Alpha Integrated REIT Completes Internalisation: Major Shift Aligns Interests and Unlocks Value for Unitholders

Internalisation Completed: Unitholders Now Own the REIT Manager

Alpha Integrated REIT (“AI-REIT”) has announced the successful completion of its internalisation process, a landmark move that now sees unitholders indirectly owning Alpha Integrated REIT Management Pte. Ltd. (“AIRM”), the internal manager of the REIT. This transition is expected to create stronger alignment between management and unitholders, enhance governance, and deliver meaningful cost savings — all of which are fundamental drivers for long-term value creation and could be price sensitive for investors.

Key Highlights for Investors

• Internalisation Drives 30% Total Return: Since the internalisation process began, AI-REIT has delivered a total return of over 30%, reflecting strong market confidence in the new structure and strategic direction.
• Unitholders Gain Direct Stake in REIT Manager: The internalisation means unitholders now have an indirect ownership stake in AIRM, a move that aligns interests, improves governance, and reduces management costs.
• Leadership Overhaul with Industry Veterans:
  • CEO Karen Lee Kiah Ling: Over 20 years in industrial real estate, former Head of Singapore Portfolio at Ascendas and ex-CEO of ARA LOGOS Logistic Trust, where she delivered a 45% AUM increase and >100% total unitholder return.
  • CFO Goo Li Ling: Former Managing Director (Finance) at Keppel Fund Management, overseeing S\$10 billion AUM, and ex-CFO roles at Lendlease Asia and Suntec REIT.
  • Chief Investment Officer Wayne Tan: Formerly with Ascendas and LOGOS, previously managing nearly S\$2 billion in real estate funds at ESR Fund Managers.
• Operational Outperformance: AI-REIT boasts a high-quality industrial portfolio, with over 70% of properties by value within a 10-minute walk from MRT stations. The REIT has achieved rental reversions of 12% and year-to-date Net Property Income growth of 21%.
• Land Bank and Redevelopment Pipeline: AI-REIT holds one of the largest unutilised land banks among Singapore-focused industrial REITs. A major redevelopment at New Tech Park (151 Lorong Chuan) is on the horizon, with ~200,000 sq ft of potential GFA, expected to significantly boost DPU and value within 2-3 years.
• Commitment to Tenant Satisfaction: The management emphasizes deepening tenant relationships and enhancing service quality, treating tenants as long-term partners in growth.

Strategic Implications for Shareholders

Shareholders should note that the internalisation is not just an operational change, but a fundamental shift in REIT governance and economics. The move is expected to:

• Reduce external management fees and costs, directly benefiting DPU and total returns
• Align the interests of management with those of unitholders, potentially resulting in greater value creation and responsiveness to market opportunities
• Improve transparency and governance, which could attract new institutional investors and enhance the REIT’s market profile
• Position the REIT to capitalize on a robust redevelopment pipeline and a significant land bank, which may drive long-term NAV and DPU growth

Market and Price-Sensitive Information

• Internalisation has already delivered over 30% total return since initiation, including unit price appreciation and DPU payouts, which may set expectations for further outperformance.
• Upcoming redevelopment at New Tech Park could be a major DPU and NAV driver within the next 2-3 years.
• Experienced management team with a proven track record of value accretion, which may support premium valuation multiples.

About Alpha Integrated REIT

AI-REIT is a Singapore-listed REIT focused on high-quality industrial assets, holding 18 properties with a total GFA of ~4.2 million square feet and total assets exceeding S\$1 billion as of September 2025. The REIT’s diversified portfolio spans high-tech industrial, warehouse and logistics, chemical warehouse, and general industrial properties, with a strong focus on Singapore’s key logistics and industrial hubs.

The REIT is also a constituent of the MSCI Singapore Micro Cap Index and is managed by AIRM, which is now wholly owned by the REIT itself.

Executive Commentary

Karen Lee, CEO of AIRM, states: “The internalisation reflects AI-REIT’s long-term commitment to building a resilient and high-performing REIT, underpinned by strong governance, operational excellence, and stakeholder alignment. Our internalised structure enhances corporate governance and transparency, and strengthens our ability to respond swiftly to market opportunities. With a seasoned and experienced management team, we are confident in our ability to grow the REIT strategically and unlock the full potential of our portfolio.”

Konrad Duttwiler, Non-Independent Director and Board member, adds: “We are confident of AI-REIT’s strong fundamentals and will focus on delivering value for all unitholders.”

Potential Investor Takeaways

• This internalisation is a material event that could be a catalyst for further price appreciation, thanks to cost savings, better alignment, and a clear growth roadmap.
• Investors should monitor progress on the New Tech Park redevelopment and future asset enhancement initiatives, as these will be key drivers of DPU and NAV growth.
• The new management team’s track record suggests potential for above-market performance, meriting close watch as execution unfolds.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult professional advisors before making any investment decisions related to Alpha Integrated REIT or any other securities.

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