasons for establishing MacarthurCook Industrial REIT was to tap into the healthy demand for real estate used for industrial purposes in Singapore and more broadly in Asia. Although Asia’s economic growth is expected to moderate in 2008 from its rapid pace during the last few years in line with a slower global economy, we expect a continuing demand for quality industrial real estate in Asia for the following reasons:

Asia’s strong economic growth • prospects will continue to be supported by growing wealth and consumption, and a high savings rate;

The Economic Intelligence Unit • forecasts that Asia will continue to be among the fastest growing regions in 2008;

Limited supply of and robust • demand for modern factories, warehousing, distribution and logistics facilities in the region;

Tight supply of office space has • resulted in growing demand for quasi-office industrial buildings as companies relocate or expand operations from locations in central business districts to hi-spec industrial space;

Laws governing REITs are • continuing to be adopted throughout the region, creating markets for the acquisition and disposal of real estate in a manner that is properly regulated; and

Singapore, in particular, has • been rapidly building its reputation as a REIT hub and is now considered the regional location of choice for cross-border and pan-Asian REITs.

Financial resultsDuring the financial year ended 31 March 2008, the Trust delivered a higher than forecast revenue and net profit:

FY2008 (S$m)

Actual Forecast

Gross revenue

32.2 31.6

Net property income

25.1 22.6

Distributions of 7.52 cents per unit were declared for the year, which exceeded the forecast of 7.05 cents per unit by 6.7%.

With our commitment to enhance returns from our portfolio, we believe that the Trust will continue to satisfy its long term investment objectives of providing investors with growing and stable income.


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ComplianceAs the Manager, we are fully committed to operating MacarthurCook Industrial REIT in accordance with its Trust Deed, applicable provisions of the Securities and Futures Act, the Listing Manual of the Singapore Exchange, the Code on Collective Investment Schemes and all other relevant regulations.

We are dedicated to maintaining a high level of disclosure and consistently review all methods of communication to ensure that investors are kept informed of all aspects of their investment. In addition to disclosing corporate developments through announcements on the SGX website, we hold investor meetings regularly to provide an opportunity for investors to meet with the Trust’s management, and to be updated on the Trust’s performance. We believe these announcements and meetings are an important part of investor communication.

MacarthurCook Industrial REIT is subject to a financial audit at the end of the financial year to ensure that internal systems and controls put in place by the Manager comply with all relevant requirements.

As changes in law and policy take effect, so do our obligations. Accordingly, all MacarthurCook staff regularly receive training on their compliance responsibilities and are updated on changes that may affect their compliance responsibilities, compliance reporting and monitoring. Our Board also seeks external compliance advice where it is considered in the interests of unitholders to do so. Our compliance obligations will continue to be treated with the utmost seriousness, to ensure that the rights of unitholders are protected.

In addition, MacarthurCook Limited has achieved quality accreditation to the AS/NZS ISO 9001 international standard for the Mortgage, Direct Property, Real Estate Securities and Client Services areas of our business. Regular monitoring, analysing and testing of our systems, as required by the standard, ensures that a high level of productivity and quality is maintained and that the requirements of ISO9001:2000 are met as well as any statutory requirements.

Staff and DirectorsThe past year has been one of significant activity and achievement for MacarthurCook Industrial REIT. We note various changes to our Board of Directors and senior management and in this context we welcome Mr Lim How Teck to the Board as an Independent Director. Mr Lim was appointed during the year as Independent Non-executive Director of the Manager and Chairman of the Audit Committee. Mr Lim, who was formerly Group Chief Financial Officer of Neptune Orient Lines brings with him more than 29 years of extensive experience in financial management. He is also a director of a number of listed and unlisted companies and statutory boards such as Tuas Power Ltd, the Singapore Commodity Exchange, Jurong Port Pte Ltd and M&C REIT Management Ltd.

We would also like to thank Mr Chris Calvert, who resigned in March 2008 as Executive Director and Chief Executive Officer of the Manager to pursue other professional interests. Prior to becoming Chief Executive Officer, Chris had served MacarthurCook Limited as Head of Property since 2003. MacarthurCook Limited and MacarthurCook Industrial REIT have benefited from his contribution to the business.

Finally, I would like to extend my appreciation to my fellow Board members and on behalf of the Board, thank the management team for their commitment and contribution to the positive results for the financial year ended 31 March 2008.

2008 will be a challenging year, given the current weakness in the international capital markets. With our strong foundations however, we look forward to strengthening our presence in Asia and delivering competitive investment returns to unitholders next year.

Yours faithfully,

Richard Haddock Independent Non-executive Chairman



Chief Executive Officer’s Report

Mr Craig Dunstan Chief Executive Officer

Last financial year was a landmark year for MacarthurCook Industrial REIT.

Following the Trust’s successful Initial Public Offer in April 2007, we went on to achieve several milestones that have strengthened the Trust’s position as a well-diversified, pan-Asian industrial REIT.

Performance highlights for the financial year ended 31 March 2008MacarthurCook Industrial REIT posted a strong operational and financial performance for the financial year ended 31 March 2008, delivering key results that surpassed our forecasts:

A distribution per unit of 7.52 • cents, which outperformed the forecast of 7.05 cents by 6.7%;

This distribution translates to • an attractive annualised yield of 8.03% based on the Trust’s closing price of S$0.985 as at 31 March 2008;

A distributable income of S$19.6 • million exceeded forecast by 6.8%;

Net property income exceeded • forecast by 11.2% to reach S$25.1 million;

Total value of investment • properties increased by 75.5% to S$555.4 million from S$316.5 million at the initial public offer; and

Net asset value of S$1.29 per • Unit exceeds the NAV at the initial public offer of S$1.20 by 7.5%. This takes into account a net revaluation gain of S$37 million on MacarthurCook Industrial REIT’s initial portfolio of 12 properties, thus reflecting the quality of the Trust’s portfolio and the strength of its underlying performance.

Acquisition growth strategyOne of MacarthurCook Industrial REIT’s three key investment strategies is to seek growth via the acquisition of properties that will provide attractive cash flows and yields relative to the Trust’s weighted average cost of capital, as well as opportunities for future income and capital growth.

The successful execution of this strategy has resulted in our strong financial results for the year. It has also enhanced the Trust’s long-term income stability as well as tenancy and property diversification. With the inclusion of the nine additional properties, MI-REIT’s reliance on any one property for income has reduced, with no single tenant contributing more than 20.3% of rental income as at 31 March 2008. This compares with 33.6% rental income contribution per month from the largest tenant in the initial portfolio.

During the year, we welcomed many new tenants to our Trust. Our top ten tenants as at 31 March 2008 accounted for 69.9% of the Trust’s rental income1, an improvement compared to 94.3%2 as at time of listing.

We have also diversified the Trust’s regional geographic exposure, in line with its pan-Asian mandate, by extending its footprint to Japan from its Singapore base with the acquisition of a logistics and warehouse facility in Saitama, Greater Tokyo.

1 Based on rental income as at 31 March 2008. Rental Income is the contractual rent receivable under lease arrangement, with or to be entered into with the tenants (after rent rebates and provisions for rent-free periods). There are no rent rebates and rent-free periods.

2 Based on contracted rental income for the initial 12 properties at the time of listing.


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During the year, we had announced the acquisition of a S$91.0 million office and technology park property, Plot 4A International Business Park, Singapore, which is scheduled for completion in December 2009. This acquisition is expected to further enhance the Trust’s profile and increase its exposure to the strong rental and capital value growth experienced within the office/technology park space. Upon completion of this property, MacarthurCook Industrial REIT’s portfolio will increase to 22 assets valued at S$646.4 million.

In the coming year, given the current financial market environment, we will increase our emphasis on optimising returns from MacarthurCook Industrial REIT’s existing portfolio through an active asset management strategy and through the management of the Trust’s capital and risk structure.

Active asset management strategy We seek to enhance returns through active asset management initiatives that improve rental rates while maintaining high occupancy rates in the portfolio.

The Trust maintained a fully leased portfolio as at 31 March 2008, reflecting our proactive, professional management of the portfolio. Our long rental lease profile – the weighted average rental lease term was 6.0 years whilst the weighted average unexpired lease term for the underlying land was 43.3 years as at 31 March 2008 – supports income security and increases our ability to provide stable income distributions.

We’ve also maintained a quality tenant profile; 64.6% of MI-REIT’s rental income as at 31 March 2008 is from companies that are publicly listed or are subsidiaries of publicly listed companies3. MacarthurCook Industrial REIT also stands to benefit from continued organic rental growth through fixed rental escalations. The weighted average fixed rental escalation of the tenancies in the properties as at 31 March 2008 is 3.4% per annum.

In addition to ensuring that the real estate needs of our tenants are well met, we intend to maintain high occupancy and improve rental rates in the Trust’s portfolio by actively pursuing renewals or new leasing opportunities. Four tenancies representing 1.8% of annual rental income will be up for renewal in the next financial year. We are confident of securing good rental reversions for these properties. Our strategically located properties have been built with flexible layouts and high building specifications, which in our view, makes them more attractive to a wider range of tenants.

Prudent capital and risk management We have in place an active capital and risk management strategy to optimise MacarthurCook Industrial REIT’s capital structure and cost of capital. As at 31 March 2008, the Trust had an aggregate leverage of 40.0%, which sits comfortably within our medium term target gearing of 40%-45%.

We had entered into an interest rate swap to fix the interest rate cost on S$100 million of our debt for three years commencing on 11 February 2008. The existing cap at 4.05%4 per annum on an additional S$120.19 million of debt remains in place. This has helped to protect MacarthurCook Industrial REIT’s overall earnings from any short term interest rate volatility. We are currently active in discussions to extend the duration of the current debt facility of S$220.8 million which expires in April 2009.

Consistent with our prudent capital management strategy, we sought late last year to raise estimated gross proceeds of up to S$300.0 million through an equity fund raise to refinance property acquisitions made in Singapore and Japan and to finance new acquisitions. On 21 December 2007, we announced to the Singapore Exchange the submission of an additional listing application. However, due to rapidly weakening market conditions in early 2008, we announced on 18 January 2008 our decision to postpone the proposed equity fund raise until market conditions become more conducive, in order to preserve the value of unitholders’ equity.

3 These are: United Tech Park Pte Ltd, Ossia International Ltd, GRP Limited, E-HUB Metals Pte Ltd, Cimelia Resource Recovery Pte Ltd, KTL Global, Builders Shop Pte Ltd, Xpress Print (Pte) Ltd, Powermatic Data Systems Limited and Mediceo Medical.

4 Inclusive of bank’s margin.



Chief Executive Officer’s Report Continued

Investment grade corporate rating by Moody’sIn June 2007, Moody’s Investors Service had for the first time, assigned an investment grade, corporate family rating of “Baa3” to MacarthurCook Industrial REIT and accorded it a stable rating outlook. Under the Singapore Property Fund Guidelines, such a rating allows MacarthurCook Industrial REIT to increase its gearing capacity to its maximum of 60.0% loan to value ratio.

We have maintained the investment grade Baa3 rating from Moody’s Investors Service.

Share price performanceMacarthurCook Industrial REIT’s unit price performed well in the first half of the year, reaching the highest closing price of S$1.47. However, the last few months of 2007 and the first quarter of 2008 saw extremely volatile global financial markets. Equity and debt markets worldwide declined to levels not seen in years, as a consequence of recessionary fears resulting from what began as the US sub-prime crisis. In tandem with the downward trend experienced by other real estate investment trusts and equities in general, the Trust’s share price declined to S$0.985 cents on 31 March 2008.

Looking aheadMacarthurCook Industrial REIT has ended the financial year on a strong note. Looking ahead, we expect the Asian region to experience a moderation of economic growth in response to the fallout from the US sub-prime mortgage crisis and implications to global economic growth. However, we expect the demand for industrial properties in Singapore and the Asian region to remain healthy on the back of strong prospects for Asia. Economic activity in the region is expected to remain fairly resilient, reflecting strong demand and regional trade flows.

Given this expected economic scenario, organic growth in the portfolio will underpin portfolio returns in the year ahead. However, we expect to resume our active acquisition investment strategy to drive growth as soon as capital market conditions are conducive to an equity raising.

With our quality industrial property portfolio, proactive asset management, prudent capital management and experienced management team, we expect MacarthurCook Industrial REIT to continue its strong performance and achieve better returns. Barring any unforeseen circumstances, we are on track to deliver at least the forecast distribution per unit of 7.59 cents in the next year.

MacarthurCook Industrial REIT has realised significant achievements over the past twelve months against a landscape of intense competition. The team has delivered an outstanding performance. I thank them for their efforts and also wish to extend my appreciation to our unitholders, business partners and tenants.

We look forward to a rewarding year ahead.

Yours faithfully,

Craig Dunstan Chief Executive Officer


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MacarthurCook Investment ApproachThe MacarthurCook Industrial REIT seeks to provide investors with access to income from a diversified portfolio of income-producing industrial real estate located throughout Asia.

We have a three pronged investment strategy aimed at achieving the Trust’s investment objectives.

1) Prudent capital and risk management strategy

Objective: To optimise the Trust’s capital structure within the borrowing limits set out in the Property Funds Guidelines by utilising a combination of debt and equity to maximise distributions to unitholders, while maintaining financial flexibility to fund future acquisitions and asset enhancement works.

Our strategies in relation to capital and risk management are to:

Maintain a strong balance sheet and sufficient liquidity by adopting and maintaining a • target gearing ratio of between 40-45%;

Secure diversified funding sources to support the growth of the Trust in size and scale; •

Minimise the cost of debt financing; •

Secure and maintain an investment grade rating from a credit rating agency• 1; and

Actively manage exposure to adverse market movements in interest rates and foreign • exchange through the adoption of appropriate hedging strategies:

Active interest rate management: – manage potential interest rate volatility through the use of interest rate swap contracts and/or fixed rate borrowings; and

Foreign exchange risk management: – In order to manage the currency risk involved in investing in assets outside of Singapore, the Manager has adopted appropriate risk management strategies including:

the use of foreign currency denominated borrowings to match the currency of the »asset investment as a natural currency hedge;

the entry into foreign exchange hedges to hedge the foreign currency income »received from the offshore assets; and

the use of cross currency swaps to hedge any foreign currency denominated net »assets of the Trust.

What we have done during the year or are doing:

Utilised a balanced combination of debt and equity:• We successfully raised S$312.5 million at the Initial Public Offer, which enabled us to fund the acquisition of the initial 12 properties;

Minimised the cost of debt financing:• Our weighted average cost of debt as at 31 March 2008 was 2.2%;

Active management of interest rate exposure: –

Entered into a 3 year interest rate swap on S$100.0 million from February 2008 to –February 2011;

Entered into an interest rate cap on S$120.2 million from May 2007 to March 2009; and –

Fixed the interest rate on Japanese bank loan. –

We have matched the currencies of our debts with the currencies of our assets to derive a • natural long term hedge without the need for capital hedging instruments. To the extent net assets remain exposed, we have entered into cross currency swaps. Where possible, we also hedge the foreign exchange exposure of the net income streams of our overseas assets;

Obtained an investment grade Baa3 credit rating from Moody’s Investors Services;•

Maintained gearing well within the Trust’s target medium term range of 40-45%; •

We are currently in the process of increasing the maturity profile of our debt; and•

We intend to tap the equity markets when conditions are more conducive and thus • reduce the reliance on debt to fuel our acquisition growth.

1 Under the Property Fund Guidelines issued by the Monetary Authority of Singapore, a REIT may increase its aggregate leverage to a maximum of 60% of the value of its deposited property if it obtains a credit rating from one of the major rating agencies, including Moody’s.



MacarthurCook Investment Approach Continued

2) Active asset management

Objectives: To grow the Trust organically by actively managing the properties in the Trust’s portfolio and increasing the competitive positioning of these assets to improve returns.

Our strategies in relation to asset management are to:

Strengthen property management capabilities• ;

Identify value-adding opportunities and potential increases to net lettable area; and •

Actively manage the Trust’s assets to maintain high tenant retention and occupancy • levels: measures include prudent control of property outgoings, active leasing and marketing of vacancies and expiring leases, implementing programmes for the regular maintenance of building structures and asset refurbishment.

What we have done or are doing:

As at 31 March 2008, our portfolio was 100% leased.•

Focusing on optimising yield by extracting greater value from the existing portfolio.• We have identified properties that have potential for value enhancement and also properties that have built-up plot ratios which are much lower than the maximum allowable plot ratio of up to 2.5% under Singapore’s Urban Redevelopment Authority’s Master Plan. Such asset enhancement opportunities arising from space addition are likely to take place as and when existing tenants require additional space to accommodate business growth. There also exists further value appreciation possibilities resulting from re-zoning or change of use should commercial property prices in such locations continue to appreciate.

As at 31 March 2008, the Trust had 21 properties with a book value of approximately • S$555.4 million. In the 2009 financial year, four tenancies representing 1.8% of annual rental income will be up for renewal. We expect to secure good rental reversions for these properties which are strategically located in established industrial precincts in Singapore. Also, the properties are built with flexible layouts and high building specifications, which in our view, makes them more attractive to a wider range of tenants.

3) Acquisition growth strategy

Objectives: We seek to provide unitholders with sustained growth in returns through the acquisition of yield accretive assets that increase earnings and capital growth and also enhance the Trust’s diversification by geography, asset and tenant profile. Our acquisitions have been key in driving the growth of the Trust and total returns to unitholders. Given current uncertain conditions in the capital markets, we expect few changes to the Trust size or composition in the 2008/09 financial year.

We intend to hold the properties we acquire on a long-term basis. However, we may consider selling properties that offer limited scope for further growth and use the proceeds for investment in strategic properties that meet our investment criteria. Our acquisition strategy will therefore be highly selective and opportunistic.

Once conditions improve in the capital markets, we will resume our strategy to grow the Trust by S$300 million – S$500 million per annum. In the meantime, our focus will be on optimising the yield from the Trust’s portfolio and on capital management.

Our strategies in relation to acquisition growth are to:

Enter into sale-and-leaseback arrangements with owner occupied industrial facilities.• With Asia fast becoming the world’s manufacturing hub and its growth into an important consumer market, the industrial fulfilment business in Asia has evolved and supported the robust growth of the industrial sector. Industrial service providers seeking to tap into this growth by redeploying capital into core business activities have contributed to the growing trend of sale-and-leaseback arrangements.


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3) Acquisition growth strategy Continued

Regional investment strategy:• Our investment strategy is regional in scope and we target to have a minimum of 50% of the portfolio located in Singapore and the balance across the other major Asian industrial property markets such as Japan, Hong Kong, China, Korea, Malaysia and India. Our approach takes into consideration various macro and micro factors. On a macroeconomic level, we have a priority to invest in the mature markets of Singapore and Japan that benefit from a strong demand for and a ready supply of investment grade industrial property. We will also look to invest in the high growth markets such as Hong Kong, China and Malaysia. On the micro level, we will consider the level of maturity, accessibility and availability of good quality industrial properties within each market.

“Grow with our tenants”:• As the industrial sector in Asia evolves, our tenants are likely to expand across the region. We intend to benefit from the regional expansion of our existing tenant base by supporting our tenants’ growing real estate needs by providing well-located, functional and professional managed real estate.

Strategic partnerships and opportunities for business development.• We are not majority controlled by any company which owns or develops industrial property for commercial sale or investment purposes. We believe that the Trust will be viewed more positively when it approaches property owners for the purpose of business development as we would not be considered to be in competition with such owners. In our view, this will provide us with a greater number of potential property assets to source that will enhance the quality of the Trust’s portfolio.

What we have done or are doing:

Active acquisition strategy:• Since listing, the Trust acquired 9 yield accretive assets comprising: 8 in Singapore and one in Japan. In addition, the Trust had also announced the acquisition of Plot 4A, International Business Park, which is scheduled for completion in December 2009.

Entered into sale-and-leaseback arrangements with owner occupied industrial facilities.• Of the Trust’s 21 properties, 18 are acquired under sale and leaseback arrangements. All are based in Singapore.

Regional investment strategy:• The Trust made its first acquisition outside of Singapore in the Japanese warehouse and logistics market in December 2007 with the acquisition of the Asahi Ohmiya warehouse in Saitama, Greater Tokyo.

Strategic partnerships and opportunities for business development:• We have formed strategic alliances with the following and will seek out similar opportunities for business development:

United Engineers Development Pte Ltd, a wholly owned subsidiary of SGX-listed –United Engineers Limited. Established in 1912, United Engineers has operations across Asia in 12 countries, in the inter-related core businesses of engineering, construction and integrated facility management.

Atlas Partners Japan, an established specialist Japanese real estate fund and asset –management firm based in Tokyo.

ApproachThe Trust’s fundamental objective is to provide Unitholders with stable income distributions on a quarterly basis for the three months ending 30 June, 30 September, 31 December and 31 March of each year. To support this objective, the Trust has an income approach whereby the value of the property is compared to the level of sustainable income. The Trust seeks to identify those properties that are expected to provide a higher total return than property investments with a similar risk profile.

While the capital values of all categories of income producing properties fluctuate, the least volatile investments are those that are assessed by the market as having secure, long term revenue streams.

The Trust also seeks to provide portfolio diversification that is designed to minimise risk through exposing the Trust to a mix of income streams generated by a large number of properties in a variety of industrial property sub-sectors, situated in different geographic locations.



MacarthurCook Industrial REIT Investment Portfolio

PORTFOLIO SUMMARY

Property/Address1 Tenant Net lettable area

Date of acquisition2

Purchase price

At valuation3 2008

Valuation date

Rental income4 for the financial year ended

31 March 20085

Land leasehold tenure

sqm S$’000 S$’000 S$’000 Expiry yearWarehouse and Logistics

UE Technology Park 8 & 10 Pandan Crescent

United Tech Park Pte Ltd 65,856.4 19/04/2007 115,000 137,900 01/09/2007 7,331 92 years and 8 months expiring on 30/09/2068

Ossia Building 10 Changi South Lane

Ossia International Limited 12,655.9 19/04/2007 33,800 35,400 15/11/2007 2,280 30 plus 30 years expiring on 15/06/2056

Builders Centre 11 Changi South Street 3

Prologis Singapore Pte Ltd 11,547.4 17/12/2007 20,800 20,800 10/10/2007 584 30 plus 30 years expiring on 01/04/2055

KTL Distribution Centre 23 Changi South Avenue 2

Kim Teck Leong (Pte) Ltd 9,989.0 19/04/2007 19,500 23,600 15/11/2007 1,348 30 plus 30 years expiring on 30/09/2054

61 Yishun Industrial Park A BHT Global Pte Ltd 13,471.0 21/01/2008 24,600 24,600 13/09/2007 352 30 plus 30 years expiring on 01/09/2052

103 Defu Lane 10 Success Global Pte Ltd 8,361.3 21/01/2008 14,500 14,500 13/09/2007 216 30 plus 30 years expiring on 01/07/2043

7 Clementi Loop Nova Engineering and Logistic Pte Ltd 9,081.3 31/03/2008 18,250 18,300 18/07/2007 4 30 plus 30 years expiring on 16/06/2053

Fook Tong Nam Building 31 Admiralty Road

Fook Tong Nam Industries Pte Ltd 10,197.0 19/04/2007 13,400 14,800 15/11/2007 1,064 60 years expiring on 30/04/2037

Japan - Asahi Ohmiya Warehouse 1-398-3, 11, 13 Yoshinocho, Kita-ku, Saitama City, Saitama, Tokyo, Japan

MediceoMedical 9,088.6 20/12/2007 28,6676 30,789 11/12/2007 500 Freehold

Subtotal – Warehouse and Logistics

9 tenants 150,247.9 288,517 320,689 13,679

Manufacturing

GRP Industrial Building 1 Bukit Batok Street 22

GRP Limited 14,231.2 19/04/2007 18,000 23,000 01/09/2007 1,333 30 plus 30 years expiring on 30/06/2055

20 Gul Way E-HUB Metals Pte Ltd 32,208.0 19/04/2007 39,407 46,000 15/11/2007 3,099 35 years expiring on 15/01/2041

3 Tuas Ave 2 Cimelia Resource Recovery Pte Ltd 14,700.0 19/04/2007 20,800 23,000 15/11/2007 1,515 30 plus 13 plus 30 years expiring on 15/03/2055

8 & 10 Tuas Ave 20 C S Graphics Pte Ltd 8,873.0 19/04/2007 11,628 13,000 15/11/2007 817 8 Tuas Ave 20 - 30 plus 27 years and 2 months expiring on 31/12/2050 10 Tuas Ave 20 - 30 plus 30 years expiring on 30/09/2052

8 Senoko South Road Sin Hwa Dee Food Stuff Industries Pte Ltd

7,278.8 19/04/2007 12,800 12,700 01/09/2007 884 20 plus 30 plus 10 years expiring on 31/10/2054

Fullmark Industrial Building 10 Soon Lee Road

Fullmark Pte Ltd 7,214.4 19/04/2007 8,700 9,800 01/09/2007 664 30 plus 30 years expiring on 12/03/2041

Aalst Chocolate Building 26 Tuas Avenue 7

Aalst Chocolate Pte Ltd 5,522.0 19/04/2007 8,300 9,100 01/09/2007 595 30 plus 30 years expiring on 31/12/2053

Xpress Building 1 Kallang Way 2A

Xpress Holdings Ltd 6,910.6 30/01/2008 14,000 14,000 04/09/2007 169 30 plus 30 years expiring on 01/07/2055

PM Industrial Building 135 Joo Seng Road

Powermatic Data Systems Ltd 9,535.0 10/03/2008 25,000 25,400 07/11/2007 108 30 plus 30 years expiring on 01/07/2054

541 Yishun Ind Park A King Plastic Pte Ltd 8,017.5 02/10/2007 16,800 16,800 26/09/2007 589 30 plus 30 years expiring on 01/07/2054

Subtotal – Manufacturing 10 tenants 114,490.5 175,434 192,800 9,772

Research and Technology

2 Ang Mo Kio Street 65 CIT Cosmeceutical Pte Ltd 6,255.0 19/04/2007 15,200 15,500 01/09/2007 1,102 30 plus 30 years expiring on 31/03/2047

Axis Building 15 Tai Seng Drive

Axis Building (7 tenants): Westech, Khai Huat, Good Friend Agency, Zential Marine, Westphalia Separator (S.E.A.) Pte LTd, Mach Media Pte Ltd, Farnell Components Pte Ltd

18,029.0 17/12/2007 28,900 28,9007 12/10/2007 687 30 plus 30 years expiring on 01/04/2051

Subtotal – Research and Technology 8 tenants 24,284.0 44,100 44,400 1,789

TOTAL 27 tenants 289,022.4 508,051 557,8898 25,240

1 All the properties in the portfolio are located in Singapore except the Asahi Ohmiya warehouse, which is located in Japan. 2 Acquisition date refers to the date when the acquisition was legally completed. 3 In accordance with the Property Fund Guidelines, an independent valuation of each of the investment properties is required to be performed at least once every

12 months. The latest external valuation dates are shown in the table above. The fair values at 31 March 2008 were determined after consideration of the latest independent valuations.


13

PORTFOLIO SUMMARY

Property/Address1 Tenant Net lettable area

Date of acquisition2

Purchase price

At valuation3 2008

Valuation date

Rental income4 for the financial year ended

31 March 20085

Land leasehold tenure

sqm S$’000 S$’000 S$’000 Expiry yearWarehouse and Logistics

UE Technology Park 8 & 10 Pandan Crescent

United Tech Park Pte Ltd 65,856.4 19/04/2007 115,000 137,900 01/09/2007 7,331 92 years and 8 months expiring on 30/09/2068

Ossia Building 10 Changi South Lane

Ossia International Limited 12,655.9 19/04/2007 33,800 35,400 15/11/2007 2,280 30 plus 30 years expiring on 15/06/2056

Builders Centre 11 Changi South Street 3

Prologis Singapore Pte Ltd 11,547.4 17/12/2007 20,800 20,800 10/10/2007 584 30 plus 30 years expiring on 01/04/2055

KTL Distribution Centre 23 Changi South Avenue 2

Kim Teck Leong (Pte) Ltd 9,989.0 19/04/2007 19,500 23,600 15/11/2007 1,348 30 plus 30 years expiring on 30/09/2054

61 Yishun Industrial Park A BHT Global Pte Ltd 13,471.0 21/01/2008 24,600 24,600 13/09/2007 352 30 plus 30 years expiring on 01/09/2052

103 Defu Lane 10 Success Global Pte Ltd 8,361.3 21/01/2008 14,500 14,500 13/09/2007 216 30 plus 30 years expiring on 01/07/2043

7 Clementi Loop Nova Engineering and Logistic Pte Ltd 9,081.3 31/03/2008 18,250 18,300 18/07/2007 4 30 plus 30 years expiring on 16/06/2053

Fook Tong Nam Building 31 Admiralty Road

Fook Tong Nam Industries Pte Ltd 10,197.0 19/04/2007 13,400 14,800 15/11/2007 1,064 60 years expiring on 30/04/2037

Japan - Asahi Ohmiya Warehouse 1-398-3, 11, 13 Yoshinocho, Kita-ku, Saitama City, Saitama, Tokyo, Japan

MediceoMedical 9,088.6 20/12/2007 28,6676 30,789 11/12/2007 500 Freehold

Subtotal – Warehouse and Logistics

9 tenants 150,247.9 288,517 320,689 13,679

Manufacturing

GRP Industrial Building 1 Bukit Batok Street 22

GRP Limited 14,231.2 19/04/2007 18,000 23,000 01/09/2007 1,333 30 plus 30 years expiring on 30/06/2055

20 Gul Way E-HUB Metals Pte Ltd 32,208.0 19/04/2007 39,407 46,000 15/11/2007 3,099 35 years expiring on 15/01/2041

3 Tuas Ave 2 Cimelia Resource Recovery Pte Ltd 14,700.0 19/04/2007 20,800 23,000 15/11/2007 1,515 30 plus 13 plus 30 years expiring on 15/03/2055

8 & 10 Tuas Ave 20 C S Graphics Pte Ltd 8,873.0 19/04/2007 11,628 13,000 15/11/2007 817 8 Tuas Ave 20 - 30 plus 27 years and 2 months expiring on 31/12/2050 10 Tuas Ave 20 - 30 plus 30 years expiring on 30/09/2052

8 Senoko South Road Sin Hwa Dee Food Stuff Industries Pte Ltd

7,278.8 19/04/2007 12,800 12,700 01/09/2007 884 20 plus 30 plus 10 years expiring on 31/10/2054

Fullmark Industrial Building 10 Soon Lee Road

Fullmark Pte Ltd 7,214.4 19/04/2007 8,700 9,800 01/09/2007 664 30 plus 30 years expiring on 12/03/2041

Aalst Chocolate Building 26 Tuas Avenue 7

Aalst Chocolate Pte Ltd 5,522.0 19/04/2007 8,300 9,100 01/09/2007 595 30 plus 30 years expiring on 31/12/2053

Xpress Building 1 Kallang Way 2A

Xpress Holdings Ltd 6,910.6 30/01/2008 14,000 14,000 04/09/2007 169 30 plus 30 years expiring on 01/07/2055

PM Industrial Building 135 Joo Seng Road

Powermatic Data Systems Ltd 9,535.0 10/03/2008 25,000 25,400 07/11/2007 108 30 plus 30 years expiring on 01/07/2054

541 Yishun Ind Park A King Plastic Pte Ltd 8,017.5 02/10/2007 16,800 16,800 26/09/2007 589 30 plus 30 years expiring on 01/07/2054

Subtotal – Manufacturing 10 tenants 114,490.5 175,434 192,800 9,772

Research and Technology

2 Ang Mo Kio Street 65 CIT Cosmeceutical Pte Ltd 6,255.0 19/04/2007 15,200 15,500 01/09/2007 1,102 30 plus 30 years expiring on 31/03/2047

Axis Building 15 Tai Seng Drive

Axis Building (7 tenants): Westech, Khai Huat, Good Friend Agency, Zential Marine, Westphalia Separator (S.E.A.) Pte LTd, Mach Media Pte Ltd, Farnell Components Pte Ltd

18,029.0 17/12/2007 28,900 28,9007 12/10/2007 687 30 plus 30 years expiring on 01/04/2051

Subtotal – Research and Technology 8 tenants 24,284.0 44,100 44,400 1,789

TOTAL 27 tenants 289,022.4 508,051 557,8898 25,240

4 Rental income is the contractual rent receivable under the lease arrangement, with the tenants (after rent rebates and provisions for rent-free periods). There are no rent rebates and rent-free periods.

5 Rental income received from date of acquisition to 31 March 2008, excluding straight lining of rental income.6 JPY2,230,000,000 converted at an exchange rate of S$1.00 to JPY 72.4286.7 Before adjustment for the effect of rental support of S$1.2 million. The appraised value of the property after the adjustment is S$27.7 million.8 Before adjustments for the effect of rental support of S$1.2 million for 15 Tai Seng Drive and the effect of straight-lining of rental income of S$1.3 million.

The appraised value of the investment portfolio after these adjustments is S$555.4 million.



TokyoSaitama

NaritaKawasaki

YokohamaKamakura

Chiba

Kusatsu

Maebashi

Ulsunomiya

Mito

Asahi OhmiyaWarehouse

YoshinoharaStation

HIGASHIOHMIYABYPASS

YOSHINO-CHOINTERCHANGE

KonbaStation

Yoshino-cho

200m

500ft

MacarthurCook Industrial REIT Investment Portfolio Continued

PORTFOLIO ANALYSIS

MacarthurCook Industrial REIT property portfolio key statistics

As at 19 April 2007 As at 31 March 2008

Number of properties 12 21

Portfolio value (S$m) 316.5 555.4

Net lettable area (sqm) 194,980.7 289,022.4

Number of tenants 12 27

Leased 100% 100%

Location of properties Singapore Singapore, Japan

MacarthurCook Industrial REIT investment portfolio

Strategically located portfolioMacarthurCook Industrial REIT comprises 21 properties, of which 20 are strategically located in Singapore’s established industrial areas and one in Saitama, Japan, a key logistics node in the Greater Tokyo area. The properties are easily accessible by major highways and are in close proximity to sea ports, airports, amenities and public transportation.

Singapore portfolio

1

2

34

5 6

7

8

9

1011

1214

15

16

17

18

19

20

13

Major expressways

Port of Singapore

Changi Airport

Jurong Port

Causeway

Malaysia-SingaporeSecond Link

Warehouse and Logistics 1 - 8 & 10 Pandan Crescent 2 - 31 Admiralty Road 3 - 23 Changi South Avenue 2 4 - 10 Changi South Lane 5 - 7 Clementi Loop 6 - 103 Defu Lane 10 7 - 61 Yishun Industrial Park A 8 - 11 Changi South Street 3

Manufacturing 9 - 8 Senoko South Road 10 - 20 Gul Way 11 - 3 Tuas Avenue 2 12 - 26 Tuas Avenue 7 13 - 8 & 10 Tuas Avenue 2 14 - 10 Soon Lee Road 15 - 135 Joo Seng Road 16 - 1 Kallang Way 2A 17 - 541 Yishun Industrial Park A 18 - 1 Bukit Batok Street 22

Research and Technology 19 - 2 Ang Mo Kio Street 65 20 - 15 Tai Seng Drive

Japan property Asahi Ohmiya Warehouse: 1-393-3, 11, 13 Yoshinocho, Kita-Ku, Saitama City, Japan

750m from Konba Station

Approximately 35km northwest of central Tokyo


15

Diversified income baseWith the inclusion of the nine new properties into MacarthurCook Industrial REIT’s portfolio, the Trust’s tenant diversification has improved, with no single tenant contributing more than 20.3% of rental income as at 31 March 2008. This compares to 33.6% contribution from the largest tenant at the time of listing. We will seek to further reduce the Trust’s reliance on any one property or tenant for income, in accordance with our intention to enhance the stability of the Trust’s revenue base.

Diversified tenant mix and quality tenant profileMacarthurCook Industrial REIT has a well-diversified tenant mix. As at 31 March 2008, the Trust had 20 tenants at the head lease level and a multi-tenanted property with seven tenants. This represents an increase from 12 tenants at the time of the initial public offer. The top 10 tenants accounted for 69.9% of the Trust’s rental income as at 31 March 2008, compared to 94.3%1 in the initial portfolio at the time of listing.

1 Based on contracted rental income for the initial 12 properties at the time of listing.

Top 10 tenants by rental income

Uni

ted

Tech

Par

k P

te L

td

Oss

iaIn

tern

atio

nal

Lmite

d

Pow

erm

atic

Dat

aS

yste

ms

Ltd

BTH

Glo

bal

Pte

Ltd

Nov

a E

ngin

eerin

gan

d Lo

gist

ics

Pte

Ltc

Pro

logi

s S

inga

pore

Pte

Ltd

Med

iceo

Med

ical

Cim

elia

Res

ourc

eR

ecov

ery

Pte

Ltd

E-H

UB

Met

als

Pte

Ltd

Kim

Tec

k Le

ong

(Pte

) Ltd

33.6

20.3

13.3

8.8

10.4

6.96.3

5.4 5.0 4.7 4.7 4.2

6.2

3.7 3.7

0

5

10

15

20

25

30

35

As at Initial Public OfferAs at 31 March 2008



Diversified property usageThe Trust’s properties are well diversified across a spread of industrial trade sectors. Rental income as at 31 March 2008 was diversified amongst the warehouse and logistics (54.6%), manufacturing (35.9%), and research and technology (9.4%) industries. The expected completion of Plot 4A, International Business Park in December 2009 will bring us closer to our target office and technology park sector allocation of 20%.

Property usage % of rental income as at 31 March 2008

Target %

Warehouse and Logistics 54.6 35

Manufacturing 35.9 35

Research and Technology 9.4 10

Office and Tech Park 0.0 20


Warehouse and Logistics by rental income as at 31 March 2008 (%)

9.8

5.4

Constructionand Engineering

Diversified products distribution

Distribution of lifestyle goods

Building materials supplier

Pharmaceutical products and medical equipment

Ship handling, warehousingand transportation

Equipment servicing

Property development

11.6

8.6

6.8

6.8

37.2

13.9

9.8

5.4

Constructionand Engineering

Diversified products distribution

Distribution of lifestyle goods

Building materials supplier

Pharmaceutical products and medical equipment

Ship handling, warehousingand transportation

Equipment servicing

Property development

11.6

8.6

6.8

6.8

37.2

13.9

Manufacturing by rental income as at 31 March 2008 (%)

Metals trading andequipment construction

Computer equipment

Printing and publishing

Food manufacturing

Electronic waste tradingand recycling

Equipment for Marine,Oil and Industrial Sector

Production of synthetic products

12.5

11.7

10.3

13.5

24.3

8.7

19.1

Manufacturing trading andequipment construction

Computer equipment

Printing and publishing

Food manufacturing

Electronic waste tradingand recycling

Equipment for Marine,Oil and Industrial Sector

Production of synthetic products

12.5

11.7

10.3

13.5

24.3

8.7

19.1

Research and Technology by rental income as at 31 March 2008 (%)

32.3

Supply chain solutions

Cosmetic products

67.7

32.3

Supply chain solutions

Cosmetic products

67.7


17

Balanced weighted average lease expiry profileMacarthurCook Industrial REIT benefits from a balanced and diversified weighted average lease expiry profile, which reduces the Trust’s exposure to lease expiry in any one year.

As at 31 March 2008, 18 of the 27 tenancies, representing 86.1% of rental income contribution for the portfolio, were let out under long term leases with at least 4 years to expiry. The improved profile provides greater income security. With provisions for step up rents in the leases, the remaining nine short-term tenancies allow the Trust to benefit from rental growth in the near term. The weighted average lease term to expiry (by rental income) of all the properties is 6.0 years, compared to 6.7 years for the initial portfolio at the time of listing.

Period Total number of expiring tenancies as at 31 March 2008

% of expiring tenancies by rental income as at

31 March 2008

FY2009 4 1.8

FY2010 2 3.6

FY2011 3 8.4

FY2012 0 0.0

FY2013 7 44.2

FY2014 0 0.0

FY2015 5 18.3

FY2016 0 0.0

FY2017 1 2.4

On FY2018 or after 5 21.2

Total 27 100.0

Lease expiry profile by rental income (%)

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY20179 FY2018

1.80.00.0 0.0 0.0 0.0 0.0 0.0 0.0

3.6

12.38.4

38.5

44.2

17.218.3

4.1 2.4

28.0

21.2

0

10

20

30

40

50

Expiring tenancies by rental income(as at initial public offer)Expiring tenancies by rental income(as at 31 March 2008)



Long leasehold for expiry of underlying land leaseAs at 31 March 2008, the weighted average unexpired lease term for the underlying land of all MacarthurCook Industrial REIT’s properties is 43.3 years, compared to 47.8 years as at the Initial Public Offer.

Remaining years to expiry of underlying land

Expires in 2037-2046

% o

f to

tal l

etta

ble

are

a

Expires in 2047-2056 Expires in 2068 Freehold

25.4

20.06

40.8

54.01

33.8

22.79

3.14

12 properties as at Initial Public Offer21 properties as at 31 March 2008

0

10

20

30

40

50

60

Built-in rental escalationsWith the exception of Asahi Ohmiya warehouse in Japan and 15 Tai Seng Drive in Singapore, the leases for all the other properties have built-in rental escalations, thus providing Unitholders with a stable and growing income stream. The escalations are staggered throughout the properties, commencing from the first anniversary of the commencement date of the leases.

Apart from 1 Bukit Batok Street 22, which has an annual rental income escalation of 1.5%, the remaining properties in the portfolio have contracted pre-determined rental income escalations ranging between 2.5% and 8.0% staggered throughout the leases. The weighted average rental escalation of the tenancies in the Portfolio for the four years from 31 March 2008 is 3.4% per annum.

High level of security deposits and rental guaranteeAll the tenancies are backed by security deposits or rental guarantees averaging between three months to 24 months of the rent and service charge payable to MacarthurCook Industrial REIT. This enhances income stability in the portfolio and mitigates the risks of rental disruption in the event of a payment default or early termination of a lease.



19

Fully leased portfolioAs at 31 March 2008, the portfolio was 100% leased. We are confident that our proactive asset management initiatives will ensure that we continue to maintain a high occupancy rate.

Geographic diversification We believe that the Asia Pacific’s growing industrial sectors continue to present attractive investment opportunities. The regions in Singapore and Japan in which MacarthurCook Industrial REIT’s existing properties are located are expected to experience growth in the industrial sectors.

Singapore has become an established logistics hub through its support of well-maintained infrastructure and an advanced communication network. We expect Singapore to maintain its position as the location of choice for global distribution and logistics companies seeking to establish their presence in the Asian region. We also expect Singapore to continue to experience success in the manufacturing and services sectors because of the government’s emphasis and focus on developing knowledge intensive segments (such as the biomedical sciences), in addition to more traditional manufacturing industries.

The acquisition of the Japan property is consistent with MacarthurCook Industrial REIT’s strategy to become a pan-Asian industrial real estate investment trust and enhances the portfolio’s geographical diversification. We believe that the warehousing and logistics sector in Japan will continue to grow due to its increasing role as a re-export centre for China’s growing manufacturing activities. As such, we will continue to focus our efforts in Japan on sourcing properties in the warehousing and logistics sector, when the markets are conducive to acquisition growth.

The following is a summary of MacarthurCook Industrial REIT’s actual and target geographic composition by property value:

Country Long term target (%) Actual as at 31 March 2008 (%)

Singapore 50 93.6

Other Asian countries 50 6.4 (Japan)



8 & 10 Pandan Crescent 10 Changi South Lane 11 Changi South Street 3

23 Changi South Avenue 2 61 Yishun Industrial Park A 103 Defu Lane 10

7 Clementi Loop 31 Admiralty Road Japan - Asahi Ohmiya Warehouse

1 Bukit Batok Street 22 20 Gul Way 3 Tuas Avenue 2



21

8 & 10 Tuas Avenue 20 8 Senoko South Road 10 Soon Lee Road

26 Tuas Avenue 7 1 Kallang Way 2A 135 Joo Seng Road

541 Yishun Industrial Park A 2 Ang Mo Kio Street 65 15 Tai Seng Drive



Board of Directors of the Manager

Mr Richard Michael HaddockBA, LLB, FAIM, FAICD, FFin

Independent Non-executive Chairman Aged 58

Mr Haddock has 25 years experience in the investment banking industry including extensive experience in treasury, funds management and stockbroking. Currently a director of Tishman Speyer Australia Limited and Retirement Villages Group R.E. Limited, Mr Haddock was formerly Chairman of Cashcard Australia Limited, Deputy Chairman of BNP Paribas Investment Management (Australia) Limited and a director of Colonial First State Private Capital Limited, AXA Insurance (Australia) Limited. He is also Chairman of Centacare Catholic Family Services and a board member of the Catholic Superannuation and Retirement Fund.

Mr Haddock is also the Chairman of MacarthurCook Limited, MacarthurCook Investment Managers Limited, MacarthurCook Real Estate Funds Limited and Arc Funds Management Limited.

Appointed a director on 14 November 2006.

Craig Mathew DunstanBComm, LLB, MBA, FFin

Managing Director and Chief Investment Officer of MacarthurCook LimitedAged 47

The founder and a significant shareholder of MacarthurCook Limited, Mr Dunstan held senior management positions with National Mutual and Lend Lease prior to his appointment as General Manager of Financial Services and Chief Investment Officer of Australian Unity in 1995. He resigned from Australian Unity in 2002 to establish the MacarthurCook Group.

Mr Dunstan was a director of Australian Unity Funds Management Limited, York Capital Group Limited, Waltus Investments Australia Limited, Acorn Capital Limited and Permanent Friendly Society Limited.

Mr Dunstan is also a director of MacarthurCook Limited, MacarthurCook Investment Managers Limited, MacarthurCook Real Estate Funds Limited, Kinloch Funds Management Limited and Arc Funds Management Limited. He is currently a board member of the Asian Public Real Estate Association.

Appointed a director on 14 November 2006. Appointed as Chief Executive Officer of the Manager on 18 February 2008.

Alastair Hugh GurnerBA (Legal Studies), FAICD

Independent Non-executive DirectorAged 52

Mr Gurner has over 20 years experience in corporate finance and the financial services industry, with senior roles in research analysis, underwriting and institutional equities sales. Much of his experience has been focused on ASX-listed companies in two main sectors: real estate development and property trusts. Mr Gurner’s past clients include some of the major real estate investment and funds management organisations in Australia.

In early 1997, Mr Gurner became a joint founding executive director of Citadel Pooled Development Limited, a venture and development capital company listed on the ASX. Mr Gurner was an executive director of Citadel Pooled Development Limited from 1997 to 2006.

Mr Gurner is a director of a number of listed and unlisted companies operating in a range of sectors.

He is also a director of MacarthurCook Limited, MacarthurCook Investment Managers Limited, MacarthurCook Real Estate Funds Limited and Arc Funds Management Limited.

Appointed a director on 14 November 2006.


23

Lim How TeckBA (Accountancy), FCMA, FCPA (Aust), FCPA ICPAS, SID, AIBA,

Independent Non-executive Director and Chairman of the Audit CommitteeAged 57

Mr Lim How Teck is currently the Executive Chairman of Redwood International Pte Ltd, an investment consultancy, the Chairman of the Singapore Commodity Exchange, and the Deputy Chairman of Tuas Power Ltd.

In 2005, Mr Lim retired from Neptune Orient Lines Ltd (“NOL”), where he had worked since 1979 and held the positions of Executive Director, Group Deputy Chief Executive Officer, Group Chief Operating Officer and Group Chief Financial Officer. He also held directorships in various subsidiaries, associated companies and investment interests of NOL. Prior to joining NOL, he worked in Coopers & Lybrand and Plessey Singapore.

In addition, Mr. Lim is a director of a number of listed and unlisted companies and statutory boards such as Jurong Port Pte. Ltd., CISCO Security Pte. Ltd., ARA Asset Management Limited, M&C REIT Management Limited (manager of CDL Hospitality REIT), M&C Business Management Limited (trustee-manager of CDL Hospitality Business Trust), IFS Capital Ltd,

Rickmers Trust Management Pte. Ltd. (trustee-manager of Rickmers Maritime), Orangestar Investment Holdings Pte. Ltd., Lasseters International Holdings Ltd, Papua New Guinea Sustainable Development Program Limited and Mermaid Maritime Public Company Limited.

In 1999, Mr Lim was awarded the Public Service Medal (PBM) by the Singapore Government.

Appointed a director on 1 August 2007.

Tan Kai SengBA (Accountancy), CPA (Singapore), FCCA (UK)

Independent Non-executive DirectorAged 56

Mr Tan was Finance Director of Parkway Holdings Limited from 1988 to 2005 and was its Group Financial Controller from 1980 to 1988. Parkway Holdings Limited is a leading fully integrated healthcare organisation in Asia, with one of the largest network of hospitals and healthcare services in the region.

Prior to joining Parkway Holdings in 1980, Mr Tan worked in the audit team with Price Waterhouse, Singapore for approximately five years and a further two years on an International Exchange Programme with Price Waterhouse, San Francisco.

Mr Tan is also an Independent Non-executive Director and Audit Committee member of IGB Corporation Berhad, a significant property investment and development company listed on Bursa Malaysia, Kuala Lumpur, Malaysia.

Appointed a director on 1 December 2006.



Senior Management Team

Craig Dunstan

Chief Executive Officer

Mr Dunstan is also the Executive Director of the Manager and his profile can be found under the “Board of Directors” section of this Annual Report.

Chris Nunn

Chief Financial Officer and Company Secretary of MacarthurCook Limited

Mr Nunn joined MacarthurCook in 2003 as Chief Financial Officer and leads the Group’s finance and accounting teams.

Mr Nunn has held senior finance, operations and project management roles in the financial services industry since 1987. He started his career as a chartered accountant at Coopers and Lybrand. He then proceeded to join McIntosh Securities, an ASX-listed investment bank, where he later became a Finance Director and member of the management committee. Following the sale of McIntosh in 1997 to Merrill Lynch, he became the Chief Operating Officer at Merrill Lynch Investment Managers, where he was also a Director and member of the management and risk committees. Mr Nunn’s roles at McIntosh and Merrill Lynch included finance, risk management and compliance, internal audit, information technology, fund accounting and client services.

Chris has a Bachelor of Science in Economics and Accounting from Loughborough University in the U.K., and is an Associate of the Institute of Chartered Accountants in Australia, as well as with the Securities Institute of Australia.

Russell Bullen

Head of Real Estate

Mr Bullen heads MacarthurCook’s Real Estate Team and is responsible for the company’s listed and unlisted direct property funds.

With more than 16 years of experience in the real estate industry, Mr. Bullen has provided advisory services and interim management to institutions, major corporations, developers, REITs, banks and private companies in Australia and the USA.

Prior to joining MacarthurCook, Mr. Bullen was a Managing Director at Alvarez & Marsal, and was responsible for the Real Estate Practice in Dallas, Texas, USA. Prior to Alvarez & Marsal, Mr. Bullen spent five years with the real estate advisory group of PricewaterhouseCoopers. He also worked with the real estate group of the Commonwealth Bank of Australia.

Mr. Bullen holds a Bachelor’s degree in Business, with a concentration in property, from the University of South Australia and a post graduate degree in Finance and Investments from the Securities Institute of Australia. He is a qualified member of the Australian Property Institute and the Securities Institute of Australia.


25

Tang Buck Kiau

Senior Finance Manager and Company Secretary

Ms Tang joined the Manager as Senior Finance Manager and Company Secretary in 2007. She is responsible for company secretarial, accounting, taxation, treasury, and reporting functions. She has extensive experience in finance, accounting and treasury within the real estate industry.

Before joining MacarthurCook, Ms Tang worked at Far East Organization for 12 years in the finance, accounting and treasury departments, eventually becoming the Senior Finance Manager in the corporate finance department. Her key responsibilities included financial reporting, treasury and structuring, sourcing and management of project financing. Prior to joining Far East Organization, she held the position of audit manager at Coopers & Lybrand, Singapore.

Ms Tang is a Certified Public Accountant of Singapore and a fellow of the Chartered Association of Certified Public Accountants.

Nancy Tan

Fund Manager

Ms Tan joined the Manager as Senior Asset Manager in 2007 before assuming the role of Fund Manager of the Trust.

She has more than 20 years experience in the commercial real estate and asset management industry and has held senior management roles with real estate developer, Far East Organization. Her responsibilities included asset management and enhancement, marketing and leasing for commercial real estate portfolios.

Ms Tan has also held asset and property management roles at City Developments Ltd and Jones Lang Wooton.

She holds a Bachelors of Science in Real Estate Management from the National University of Singapore and a Graduate Diploma in Marketing from the Marketing Institute of Singapore.

Sue-Lyn Yeoh

Investor Relations Manager

Ms Yeoh is responsible for managing the Manager’s investor relations and corporate communications programme.

Ms Yeoh has ten years experience in finance and marketing. Prior to joining the Manager, she worked at Citigate Dewe Rogerson, iMAGE as a Senior Investor Relations Consultant.

She also worked for Fortune Magazine in Beijing as Marketing and Media Relations Manager (Beijing) and was part of a team that was responsible for organising the 2005 Fortune Global Forum in Beijing.

Ms Yeoh began her career in the US mutual funds industry in 1997 when she worked for PNC Bank’s Financial Services Division in Boston. Her responsibilities included mutual fund accounting and financial reporting for US and international equity, bond and money market funds.

She has an MBA from the Carroll School of Graduate Management at Boston College and a Bachelors degree in Economics from Brandeis University in Boston, USA.



Structure of MacarthurCook Industrial REIT As at 31 March 2008

The following diagram indicates the relationships between MacarthurCook Industrial REIT, the Manager, the Property Manager, the Trustee and the Unitholders.

Ownership of assets Net property income

Property management and other services

MacarthurCookIndustrial

REIT

DistributionsHolding of units

The Trustee, HSBC Institutional

Trust Services (Singapore) Limited

Properties

Unitholders

The Manager, MacarthurCook

Investment Managers (Asia) Limited

Shareholders:MacarthurCook Limited

(92.5%)

United Engineers Development Pte Ltd

(7.5%)

The Property Manager, MacarthurCook Property

Management Pte Ltd

Shareholder:MacarthurCook Limited

(100.0%)

Management fees

Acts on behalf of Unitholders

Trustee’s feesManagement services

Property management and other fees


27

An Overview of the Asia-Pacific Industrial Market

The year in reviewIn 2007, countries in the Asia Pacific region continued to experience robust economic growth, with China, India and Singapore leading the way. Healthy economic activity within the region was underpinned by strong performances in the export industries, higher foreign direct investments and a buoyant global economy. Despite a slowdown in the US economy, largely caused by the US sub-prime mortgage crisis, Asia posted a healthy GDP growth of 5.6%1 in 2007.

Supported by robust regional economic growth, the industrial property market enjoyed strong demand for quality assets and experienced heightened investment activities during the year. Capital values of single-user industrial premises in most Asian cities continued their upward growth. The drive towards knowledge-intensive industries provided an additional boost to the hi-spec industrial space market in the Asia-Pacific region, most notably with Singapore experiencing the highest (17.4%) surge in rents in the six month period from April to September 2007. Additionally, many of these industrial property markets enjoyed robust spillover demand from the buoyant office markets, resulting in rents of single-user industrial premises achieving growth of up to 50.0% in the same period2.

Outlook Asia’s economic growth is expected to moderate in 2008, in response to slower global economic growth. Prospects for Asia are likely to remain

strong, however, with the Economic Intelligence Unit forecasting GDP growth for Asia of 5.2% in 2008. This compares well against 2008 GDP growth forecasts of 2.3% for both US and Western Europe2.

Economies with a higher proportion of trade with the US and the Western European region may be more affected by an economic slowdown in both regions. However, we expect this slowdown to be mitigated by growing intra-regional trade within the Asia-Pacific region, particularly by the growing economies of China and India. The International Monetary Fund3 expects the two major economies of China and India to become the main engines of economic growth in 2008. China is expected to grow by about 10% in 2008 whilst India is expected to experience growth of between 7% to 9%.

The following is a review of the economies and industrial markets in which the Trust operates or may operate in future.

SingaporeIn 2007, Singapore’s economy expanded by 7.7%4. The construction and financial services sectors enjoyed the fastest growth. At the end of 2007, the average monthly rent for warehouses was S$1.45 p.s.f. for ground floor units and S$1.15 p.s.f. for upper floor units. The national occupancy rate for warehouses exceeded 90.0% for the first time in 3Q20075. This increase in rental and occupancy rates was due to strong economic conditions in Singapore and Asia.

The Singapore Government projects growth of between 4.0% to 6.0% in 2008, in view of deteriorating external economic conditions and increased downside risks6. Inflation is projected to be 3.5% in 20087, on the back of a tighter labour market, stronger domestic demand, high money growth and tight demand-supply conditions in the residential and office real estate markets. However, demand is expected to remain healthy, with incoming support from new growth areas such as the renewable energy and aerospace industries. However, demand is expected to remain healthy, with incoming support from new growth areas such as the renewable energy and aerospace industries.

While most property sectors saw a moderation in market activity and rental growth in 1Q2008, the industrial sector was the exception and emerged as the best performer, recording rental growth of up to 16%8. This surge in industrial rents was largely due to the sizeable spillover demand from the supply-stricken office sector, with many companies turning to hi-spec industrial space as alternative locations for their business operations. The average monthly gross rents of such space has been driven up by 16% to S$3.98 per square ft. per month in 1Q2008 from S$3.44 per square ft per month seen in 4Q2007. The light industrial factory segment has also benefited from some of this spillover effect, with monthly gross rents of prime conventional flatted factories in central Singapore growing by 11.8% for ground floor

1 Economic Intelligence Unit, February 2008. This includes statistics for Australasia.2 Colliers International, Asia Pacific Industrial Market Overview, Regional Research, Bi-Annual Update, November 2007.3 IMF World Economic Outlook, October 2007.4 Ministry of Trade and Industry, Singapore, “GDP Growth to Moderate to Medium Term Potential”, 14 February 2008.5 CB Richard Ellis, “Singapore Market View”, 4Q2007.6 Ministry of Trade and Industry, Singapore, “GDP Growth to Moderate to Medium Term Potential”, 14 February 2008.7 UBS Investment Research, ‘Asian Economic Monitor”, January/February 2008.8 Colliers International, “Singapore Industrial Market Continues to Experience a Rent Spike”, 1 April 2008.



An Overview of the Asia-Pacific Industrial Market Continued

space and 10.6% for upper floor space to average at S$2.36 per square ft and S$1.77 per square ft respectively. The proximity to the Central Business District has made these industrial properties an ideal alternative for qualifying office user, especially those who do not require exceptionally high building specifications. Strong demand in the warehouse segment drove average monthly gross rents of prime warehouse space to S$2.35 per square ft for ground floor space and S$1.72 per square ft for upper floor space in 1Q2008, from the previous quarter’s S$2.08 per square ft and S$1.60 per square ft respectively12.

The demand for industrial space in 2008 is expected to sustain despite current global uncertainties, with rents of conventional factories and warehouse space potentially seeing a further increase of up to 15%, whilst those of hi-specs space could rise up to 20% for the rest of 2008.

JapanAccording to statistics released by Japan’s Cabinet Office in February 2008, Japan’s real GDP grew by 2.1% in 2007. Whilst the Bank of Japan’s 4th quarter 2007 Tankan Survey showed that large manufacturers maintained a positive outlook on Japan’s economy and experienced strong corporate profits, personal spending in Japan has not increased accordingly.

With uncertainties surrounding both US and global economic growth, the Economic Intelligence Unit has forecast GDP growth of 1.2% in 20081.

However, the demand for quality warehouse and logistics facilities in strategic locations continues to grow, particularly in and around major cities9, as more Japanese companies adopt the asset light trend that has gained momentum in Singapore. Many companies have outsourced the real estate that would otherwise have remained on their balance sheets and freed up capital in order to reinvest more efficiently into their core businesses.

The growing demand for modern warehousing facilities in Japan has also been driven in part by the increasing acceptance of the logistics sector in major cities in Japan as an investment class10. With the compression of yields in the office sector, investors have turned their attention to the industrial sector, where yields range from 5.5% to 6.0% in the Tokyo area as of September 2007 2.

2007 saw a compression of capitalisation rates of logistics facilities to 4.5 – 5.5%11, particularly in and around the major cities. Rentals remained largely unchanged in 2007 and this trend is likely to continue in 2008.

Other Asian economiesThe other Asian economies have posted strong growth in 2007 and are expected to maintain strong prospects in 2008:

Hong Kong experienced strong • GDP growth of 6.3% in 2007; growth is expected to soften to 4.0% in 20081. Hong Kong’s growing economic links with the powerhouse economy of China is likely to mitigate the potential slowdown in global trade. According to Colliers International12, rental and capital values for warehouses are forecast to increase by 8.0% p.a. and 15.0% p.a. respectively over the next 12 months.

Malaysia’s GDP grew by 6.3% • in 2007 and is estimated at 6.0% to 6.5% in 200813. The Malaysian Industrial Development Authority expects the Malaysian logistics industry to experience strong growth over the next few years, driven by export-oriented initiatives.

Korea’s GDP growth is • estimated to be 5.0% and 4.6% in 2007 and 2008, respectively. The Korean government is focused on building Korea as a key North Asian logistics hub and is committed to policies and initiatives to develop the sector, which has experienced an average growth rate of 4.0% p.a. over the last 10 years14.

9 CB Richard Ellis – Warehouse Market Report – 2008 Winter & Spring Vol. 18.10 CB Richard Ellis - Asian Industrial Property Market Flash, Q2 2007.11 ProLogis – Global Property Market Review – Asian Distribution and Warehouse Markets – Winter – Spring 2007.12 Colliers International Regional Research – Market Overview January 2008.13 2007 GDP figures are from Bank Negara Malaysia report dated 28 February 2008 and forecast for 2008 is from Ministry of Finance, Malaysia “Budget 2008”,

7 September 2007.14 CB Richard Ellis Research, ‘An overview of the Logistics Property Market in Korea”, 17 January 2008.


29

MACARTHuRCOOK INDuSTRIAL REIT POSTED A STRONG OPERATIONAL AND fINANCIAL PERfORMANCE fOR THE fINANCIAL YEAR ENDED 31 MARCH 2008, DELIvERING KEY RESuLTS THAT SuRPASSED OuR fORECASTS.



Corporate Governance Statement

The Board of Directors of the Manager (the “Board”), MacarthurCook Investment Managers (Asia) Limited and the management, are fully committed to good corporate governance.

The Manager uses the Code of Corporate Governance 2005 issued by the Ministry of Finance (the “Code”) as its benchmark, as and where relevant. The following describes the Manager’s main corporate governance policies and practices with specific reference to the Code.

The Manager of MI-REITThe Manager has general powers of management over the assets of MI-REIT. The Manager’s main responsibility is to manage the assets and liabilities of MI-REIT for the benefit of the Unitholders. It will manage the assets of MI-REIT with a focus on generating rental income and to enhance the returns from the investments of MI-REIT and ultimately the distributions and total return to Unitholders.

The primary role of the Manager is to set the strategic direction of MI-REIT and to give recommendations to HSBC Institutional Trust Services (Singapore) Limited, as trustee of MI-REIT (the “Trustee”), on the acquisition, divestment and enhancement of assets in accordance with its stated investment strategy.

The Manager has covenanted in the Trust Deed to use its best endeavours to ensure that the business of MI-REIT is carried out and conducted in a proper and efficient manner and to conduct all transactions with or for MI-REIT at arm’s length and on normal commercial terms.

Other functions and responsibilities of the Manager include:

1. Ensuring compliance with the applicable provisions of the Securities and Futures Act, Chapter 289 of Singapore and all other relevant legislation, the Listing Manual of Singapore Exchange Securities Trading Limited (“SGX-ST”), the Code on Collective Investment Schemes (including the Property Funds Guidelines) issued by the Monetary Authority of Singapore (“MAS”), the Trust Deed, the tax ruling issued by the Inland Revenue Authority of Singapore on the taxation of MI-REIT and its Unitholders and all the relevant contracts;

2. Manage the finances of MI-REIT, including accounts preparation, capital management, coordination of the budget process, forecast modeling and corporate treasury functions;

3. Communicate with Unitholders; and

4. Supervise the Property Manager, MacarthurCook Property Management Pte Ltd, which performs the property management functions (including lease management, property management, maintenance and administration) pursuant to the Property Management Agreement.

Board of Directors

Principle 1: Board’s conduct of affairsThe Board delegates certain of its functions to the Audit Committee.

The Board is entrusted with the responsibility for the overall management and the corporate governance of the Manager and MI-REIT, including establishing goals for management and monitoring the achievement of these goals.

The Board meets regularly, at least once every quarter and as warranted by particular circumstances, to discuss and review the strategies and policies of MI-REIT, including any significant acquisitions and disposals, the annual budget, the financial performance of MI-REIT against a previously approved budget and to approve the release of the quarterly, half-year and full year results. The Board also reviews the risks to the assets of MI-REIT and acts upon any comments from the auditors of MI-REIT.


31

The number of Board, Audit Committee and Nominating and Remuneration Committee meetings held since MI-REIT was constituted, as well as the attendance of each Board member at these meetings, is disclosed below:

Board Audit Committee

Nominating and Remuneration

Committee

No of meetings No of meetings No of meetings

Eligible to attend Attended



Mr Richard Michael Haddock 7 7 3 3 2 2

Mr Christopher Dale Calvert1 7 7 - - - -

Mr Craig Mathew Dunstan2 7 7 1 1 - -

Mr Alastair Hugh Gurner 7 7 - - 2 2

Mr Lim How Teck3 2 2 2 2 - -

Mr Phillip John Anderson4 3 3 - - - -

Mr Shaun Chan Ngok Seng5 1 - - - - -

Mr Tan Kai Seng 7 7 3 3 - -

1 Mr Calvert resigned from the Board on 14 March 2008.2 Mr Dunstan was appointed Acting Chief Executive Officer on 18 February 2008.3 Mr Lim was appointed to the Board on 1 August 2007.4 Mr Anderson resigned from the Board on 11 May 2007.5 Mr Chan resigned from the Board on 5 March 2007.

The Manager’s Articles of Association permit Board meetings to be held by way of conference telephone or any other electronic means of communication by which all persons participating in the meeting are able, contemporaneously, to hear and be heard by all other participants.

The Manager has adopted a set of internal guidelines which sets out the financial authority limits for investment properties acquisition and divestment, operating/capital expenditure, leasing, disposal and write-off of assets, bank borrowings as well as arrangements in relation to cheque signatories that require the approval of the Board. Appropriate delegation of authority and approval sub-limits are also provided at management level to facilitate operational efficiency.

Changes to regulations and accounting standards are monitored closely by the management and members of the Audit Committee. To keep pace with regulatory changes where these changes have an important bearing on the Manager’s or Directors’ disclosure obligations, the Directors will be briefed either during Board Meetings or at specially convened meetings involving the relevant professionals. Management also provides the Board with information in a timely manner through regular updates on financial results, market trends and business developments.



Principle 2: Board composition and guidanceThe Board comprises members with a breadth of expertise in accounting/finance, real estate, law, business and management.

Principle 3: Chairman and Chief Executive OfficerThe roles of Chairman and Chief Executive Officer are separate and the positions are held by two separate persons in order to maintain an effective check and balance. The Chairman, Mr Richard Haddock, is a Non-executive Director while the former Chief Executive Officer, Mr Christopher Calvert was, and the current Acting Chief Executive Officer, Mr Craig Dunstan is, an Executive Director. Mr Calvert resigned from the Board effective 14 March 2008. The Board has appointed Mr Dunstan as Acting Chief Executive Officer, with effect from 18 February 2008.

The Chairman is responsible for the overall management of the Board as well as ensuring that the Directors and the management work together with integrity and competency, and that the Board engages the management in constructive debate on strategy, business operations, enterprise risk and other plans. The Chief Executive Officer has full executive responsibilities over the business directions and operational decisions in the day-to-day management of the Manager.

Principle 4: Board membershipNominating and Remuneration CommitteeThe Manager has established a Nominating and Remuneration Committee to, among other things, make recommendations to the Board on all Board appointments. The members are:

Name Role

Mr Richard Michael Haddock Chairman

Mr Alastair Hugh Gurner Member

Mr Tan Kai Seng Member

The Nominating and Remuneration Committee advises the Manager on board matters including policies, performance, composition and succession planning. This includes identifying, evaluating and recommending candidates to the Board.

Each Director has been appointed on the basis of his professional experience and on his potential contribution to MI-REIT.

Newly appointed Directors will be briefed on business activities of MI-REIT and its strategic directions, role of the Board and the contribution they would be expected to make, including the time commitment and any participation in sub-committees of the Board.

The majority of the Directors are non-executive and independent of the management. This enables the management to benefit from their external, diverse and objective perspective on issues that are brought before the Board. It would also enable the Board to interact and work with the management through a robust exchange of ideas and views to help shape the strategic process. This, together with a clear separation of roles of the Chairman and the Chief Executive Officer, provides a healthy professional relationship between the Board and the management, with clarity of roles and robust oversight as they deliberate the business activities of MI-REIT.

Corporate Governance Statement Continued


33

The Board members are:

Name of Directors Role

Mr Richard Michael Haddock Chairman, Non-executive Independent

Mr Christopher Dale Calvert1 Chief Executive Officer, Executive Non-independent

Mr Craig Mathew Dunstan2 Chief Investment Officer, Executive Non-independent

Mr Alastair Hugh Gurner Non-executive Independent

Mr Lim How Teck3 Non-executive Independent

Mr Phillip John Anderson4 Non-executive Independent

Mr Shaun Chan Ngok Seng5 Non-executive Independent

Mr Tan Kai Seng Non-executive Independent

1 Mr Calvert resigned from the Board on 14 March 2008.2 Mr Dunstan was appointed Acting Chief Executive Officer on 18 February 2008.3 Mr Lim was appointed to the Board on 1 August 2007.4 Mr Anderson resigned from the Board on 11 May 2007.5 Mr Chan resigned from the Board on 5 March 2007.

Other key information on the Directors are set out in pages 22 to 23 of this Annual Report under the section “Board of Directors of the Manager”.

Principle 5: Board performanceThe Board uses objective performance criteria to assess the effectiveness of the Board as a whole and the contribution of each Director. Such criteria include Directors’ attendance, commitments and contributions during Board meetings. The Directors contribute in different ways, including using their personal networks to further the interest of MI-REIT.

Principle 6: Access to informationPrior to each meeting, the respective members of the Board and the Audit Committee are provided with the meeting agenda and the relevant papers submitted by the management, containing information to enable full deliberation on the issues to be considered at the respective meetings. Management and MI-REIT’s auditors, who can provide additional insight into the matters for discussion, are also invited from time to time to attend such meetings.

Each Director has the right to seek independent advice in the furtherance of his duties at the Manager’s expense. However, prior approval of the Chairman is required, which will not be unreasonably withheld.

Principles 7-9: Remuneration mattersMI-REIT, constituted as a trust, is externally managed by the Manager and accordingly, it has no personnel of its own. The Manager appoints experienced and well-qualified management to handle the day-to-day operations of the Manager. All Directors and employees of the Manager are remunerated by the Manager, and not MI-REIT.



Principle 10: AccountabilityThe Board is responsible for providing a balanced and understandable assessment of the MI-REIT’s performance, position and prospects, including interim and other price-sensitive public reports and reports to regulators. Management provides all members of the Board with financial reports which present a balanced and understandable assessment of MI-REIT’s performance, position and prospects on a quarterly basis.

Principle 11: Audit CommitteeThe Audit Committee is appointed by the Board from amongst the Directors of the Manager and comprises three non-executive Directors, all of whom are independent. The members are:

Name Role

Mr Lim How Teck Chairman

Mr Richard Michael Haddock Member

Mr Tan Kai Seng Member

The Audit Committee members have had many years of experience in senior management positions in established organisations and they possess the requisite accounting and financial management expertise and experience to discharge the Audit Committee’s functions.

During the year, the Audit Committee performed independent reviews of MI-REIT’s quarterly and full year financial results before their submission to the Board. In the process, the Audit Committee reviewed its accounting policies and key areas of management judgement applied for adequate provisioning and disclosure.

The Audit Committee will review and recommend a Whistle-Blowing Policy for the Board to approve and adopt in the coming year.

The Audit Committee met with the external auditors separately once during the period without the presence of management.

The Audit Committee also reviewed the nature and extent of the non-audit services provided to MI-REIT by the external auditors for the financial period and is of the opinion that the provision of such non-audit services would not affect the independence and objectivity of the external auditors.

Principle 12: Internal controlsThe Board recognises the importance of sound internal controls and risk management practices to good corporate governance. The Manager has put in place a system of internal controls comprising procedures and processes to safeguard MI-REIT’s assets, Unitholders’ interest as well as to manage risks.

The Board is satisfied that there are no material weakness in MI-REIT’s system of internal control, based on the findings from external auditors and the management control in place.

Principle 13: Internal auditAfter taking into consideration the corporate and management structures of the Manager and the scale of MI-REIT’s operations, the Manager presently does not have in place an internal audit function under current circumstances.



35

WE SEEK TO ENHANCE RETuRNS THROuGH ACTIvE ASSET MANAGEMENT INITIATIvES THAT IMPROvE RENTAL RATES WHILE MAINTAINING HIGH OCCuPANCY RATES IN THE PORTfOLIO.



Principles 14-15: Communication with UnitholdersThe listing rules of the SGX-ST require that a listed entity discloses to the market matters that could or might be expected to have a material effect on the price of the entity’s securities. The Manager upholds strong culture of continuous disclosure and transparent communication with Unitholders and the investing community. The Manager’s disclosure policy requires timely and full disclosure of all material information relating to MI-REIT by way of public releases or announcements through the SGX-ST via SGXNET.

The Manager also conducts regular briefings and conference calls for analysts and media representatives which will generally coincide with the release of MI-REIT’s results. During these briefings, the Manager reviews MI-REIT’s most recent performance as well as discusses the business outlook for MI-REIT. In line with the Manager’s objective of transparent communication, briefing materials are released to the SGX-ST via SGXNET.

During the period under review, the Manager also met or teleconferenced with institutional investors in Singapore, Hong Kong, Europe, USA and Australia. In addition, the Manager also participates in real estate focused conferences locally and in the region as part of its efforts to maintain regular contact with investors and analysts.

Dealings in MI-REIT UnitsThe Trust Deed requires each Director to give notice to the Manager of his acquisition of units in MI-REIT (the “Units”) or changes in the number of Units which he holds or in which he has an interest, within two business days after such acquisition or the occurrence of the event giving rise to changes in the number of Units which he holds or in which he has an interest.

The Directors and officers are advised not to deal in the Units on short-term considerations.

In addition, the Manager has given an undertaking to MAS that it will announce to the SGX-ST the particulars of its holdings in the Units and any changes thereto within two business days after the date on which it acquires or disposes of any Units, as the case may be. The Manager has also undertaken that it will not deal in the Units one month before the public announcement of MI-REIT’s half year and annual results and two weeks before the public announcement of MI-REIT’s quarterly results, and ending on the date of announcement of the relevant results.



37

Financial StatementsPeriod from 5 December 2006 (date of constitution) to 31 March 2008

MacarthurCook Industrial REIT� and its subsidiaries (Constituted in the Republic of Singapore pursuant to a trust deed dated 5 December 2006)

38 Report of the Trustee

39 Statement by the Manager

40 Independent Auditor’s Report

41 Balance Sheets

42 Statements of Total Returns

43 Reconciliation Between Total Return for the Period and Total Amount Available for Distribution

44 Portfolio Statements

48 Consolidated Cash Flow Statement

50 Notes to the Financial Statements

7688 MCook - MI-REIT AnnRep08 - FINANCIALS_FA.indd 37 19/6/08 11:48:15 AM


Report of the T�rustee Period from 5 December 2006 (date of constitution) to 31 March 2008

HSBC Institutional T�rust Services (Singapore) Limited (the “T�rustee”) is under a duty to take into custody and hold the assets of MacarthurCook Industrial REIT� (the “T�rust”) and its subsidiaries (“the Group”) in trust for the holders (“Unitholders”) of units in the T�rust (the “Units”). In accordance with, interalia, the Securities and Futures Act, Chapter 289 of Singapore, its subsidiary legislation and the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore (“MAS”) and the Listing Manual (collectively referred to as the “laws and regulations”), the T�rustee shall monitor the activities of MacarthurCook Investment Managers (Asia) Limited (the “Manager”) for compliance with the limitations imposed on the investment and borrowing powers as set out in the amending and restating trust deed dated 8 March 2007 between the T�rustee and the Manager (the “T�rust Deed”) 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 T�rusts” issued by the Institute of Certified Public Accountants of Singapore and the provisions of the T�rust Deed.

T�o the best knowledge of the T�rustee, the Manager has, in all material respects, managed the Group and the T�rust during the period covered by these financial statements, set out on pages 41 to 74, comprising the Balance Sheets, Statements of T�otal Return and Portfolio Statements of the Group and of the T�rust, Consolidated Cash Flow Statement and Notes to the Financial Statements of the Group and of the T�rust, in accordance with the limitations imposed on the investment and borrowing powers set out in the T�rust Deed, laws and regulations and otherwise in accordance with the provisions of the T�rust Deed.

For and on behalf of the Trustee HSBC Institutional Trust Services (Singapore) Limited

Arjun Bambawale Director

Singapore 20 May 2008


39

Statement by the Manager Period from 5 December 2006 (date of constitution) to 31 March 2008

In the opinion of the Directors of MacarthurCook Investment Managers (Asia) Limited, the accompanying financial statements set out on pages 41 to 74 comprising the Balance Sheets, Statements of T�otal Return, Portfolio Statements, Consolidated Cash Flow Statement and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financial position of the Group and of the T�rust as at 31 March 2008, and the total return of the Group and of the T�rust and cash flows of the Group for the period then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit T�rusts” issued by the Institute of Certified Public Accountants of Singapore and the provisions of the T�rust Deed. At the date of this statement, there are reasonable grounds to believe that the Group and the T�rust will be able to meet their financial obligations as and when they materialise.

For and on behalf of the Manager MacarthurCook Investment Managers (Asia) Limited

Richard Haddock Director




Independent Auditor’s Report Unitholders Of MacarthurCook Industrial REIT�

We have audited the accompanying financial statements of MacarthurCook Industrial REIT� (the “T�rust”) and its subsidiaries (the “Group”), which comprise the balance sheets and portfolio statements of the Group and of the T�rust as at 31 March 2008, and the statements of total return of the Group and of the T�rust and the cash flow statement of the Group for the period then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 41 to 74.

Manager’s responsibility for the financial statementsT�he Manager is responsible for the preparation and fair presentation of these financial statements in accordance with Statement of Recommended Accounting Practice (“RAP”) 7 “Reporting Framework for Unit T�rusts” issued by the Institute of Certified Public Accountants of Singapore. T�his responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ responsibilityOur 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. T�hose standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance 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. T�he 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 entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager of the T�rust, 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.

OpinionIn our opinion, the consolidated financial statements of the Group, the balance sheet, portfolio statement and statement of total return of the T�rust present fairly, in all material respects, the financial position of the Group and of the T�rust as at 31 March 2008, and the total returns of the Group and of the T�rust and cash flows of the Group for the period then ended, in accordance with recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit T�rusts” issued by the Institute of Certified Public Accountants of Singapore.

KPMG Public Accountants and Certified Public Accountants


Constituted in the Republic of Singapore pursuant to a trust deed dated 5 December 2006, subsequently amended by amending and restating deed dated 8 March 2007


41

Balance Sheets As at 31 March 2008

NoteGroup$’000

Trust$’000

NON-CURRENT� ASSET�S

Investment properties 3 555,411 524,622

Subsidiaries 4 - 11,748

Intangible asset 5 1,000 1,000

556,411 537,370

CURRENT� ASSET�S

Derivative financial instruments 6 174 174

T�rade and other receivables 7 3,140 3,116

Cash and cash equivalents 8 9,607 7,760

12,921 11,050

Total assets 569,332 548,420

CURRENT� LIABILIT�IES

Derivative financial instruments 6 350 350

T�rade and other payables 9 8,313 7,769

8,663 8,119

NON-CURRENT� LIABILIT�IES

Rental deposits 2,366 1,904

Interest-bearing borrowings 10 220,499 200,145

Minority interest 180 -

223,045 202,049

Total liabilities (excluding net assets attributable to Unitholders)

231,708 210,168

Net assets attributable to Unitholders 11 337,624 338,252

T�he accompanying notes form an integral part of these financial statements.



Statements of T�otal Return Period from 5 December 2006 (date of constitution) to 31 March 2008

NoteGroup$’000

Trust$’000

Gross revenue 14 32,214 31,715

Property operating expenses 15 (7,094) (7,003)

Net property income 25,120 24,712

Interest income 31 27

Manager’s management fees 16 1,950 1,950

Borrowing costs 2,952 2,790

Amortisation of intangible asset 200 200

Net change in fair value of financial derivatives 799 799

Net foreign exchange loss/(gain) 5 (555)

Other trust expenses 17 3,287 2,713

(9,193) (7,897)

Net income 15,958 16,842

Net change in fair value of investment properties 37,010 37,288

Total return before income tax 52,968 54,130

Income tax expense 18 - -

Total return after income tax 52,968 54,130

Minority interest 1 -

Total return after income tax and minority interest, before distributions

52,969 54,130

Distributions 19 (13,810) (13,810)

Total return for the period 39,159 40,320

Earnings per unit (cents) 20

Basic 28.22 28.84

Diluted 28.22 28.84



43

Reconciliation Between T�otal Return for thePeriod and T�otal Amount Available for Distribution Period from 5 December 2006 (date of constitution) to 31 March 2008

Note Group$’000

Trust$’000

T�otal return after income tax and minority interest, before distribution 52,969 54,130

Net effect of non-tax (chargeable)/deductible items A (33,682) (34,519)

Other adjustments B 324 -

T�otal amount available for distribution to the Unitholders C 19,611 19,611

Note A - Net effect of non-tax (chargeable)/deductible items

Group$’000

Trust$’000

Amortisation of borrowing costs 789 789

Equity fund raising expenses 1,631 1,631

Foreign exchange gain - (559)

Manager’s management fees (paid and payable in units) 585 585

Net change in fair value of financial derivatives 799 799

T�emporary differences and other tax adjustments 802 802

4,606 4,047

Straight-lining of rental income (1,278) (1,278)

Net change in fair value of investment properties (37,010) (37,288)

(38,288) (38,566)

Net effect of non-tax (chargeable)/deductible items (33,682) (34,519)

Note B – Other adjustments

Other adjustments for the Group relate to undistributed results of the subsidiaries.

Note C – Total amount available for distribution to Unitholders

Group$’000

Trust$’000

PAID

- 1.52 cents per unit for the period from

19 April 2007 - 30 June 2007 3,959 3,959


1 July 2007 - 30 September 2007 4,845 4,845


1 October 2007 - 31 December 2007 5,006 5,006

13,810 13,810

AvAILABLE FOR DIST�RIBUT�ION AT� 31 MARCH 2008

- 2.22 cents per unit for the period from 5,801 5,801

1 January 2008 - 31 March 2008

T�otal amount available for distribution to the Unitholders 19,611 19,611

T�otal amount available for distribution is derived based on the T�rust’s distribution policy summarised in Note 2.12.




Portfolio Statements As at 31 March 2008

Description of property Location

Term of ground lease

Remaining term of lease Existing use

Occupancy rate 2008

At valuation1

2008

Latestindependent

valuation report date1

GroupPercentage of net assets attributable

to Unitholders2008

TrustPercentage of net assets attributable

to Unitholders 2008

Years % $’000 % %

T�RUST� PROPERT�IES IN SINGAPORE - LEASEHOLD

1) UE T�echnology Park 8 & 10 Pandan Crescent 92 years and 8 months

60 Logistics and Warehousing 100% 137,900 01/09/2007 40.8 40.8

2) GRP Industrial Building 1 Bukit Batok Street 22 60 years 47 Manufacturing 100% 23,000 01/09/2007 6.8 6.8

3) Fook T�ong Nam Building 31 Admiralty Road 60 years 29 Logistics and Warehousing 100% 14,800 15/11/2007 4.4 4.4

4) 20 Gul Way 20 Gul Way 35 years 33 Manufacturing 100% 46,000 15/11/2007 13.6 13.6

5) 3 T�uas Ave 2 3 T�uas Ave 2 73 years 47 Manufacturing 100% 23,000 15/11/2007 6.8 6.8

6) 8 & 10 T�uas Ave 20 8 T�uas Ave 20 57 years and 2 months

42 Manufacturing 100% 13,000 15/11/2007 3.8 3.8

10 T�uas Ave 20 60 years 44

7) 8 Senoko South Road 8 Senoko South Road 60 years 46 Manufacturing 100% 12,700 01/09/2007 3.8 3.8

8) Fullmark Industrial Building 10 Soon Lee Road 60 years 33 Manufacturing 100% 9,800 01/09/2007 2.9 2.9

9) Aalst Chocolate Building 26 T�uas Avenue 7 60 years 45 Manufacturing 100% 9,100 01/09/2007 2.7 2.7

10) Ossia Building 10 Changi South Lane 60 years 48 Logistics and Warehousing 100% 35,400 15/11/2007 10.5 10.5

11) KT�L Distribution Centre 23 Changi South Avenue 2 60 years 46 Logistics and Warehousing 100% 23,600 15/11/2007 7.0 7.0

12) 2 Ang Mo Kio Street 65 2 Ang Mo Kio Street 65 60 years 39 Research and T�echnology 100% 15,500 01/09/2007 4.6 4.6

13) King Plastic 541 Yishun Industrial Park A 60 years 46 Manufacturing 100% 16,800 26/09/2007 5.0 5.0

14) Axis Building 15 T�ai Seng Drive 60 years 43 Research and T�echnology 88% 27,700 12/10/2007 8.2 8.2

15) Builders Centre 11 Changi South Street 3 60 years 47 Logistics and Warehousing 100% 20,800 10/10/2007 6.2 6.1

16) 61 Yishun Industrial Park A 61 Yishun Industrial Park A 60 years 44 Logistics and Warehousing 100% 24,600 13/09/2007 7.3 7.2

17) 103 Defu Lane 10 103 Defu Lane 10 60 years 35 Logistics and Warehousing 100% 14,500 13/09/2007 4.3 4.3

18) Xpress Building 1 Kallang Way 2A 60 years 47 Manufacturing 100% 14,000 04/09/2007 4.1 4.1

19) PM Industrial Building 135 Joo Seng Road 60 years 46 Manufacturing 100% 25,400 07/11/2007 7.5 7.5

20) 7 Clementi Loop 7 Clementi Loop 60 years 45 Logistics and Warehousing 100% 18,300 18/07/2007 5.5 5.4

Investment properties, at valuation 525,900 155.8 155.5

Effect of straight-lining of rental income (1,278) (0.4)

524,622 155.1

Other assets and liabilities (net) (186,370) (55.1)

Net assets attributable to Unitholders 338,252 100.0



45




Occupancy rate 2008

At valuation1

2008

Latestindependent


GroupPercentage of net assets attributable

to Unitholders2008

TrustPercentage of net assets attributable

to Unitholders 2008

Years % $’000 % %

T�RUST� PROPERT�IES IN SINGAPORE - LEASEHOLD

1) UE T�echnology Park 8 & 10 Pandan Crescent 92 years and 8 months

60 Logistics and Warehousing 100% 137,900 01/09/2007 40.8 40.8

2) GRP Industrial Building 1 Bukit Batok Street 22 60 years 47 Manufacturing 100% 23,000 01/09/2007 6.8 6.8

3) Fook T�ong Nam Building 31 Admiralty Road 60 years 29 Logistics and Warehousing 100% 14,800 15/11/2007 4.4 4.4

4) 20 Gul Way 20 Gul Way 35 years 33 Manufacturing 100% 46,000 15/11/2007 13.6 13.6

5) 3 T�uas Ave 2 3 T�uas Ave 2 73 years 47 Manufacturing 100% 23,000 15/11/2007 6.8 6.8

6) 8 & 10 T�uas Ave 20 8 T�uas Ave 20 57 years and 2 months

42 Manufacturing 100% 13,000 15/11/2007 3.8 3.8

10 T�uas Ave 20 60 years 44

7) 8 Senoko South Road 8 Senoko South Road 60 years 46 Manufacturing 100% 12,700 01/09/2007 3.8 3.8

8) Fullmark Industrial Building 10 Soon Lee Road 60 years 33 Manufacturing 100% 9,800 01/09/2007 2.9 2.9

9) Aalst Chocolate Building 26 T�uas Avenue 7 60 years 45 Manufacturing 100% 9,100 01/09/2007 2.7 2.7

10) Ossia Building 10 Changi South Lane 60 years 48 Logistics and Warehousing 100% 35,400 15/11/2007 10.5 10.5

11) KT�L Distribution Centre 23 Changi South Avenue 2 60 years 46 Logistics and Warehousing 100% 23,600 15/11/2007 7.0 7.0

12) 2 Ang Mo Kio Street 65 2 Ang Mo Kio Street 65 60 years 39 Research and T�echnology 100% 15,500 01/09/2007 4.6 4.6

13) King Plastic 541 Yishun Industrial Park A 60 years 46 Manufacturing 100% 16,800 26/09/2007 5.0 5.0

14) Axis Building 15 T�ai Seng Drive 60 years 43 Research and T�echnology 88% 27,700 12/10/2007 8.2 8.2

15) Builders Centre 11 Changi South Street 3 60 years 47 Logistics and Warehousing 100% 20,800 10/10/2007 6.2 6.1

16) 61 Yishun Industrial Park A 61 Yishun Industrial Park A 60 years 44 Logistics and Warehousing 100% 24,600 13/09/2007 7.3 7.2

17) 103 Defu Lane 10 103 Defu Lane 10 60 years 35 Logistics and Warehousing 100% 14,500 13/09/2007 4.3 4.3

18) Xpress Building 1 Kallang Way 2A 60 years 47 Manufacturing 100% 14,000 04/09/2007 4.1 4.1

19) PM Industrial Building 135 Joo Seng Road 60 years 46 Manufacturing 100% 25,400 07/11/2007 7.5 7.5

20) 7 Clementi Loop 7 Clementi Loop 60 years 45 Logistics and Warehousing 100% 18,300 18/07/2007 5.5 5.4

Investment properties, at valuation 525,900 155.8 155.5


524,622 155.1









Occupancy rate 2008

At valuation1 2008

Latestindependent


Group Percentage of net assets

attributable to Unitholders 2008

% $’000 %

GROUP

1-20) Properties in Singapore - Leasehold N.A. N.A. N.A. N.A. 525,900 - 155.8

PROPERT�Y IN JAPAN - FREEHOLD

21) Ohmiya Warehouse 1-398-3, 11, 13 Yoshinocho, Kita-ku, Saitama City, Saitama, T�okyo

N.A. N.A. Logistics and Warehousing 100% 30,789 11/12/2007 9.1

Investment properties, at valuation 556,689 164.9


555,411 164.5



Portfolio Statements As at 31 March 2008 Continued

On 31 March 2008, the Manger has performed internal valuations on all the investment properties. T�he valuations were based on capitalisation approach, discounted cash flow analysis and direct comparison method. T�he net change in fair value of investment properties has been recognised in the Statement of T�otal Return.

During the period, independent valuations of the investment properties were also undertaken by a professional valuer, CB Richard Ellis (Pte) Ltd on the dates stated in the Portfolio Statement. T�he Manager believes that the independent valuers have appropriate professional qualifications and recent experience in the location and category of the properties being valued.

T�he valuations were based on capitalisation approach, discounted cash flow analysis and direct comparison method. T�he net change in fair value of investment properties has been recognised in the Statement of T�otal Return.


1 In accordance with the Property Funds Guidelines, an independent valuation of each of the investment properties is required to be performed at least once every twelve months. T�he latest external valuation dates are shown in the table above. T�he fair values at 31 March 2008 were determined after consideration of the latest independent valuations.


47




Occupancy rate 2008

At valuation1 2008

Latestindependent


Group Percentage of net assets

attributable to Unitholders 2008

% $’000 %

GROUP

1-20) Properties in Singapore - Leasehold N.A. N.A. N.A. N.A. 525,900 - 155.8

PROPERT�Y IN JAPAN - FREEHOLD

21) Ohmiya Warehouse 1-398-3, 11, 13 Yoshinocho, Kita-ku, Saitama City, Saitama, T�okyo

N.A. N.A. Logistics and Warehousing 100% 30,789 11/12/2007 9.1

Investment properties, at valuation 556,689 164.9


555,411 164.5






Group$’000

OPERAT�ING ACT�IvIT�IES

T�otal return before income tax 52,968

Adjustments for:

Net change in fair value of financial derivatives 799

Borrowing costs 2,952

Straight lining of rental income (1,278)

Amortisation of intangible asset 200

Manager’s management fee paid/payable in units 585

Net change in fair value of investment properties (37,010)

Operating income before working capital changes 19,216

CHANGES IN WORKING CAPIT�AL

Rental deposits 2,452

T�rade and other receivables (1,861)

T�rade and other payables 6,221

Cash generated from operating activities 26,028

INvEST�ING ACT�IvIT�IES

Purchase of investment properties (Note A) (516,491)

Cash flows from investing activities (516,491)

FINANCING ACT�IvIT�IES

Borrowing costs paid (4,418)

Distributions to Unitholders (13,810)

Proceeds from issue of new units 312,516

Proceeds from borrowings 221,960

Issue expenses paid (14,781)

Contribution from minority interest 180

Cash flows from financing activities 501,647

Net increase in cash and cash equivalents 11,184

Cash and cash equivalents at beginning of the period -

Effect of exchange rate fluctuation (1,577)

Cash and cash equivalents at end of the period 9,607

Consolidated Cash Flow Statement Period From 5 December 2006 (date of constitution) to 31 March 2008



49

Note: (A) Net cash outflow on acquisition of investment properties

Group$’000

Investment properties1 508,051

Acquisition related costs 8,440

Net cash consideration paid 516,491

1 T�he amount is before adjusting for the rental support of S$1.2 million received from vendor on the investment property at 15 T�ai Seng Drive.

(B) Significant non-cash transactions(a) During the financial period, the T�rust issued 323,751 Units as payment for 30% of the base fee element of the

Manager’s management fees for the period from 19 April 2007 to 31 December 2007; and

(b) As at 31 March 2008, 208,979 Units are to be issued as payment for 30% of the base fee element of the Manager’s management fee for the period from 1 January 2008 to 31 March 2008.




Notes to the Financial Statements Period From 5 December 2006 (date of constitution) to 31 March 2008

T�hese notes form an integral part of the financial statements.

T�he financial statements were authorised for issue by the Manager and the T�rustee on 20 May 2008.

1. GENERALMacarthurCook Industrial REIT� (the “T�rust”) is a Singapore-domiciled real estate unit trust constituted pursuant to the trust deed dated 5 December 2006, subsequently amended by the amending and restating deed dated 8 March 2007 (“T�rust Deed”), entered into between MacarthurCook Investment Managers (Asia) Limited (the “Manager”) and HSBC Institutional T�rust Services (Singapore) Limited (the “T�rustee”). T�he T�rust Deed is governed by the laws of the Republic of Singapore. T�he T�rustee is under a duty to take into custody and hold the assets of the T�rust in trust for the holders (“Unitholders”) of units in the T�rust (the “Units”).

T�he T�rust was formally admitted to the Official List of the Singapore Exchange Securities T�rading Limited (“SGX-ST�”) on 19 April 2007 (the “Listing Date”) and was included under the Central Provident Fund (“CPF”) Investment Scheme on 21 February 2007. On 21 March 2007, the T�rust was declared as an authorised Unit trust scheme under the T�rustees Act, Chapter 337.

T�he principal activity of the T�rust and its subsidiaries is to own and invest in a diversified portfolio of income-producing properties throughout Asia that are primarily used for industrial purposes, including, but not limited to warehousing, manufacturing and distribution activities.

T�he consolidated financial statements relate to the T�rust and its subsidiaries (the “Group”).

T�he T�rust has entered into several service agreements in relation to the management of the T�rust and its property operations. T�he fee structures of these services are summarised below.

1.1 Trustee’s feesUnder the T�rust Deed, the T�rustee fee shall not exceed 0.1% per annum of the value of the Deposited Property (as defined in the T�rust Deed) or such higher percentage as may be fixed by an extraordinary resolution at a meeting of Unitholders. T�he Manager has negotiated a scaled fee with the T�rustee at a rate of up to 0.03% per annum of the value of the Deposited Property subject to a minimum of $10,000 per month.

T�he T�rustee’s fee is accrued daily and is payable out of the value of the Deposited Property of the Group on a monthly basis, in arrears. T�he T�rustee is also entitled to reimbursement of expenses incurred in the performance of its duties under the T�rust Deed.

1.2 Manager’s management feesUnder the T�rust Deed, the Manager is entitled to receive the base fee and performance fee as follows:

Base feeT�he Manager is entitled to a base fee of 0.5% per annum of the value of the Deposited Property or such higher percentage as may be fixed by an Extraordinary Resolution of a meeting of Unitholders.

T�he Manager’s base fees are payable in the form of cash and/or units as the Manager may elect. Where the base fee (or any part or component thereof) is payable in the form of cash, such payment shall be made out of the Deposited Property within 30 days of the last day of each calendar month in arrears. Where the base fee (or any part or component thereof) is payable in the form of units, such payment shall be made within 30 days of the last day of each calendar half-year in arrears.


51

Performance feeT�he Manager is also entitled to a performance fee of 0.1% per annum of the value of the Deposited Property, provided that growth in distribution per unit (“DPU”) in a given financial year (calculated before accounting for the performance fee in that financial year) relative to the DPU in the previous financial year exceeds 2.5%. T�he performance fee is 0.2% per annum if the growth in DPU in a given financial year relative to the DPU in the previous financial year exceeds 5.0%.

For a period of 60 months from the Listing Date (save for the period from Listing Date to 31 March 2008 whereby no performance fee is payable), 100% of the performance fee shall be paid to the Manager in units and thereafter, at the Manager’s discretion.

Acquisition and divestment feeT�he Manager is entitled to receive the following fees:

(i) An acquisition fee of 1.0% of the acquisition price of any Authorised Investment (as defined in the T�rust Deed), acquired directly or indirectly by the T�rust or such higher percentage as may be fixed by an extraordinary resolution at a meeting of Unitholders.

(ii) A divestment fee of 0.5% of the sale price of any Authorised Investment sold or divested by the T�rustee or such higher percentage as may be fixed by an extraordinary resolution at a meeting of Unitholders.

(iii) T�he acquisition and divestment fee will be paid in the form of cash or/and units and is payable as soon as practicable after completion of the acquisition or disposal.

1.3 Property Manager’s feesT�he Manager has appointed MacarthurCook Property Management Pte. Ltd., a company related to the Manager, as the property manager (the “Property Manager”) to operate, maintain and market all of the properties of the Group. T�he following fee is payable to the Property Manager in respect of all of the investment properties in Singapore:

(i) A property management fee of 2.0% per annum of the rental income of each of the relevant properties.

(ii) A lease management fee of 1.0% per annum of the rental income of each of the relevant properties.

(iii) A marketing services commission equivalent to:

(a) one month’s gross rent for securing a tenancy of three years or less;

(b) two month’s gross rent for securing a tenancy of more than three years;

(c) half of one month’s gross rent for securing a renewal of tenancy of three years or less;

(d) one month’s gross rent for securing a renewal of tenancy of more than three years.

T�he gross rental, where applicable includes service charge, reimbursements, which are the contributions paid by tenants towards covering the operating maintenance expenses of the property and licence fees.

(iv) A project management fee in relation to development or redevelopment, the refurbishment, retrofitting and renovation works on a property.

(iv) A property tax services fee in respect of property tax objections submitted to the tax authority on any proposed annual value of a property if, as a result of such objections, the proposed annual value is reduced resulting in property tax savings for the relevant property.

T�he Property Manager’s fees are payable monthly, in arrears.



Notes to the Financial Statements Period From 5 December 2006 (date of constitution) to 31 March 2008 Continued

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparationT�he financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice (“RAP”) 7 “Reporting Framework for Unit T�rusts” issued by the Institute of Certified Public Accountants of Singapore and the applicable requirements of the Code on Collective Investment Schemes (“CIS Code”) issued by the Monetary Authority of Singapore (“MAS”) and the provisions of the T�rust Deed.

T�he financial statements have been prepared on the historical cost basis, except for investment properties, derivative financial instruments and certain financial assets and liabilities, which are stated at fair value.

T�he financial statements are presented in Singapore Dollars, which is the functional currency of the T�rust. All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated.

T�he preparation of financial statements in conformity with RAP 7 requires the Manager to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements is included in the following notes:

Note 3 – valuation of investment properties•

Note 23 – valuation of derivative financial instruments•

T�he accounting policies set out below have been applied consistently by the T�rust and the Group.

2.2 ConsolidationSubsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights presently exercisable are taken into account. T�he financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. T�he accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Group.

T�he Group has established a special purpose entity (SPE) for investment purposes. T�he Group does not have any direct or indirect shareholdings in this entity. A SPE is consolidated if, based on an evaluation of the substance of its relationship with the Group and the SPE’s risks and rewards, the Group concludes that it controls the SPE.

Transactions eliminated on consolidationIntra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

Accounting for subsidiaries by the TrustInvestments in subsidiaries are stated in the T�rust’s balance sheet at cost, less accumulated impairment losses.


53

2.3 Foreign currenciesForeign currency transactionsT�ransactions in foreign currencies are translated to the respective functional currencies of the entities in the Group at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date on which the fair value was determined.

Foreign currency differences arising on retranslation are recognised in the Statement of T�otal Return, except for differences arising on the retranslation of monetary items that in substance form part of the Group’s net investment in a foreign operation (see below) and financial liabilities designated as hedges of the net investment in a foreign operation.

Foreign operationsT�he assets and liabilities of foreign operations are translated to Singapore dollars at exchange rates prevailing at the reporting date. T�he income and expenses of foreign operations are translated to Singapore dollars at exchange rates prevailing at the dates of the transactions. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.

Foreign currency differences are recognised in Net Assets Attributable to Unitholders. When a foreign operation is disposed of, in part or in full, the relevant amount is transferred to the Statement of T�otal Return.

Net investment in a foreign operationExchange differences arising from monetary items that in substance form part of the T�rust’s net investment in a foreign operation are recognised in the T�rust’s Statement of T�otal Return. Such exchange differences are reclassified to Net Assets Attributable to Unitholders in the consolidated financial statements. When the foreign operation is disposed of, the cumulative amount in Net Assets Attributable to Unitholders is transferred to the Statement of T�otal Return as an adjustment to total return arising on disposal.

2.4 Investment propertiesInvestment properties are properties held either to earn rental income or capital appreciation or both. Investment properties are accounted for as non-current assets and are stated at initial cost on acquisition and at fair value thereafter. T�he cost of a purchased property comprises its purchase price and any directly attributable expenditure. T�ransaction costs shall be included in the initial measurement. Fair value is determined in accordance with the T�rust Deed, which requires the investment properties to be valued by independent registered valuers in the following events:

(i) in such manner and frequency as required under the CIS code issued by MAS; and

(ii) at least once in each period of 12 months following the acquisition of each investment property.

Any increase or decrease on revaluation is credited or charged directly to the Statement of T�otal Return as a net change in fair value of investment properties.

Subsequent expenditure relating to investment properties that has already been recognised is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of originally assessed standard of performance of the existing asset, will flow to the Group. All other subsequent expenditure is recognised as an expense in the period in which it is incurred.

When an investment property is disposed of, the resulting gain or loss recognised in the Statement of T�otal Return is the difference between net disposal proceeds and the carrying amount of the property.

Investment properties are not depreciated. T�he properties are subject to continued maintenance and regularly revalued on the basis set out above.



2.5 Intangible assetsIntangible assets, which have finite useful lives, are measured at cost less accumulated amortisation and impairment loss. T�he intangible assets are amortised in the statement of total return on a straight-line basis over the estimated useful lives, from the date on which they are available for use.

2.6 Financial instruments(a) Non-derivative financial instrumentsNon-derivative financial instruments comprise trade and other receivables, cash and cash equivalents, financial liabilities, trade and other payables, interest-bearing borrowings and rental deposits.

Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit or loss, any directly attributable transaction costs. Subsequent to initial recognition, non-derivative financial instruments are measured at amortised cost using the effective interest method, less any impairment losses.

A financial instrument is recognised if the Group becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Group’s contractual rights to the cash flows from the financial assets expire or if the Group transfers the financial asset to another party without retaining control or transfers substantially all the risks and rewards of the asset. Regular way purchases and sales of financial assets are accounted for at trade date, i.e., the date that the Group commits itself to purchase or sell the asset. Financial liabilities are derecognised if the Group’s obligations specified in the contract expire or are discharged or cancelled.

Cash and cash equivalents comprise cash balances and bank deposits.

(b) Impairment of financial assetsA financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate.

Individually significant financial assets are tested for impairment on an individual basis. T�he remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.

All impairment losses are recognised in the Statement of T�otal Return.

Impairment losses in respect of financial assets measured at amortised cost are reversed if the subsequent increase in fair value can be related objectively to an event occurring after the impairment loss was recognised.

(c) Derivative financial instruments and hedging activitiesT�he Group holds derivative financial instruments to manage its exposure to interest rate and foreign currency risks arising from operational, financing and investment activities. T�he Group does not hold or issue derivative financial instruments for trading purposes.

Derivative financial instruments are recognised initially at fair value; attributable transaction costs are recognised in the Statement of T�otal Return when incurred. Subsequent to initial recognition, derivative financial instruments are measured at fair value, and changes therein are recognised immediately in the Statement of T�otal Return.



55

2.7 Impairment- non-financial assetsT�he carrying amounts of the Group’s non-financial assets, other than investment properties are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in the Statement of T�otal Return unless it reverses a previous revaluation, credited to Net Assets Attributable to Unitholders, in which case it is charged to Net Assets Attributable to Unitholders. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.

T�he recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating unit.

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

2.8 Net assets attributable to UnitholdersNet Assets Attributable to Unitholders represents the Unitholders’ residual interest in the Group’s net assets upon termination.

Expenses incurred in connection with the issuance, offering and placement of units in the T�rust and listing on the SGX-ST� are deducted directly against Net Assets Attributable to Unitholders.

2.9 Revenue recognition(i) Rental income and service charge from operating leasesRental income and service charges from operating leases is recognised in the Statement of T�otal Return on a straight-line basis over the term of the lease. Contingent rentals are recognised as an income in the period in which they are earned.

(ii) Interest incomeInterest income is recognised on an accrual basis using the effective interest method.

(iii) Dividend incomeDividend income is recognised in the Statement of T�otal Return on the date that the Group’s right to receive payment is established.

2.10 Expenses(i) Manager’s management feesManager’s management fees are recognised on an accrual basis based on the applicable formula stipulated in Note 1.2.

(ii) Property expensesProperty expenses are recognised on an accrual basis. Included in property expenses is the Property Manager’s fee which is based on the applicable formula stipulated in Note 1.3.



(iii) Other trust expensesOther trust expenses are recognised on an accrual basis. Included in other trust expenses is the T�rustee’s fees which are based on the applicable formula stipulated in Note 1.1.

(iv) Borrowing costsBorrowing costs comprise interest expenses on borrowings and amortisation of borrowing related transaction costs which are recognised in the Statement of T�otal Return using the effective interest rate method over the period for which the borrowings are granted.

2.11 Income tax expensesIncome tax expense on the return for the period comprises current and deferred tax. Income tax expense is recognised in the Statement of T�otal Return except to the extent that it relates to items directly related to Net Assets Attributable to Unitholders, in which case it is recognised in Net Assets Attributable to Unitholders.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences on initial recognition of assets or liabilities that affects neither accounting nor taxable profit. T�he amount of deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

T�he Inland Revenue Authority of Singapore (“IRAS”) has issued a tax ruling on the taxation of the T�rust and its Unitholders. Subject to meeting the terms and conditions of the tax ruling issued by IRAS, which includes a distribution of at least 90% of the taxable income of the T�rust, the T�rustee will not be assessed to tax on the taxable income of the T�rust that is distributed to the Unitholders. In the event that there are subsequent adjustments to the taxable income when the actual taxable income of the T�rust is finally agreed with IRAS, such adjustments are taken up as an adjustment to the taxable income for the next distribution following the agreement with IRAS.

Distributions made by the T�rust out of such taxable income to Individuals and Qualifying Unitholders (as defined below) are distributed without deducting any income tax. T�his treatment is known as the tax transparency treatment.

T�he trustee will deduct tax at the reduced rate of 10.0% from distributions made out of the T�rust’s taxable income (that is not taxed at the T�rust level) during the period from the date of constitution to 17 February 2010, to beneficial Unitholders who are foreign non-individual Unitholders (as defined below).

For other types of Unitholders, the T�rustee is required to withhold tax at the prevailing corporate tax rate on the distributions made by the T�rust. Such Unitholders are subject to tax on the regrossed amounts of the distributions received but may claim a credit for the tax deducted at source by the T�rustee.

Any portion of the taxable income that is not distributed, known as retained taxable income, tax will be assessed on the T�rustee in accordance with section 10(1)(a) of the Income T�ax Act, Chapter 134. Where such retained taxable income is subsequently distributed, the T�rustee need not deduct tax at source.



57

A “Qualifying Unitholder” is a unitholder who is:

A Singapore-incorporated company which is a tax resident in Singapore;•

A body of persons other than a company or a partnership, registered or constituted in Singapore (e.g. a town • council, a statutory board, a registered charity, a registered cooperative society, a registered trade union, a management corporation, a club and a trade industry association); or

A Singapore branch of a foreign company which has been presented a letter of approval from IRAS granting waiver • from tax deducted at source in respect of distributions from the T�rust.

A “foreign non-individual Unitholder” is one which is not a resident of Singapore for income tax purposes and;

who does not have a permanent establishment in Singapore; or•

who carries on any operation in Singapore through a permanent establishment in Singapore, where the funds • used to acquire the units are not obtained from that operation in Singapore.

T�he above tax transparency ruling does not apply to gains from sale of real estate properties, if considered to be trading gains derived from a trade or business carried on by the T�rust. T�ax on such gains or profits will be assessed, in accordance with section 10(1)(a) of the Income T�ax Act, Chapter 134 and collected from the T�rustee. Where the gains are capital gains, it will not be assessed to tax and the T�rustee and the Manager may distribute the capital gains without tax being deducted at source.

2.12 Distribution policyT�he Manager’s distribution policy is to distribute 100.0% of its taxable income for the period commencing from 19 April 2007 to 31 March 2008 and thereafter, to distribute at least 90.0% of its taxable income, comprising substantially its income from the letting of its properties after deduction of allowable expenses. T�he actual level of distribution will be determined at the Manager’s discretion. T�he actual proportion of taxable income distributed to Unitholders beyond 31 March 2008 may be greater than 90.0% to the extent that the Manager believes it to be appropriate, having regard to the Group’s funding requirements, other capital management considerations and the overall stability of distributions.

T�he T�rust makes distributions to Unitholders on a quarterly basis, with the amount calculated as at 30 June, 30 September, 31 December and 31 March in each distribution year for the three-month period ending on each of those dates. Under the T�rust Deed, the Manager is required to pay distributions within 90 days after the end of each distribution period. Distributions, when paid, will be in Singapore dollars.

In the event that there are gains arising from sale of real properties, and only if such gains are surplus to the business requirements and needs of the Group, the Manager may, at its discretion, direct the T�rustee to distribute such gains. Such gains, if not distributed, will form part of the Deposited Property.

2.13 Segment reportingA segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.



3. INvESTMENT PROPERTIES

Group$’000

Trust$’000

At beginning of the period - -

Acquisition of investment properties 506,851 478,184

Acquisition related costs 9,440 9,150

516,291 487,334

Net change in fair value of investment properties 37,010 37,288

T�ranslation adjustment 2,110 -

At end of the period 555,411 524,622

Please refer to the Portfolio Statements for details of the investment properties.

T�he investment properties are mortgaged to banks as security for the interest-bearing borrowings (Note 10).

Investment properties are stated at fair value based on valuations performed by the Manager, adjusted for the effect of straight-lining rental income and rental support.

T�he fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

In determining the fair value, the Manager has used valuation methods which involved certain estimates including those relating to market corroborated capitalisation rate, discount rate and terminal yield. T�he Manager is satisfied that the valuation methods and estimates used are reflective of the current market conditions.

4. SUBSIDIARIES

Trust $’000

Unquoted equity, at cost - *

Loan to a subsidiary 11,748

11,748

* Less than $1,000



59

Details of the subsidiaries are as follows:

Country of incorporation

Effective equity interest held by the Group

2008 %

Subsidiary of the Trust

Japan Industrial Property Pte Ltd1 Singapore 100

Subsidiary of Japan Industrial Property Pte Ltd

Goudou Kaisha Bayside2 Japan 98.7

1 Audited by KPMG Singapore2 Audited by Akasaka International T�ax & Co

T�he Group’s investment in Goudou Kaisha Bayside is through a T�okumei-Kumiai Agreement – a silent partnership agreement (“T�K Agreement”). Although the Group does not have legal control over this investment, it has a beneficial interest over the entity through the T�K Agreement which entitles the T�rust to the share of distributable income from Goudou Kaisha Bayside. Consequently, the Group consolidates its investment in Goudou Kaisha Bayside as a subsidiary of the Group.

T�he loan to a subsidiary is denominated in Japanese Yen and is non-trade in nature, unsecured and interest-free. T�he settlement of the amount is neither planned nor likely to occur in the foreseeable future. As this amount is, in substance, a part of the T�rust’s net investment in the subsidiary, it is stated at cost less accumulated impairment.

5. INTANGIBLE ASSET

Group and Trust $’000

At beginning of the period -

Additions 1,200

Less: Amortisation charged to Statement of T�otal Return (200)

At end of the period 1,000

Intangible asset represents the unamortised rental support provided by the vendor of the property at 15 T�ai Seng Drive. T�he rental support is to align the rental returns on the property with that expected in the rental market as at the date of the sale and purchase agreement as well as to top-up for rental in respect of vacant units pending the securing of tenants. Rental support has a finite useful life and is amortised on a straight-line basis over a period of two years.



6. DERIvATIvE FINANCIAL INSTRUMENTS

NoteGroup and Trust

$’000

Assets:

Interest rate swap (a) 169

Interest rate cap (b) 5

174

Liabilities:

Cross currency swap (c) 175

Foreign exchange forward contracts (d) 175

350

T�he derivative financial instruments relate mainly to the fair values of the following:

(a) A 3-year interest rate swap for the period from 11 February 2008 to 11 February 2011 on a notional amount of S$100 million where the T�rust pays fixed interest rate of 1.905% per annum and receives floating interest rates;

(b) An interest rate cap derivative on a notional amount of S$120.2 million to cap the Singapore dollar swap offer rate to 3.5% per annum for the period from 7 May 2007 to 31 March 2009;

(c) A 5-year cross currency swap of ¥730.0 million to manage the foreign currency risk of the T�rust’s investment in Japan; and

(d) Foreign exchange forward contracts comprising:

(i) A 5-year coupon-only cross currency swap of ¥17.0 million per quarter to minimise the foreign exchange exposure of the forecast distributions from the T�rust’s investment in Japan; and

(ii) Foreign exchange forward contracts of ¥71.0 million to minimise the foreign exchange exposure of the consumption tax receivable from the T�rust’s investment in Japan.

T�he following are the expected contractual undiscounted cash inflows/(outflows) of derivative financial liabilities:

Cash flows

Group and Trust

Carrying amount

$’000

Contractual cash flows

$’000

Within 1 year $’000

Within 1 to 5 years

$’000

Assets:

Interest rate swaps 169 404 (303) 707

Liabilities:

Cross currency swaps (175) (185) 158 (343)

Foreign exchange forward contracts (175) (142) (71) (71)

(181) 77 (216) 293



61

7. TRADE AND OThER RECEIvABLES

Group $’000

Trust $’000

T�rade receivables 104 104

Prepayments 498 487

Deposit paid on acquisition of properties 259 259

Straight-lining of rental income 1,278 1,278

Amount due from subsidiary - 988

Gross goods and services tax receivable 1,001 -

3,140 3,116

Amount due from subsidiary is unsecured, interest free and repayable upon demand.

Concentration of credit risk relating to trade receivables is limited due to the Group’s many tenants and credit policy of obtaining security deposits from tenants for leasing the Group’s investment properties.

T�he Manager believes that no impairment allowance is necessary as at the reporting date.

8. CASh AND CASh EqUIvALENTS

Group$’000

Trust$’000

Cash at bank and in hand 5,107 3,260

Fixed deposits with financial institutions 4,500 4,500

9,607 7,760

Included in the fixed deposits with financial institutions is an amount of $500,000 withheld by the T�rust from the vendor of the property at 7 Clementi Loop. T�his amount was placed in fixed deposits and will be released to the vendor upon the property receiving the Certificate of Statutory Completion for certain renovation works.

T�he weighted average effective interest rate per annum relating to cash and cash equivalents at the balance sheet date for the Group and the T�rust is 0.91%. Interest rates reprice at intervals ranging from weekly to monthly.



9. TRADE AND OThER PAYABLES

Group$’000

Trust$’000

T�rade payables and accrued expenses 5,280 5,012

Amount due to related parties (trade)

- the Manager 470 470

- the Property Manager 89 89

- the T�rustee 68 68

Gross goods and services tax payable 441 441

Deferred income 896 896

Rental received in advance 385 223

Interest payable 598 484

Rental deposits 86 86

8,313 7,769

10. INTEREST-BEARING BORROWINGS

Group$’000

Trust$’000

T�erm loans 221,960 201,250

Less: T�ransaction costs capitalised (2,305) (1,894)

Amortisation of transaction costs 844 789

(1,461) (1,105)

220,499 200,145

T�he Group and the T�rust have the following term loan facilities from financial institutions:

(a) A $220,800,000 term loan facility granted by National Australia Bank Limited and Commonwealth Bank of Australia to the T�rust and secured on the following:

(i) Mortgage over the investment properties of the T�rust in Singapore; and

(ii) Assignment of rights, title and interest in leases, insurances and rental proceeds relating to the investment properties of the T�rust located in Singapore.

(b) A ¥1.5 billion term loan facility granted to a subsidiary and secured by a mortgage over the property in Japan.



63

Terms and debt repayment scheduleT�erms and conditions of the interest-bearing borrowings are as follows:

Group Trust Nominal

interest rate %

Maturity Face value

$’000

Carrying amount

$’000

Face value

$’000

Carrying amount

$’000

SGD floating rate term loan

SOR + 0.55% April 2009

201,250 200,145 201,250 200,145

JPY fixed rate term loan

1.97% December 2009

20,710 20,354 - -

221,960 220,499 201,250 200,145

For details of the management of interest rate risks, refer to note 23.

T�he following are the expected contractual undiscounted cash inflows/(outflows) of financial liabilities, including interest payments:

Cash flows Carrying amount

$’000

Contractual cash flows

$’000

Within 1 year $’000

Within 1 to 5 years

$’000

More than 5 years $’000

GROUP

SGD floating rate term loan 200,145 (205,822) (3,819) (202,003) -

JPY fixed rate term loan 20,354 (21,523) (440) (21,083) -

T�rade and other payables 8,313 (8,313) (8,313) - -

Rental deposits 2,366 (2,366) - (690) (1,676)

231,178 (238,024) (12,572) (223,776) (1,676)

T�RUST�

SGD floating rate term loan 200,145 (205,822) (3,819) (202,003) -

T�rade and other payables 7,769 (7,769) (7,769) - -

Rental deposits 1,904 (1,904) - (228) (1,676)

209,818 (215,495) (11,588) (202,231) (1,676)



11. NET ASSETS ATTRIBUTABLE TO UNIThOLDERS

NoteGroup$’000

Trust$’000

OPERAT�IONS

Balance at beginning of the period - -

Change in net assets attributable to Unitholders resulting from operations

39,159 40,320

Balance at end of the period 39,159 40,320

UNIT�HOLDERS’ T�RANSACT�IONS

Balance at beginning of the period - -

Units issued pursuant to initial public offering 312,516 312,516

Units issued and to be issued:

- Management fees paid/payable in units (base fee) 585 585

Issue expenses 12 (15,169) (15,169)

Increase in net assets resulting from Unitholders’ transactions 297,932 297,932

Balance at end of the period 297,932 297,932

FOREIGN CURRENCY T�RANSLAT�ION RESERvE

Balance at the beginning of the period - -

T�ranslation differences relating to financial statements of a foreign subsidiary and quasi-equity loan

533 -

Balance at end of the period 533 -

Net assets at end of the period 337,624 338,252

Units in issue and to be issued (‘000) 13 260,963 260,963

Net asset value per unit ($) 1.29 1.30

12. ISSUE ExPENSES

Group and Trust$’000

Professional fees 1,529

Underwriting and selling commissions 11,672

Miscellaneous issue costs 1,968

15,169

T�hese expenses are deducted directly against the Net Assets Attributable to Unitholders. Included in professional fees are non-audit fees paid to the auditors of the T�rust of $220,000 for acting as independent reporting accountants performed in connection with the issuance of units during the financial period.



65

13. UNITS IN ISSUE AND TO BE ISSUED

Trust‘000

Units in issue:

Balance at beginning of the period -

Issue of new units:

Units issued pursuant to initial public offering 260,430

Units issued as payment of management fees 324

Units in issue at end of the period 260,754

Units to be issued:

Management fees payable in units 209

Total Units in issue and to be issued at end of the period 260,963

Units issued during the financial period ended 31 March 2008 are as follows:

(a) On 19 April 2007 (date of listing), the T�rust issued 260,430,000 Units at an issue price of $1.20 per Unit in conjunction with the initial public offers of the T�rust;

(b) On 25 July 2007, the T�rust issued 74,932 Units at $1.27 per Unit as payment for 30% of the base fee element of the Manager’s management fees for the period from 19 April 2007 to 30 June 2007; and

(c) On 31 January 2008, the T�rust issued 248,819 Units at $1.16 per Unit as payment for 30% of the base fee element of the Manager’s management fees for the period from 1 July 2007 to 31 December 2007.

As at 31 March 2008, 208,979 Units are to be issued at $0.96 per Unit as payment for 30% of the base fee element of the Manager’s management fee for the period from 1 January 2008 to 31 March 2008.

T�he issue prices for management fees payable in units were determined based on the volume weighted average traded price for all trades done on SGX-ST� in the ordinary course of trading for ten business days immediately preceding the last business day of the respective month-end.

Each unit in the T�rust represents an undivided interest in the T�rust and carries the same voting rights. T�he rights and interests of Unitholders are contained in the T�rust Deed and include the right to:

Receive income and other distributions attributable to the units held;•

Participate in the termination of the T�rust by receiving a share of all net cash proceeds derived from the realisation • of the assets of the T�rust less any liabilities, in accordance with their proportionate interests in the T�rust. However, a Unitholder does not have the right to require that any assets (or part thereof) of the T�rust be transferred to him;

Attend all Unitholder meetings. T�he T�rustee or the Manager may (and the Manager shall at the request in writing • of not less than 50 Unitholders representing not less than one-tenth of the issued units of the T�rust) at any time convene a meeting of Unitholders in accordance with the provisions of the T�rust Deed; and

One vote per unit at meetings of the T�rust.•

T�he restrictions of a Unitholder include the following:

A Unitholder’s right is limited to the right to require due administration of the T�rust in accordance with the • provisions of the T�rust Deed; and

A Unitholder has no right to request redemption of his units while the units are listed on SGX-ST�.•

A Unitholder’s liability is limited to the amount paid or payable for any units in the T�rust. T�he provisions of the T�rust Deed provide that no Unitholders will be personally liable to indemnify the T�rustee or any creditor of the T�rustee in the event that liabilities of the T�rust exceed its assets.



14. GROSS REvENUE

Group$’000

Trust$’000

Property rental income 26,517 26,018

Property expenses recoverable from tenants 5,697 5,697

32,214 31,715

15. PROPERTY OPERATING ExPENSES

Group $’000

Trust$’000

Land rent 2,303 2,303

Property and lease management fees 794 744

Property tax 2,114 2,086

Other operating expenses 1,883 1,870

7,094 7,003

16. MANAGER’S MANAGEMENT FEES

Group and Trust$’000

Management fees - base fees

- Paid and payable in cash 1,365

- Paid and payable in units 585

1,950

17. OThER TRUST ExPENSES

Group $’000

Trust$’000

Audit fees paid/payable to

- Auditors of the T�rust 150 145

- Other auditors 12 -

Non-audit fees paid/payable to


T�rustee’s fees 118 118

Professional fees 472 276

Equity fund raising expenses1 1,631 1,631

Other expenses 864 503

3,287 2,713

1 Include non-audit fees paid/payable to




67

18. INCOME TAx ExPENSESReconciliation of effective tax rate:

Group $’000

Trust$’000

T�otal return before income tax 52,968 54,130

T�ax calculated using Singapore tax rate of 18% 9,534 9,743

Non-tax chargeable items (6,892) (7,043)

Non-tax deductible items 829 829

T�ax losses foregone 97 -

Others (39) -

T�ax transparency (3,529) (3,529)

- -

19. DISTRIBUTIONS

Group and Trust $’000

Distributions for the period from:

- 19 April 2007 - 30 June 2007 at 1.52 cents per Unit 3,959

- 1 July 2007 - 30 September 2007 at 1.86 cents per Unit 4,845

- 1 October 2007 - 31 December 2007 at 1.92 cents per Unit 5,006

13,810

20. EARNINGS PER UNITT�he earnings per unit (“EPU”) is computed using total return after tax and minority interest, before distribution over the weighted average number of units for the period from the date of constitution.

Group

Weighted average number of units (‘000) 187,710

T�he diluted EPU is the same as the basic EPU as there were no dilutive instruments in issue during the period.



21. COMMITMENTS(a) Lease commitments T�he Group and the T�rust lease out their investment properties. T�he future minimum lease payments receivable under non-cancellable operating leases contracted for at the reporting date are as follows:

Group$’000

Trust $’000

Within 1 year 37,240 35,392

After 1 year but within 5 years 148,638 142,826

After 5 years 99,382 99,382

285,260 277,600

(b) Operating lease commitments T�he T�rust is required to pay Jurong T�own Corporation (“JT�C”), the Housing and Development Board (“HDB”) or Ascendas Land (Singapore) Pte Ltd (“Ascendas”) annual land rent in respect of certain of its investment properties. T�he annual land rent is based on the market rent in the relevant year of the current lease term and the lease provides that any increase in annual land rent from year to year shall not exceed 5.5% (JT�C and HDB) and 7.6% (Ascendas) of the annual land rent for the immediately preceding year. T�he leases are non-cancellable with the remaining lease term between 29 and 60 years as at 31 March 2008.

At 31 March 2008, the Group and the T�rust have commitments for future minimium lease payments under non-cancellable operating leases as follows:

Group and Trust

$’000

Within 1 year 4,069

After 1 year but within 5 years 16,279

After 5 years 146,634

166,982

(c) Capital commitmentsCapital expenditures contracted for at the reporting date but not recognised in the financial statements are as follows:

A Put and Call Option Agreement to acquire Plot 4A International Business Park for the purchase price of • $91,000,000 upon issuance of its temporary occupation permit. T�he building is under construction as at 31 March 2008 and is expected to be completed in 4th quarter 2009.

An Agreement to design and build a new sub-station at 26 T�uas Avenue 7 for $1,050,000. Construction works on • the sub-station commenced in February 2008. A deposit of $315,000 was paid in January 2008.



69

22. SIGNIFICANT RELATED PARTY TRANSACTIONSFor the purposes of these financial statements, parties are considered to be related to the T�rust if the T�rust 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 T�rust and the party are subject to common significant influence. Related parties may be individuals or other entities.

Other than as disclosed elsewhere in the financial statements, there were the following significant related party transactions carried out in the normal course of business on terms agreed between the parties:

Group $’000

Trust$’000

T�HE MANAGER

Manager’s management fees (base fees) 1,950 1,950

Acquisition fees relating to the purchase of investment properties 1,920 1,629

ULT�IMAT�E HOLDING COMPANY OF T�HE MANAGER

Acquisition fees relating to the purchase of investment properties 3,165 3,165

Debt arrangement fees 644 644

T�HE PROPERT�Y MANAGER

Property management fees 490 490

Lease management fees 245 245

Project management fees 9 9

T�HE T�RUST�EE

T�rustee fees 118 118

23. FINANCIAL RISk MANAGEMENT

Capital managementT�he Board of the Manager reviews the Group’s and the T�rust’s debt and capital management and financing policy regularly so as to optimise the Group’s and the T�rust’s funding structure. T�he Board also monitors the Group’s and the T�rust’s exposure to various risk elements and externally imposed requirements by closely adhering to clearly established management policies and procedures.

T�he T�rust and its subsidiaries are subject to the aggregate leverage limit as defined in the Property Fund Guidelines of the CIS code. T�he CIS code stipulates that the total borrowings and deferred payments (together the “Aggregate Leverage”) of a property fund should not exceed 35.0% of the fund’s deposited property. T�he Aggregate Leverage of a property fund may exceed 35.0% of its deposited property (up to a maximum of 60.0%) only if a credit rating of the property fund from Fitch Inc., Moody’s or Standard and Poor’s is obtained and disclosed to the public. T�he property fund should continue to maintain and disclose a credit rating so long as its Aggregate Leverage exceeds 35.0% of its deposited property.

T�he Group and the T�rust has maintained its corporate rating of ‘Baa3’ and complied with the Aggregate Leverage limit during the financial period.



Overview of risk management Exposure to credit, interest rate, liquidity and foreign currency risks arises in the normal course of the Group’s business. T�he Group has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. T�he Manager continually monitors the Group’s risk management process to ensure an appropriate balance between risk and control is achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.

Management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group.

(a) Credit riskCredit risk is the potential financial loss resulting from the failure of a lessee to settle its financial and contractual obligations to the Group, as and when they fall due.

Credit risk assessments are performed by the Manager prior to signing the lease agreements. Rental deposits as a multiple of monthly rent, are received, either in cash or bank guarantees, to reduce credit risk. T�he Manager also monitors the amount owing by the lessees on an ongoing basis.

Cash and fixed deposits are placed with financial institutions which are regulated. T�ransactions involving derivative financial instruments are allowed only with counterparties who have sound credit ratings.

At the reporting date, there were no significant concentrations of credit risk. T�he maximum exposure to credit risk is represented by the carrying value of each financial asset in the balance sheet.

(b) Interest rate riskT�he Manager adopts a proactive interest rate management policy to manage the risk associated with adverse movement in interest rates on the loan facilities while also seeking to ensure that the Group’s cost of debt remains competitive. T�he policy aims to protect the Group’s earnings from the volatility in interest rates, providing stability to Unitholders’ returns.

As at 31 March 2008, the Group has the following contracts to hedge its interest rate exposure:

(i) An interest rate cap derivative on a notional amount of S$120.2 million to cap the Singapore dollar swap offer rate to 3.5% per annum for the period from 7 May 2007 to 31 March 2009; and

(ii) A 3-year interest rate swap for the period from 11 February 2008 to 11 February 2011 on notional amount of S$100 million whereby the T�rust pays a fixed rate of 1.905% per annum and receives a variable rate equal to the Singapore inter-bank swap offer rate on the notional amount.



71

Sensitivity analysisFor the variable rate financial liabilities and the derivative financial instruments, a change of 100 basis points (bps) in interest rate at the reporting date would increase/(decrease) net assets attributable to Unitholders and total return of the Group and the T�rust by the amounts shown below. T�his analysis assumes that all other variables, in particular foreign currency rates, remain constant.

Group and Trust

Total returnNet assets attributable

to Unitholders

100 bpsincrease

$’000

100 bpsdecrease

$’000

100 bpsincrease

$’000

100 bpsdecrease

$’000

variable rate financial liabilities (2,013) 2,013 - -

Derivative financial instruments 2,965 (2,930) - -

952 (917) - -

(c) Liquidity riskT�he Manager monitors and maintains a level of cash and cash equivalents deemed adequate by management to finance the Group’s operations and to mitigate the effect of fluctuations in cash flows. T�ypically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a reasonable period, including the servicing of financial obligations.

T�he Group also monitors and observes the Property Funds Guidelines issued by the MAS concerning limits on total borrowings.

(d) Foreign currency risk T�he Group’s foreign currency risk mainly relates to its Japanese Yen (“JPY”) denominated interest-bearing borrowings and distributable income from this investment. T�he Manager monitors the Group’s foreign currency exposure on an on-going basis and adopts currency risk management strategies that include:

the use of foreign currency denominated borrowings to match the currency of the asset investment;•

the use of foreign exchange derivatives to minimise the foreign exchange risk of the foreign currency income • received from the offshore assets back into Singapore dollars; and

the use of cross currency swaps to reduce the currency exposure of the foreign currency equity investment.•

T�he T�rust’s exposures to JPY as at 31 March 2008 are as follows:

Trust$’000

Non-current

Loan to a subsidiary 11,748

Current

Amount due from subsidiary 988



Sensitivity analysisA 10% change in the value of the Singapore Dollar against JPY at the reporting date would increase/(decrease) net assets attributable to Unitholders and the total return as at 31 March 2008 by the amounts shown below. T�his analysis assumes that all other variables, in particular, interest rates remain constant and is stated before the impact of hedging instruments.

10% increase in $ against JPY

10% decrease in $ against JPY

Net assets attributable to

unitholders$’000

Total return$’000

Net assets attributable to

unitholders$’000

Total return$’000

GROUP

Derivative financial instruments - 1,563 - (1,563)

T�RUST�

Amount due from subsidiary - (99) - 99

Loan to a subsidiary - (1,175) - 1,175

Derivative financial instruments - 1,563 - (1,563)

- 289 - (289)

Estimation of fair valuesT�he following summarises the significant methods and assumptions used in estimating the fair values of financial instruments of the Group and the T�rust:

(a) Financial derivativesT�he fair values of derivative financial instruments are based on quotes by banks. T�hese quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for similar instruments at the reporting date.

(b) Other financial assets and liabilitiesT�he carrying amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash equivalents and trade and other payables) are assumed to approximate their fair values because of the short period to maturity. All other financial assets and liabilities are discounted to determine their fair values.

Discount rates used in determining fair valueDiscount rates used to estimate fair values, where applicable, are based on the following rates:

%

Rental deposits 1.92

JPY fixed rate loan 1.93



73

T�he aggregate net fair values of recognised financial assets and liabilities which are not carried at fair value in the balance sheet as at 31 March 2008 are represented in the following table:

Carrying amount

$’000

Fair value $’000

GROUP

Financial liabilities


JPY fixed rate term loan 20,355 21,254

22,721 23,376

Unrecognised (loss) (655)

T�RUST�

Financial liabilities


Unrecognised gain 209

24. SEGMENT REPORTINGSegment information is presented in respect of the Group’s business and geographical segments. T�he primary format – geographical segments – is based on the Group’s management and internal reporting structure.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one year.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly interest bearing loans and related expenses, tax liabilities and trust assets, liabilities and expenses.

Business segmentsNo business segment information has been prepared as all its investment properties are used mainly for industrial (including warehousing) purposes.

Geographical segmentsNo geographical segment information has been prepared as all the investment properties of the Group (except for the property in Japan) are located in Singapore and the contribution from the property in Japan to the Group’s results and net assets is insignificant.

25. SUBSEqUENT EvENTSSubsequent to 31 March 2008, the Manager declared a distribution of 2.22 cents per unit in respect of the period 1 January 2008 to 31 March 2008, bringing the distribution for the financial period to 7.52 cents per Unit.




26. COMPARATIvE INFORMATIONNo comparative figures have been presented as this is the first set of financial statements prepared by the T�rust since the date of its constitution.

27. FINANCIAL RATIOS

%

Expenses to weighted average net assets1

- Expense ratio excluding performance-related fee 1.02

- Expense ratio including performance-related fee 1.02

Portfolio turnover rate2 -

1 T�he annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore. T�he expenses used in the computation relate to expenses of the Group, excluding property related expenses, borrowing costs and foreign exchange gain/(losses).

2 T�he 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.


75

Unitholder Information Statistics of Unitholdings as at 30 May 2008

Issued and fully paid Units260,753,751 shares outstanding as at 30 May 2008 (voting rights: 1 vote per Unit)

T�here is only one class of Units in MacarthurCook Industrial REIT�. Market capitalisation S$250,323,601 (based on market closing price of S$0.96 on 30 May 2008).

Distribution of Unitholdings

Size of holdings Number of Unitholders

% of Unitholders

Number of Units

% of Units

1-999 5 0.15 2,515 0.00

1,000 - 10,000 2,972 88.72 8,700,647 3.34

10,001 - 1,000,000 362 10.80 20,348,456 7.80

1,000,001 and above 11 0.33 231,702,133 88.86

T�otal 3,350 100.00 260,753,751 100.00

Top 20 UnitholdersAs shown in the Register of Members and Depository Register as at 30 May 2008.

Ranking Name Number of Units

% of total issued Units

1 CIT�IBANK NOMINEES SINGAPORE PT�E LT�D 66,716,133 25.59

2 HSBC (SINGAPORE) NOMINEES PT�E LT�D 46,939,600 18.00

3 DBS NOMINEES PT�E LT�D 37,752,000 14.48

4 DBSN SERvICES PT�E LT�D 27,059,000 10.38

5 DB NOMINEES (S) PT�E LT�D 15,681,000 6.01

6 MORGAN ST�ANLEY ASIA (SINGAPORE) SECURIT�IES PT�E LT�D 14,864,000 5.70

7 UNIT�ED OvERSEAS BANK NOMINEES PT�E LT�D 10,886,000 4.17

8 MACART�HURCOOK LIMIT�ED 6,000,000 2.30

9 RAFFLES NOMINEES PT�E LT�D 2,617,400 1.00

10 ROYAL BANK OF CANADA (ASIA) LT�D 1,687,000 0.65

11 SIN HWA DEE FOODST�UFF INDUST�RIES PT�E LT�D 1,500,000 0.58

12 BMT� A/C EST�AT�E OF MSE ANGULLIA (WAKAFF) CLAUSE 7 T�RUST� 840,000 0.32

13 YONG YIK KING 768,000 0.29

14 OCBC SECURIT�IES PRIvAT�E LT�D 701,000 0.27

15 YONG FOO KUANG 600,000 0.23

16 OCBC NOMINEES SINGAPORE PT�E LT�D 412,000 0.16

17 SHI BI LING 408,000 0.16

18 AMEX NOMINEES (S) PT�E LT�D 400,000 0.15

19 ABN AMRO NOMINEES SINGAPORE PT�E LT�D 375,000 0.14

20 T�AN YONG CHIANG OR T�AN HUI LIANG 353,000 0.14

T�otal 236,559,133 90.72



Unitholder Information Statistics of Unitholdings as at 30 May 2008 Continued

Substantial UnitholdersAs at 30 May 2008

Name Direct interest

Deemed interest

% of total issued Units

MacarthurCook Limited (“MCK”) 6,000,000 28,323,751 13.16

UBS AG 6,278,000 24,970,668 11.99

MacarthurCook Fund Management Limited (“MCKFM”)1 - 28,000,000 10.74

Lion Capital Management Limited (“Lion Capital”)2 - 22,274,000 8.54

Oversea-Chinese Banking Corporation Limited (“OCBC”)3 - 22,274,000 8.54

Great Eastern Holdings Limited (“GEH”)4 - 22,274,000 8.54

1 MCK is deemed to have an indirect interest in the 28,000,000 units held by MCKFM because MCK has a direct interest of 100% in MCKFM.2 Lion Capital manages discretionary fund management accounts and invests in units of MacarthurCook Industrial REIT� for these accounts. Lion Capital

is deemed to be interested in 22,274,000 units in the capital of the T�rust.3 OCBC is deemed to have an interest in the 22,274,000 units held by its subsidiary, Lion Capital.4 GEH is deemed to have an interest in the 22,274,000 units held by its subsidiary, Lion Capital.

Free floatBased on information available to the Manager as at 30 May 2008, no less than approximately 85.0% of the units in MacarthurCook Industrial REIT� were held in the hands of the public. Accordingly, Rule 723 of the Listing Manual of the Singapore Exchange Securities T�rading Limited has been complied with.


77

Investors’ Summary

Unitholder valueT�he primary objective of the MacarthurCook Industrial REIT� is to provide unitholders with stable income distributions on a quarterly basis.

T�he table on page 84 provides a summary of the T�rust’s key financial results.

Below is a table showing returns to unitholders over the past year from 19 April 2007 (when the units were initially listed) to 31 March 2008 whose units are listed on the SGX-ST�:

Financial Year 2008(From 19 April 2007 – 31 March 2008) (%)

Distribution return 7.6

Unit Price Growth -17.9

T�otal unitholder return -10.3

Unit liquidityDuring the 2008 financial year, approximately 251,810,000 units were traded on the SGX, representing approximately 96.7% of the 260,528,000 weighted average number of units on issue computed from listing date.

Distribution and distribution policyT�he distribution for the 2008 financial year was 7.52 cents per unit. T�he T�rust’s distribution policy is to distribute 100.0% of its taxable income for the 2008 financial year and at least 90.0% of its taxable income thereafter. T�he actual proportion of taxable income distributed to unitholders beyond 31 March 2008 may be greater than 90.0% if the Manager believes it to be appropriate, having regard to the T�rust’s funding requirements, other capital management considerations and the overall stability of distributions. T�he T�rust will provide unitholders with distributions for the three months ending 30 June, 30 September, 31 December and 31 March of each year. Under the T�rust Deed, the Manager is required to pay distributions within 90 days after the end of each distribution period.

Unitholder enquiriesUnitholders with enquiries are welcome to access information by any of the following methods:

By contact with the share • registry: Boardroom Corporate & Advisory Services Pte. Ltd, 3 Church Street #08-01, Samsung Hub, Singapore 049483

via the MacarthurCook website: • www.macarthurcook.com.au

By contact with the Manager: • T�he Investor Relations Manager T�elephone: + 65 6309 1050 Facsimile: + 65 6534 3942 Email: [email protected] [email protected]

Exchange listingsMacarthurCook Industrial REIT� units are listed on the Singapore Exchange Securities T�rading Limited and reported in the daily newspapers under the SGX Code: MacCookIREIT�.

Company websitewww.macarthurcook.com.au

T�he MacarthurCook website offers the following features:

Investor relations page, enabling • unitholders to access unit price and corporate governance information and browse T�rust announcements.

News service providing up to • date information on recent Fund activities and items of interest.

Access to annual and half year • reports. T�he Annual Report can be downloaded as a PDF electronic file.

Feedback service to enhance • communication between the company and its unitholders

Financial calendar

26 July 2007 1st Quarter FY2008 Results Announcement

29 August 2007 Payment of 1st quarter distribution to unitholders

24 October 2007 2nd Quarter FY2008 Results Announcement

29 November 2007 Payment of 2nd quarter distribution to unitholders

15 February 2008 3rd quarter FY2008 Results Announcement

24 March 2008 Payment of 3rd quarter distribution to unitholders

21 May 2008 4th quarter FY2008 Results Announcement

26 June 2008: Payment of 4th quarter distribution to unitholders



Investor Relations and Corporate Communications

T�he Manager of MacarthurCook Industrial REIT� believes in the importance of timely, accurate and transparent communication with stakeholders. T�his creates opportunities to address the concerns of the investing community and better manage their expectations.

T�hrough its structured investor relations programme, the Manager hopes to raise awareness and understanding of MacarthurCook Industrial REIT� and provide clarity on its performance, business developments and growth strategies.

Communications with the investment communityRegular meetings and teleconferences are held with investors of MacarthurCook Industrial REIT� from Singapore and overseas. Every six months, conferences are held for the media and analysts to discuss the performance of the half-year and full-year results. T�he Manager also conducts briefings for the media and analysts as and when there are significant corporate announcements. Senior management provide updates and address concerns during these meetings.

During the financial year, the Manager participated in a number of investor presentations and conferences hosted by renowned financial institutions in Singapore, Hong Kong, Japan, Korea, Australia, the United Kingdom and Europe.

T�he Manager also conducts tours of key properties for investors upon request in order to provide them with a first hand view and appreciation of the properties.

Dissemination of information to the publicFinancial results and announcements of significant corporate developments are released to the SGX-ST� and updated on the MacarthurCook corporate website: www.macarthurcook.com.au.

Direct communication channels via emails and phone lines between investors and the Manager have also been established.

T�he Manager believes that its transparent communication policy gives the investment community a better understanding of its operations and rationale for key business initiatives.

In its debut year, the following analysts have initiated research coverage on MacarthurCook Industrial REIT�:

Summary of analyst coverage

Research House Analyst

UBS Alastair Gillespie

Regina Lim

HSBC T�ricia Song

UOB Kay Hian (unrated)

Singapore Research T�eam

Merrill Lynch Melinda Baxter

JP Morgan Christopher Gee

Phillip Capital Lee Kok Joo

OCBC (unrated) Winston Liew

BNP Paribas (unrated)

Jonathan Ng


79

Exchange Announcements

T�his section summarises the announcements made to the SGX during the period from 19 April 2007 to 31 March 2008. Full details of the announcements are available through the SGX or MacarthurCook websites.

SGx announcements during FY2008

Mar 31 2008 Miscellaneous : Completion Of Acquisition Of 7 Clementi Loop

Mar 25 2008 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest












Mar 11 2008 Miscellaneous : Completion Of Acquisition Of 135 Joo Seng Road


Mar 10 2008 Notice Of A Substantial Shareholder's Interest



Feb 29 2008 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest

Feb 27 2008 Notice Of A Substantial Shareholder's Interest


Feb 18 2008 Announcement Of Appointment Of Acting Chief Executive Officer

Feb 18 2008 Announcement Of Appointment Of Acting Chief Executive Officer

Feb 18 2008 Miscellaneous : Appointment Of Craig Dunstan As Acting Chief Executive Officer Of MacarthurCook Investment Managers (Asia) Limited

Feb 18 2008 Announcement Of Resignation Of Chief Executive Officer

Feb 15 2008 T�hird Quarter Financial Statement And Dividend Announcement

Feb 15 2008 T�hird Quarter Financial Statement And Dividend Announcement







Exchange Announcements Continued


Feb 06 2008 Miscellaneous : Date Of Release Of FY07/08 T�hird Quarter Financial Results




Jan 28 2008 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest


Jan 21 2008 Miscellaneous : MI-REIT� Completes Acquisitions Of 61 Yishun Industrial Park A And 103 Defu Lane 10.

Jan 18 2008 Miscellaneous : MI-REIT� T�o Postpone Proposed Equity Fund Raising

Jan 08 2008 Miscellaneous : Correction Of Announcement Of Notice Of Change In Interests



Dec 27 2007 Miscellaneous : Application For T�he Listing Of New Units

Dec 27 2007 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest

Dec 21 2007 Miscellaneous : Application For T�he Listing Of New Units.

Dec 20 2007 Miscellaneous : MI-REIT� Completes Acquisition Of Asahi Ohmiya Warehouse In Saitama, Japan.

Dec 17 2007 Miscellaneous : Completion Of T�he Acquisitions Of Both 11 Changi South 3 And 15 T�ai Seng Drive.

Dec 04 2007 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest

Nov 29 2007 Miscellaneous : MI-REIT� Acquires Office And Warehouse Building For S$25.0 Million.

Nov 26 2007 Miscellaneous : MI-REIT� Forms Strategic Alliance In Japan And Acquires Sgd 29.2 Million Saitama Distribution Facility

Nov 16 2007 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest

Nov 15 2007 Miscellaneous : MI-REIT� Acquires S$14.0 Million Property; Increases Book value By S$9.8million Following Revaluations.


Nov 13 2007 Miscellaneous : MI-REIT� Acquires T�wo Office And Warehouse Properties For S$39.1 Million.




Oct 29 2007 Miscellaneous : Macarthurcook Industrial REIT� Acquires 15 T�ai Seng Drive For S$28.9 Million.

Oct 26 2007 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest



Oct 24 2007 Second Quarter Financial Statement And Dividend Announcement


81

Oct 24 2007 Miscellaneous : Notice Of Books Closure And Distribution Date

Oct 24 2007 Miscellaneous : MI-REIT� Acquires 11 Changi South 3 For S$20.8 Million







Oct 17 2007 Miscellaneous : Date Of 2QFY2008 Results Announcement

Oct 04 2007 Miscellaneous : Completion Of Acquisition Of 541 Industrial Park A

Oct 01 2007 Miscellaneous : MacarthurCook Group Expands T�eam.

Sep 14 2007 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest








Sep 04 2007 Miscellaneous : MacarthurCook Industrial REIT�'s Portfolio value Increases By S$30.6 Million Following Annual Revaluations

Aug 31 2007 Announcement Of Acquisitions And Realisations Of Assets

Aug 29 2007 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest














Exchange Announcements Continued




Jul 31 2007 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest


Jul 26 2007 Miscellaneous : Notice Of Books Closure And Distribution Payment

Jul 26 2007 Miscellaneous : 1QFY2008 Financial Results Announcement

Jul 26 2007 Miscellaneous : Notice Of Books Closure And Distribution Payment Date

Jul 26 2007 Miscellaneous : Issue Of Units T�o Manager In Payment Of Management Fees

Jul 26 2007 Miscellaneous : 1QFY2008 Results Presentation Slides

Jul 23 2007 Announcement Of Appointment Of Non-Executive Director

Jul 19 2007 Miscellaneous : Date Of Release Of First Quarter 2008 Financial Results






Jul 03 2007 Notice Of A Substantial Shareholder's Interest


Jun 15 2007 Miscellaneous : High Court Dismisses MI-REIT� Originating Summons In Respect Of Proposed Acquisition Of Liang Huat Industrial Complex

Jun 07 2007 Miscellaneous : MacarthurCook Industrial REIT� Assigned "Baa3" First-T�ime Rating By Moody's

Jun 07 2007 Miscellaneous : Appointment Of Chief Operating Officer

Jun 01 2007 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest




May 30 2007 Notice Of A Change In T�he Percentage Level Of A Substantial Shareholder's Interest


May 18 2007 Miscellaneous : Notice T�o Warrantholders - Expiry Of Warrants On 18 June 2007

May 17 2007 Notice Of A Substantial Shareholder's Interest


May 10 2007 Miscellaneous : Resignation Of Non-Executive Director



83





Apr 26 2007 Notice Of A Substantial Shareholder's Interest







Apr 19 2007 Miscellaneous : MacarthurCook Industrial REIT� ("MacCookIREIT�") - Admission Of 260,430,000 Units T�o T�he Official List Of Sgx-St

Apr 19 2007 Miscellaneous : Closing News Release

Apr 18 2007 Miscellaneous : MacarthurCook Industrial REIT� ("MacCookIREIT�") - Admission Of 260,430,000 Units T�o T�he Official List Of SGX

Apr 18 2007 Miscellaneous : Balloting And Placement Announcement



Financial Performance Summary

Financial result summary (all figures in $’000 unless otherwise shown)

Period ended 31 March 2008

Financial performance

Gross revenue 32,214

Net property income 25,120

Net change in fair value of investment properties 37,010

T�otal return after income tax and minority interest 52,969

Distributions paid and payable 19,611

Financial position

T�otal assets 569,332

T�otal liabilities 231,708

Net assets attributable to Unitholders 337,624

Units in issue and to be issued (‘000) 260,963

Net asset value per unit ($) 1.29

Key performance measure

Earnings per unit (cents) - basic and diluted 28.22

Distribution per unit (cents) 7.52

Aggregate leverage ratio (%) 40.0

Interest coverage ratio (times) 9.80

Management expense ratio (%) 1.02

Closing price per Unit ($) 0.985


MacarthurCook Industrial REIT2008 Annual Report

STRONG FOUNDATIONS

THE MACARTHURCOOK INDUSTRIAL REIT HAS COMPLETED ITS FIRST YEAR WITH STRONG RESULTS. SINCE LISTING ON THE SINGAPORE EXCHANGE, IT HAS INCREASED ITS PORTFOLIO ASSETS BY 75% AND EMBARKED ON ITS PAN-ASIAN STRATEGY BY ACQUIRING ITS FIRST PROPERTY OUTSIDE OF SINGAPORE IN JAPAN.

WITH THIS FIRM FOUNDATION, THE TRUST IS WELL POISED FOR THE NEXT STAGE OF ITS GROWTH.

About MacarthurCook Industrial REIT (the “Trust” )MacarthurCook Industrial REIT (SGX Code: MacCookIREIT) was listed on the main board of the Singapore Exchange Securities Trading Limited on 19 April 2007. Established with the principal investment objective of owning and investing in a diversified portfolio of income-producing real estate located throughout Asia, MacarthurCook Industrial REIT owns 21 properties valued at S$555.4 million as at 31 March 2008.

CONTENTS

02 Financial Highlights 2008

04 Chairman’s Report

06 Chief Executive Officer’s Report

09 MacarthurCook Investment Approach

12 MacarthurCook Industrial REIT Investment Portfolio

22 Board of Directors of the Manager

24 Senior Management Team

26 Structure of MacarthurCook Industrial REIT

27 An Overview of the Asia-Pacific Industrial Market

30 Corporate Governance Statement

37 Financial Statements

75 Unitholder Information

77 Investor’s Summary

78 Investor Relations and Corporate Communications

79 Exchange Announcements

84 Financial Performance Summary

85 Corporate Directory

Corporate DirectoryMacarthurCook Industrial REIT

The Manager MacarthurCook Investment Managers (Asia) LimitedCompany Registration No. 200615904N1 Raffles Place, #21-01 OUB Centre Singapore 048616Telephone: (65) 6309 1050Fax: (65) 6534 3942Website: www.macarthurcook.com.au

TrusteeHSBC Institutional Trust Services (Singapore) Limited21 Collyer Quay#14-01 HSBC BuildingSingapore 049320

AuditorsKPMGCertified Public Accountants16 Raffles Quay#22-00 Hong Leong BuildingSingapore 048581Telephone: (65) 6213 3388Fax: (65) 6225 0984(Partner in charge: Leong Kok Keong)

Unit Registrar Boardroom Corporate & Advisory Services Pte. Ltd.3 Church Street #08-01Samsung HubSingapore 049483Telephone: (65) 6536 5355Fax: (65) 6536 1360Website: www.boardroomlimited.com

Directors of the ManagerMr Richard Michael Haddock Mr Craig Mathew DunstanMr Alastair Hugh GurnerMr Lim How TeckMr Tan Kai Seng

Audit CommitteeMr Richard Michael Haddock Mr Lim How TeckMr Tan Kai Seng

Nominating and Remuneration CommitteeMr Richard Michael Haddock Mr Alastair Hugh GurnerMr Tan Kai Seng

Company SecretaryMs Tang Buck Kiau

Designed by motivo creative media


MacarthurCook Investment Managers (Asia) Limited

1 Raffles Place #21–01 OUB Centre Singapore 048616

Level 4 30 Collins Street Melbourne VIC 3000 Australia

Investor Telephone Enquiries Singapore +65 6309 1050

Australia 1300 655 197 +61 3 9660 4555

Website www.macarthurcook.com.au

Email [email protected] [email protected]

MACARTHURCOOKINDUSTRIAL REIT SGX code: MacCookIREIT

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