The REIT Manager’s principal objectives are to deliver regular and stable distributions to Unitholders and to achieve long-term growth in distributions per Unit and in the net asset value per Unit, while maintaining an appropriate capital structure, through the following key strategies:
Acquisition Growth Strategy
Source and pursue asset acquisition opportunities which provide attractive cash flows and yields and satisfy the REIT Manager’s investment mandate for FLT to enhance returns to Unitholders and potential opportunities for future income and capital growth. While FLT has an initial focus on Australia, the REIT Manager will continuously evaluate opportunities outside Australia and take a considered approach in deciding whether FLT should explore these opportunities.
Selective Development Strategy
Endeavour to selectively undertake development activities either jointly or on its own, including, but not limited to, greenfield developments and build-to-suit developments and re-development of existing assets. In carrying out development activities, the REIT Manager will consider, among other things, development and construction risks as well as overall benefits to Unitholders and prospective tenants.
Active Asset Management and Enhancement Strategy
Pro-actively manage FLT’s properties to improve their operational performance, so as to optimise the cash flow and the value of the properties, including carrying out asset enhancement initiatives on its properties.
Capital and Risk Management Strategy
Maintain a strong balance sheet, employ an appropriate mix of debt and equity in financing acquisitions of properties, secure diversified funding sources to access both financial institutions and capital markets, optimise its cost of debt financing and utilise interest rate and foreign exchange hedging strategies, where appropriate, in order to minimise exposure to market volatility.