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Corporate governance standards in S-Reits improved
Jun 07, 2012
by Cheryl Tay Singapore Real Estate Investment Trusts (S-Reits) have showed signs of improvement in corporate governance standards in the past three years, with the average score increasing 32 percent in the second year and another 25 percent in the third year. According to a study released by the Asia Pacific Real Estate Association (APREA), CapitaCommercial Trust, CapitaMall Trust, Ascott Residence Trust, AIMS AMP Capital Industrial Reit and Ascendas Reits are among the top quartile ranking Reits. However, the study did not provide the precise ranking or individual score of each Reit. Aside from Singapore, Malaysia and Japan were also among the top ranking Reits in the Asian market. Malaysian Reits have been ranked twice (2009 and 2010), while Japanese Reits have been lauded once for their excellent performance in 2010. "While at this stage individual scores aren't released, it is pleasing to see that over the three years that the index has been running in Singapore the overall average score has increased significantly each year," said Peter Mitchell, Chief Executive of APREA. "The movements in rankings we see in each year are due to some Reit scores increasing faster than others." The scoring framework for the rankings involves 27 governance factors across eight categories of corporate governance, such as board matters, Reit organisation, ownership, audit committee, remuneration matters, related party transactions, gearing and fees.