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Notes to the financial statements
25. Commitments
(a)
(b)
A-REIT is required to pay JTC Corporation (“JTC”) and the Housing Development Board (“HDB”) annual
land rent (including licence fees payable for development projects) in respect of certain properties. The
annual land rent payable is based on the market land rent in the relevant year of the lease term. However,
the lease agreement limit any increase in the annual land rent from year to year to 5.5% of the annual
land rent for the immediate preceding year. The land rent paid/payable to JTC and HDB amounted to
$19,850,000 (2009: $19,357,000) and $1,486,000 (2009: $1,656,000) respectively in relation to 71 properties
(2009: 70 properties) for the financial year ended 31 March 2010 (including amounts that have been
directly recharged to tenants).
A-REIT leases out its investment properties under operating lease agreements. Non-cancellable
operating lease rentals are receivable as follows:
2010 2009
$’000 $’000
Within 1 year 393,611 369,010
After 1 year but within 5 years 979,882 959,878
After 5 years 893,134 877,282
2,266,627 2,206,170
(c)
As at 31 March 2010, A-REIT had $25 million (2009: $243 million) of capital commitments that had been
authorised and contracted for but not provided for in the financial statements. The project is expected
to be completed within the financial year ending 31 March 2011.
148 Ascendas real estate investment trust