Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — Q3 FY2008/09 Earnings Presentation
45 slides from Capitaland India Trust's earnings presentation, Jan 29, 2009
Slide 1: 3Q FY 2008/09 Financial Results Presentation
3Q FY 2008/09 Financial Results Presentation 29 January 2009 1 Singapore’s First Listed Indian Property Trust
Slide 2: Disclaimers
Disclaimers This presentation focuses on results for the financial quarter ended 31 December 2008 (“3Q FY 2008/09”). This shall be read in conjunction with a-iTrust‟s announcement of results for the quarter in the SGXNet announcement, either from www.sgx.com or www.a-itrust.com . This presentation m
Slide 3: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 3
Slide 4: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 4
Slide 5: Key Highlights
Key Highlights 3Q FY 08/09 DPU of 2.02 Singapore cents, being: - 35% above same period last year - 11% above last quarter YTD 3Q FY 08/09 DPU of 5.49 Singapore cents, 23% above same period last year YTD 3Q FY 08/09 distribution reflects annualised yield of: - 15.9% over the closing price of S$0.46 o
Slide 6: Key Highlights
Key Highlights For first nine months of FY 08/09, 1.2 million sq ft of space was leased or renewed, posting a strong retention rate of 86% Less than 6% of space is due for renewal till end of the financial year and less than 13% in the next financial year As at 31 December 2008, portfolio occupancy
Slide 7: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 7
Slide 8: Financial Results – 3Q FY08/09 vs 3Q FY07/08
Financial Results – 3Q FY08/09 vs 3Q FY07/08 3Q FY08/09 3Q FY07/08 Variance Reasons (S$ „000) (S$ „000) (%) Total 28,793 26,970 7% • Income from completed buildings, Vega & Crest Property • Higher rental rates Income • One time income of S$ 2.7 million for provision of extra power by TCS‟s built-to-
Slide 9: Distribution per Unit
Distribution per Unit Period 1 April to 31 December 2008 1Q FY08/09 1.65 ¢ per unit 2Q FY08/09 1.82 ¢ per unit 11% increase q-o-q 35% increase y-o-y 3Q FY08/09 2.02 ¢ per unit YTD 3Q FY0809 5.49 ¢ per unit 23% increase over same period last FY YTD 3Q FY07/08 4.45 ¢ per unit Distributions are paid on
Slide 10: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 10
Slide 11: Growth Strategy
Growth Strategy Mar 07 Organic Operating Total Owned SBA of 4.8 mm sq ft Buildings Proposed Development Proposed Upcoming SBA of 1.5 Developments mm sq ft 4.2 mm sq. ft. = 89% of current operating buildings Land Available for Potential SBA of Development 2.7 mm sq ft External Acquisitions Unique thr
Slide 12: Organic Growth
Organic Growth 1.25 mil sq ft leased from 1 April to 31 December 2008 Area (Sqft) 1,400,000 1,249,500 1,200,000 1,107,500 Forward 86% Leasing* 142,000 Retention 1,000,000 460,000 800,000 751,000 647,500 600,000 1,107,500 460,000 400,000 200,000 647,500 0 Expired Renewed New Renewed & New Leases Conc
Slide 13: Organic Growth - Stability
Organic Growth - Stability Maintaining High Occupancy Rates 100% 98%1 98% 95% 100% 95% 82% 77% a-iTrust Occupancy Market Occupancy of Peripheral Area2 ITPB ITPC The V CyberPearl Portfolio Weighted Average Occupancy as at 31 December 2008 is 99% 1 Includes retail space. Occupancy rate for office spac
Slide 14: Organic Growth - Lease Expiry Profile
Organic Growth - Lease Expiry Profile Portfolio Lease Expiry Profile Sq ft expiring 2,000,000 33.8% 1,500,000 21.0% 14.9% 1,000,000 12.8% 11.7% 5.8% 500,000 - Financial Financial Financial Financial Financial Financial Year Year 2009 Year 2010 Year 2011 Year 2012 Year 2013 2014 & Beyond Weighted Ave
Slide 15: Organic Growth - Stability
Organic Growth - Stability Geographical Diversification of Properties Strong Tenant Base Operating Buildings of a-iTrust Total Number of Tenants 246 Average space 18,856 sq. ft. Bangalore Hyderabad 35.5% per tenant 37.5% No single tenant takes up Chennai 27.0% more than 4% of the portfolio base rent
Slide 16: Portfolio Top Tenants
Portfolio Top 10 Tenants Portfolio - Top Ten Tenants in Alphabetical Order Affiliated Computer Services of India Pvt. Ltd. Applied Materials India Pvt. Ltd. Cognizant Technology Solution (India) Pvt. Ltd. General Motors India Pvt. Ltd. iNautix Technologies India Pvt. Ltd. Invensys Development Center
Slide 17: Organic Growth - Tenant Development
Organic Growth - Tenant Development Tenant sector by base rental IT/ITES IT/ITES 9.2% 10.0% ITES ITES 17.1% 16.8% Others Others IT 3.7% IT 5.1% 63.0% 62.9% F&B F&B 0.9% 1.1% R&D 4.8% R&D 5.5% 30 September 2008 31 December 2008 17
Slide 18: Organic Growth - Tenant Development
Organic Growth - Tenant Development Tenants‟ country of origin & company structure by base rental Finland 1.0% France Netherland India Based Singapore 1.5% Company 1.2% Others 1.1% 2.0% 9.4% Japan 0.6% UK 5.3% Germany 4.3% India 14.9% US 68.1% MNC 90.6% 31 December 2008 18
Slide 19: Work Live Play at the Parks
Work Live Play at the Parks Ascendas Connect ‘ 08 Sankranti Celebration 19
Slide 20: Work Live Play at the Parks
Work Live Play at the Parks Christmas Extravaganza Interface 2008 20
Slide 21: New Hotel in ITPB – Vivanta by Taj
New Hotel in ITPB – Vivanta by Taj Vivanta by Taj opened in ITPB, targeting at cosmopolitan customers Developed and managed by Taj Hotels group, which leases land from ITPL Enhances ITPB’s amenities and position as premier IT Park 21
Slide 22: Development
Development 3 property development in the parks – additional 1.5 mil sq ft BTS for Avestha Gengraine Zenith Retail Mall (ITPB) Technologies (ITPB) 3rd building (ITPC) • Final authority approval • Fully pre-leased • Construction in progress has been obtained • Site has been barricaded • Expected comp
Slide 23: Development
Development Further development in ITPB – additional 2.7 million sq. ft. Proposed BTS Proposed Retail Mall • Completed master plan to develop balance 2.7 million Hotel sq ft of space as SEZ • Building approval submission for a 536,000 sq ft multi-tenanted building in progress Amenities / Future Exis
Slide 24: Acquisition – ROFR Ascendas Land International
Acquisition 3 pronged acquisition strategy Right of First Refusal – Ascendas Land International Pte Ltd CyberVale in Chennai, an IT SEZ comprising a proposed 1.1M sq ft of SBA over 4 buildings over 18.5 acres of land SBA (sq. ft.) Building 1 250,000 Completed and fully leased BTS for MindTree Consul
Slide 25: Acquisition – ROFR Ascendas India Development Trust
Acquisition 3 pronged acquisition strategy Right of First Refusal – Ascendas India Development Trust AIDT focuses on integrated real estate development and has committed equity of S$500 mil & target investment size of S$1 billion 9.7 mil sq ft of business space development potential in key cities su
Slide 26: Acquisition from the market
Acquisition 3 pronged acquisition strategy Acquisition from the market Trustee-Manager pursuing opportunities a-iTrust has substantial debt capacity before reaching its voluntary gearing limits* Preference is to fund third-party properties acquisition or development beyond the said 1.5 mil sq ft of
Slide 27: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 27
Slide 28: Substantial Debt Headroom
Substantial Debt Headroom Available Debt Capacity to 35% & 60% Leverage as at 31 December 08 S$ Million 1,000 900 800 700 600 60% Cap About S$480 mil Debt Capacity 500 400 35% Cap About S$260 mil 300 Debt Capacity 200 100 Current 0 Gearing 7% Total Debt * Total Assets * Available Debt Capacity * Exc
Slide 29: Hedging Strategy
Hedging Strategy To manage currency volatility on the distribution to Unitholders, the Trustee- Manager had put in place forward contracts to hedge a substantial portion of the forecast repatriation from India to Singapore for FY 08/09 and 1H FY 09/10 distributions The rates hedged for distribution
Slide 30: Delivering Attractive Yield
Delivering Attractive Yield Yield (%) 15.90%1 / a-iTrust’s annualised yield (31 December 2008) is 14.60%%2 3.70% – 15.20% above various indicators. a-iTrust is targeted to grow its income organically, 16.0% through development and acquisition. 12.20% 14.0% 12.0% 10.0% 8.0% 4.08% 4.00% 6.0% 2.05% 2.5
Slide 31: Delivering Attractive Yield
Delivering Attractive Yield Yield (%) 15.90%1 / a-iTrust’s annualised yield (31 December 2008) is 14.60%%2 7.66% – 11.45% above various indicators. a-iTrust is targeted to grow its income organically, 16.0% through development and acquisition. 14.0% 12.0% 8.24% 10.0% 6.54% 5.61% 8.0% 4.45% 6.0% 4.0%
Slide 32: Trading Price (Indexed)
Trading Price (Indexed) a-iTrust 180 Property Index STI Index 160 a-iTrust All Share Index REITs Index 140 Sensex Index 120 Dow Jones Index Bombay SE Realty Index 100 80 60 40 20 0 IPO Sep 07 Dec 07 Mar 08 Jun 08 Oct 08 Dec 08 Data Source: Bloomberg 32
Slide 33: Trading Price vs Equities (Indexed)
Trading Price vs Equities (Indexed) a-iTrust 250 Indiabulls Real Estate Ltd 225 DLF Ltd Unitech Ltd 200 HDIL Ishaan Property Trust 175 a-iTrust Hirco Property Trust 150 Indiabulls Properties Investment Trust 125 100 75 50 25 0 IPO Sep 07 Dec 07 Mar 08 Jun 08 Oct 08 Dec 08 Data Source: Bloomberg 33
Slide 34: Maintain Stable Performance
Maintain Stable Performance Total Property Income Net Property Income S$‟000 S$‟000 29,820 28,793 * 18,000 17,046 30,000 28,641 16,116 16,030 27,233 15,710 15,691 26,970 15,370 28,000 16,000 25,290 26,000 13,340 14,000 23,220 24,000 12,000 22,000 20,000 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 35: DPU Growth
DPU Growth S$cents 2.20 2.020 2.00 1.820 1.80 1.640 1.650 1.500 1.60 1.475* 1.475* 1.40 1.20 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 2007 / 08 FY 2008 / 09 * DPU for first and second quarters last year were reported together, post listing of a-iTrust. DPU for both quarters was 2.95 cents. For illustrative purposes,
Slide 36: Putting things in perspective
Putting things in perspective Challenging Market : - General global economic slowdown may affect the demand for real estate space in India - Indian IT services sector remains attractive, as more companies from developed countries may outsource their IT needs to India, where it offers considerable co
Slide 37: Putting things in perspective
Putting things in perspective Portfolio well positioned to serve target market of MNCs, with the properties‟ quality space and service Stable Income stream: - Low single client exposure - Less than 6% of space due for renewal in this financial year, and less than 13% in the next year Healthy balance
Slide 38: Moving Forward
Moving Forward The Trustee-Manager will continue to focus on enhancing the operating earnings of its assets, optimising its capital structure and growing its portfolio through development and acquisition. The Trustee-Manager is confident of meeting the DPU forecast of 6.85 Singapore cents for FY 200
Slide 39: Thank You
THANK YOU Ascendas Property Fund Trustee Pte Ltd (Trustee-Manager of a-iTrust) www.a-itrust.com 39
Slide 40: International Tech Park Bangalore
International Tech Park Bangalore Park Statistics Site area: 69 acres Land Available for Development: Operating buildings: 1.8 mm 24 acres or 2.7 million sq ft SBA (based on sq ft Owned SBA max. plot ratio of 2.5) Proposed Development: Park Population: 24,000 people 744,000 sq ft SBA 40
Slide 41: International Tech Park Chennai
International Tech Park Chennai Park Statistics Site area: 15 acres Proposed Development: Up to 742,000 sq ft Operating Buildings: 1,258,000 sq ft SBA Owned SBA Park Population: 12,000 people 41
Slide 42: CyberPearl
CyberPearl Park Statistics Site area: 6 acres Park Population: 5,000 people Operating Buildings: 431,000 sq ft Owned SBA 42
Slide 43: The V
The V Park Statistics Site area: 19 acres Park Population: 10,000 people Operating Buildings: 1,288,000 sq ft Owned SBA 43
Slide 44: Structure of Ascendas India Trust
Structure of Ascendas India Trust Unitholders Holding of units Distributions Trustee’s fee and management fees Ascendas Property Fund Trustee Pte. Ltd. a-iTrust (the Trustee-Manager), a wholly-owned subsidiary Acts on behalf of unitholders/ of Ascendas Pte Ltd management services Dividends, principa
Slide 45: REIT-like characteristics enhance stability of distributions
REIT-like characteristics enhance stability of distributions Adherence to safeguarding Permissible provisions on allowable investments Investment under Property Fund Guidelines Distributable 100% distributions to 31 March 2009 income and ≥ 90% thereafter ≤ 35% of deposited property Gearing (≤ 60.0%
Ascendas India Trust — Q3 FY2008/09 Earnings Presentation on 6ix