Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — Q4 FY2012/13 Earnings Presentation
47 slides from Capitaland India Trust's earnings presentation, Apr 26, 2013
Slide 1: 4Q FY2012/13 Financial Results Presentation
4Q FY2012/13 4Q FY2011/12 Financial Results PresentationInvestor Presentation 26 April 2013 ASEAN Stars Conference 2012 1 March 2012 Asia’s First Listed Indian Property Trust Asia’s First Listed Indian Property Trust
Slide 2: Disclaimer
Disclaimer This presentation on a-iTrust’s results for the financial quarter ended 31 March 2013 (“4Q FY12/13”) should be read in conjunction with a-iTrust’s full financial statements, a copy of which is available on www.sgx.com or www.a-iTrust.com. This presentation may contain forward-looking stat
Slide 3: Agenda
Agenda • Financial review • Operational review • Growth strategy • Summary 3
Slide 4: 4Q FY12/13 results
4Q FY12/13 results 4Q FY12/13 4Q FY11/12 Variance • Lower fit-out and utilities income, mitigated by higher gross rental income from increase in INR/SGD FX rate1 43.9 39.5 11% portfolio size. Total Property INR 1,343m INR 1,353m (1%) Income • Higher property expenses due to higher O&M2 expense (INR
Slide 5: FY12/13 results
FY12/13 results FY12/13 FY11/12 Variance INR/SGD FX rate1 43.9 38.4 14% Total Property • Mainly due to higher gross rental income from INR 5,540m INR 4,899m 13% increase in portfolio size. Income Net Property INR 3,165m INR 2,805m 13% Income • Increase in INR terms mainly due to higher net Income av
Slide 6: Distribution per unit
Distribution per unit Period 1 Apr 12 to 31 Mar 13 1Q FY12/13 1.20¢ per unit DPU 2Q FY12/13 1.20¢ per unit Period: 9 Oct 12 – 31 Mar 13 3Q FY12/13 1.21¢ per unit Amount: 2.15¢ 4Q FY12/13 1.04¢ per unit Ex-date: 9 May 13 Payment date: 28 May 13 FY12/13 4.65¢ per unit In conjunction with a private pla
Slide 7: Revenue growth trends
Revenue growth trends Total Property Income (INR) Total Property Income (SGD) INR million 15% S$ million 4% CAGR CAGR 5,540 127.5 126.3 120.9 121.5 4,899 118.1 102.7 4,182 4,007 3,783 2,801 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 (IPO) (IPO) 7
Slide 8: Income growth trends
Income growth trends Net Property Income (INR) Net Property Income (SGD) INR million 14% 4% CAGR S$ million CAGR 3,165 73.8 73.0 70.6 72.1 2,805 66.2 60.5 2,448 2,425 2,117 1,651 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 (IPO) (IPO) 8
Slide 9: SGD DPU moderated by weak Indian Rupee
SGD DPU moderated by weak Indian Rupee INR/SGD exchange rate2 S¢ 110 2.02 2.05 2.06 100 1.82 1.85 1.85 1.79 1.72 1.64 1.65 1.66 1.70 90 1.50 1 1.48 1.481 1.50 1.50 1.54 1.50 1.46 3 1.33 1.34 1.34 80 1.15 70 60 50 40 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Slide 10: Debt expiry profile
Debt expiry profile Debt maturity profile S$ Million 66.0 65.0 50.0 35.0 41.0 22.5 25.0 27.5 30.0 25.0 25.0 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 INR-Denominated debt SGD-Denominated debt Information as at 31 March 2013 10
Slide 11: Capital structure
Capital structure Indicator As at 31 Mar 2013 Interest service coverage 5.3 times (EBITDA1 / Interest expenses2) (FY12/13) Gearing: 22%4 Percentage of fixed rate debt 100% Secured borrowings / Asset value 3.0%3 Effective weighted average cost of debt 5.9% (Net of tax shield benefits) 1. Earnings bef
Slide 12: Balance sheet
Balance sheet As at 31 Mar 2013 INR SGD Total assets INR 46.3 billion S$1.06 billion Total borrowings INR 8.92 billion S$205 million Fully & compulsorily convertible debentures - Intercompany INR 4.93 billion S$113.4 million - aVance 3 INR 1.75 billion S$40.25 million Net asset value INR 29 per unit
Slide 13: Debt headroom
Debt headroom S$ Million 1,400 60% Cap S$784m debt 1,200 headroom1 1,000 800 600 40% Cap S$235m debt 400 headroom1 200 Current gearing 22% 0 Assets2 Total debt Available debt headroom All information as at 31 March 2013 1. Calculation of debt headroom assumes further gearing capacity on new asset ac
Slide 14: Currency hedging strategy
Currency hedging strategy Income • Trustee-Manager hedges distributable income and does not intend to speculate on currency. • Plain vanilla forward contracts are used to hedge a substantial portion of forecast repatriation from India to Singapore. On the designated date, Trustee- Manager will excha
Slide 15: Agenda
Agenda • Financial review • Operational review • Growth strategy • Summary 15
Slide 16: Strong portfolio occupancy
Strong portfolio occupancy 99% 100% 96% 97% 96% 96% 96% 96% 94% 4% 86% 93% 86% 75% PORTFOLIO Portfolio ITPB ITPC The V CyberPearl aVance a-iTrust occupancy Committed occupancy Market occupancy of peripheral area1 All information as at 31 March 2013 1. Jones Lang LaSalle Meghraj market report as at 3
Slide 17: Spread-out lease expiry profile
Spread-out lease expiry profile Portfolio lease expiry profile Sq ft expiring Weighted average 2,000,000 30.0% lease term: 4.8 years 24% 25.0% 1,500,000 19% 20.0% 16% 17% 1,000,000 15.0% 12% 11% 10.0% 500,000 5.0% 1% - 0.0% FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 & beyond All informa
Slide 18: Healthy leasing momentum
Healthy leasing momentum Leasing activities from 1 April 2012 to 31 March 2013 Area (Sq ft) 1,400,000 Retention rate: 77% 551,507 1,242,678 1,200,000 1,000,000 902,586 800,000 691,171 600,000 400,000 200,000 0 Expired / Terminated Lease Renewed/Extended Leases New Leases Total Leases concluded 18
Slide 19: Diversified portfolio
Diversified portfolio Portfolio breakdown Customer Base Total number of tenants 337 Average space per tenant 19,334 sq ft Bangalore Hyderabad 40% 31% Largest tenant accounts for Chennai 5% of the portfolio base rent 29% Total Owned SBA = 6.9 million sq ft All information as at 31 March 2013 19
Slide 20: Quality tenants
Quality tenants No. Top ten tenants (by alphabetical order) Parent company 1 Affiliated Computer Services of India Pvt. Ltd. Xerox 2 Applied Materials India Pvt. Ltd. Applied Materials 3 BA Continuum Pvt. Ltd. Bank of America Merrill Lynch 4 Bally Technologies India Pvt Ltd Bally Technologies 5 Cogn
Slide 21: Diversified tenant base
Diversified tenant base Tenant core business & activity by base rental Telecommunication ITES & Network, 4% 12% Retail, 5% Automobile, 3% Healthcare & Pharmaceutical, 2% Banking and Finance, Retail & F&B Others, 1% 19% 7% R&D 3% Others Corporate and 1% Professional Services, 1% IT 58% Design, Gaming
Slide 22: Diversified tenant base
Diversified tenant base Tenant country of origin & company structure by base rental Indian Co 2 12% 1 MNC 3 88% All information as at 31 March 2013 1. Comprises Indian companies with local and overseas operations. 2. Comprises Indian companies with local operations only. 3. Multinational corporation
Slide 23: Colours 2013 @ Hyderabad
ee a . a . oy ~ ae oS. TF Pp f i ee on ~ ; 7 _ m - elie alll Aaa Ol a aan oy ine Sim teat th, la RRL alten he Ti One
Slide 24: Women’s day @ ITPC
Women’s day @ ITPC 24
Slide 25: Agenda
Agenda • Financial review • Operational review • Growth strategy • Summary 25
Slide 26: Good growth track record
Good growth track record Floor area (million square feet) 12% CAGR 6.9 6.9 0.4 5.9 0.5 4.8 1.2 4.7 4.8 0.1 1.2 3.6 6.9 6.0 4.8 4.8 4.8 3.6 3.6 Aug-07 At listing Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Portfolio Development Acquisition 26
Slide 27: Clear growth strategy
Clear growth strategy • Completions added 1.7 million sq ft to portfolio Development • Constructing 0.6 million sq ft with pipeline end Dec 2013 completion • Land for 1.9 million sq ft of space available for development Growth Sponsor • Right of first refusal from Ascendas Land International Pte Ltd
Slide 28: Completions added 1.7m sq ft
Completions added 1.7m sq ft Zenith Voyager Park Square Name Zenith Voyager Park Square Property ITPC ITPB ITPB Size (sq ft) 737,000 537,300 450,000 Multi-tenanted Multi-tenanted Type Retail mall office building office building Completion Dec 2010 Jun 2011 Dec 2010 Occupancy 100% 100% 81% 28
Slide 29: Enhancement plan for Park Square
Enhancement plan for Park Square 1 Ensure stability • Retain key tenants critical to tenant mix through lease restructuring of mix between fixed rent vs turnover rent. 2 Improve tenant mix • Attract major retail anchors to further strengthen Park Square’s positioning and attract more shoppers from t
Slide 30: Park Square
Park Square Events 1. Bollywood stars event attracted crowd of 12,500. 2. Sunday Soul Sante event attracted crowd of 22,000. Award 3. ‘India’s Best Neighbourhood Shopping Mall 2013-14’ 1 2 3 30
Slide 31: Substantial development pipeline
Substantial development pipeline Further development in ITPB – additional 2.5 million sq ft Park Square (Retail) Taj Vivanta New Multi-Tenanted Office (Hotel) Building (“Aviator”) Existing income- • 601,360 sq ft development producing space Future Development Potential • Balance 1.9 million sq ft of
Slide 32: Aviator – new multi-tenanted office building
Aviator – new multi-tenanted office building • 601,360 sq ft development in ITPB • Construction started in May 2012 • 43% of construction completed as at Mar 2013 • Expected completion by Dec 2013 Artist’s impression of the building 26% of space pre-committed 32
Slide 33: Right of first refusal (“ROFR”) from sponsor
Right of first refusal (“ROFR”) from sponsor Ascendas Land International Pte Ltd • CyberVale, an IT SEZ in Chennai, comprises 535,000 sq ft of income producing space & 4.4 acres of land (which can be developed into a 280,000 sq ft building) • International Tech Park Pune is a 2.5 million sq ft Cyber
Slide 34: 3rd party acquisitions
3rd party acquisitions • Target cities: • Bangalore • Chennai • Hyderabad • Mumbai • Delhi • Gurgaon • Pune • Investment criteria: • Location • Tenancy profile • Design • Clean land title and land tenure • Rental and capital growth prospects • Opportunity to add value 34
Slide 35: aVance Business Hub
aVance Business Hub • aVance 1 & 2 : • a-iTrust completed the acquisition of aVance 1 & 2 (0.43m sq ft) in February 2012. • Purchase consideration of INR 1,765m (S$45m) was fully debt funded. • aVance 3 : • a-iTrust invested INR 1,750 million (S$40m) in aVance 3 (0.69m sq ft) in March 2013. • As fur
Slide 36: aVance Business Hub
aVance Business Hub (1) (3) (7) (4) (6) (2) Not part of (1) acquisition (5) (8) (9) (2) Park Statistics Site area: 25.7 acres / 10.4 ha (1) & (2) owned by a-iTrust: 0.43m sq ft Vendor assets: marked in black Conditional acquisitions of (3), (4) & (5): 1.78m sq ft Land owner assets: marked in white R
Slide 37: aVance Building 3
aVance Building 3 • 690,520 sq ft development • Leasing commitment level: 41% • Construction status: 80% complete • Expected construction completion: June 2013 37
Slide 38: Agenda
Agenda • Financial review • Operational review • Growth strategy • Summary 38
Slide 39: a-iTrust unit price versus market indices
a-iTrust unit price versus market indices (Indexed) Indicator 250 Trading yield 5.6%1 225 a-iTrust (as at 31 March 2013) 200 FTSE STI Index Average daily trading volume 1.1 million units FTSE ST REIT Index (4Q FY12/13) 175 Sensex Index 150 Bombay SE Realty Index 125 100 75 50 25 0 IPO Mar 13 Jun 08
Slide 40: a-iTrust unit price versus Indian peers
a-iTrust unit price versus Indian peers (Indexed) 250 225 a-iTrust 200 DLF Ltd 175 Unitech Ltd 150 HDIL 125 Indiabulls Properties Investment Trust 100 75 50 25 0 IPO Mar 13 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Source: Bloomberg 40
Slide 41: Attractive Indian fundamentals
Attractive Indian fundamentals Salary for IT/software engineer, • India is world’s third largest economy by developer or programmer3 purchasing power parity. Countries US$ (p.a.) • RBI forecast India GDP growth of 5.5% in India 7,376 FY12/131. China 15,518 • Rapid IT-BPO export revenues growth Malay
Slide 42: Appendix
Appendix Appendix 42
Slide 43: INR financial statement
INR financial statement 4Q 4Q 3Q FY12/13 FY11/12 FY12/13 INR'000 INR'000 INR'000 Gross Rent 802,332 787,424 815,735 Amenities 24,200 21,577 22,196 Fit out Rental 16,409 24,139 18,716 Operations & Maintenance 445,166 468,454 484,249 Car Park & other income 55,294 51,187 57,031 Gross Property Income 1
Slide 44: Average currency exchange rate
Average currency exchange rate Weighted average exchange rates used to translate a-iTrust’s INR income statement to SGD 1 Singapore Dollar buys Q1 Q2 Q3 Q4 FY Indian Rupee FY 12/13 43.5 44.1 44.1 43.9 43.9 FY 11/12 36.2 38.0 40.0 39.5 38.4 SGD appreciation 20% 16% 10% 11% 14% Note: These rates repre
Slide 45: World-class IT parks
World-class IT parks ITPB ITPC CyberPearl The V aVance Name International Tech International Tech CyberPearl, The V, aVance Business Park Bangalore Park Chennai Hyderabad Hyderabad Hub, Hyderabad (“ITPB”) (“ITPC”) (“CP”) (“aVance”) Site area (acres) 68.5 15.0 6.1 19.4 25.7 (ha) 27.9 6.1 2.4 7.7 10.3
Slide 46: Structure of Ascendas India Trust
Structure of Ascendas India Trust Unitholders Holding of units Distributions Trustee’s fee & management fees Ascendas Property Fund Trustee Pte. Ltd. a-iTrust (the Trustee-Manager), a wholly-owned subsidiary of Acts on behalf of unitholders/ Ascendas Pte Ltd management services 100% ownership & Divi
Slide 47: Investor contact
Investor contact James Goh, CFA Investor Relations Ascendas Property Fund Trustee Pte Ltd (Trustee-Manager of a-iTrust) Office: +65 6508 8801 Email: james.goh@ascendas.com Website: www.a-iTrust.com 47
Ascendas India Trust — Q4 FY2012/13 Earnings Presentation on 6ix