Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — Shareholder Meeting (June 2011)
53 slides from Capitaland India Trust's shareholder meeting presentation, Jun 23, 2011
Slide 1: Ascendas India Trust 4th Annual General Meeting
Ascendas India Trust 4th Annual General Meeting 23 June 2011 Asia „s First Listed Indian Property Trust 0
Slide 2: Agenda
Agenda • Overview • FY 2010/11 Performance • Focus Areas 1
Slide 3: Agenda
Agenda • Overview • FY 2010/11 Performance • Focus Areas 2
Slide 4: Portfolio
Portfolio CyberPearl, Hyderabad aVance Business Hub, Hyderabad (Conditional acquisition) The V, Hyderabad INDIA Hyderabad Bangalore Chennai International Tech Park Bangalore International Tech Park Chennai 3
Slide 5: International Tech Park Bangalore (ITPB)
International Tech Park Bangalore (ITPB) Park Statistics Site area: 69 acres/ 27.9 ha Land Available for Development: Operating buildings: 2.2 mm 23 acres or 2.5 million sq ft SBA (based on plot sq ft Owned SBA ratio of 2.5) Proposed Development: Park Population: 27,000 people 535,000 sq ft SBA SBA
Slide 6: International Tech Park Chennai (ITPC)
International Tech Park Chennai (ITPC) Park Statistics Site area: 15 acres / 6.1 ha Park Population: 22,000 people Operating Buildings: 2.0 mm sq ft Owned SBA SBA - Super Built-up Area, which is the basis for leasing transactions. 5
Slide 7: CyberPearl, Hyderabad
CyberPearl, Hyderabad Park Statistics Site area: 6 acres / 2.4 ha Park Population: 5,000 people Operating Buildings: 0.4 mm sq ft Owned SBA SBA - Super Built-up Area, which is the basis for leasing transactions. 6
Slide 8: The V, Hyderabad
The V, Hyderabad Park Statistics Site area: 19 acres / 7.7 ha Park Population: 12,000 people Operating Buildings: 1.3 mm sq ft Owned SBA SBA - Super Built-up Area, which is the basis for leasing transactions. 7
Slide 9: 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 Acts on behalf of unitholders/ of Ascendas Pte Ltd management services Dividends, principal
Slide 10: 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 Minimum 90% to be distributed income ≤ 35% of deposited property Gearing (≤ 60.0% with credit rating) Tax-fre
Slide 11: Agenda
Agenda • Overview • FY 2010/11 Performance • Focus Areas 10
Slide 12: FY 2010/11 Highlights: Zenith
FY 2010/11 Highlights Development completion Newly completed in December 2010 – 2 developments in the parks Additional 1.2 mil sq ft Zenith (ITPC) Multi-Tenanted Office Building • Tenancy commitment level as at 21 June 2011 – 60% • Tenants undertaking fitout work on premises 737,000 sq ft 1 1 Super
Slide 13: FY 2010/11 Highlights: Park Square
FY 2010/11 Highlights Development completion Newly completed in December 2010 – 2 developments in the parks Additional 1.2 mil sq ft Park Square (ITPB) Retail Mall • Tenancy commitment level as at 21 June 2011 – 73% • Tenants undertaking fitout work on premises • Soft opening expected in 2Q/3Q FY201
Slide 14: FY 2010/11 Highlights: Total property income
FY 2010/11 Highlights Total property income • Total Property income for FY 2010/11 rose 1% (+4% in Indian Rupee terms) over previous FY Increased due to higher operations and maintenance income, from the increase in energy S$ and car park billing million income in ITPB. S$ million S$ million 13
Slide 15: FY 2010/11 Highlights: Net property income
FY 2010/11 Highlights Net property income • Net Property income for FY 2010/11 lower compared to last FY Decreased due to higher property expenses from the December 2010 completion of Zenith and ParkS$Square, for which million income contribution has S$ yet to fully stablise, and million hikes in el
Slide 16: FY 2010/11 Highlights: Distribution per Unit
FY 2010/11 Highlights Distribution per Unit • DPU for FY 2010/11 lower compared to last FY Decreased due to lower NPI and a marginal loss realised on financial derivatives, compared to a S$ cents gain last year. 8.00 7.54 7.55 6.58 6.09 6.00 4.00 2.00 0.00 FY 2007/2008 FY 2008/2009 FY 2009/2010 FY 2
Slide 17: Strong Leasing Activities
Strong Leasing Activities Leasing activities from 1 April 2010 to 31 March 2011 Area (Sqft) 2,500,000 2,336,500 Leases for New 725,000 2,000,000 Buildings 63% 1,637,000 Forward Leasing on Retention 1,512,000 Existing Portfolio 3 1,500,000 99,500 483,000 1,029,000 1,000,000 725,000 1,512,000 483,000
Slide 18: High & Stable Occupancy
High & Stable Occupancy 99% 100% 97% 97% 97% 93% 73% 2 63% 60% 60% 2 a-iTrust Occupancy Market Occupancy of Peripheral Area 1 61% 33% New Buildings ITPB (excl. ITPC (excl. The V CyberPearl Zenith Park Square Park Square Zenith) (ITPC) (ITPB) Portfolio Weighted Average Occupancy as at 31 March 2011 w
Slide 19: Staggered Lease Expiries
Staggered Lease Expiries Sq ft expiring Portfolio Lease Expiry Profile 1 28.6% 1,500,000 25.3% 18.4% 1,000,000 11.9% 8.9% 6.9% 500,000 - FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 & Beyond Weighted Average Lease Term – 4.1 yrs as at 31 March 2011 1 Includes leases in Park Square (ITPB) &
Slide 20: Diversification
Diversification Geographical Diversification of Properties Strong Tenant Base Operating Buildings of a-iTrust Total Number of Tenants 266 Hyderabad Average space Bangalore 29% per tenant 18,209 sq. ft. 38% Chennai 33% Largest tenant takes up about 4.7% of the portfolio base rent Total Owned SBA = 5.
Slide 21: Low Single Tenant Risk
Low Single Tenant Risk Portfolio - Top Ten Tenants in Alphabetical Order Affiliated Computer Services of India Pvt. Ltd. Applied Materials India Pvt. Ltd. Bally Technologies India Pvt. Ltd. Cognizant Technology Solution (India) Pvt. Ltd. General Motors India Pvt. Ltd. iNautix Technologies India Pvt.
Slide 22: Tenant Mix Management
Tenant Mix Management Tenant core business by base rental 1 Retail, 2.3% F&B, 1.5% Maritime, 0.4% Automobile, 4.3% Hospitaliity, 0.4% Advertising, 0.7% R&D, 3.8% Pharmaceutical & Healthcare, 5.1% Banking & Financials, 14.9% Corporate Services, 7.4% IT & Software Electronic, Development, SemiConducto
Slide 23: Tenant Mix Management
Tenant Mix Management Tenant activity by base rental 1 IT/ITES 13.4% ITES 12.9% Others 2.0% Retail & F&B 3.9% IT R&D 62.2% 5.5% 31 March 2011 1 22 Includes leases in Park Square (ITPB) & Zenith (ITPC) for which possession of units have taken place. IT - Information Technology; ITES - IT-Enabled Serv
Slide 24: Tenant Mix Management
Tenant Mix Management Tenant country of origin by base rental 1 Singapore France Netherland 2.2% 1.8% 0.8% Australia Others Japan 0.4% 1.1% UK 0.5% 5.0% Germany 3.7% India 2 16.4% US 68.1% 31 March 2011 1 23 Includes leases in Park Square (ITPB) & Zenith (ITPC) for which possession of units have tak
Slide 25: Tenant Mix Management
Tenant Mix Management Tenant company structure by base rental 1 India Based Company1 11.3% MNC2 88.7% 31 March 2011 1 24 Comprises Indian companies with operations within India only. 2 Multi-national corporations, including Indian companies with operations within India & offshore.
Slide 26: Work Live Play at the Parks
Work Live Play at the Parks ITPB Healthy Lifestyle & Sports Meet 2011 25
Slide 27: Work Live Play at the Parks
Work Live Play at the Parks Celebration of Colours at ITPC 26
Slide 28: Work Live Play at the Parks
Work Live Play at the Parks ITPB Grand Jigsaw Challenge 27
Slide 29: Work Live Play at the Parks
Work Live Play at the Parks ITPB Talentz Day 28
Slide 30: Financial Indicators
FY 2010/11 Financial Indicators Indicator As at 31 March 2011 Interest Service Coverage (EBITDA 1/Interest Expenses 2) 4.0 (FY 10/11) Total Borrowings / Asset Value (Gearing) 18.3% 3 Secured Borrowings / Asset Value 11.4% 3 Effective Weighted Average Cost of Debt (Net of tax shield benefits) 5.6% 1
Slide 31: Debt Maturity Profile
Debt Maturity Profile 31 March 2011 FY11/12 15 FY12/13 10 60 FY13/14 10 25 FY14/15 10 FY15/16 5 25 0 10 20 30 40 50 60 70 S$ Million INR Loan 1,2 SGD Loan 1 As at 31 March 2011 1 Excludes Minority Interests. 2 Of this, S$5 million was originally floating-rate JPY-denominated borrowings for which the
Slide 32: Yield Comparison with Singapore Indicators
Yield Comparison with Singapore Indicators Yield (%) a-iTrust’s full-year distribution yield (31 March 10.0% 2011) is 1.1% - 6.5% above various indicators. a- 6.9% 1 iTrust targets to grow its income organically, 7.0% 2 5.8% 3 through development & acquisition. 8.0% 5.9% 4 6.0% 2.7% 2.5% 2.5% 4.0% 1
Slide 33: Yield Comparison with India Indicators
Yield Comparison with India Indicators a-iTrust’s full-year distribution yield (31 March 2011), which is post-tax, is 0.6% - 0.7% above relevant post-witholding tax indicators. Total return for Government Bonds is further affected by tax on any Yield (%) capital gains realised upon sale of securitie
Slide 34: Trading Price (Indexed)
Trading Price (Indexed) 180 a-iTrust FTSE ST REIT Index 160 FTSE ST Real Estate Index a-iTrust FTSE ST Small Cap Index Straits Times Index 140 FTSE ST All Share Index Bombay SE Realty Index 120 Sensex Index Dow Jones Index 100 80 60 40 20 0 IPO Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Mar 11
Slide 35: Agenda
Agenda • Overview • FY 2010/11 Performance • Focus Areas 34
Slide 36: Growth Strategy
Growth Strategy (Includes the conditional acquisition of aVance Business Hub) Operating Income- Total Owned SBA 1 of 5.9 mm sq ft Producing (including Zenith and Park Square, which completed in Buildings December 2010) Proposed Development Ongoing Upcoming SBA 1 of 0.5 mil sq ft in FY11/12 Developme
Slide 37: Development
Development In progress, expected to be completed mid 2011 Additional 0.5 mil sq ft Voyager (ITPB) Multi-Tenanted Office Building • Tenancy pre-commitment level as at 21 June 2011 – 68% Voyager (535,000 sq ft) • First building within the Special Economic Zone (SEZ) of ITPB • Expected completion in J
Slide 38: Development
Development Further development in ITPB – additional 2.5 million sq. ft. Park Square (Retail ) • Completed master plan to Taj Vivanta (Hotel) develop balance 2.5 million sq ft of space (including the new 540,000 sq ft building being planned), mainly within SEZ • Construction of a second 20MW power p
Slide 39: Acquisition: 3 pronged acquisition strategy
Acquisition 3 pronged acquisition strategy Acquisition from the market Trustee-Manager continues to actively pursue opportunities a-iTrust has substantial debt capacity before reaching its voluntary gearing limits 1 Flexibility to fund acquisition or development of additional space using debt or equ
Slide 40: Substantial Debt Headroom
Substantial Debt Headroom Available Debt Capacity to 35% & 60% Leverage as at 31 March 2011 S$ Million 1,000 900 800 700 600 60% Cap About S$370 mil 500 Debt Capacity 400 35% Cap About S$150 mil 300 Debt Capacity 200 Current 100 Gearing 18% 0 Total Debt 1 Total Assets 1 Available Debt Capacity 1 Exc
Slide 41: Proposed Acquisition in Hyderabad
Proposed Acquisition in Hyderabad On 23 February 2011, a-iTrust announced that it will conditionally acquire a portfolio of up to 5 buildings of an IT/ITES 1 Special Economic Zone (“SEZ”) in Hyderabad, India Upon completion of the acquisition, 2 completed and 100% occupied buildings (0.43 m sq ft) w
Slide 42: aVance Business Hub, Hyderabad
aVance Business Hub, Hyderabad (Conditional acquisition) (1) (3) (7) (4) (6) (2) Not part of (5) (1) acquisition (8) (9) (2) Park Statistics Site area: 25.7 acres / 10.4 ha Expected acquisition of 3 future buildings: Immediate acquisition of 2 operating 1.75 mm sq ft SBA and fully-occupied buildings
Slide 43: Proposed Acquisition in Hyderabad
Proposed Acquisition in Hyderabad Key benefits of the acquisition of aVance Business Hub: Well-located along the IT hub of in Madhapur and Gachibowli in Hyderabad, one of India‟s high-growth IT/ITES 1 centres Enhance portfolio size and add SEZ space to product offering Improve portfolio tenant
Slide 44: Right of First Refusal – Ascendas Land International
Acquisition 3 pronged acquisition strategy Right of First Refusal – Ascendas Land International Pte Ltd ALI owns CyberVale, an IT SEZ in Chennai, and a development project in Pune, International Tech Park Cybervale, Chennai Pune (ITPP) CyberVale comprises 535,000 sq ft of income producing space & 4.
Slide 45: Right of First Refusal – Ascendas India Development Trust
Acquisition 3 pronged acquisition strategy Right of First Refusal – Ascendas India Development Trust AIDT focuses on integrated real estate development & has committed equity of S$500 mil & target investment size of S$1 billion About 10 mil sq ft of business space development potential in key cities
Slide 46: Hedging Strategy
Hedging Strategy To manage currency fluctuation on the distribution to Unitholders, the Trustee-Manager had put in place forward contracts to hedge a substantial portion of the forecast repatriation from India to Singapore The hedging instruments deployed comprised plain vanilla currency forward con
Slide 47: Distribution per Unit with and without hedging
FY 2010/11 Highlights Distribution per Unit • On average, DPU would have been lower if repatriation was not hedged S$ cents 8.00 7.54 7.55 7.18 7.03 6.68 6.92 6.58 6.09 6.09 6.00 4.00 Actual DPU DPU without hedging 2.00 DPU without hedging and excluding Park Square & Zenith 0.00 FY 2007/2008 FY 2008
Slide 48: India Investment Case Attractive
India Investment Case Attractive India‟s investment scenario remains attractive: - Country with fourth largest economy by purchasing power parity - India GDP grew 8.5% for the year ended 31 March 2011. The Government has forecast GDP growth to be around 8% in FY2011/12 - Large population, being 28%
Slide 49: India Investment Case Attractive
India Investment Case Attractive India remained a leader in the outsourcing industry because of skilled labour, positive business environment & low cost. Salary for IT / software engineers / developer / programmer Countries Local Currency US Dollar (p.a.) India 347,026 7,783 Malaysia 42,064 13,904 C
Slide 50: a-iTrust Portfolio Well Positioned
a-iTrust Portfolio Well Positioned Despite challenging conditions, a-iTrust has achieved : - High portfolio occupancy rate of 97% 1, despite having 33.2% 2 of leases expired over FY 10/11 - Approximately 2.3 million sq ft 3 of space leased / renewed during FY 10/11 - Strong Total Property Income Por
Slide 51: a-iTrust Portfolio Growth Potential
a-iTrust Portfolio Growth Potential Expected in FY11/12 (0.54m sq ft Voyager + 0.43m sq ft aVance) 6.9 7 1.0 6 Completed Area (million sq ft) 5 4 3 5.9 5.9 2 3.6 1 1.1 1.2 0.1 0 At listing Added in Added in Added in As at 31 March Expected by 31 FY07/08 FY08/09 FY10/11 2011 March 2012 50
Slide 52: Thank You
THANK YOU Ascendas Property Fund Trustee Pte Ltd (Trustee-Manager of a-iTrust) www.a-itrust.com 51
Slide 53: About Ascendas Group
About Ascendas Group Ascendas is Asia‟s premier provider of business space solutions with a significant presence in the region. Ascendas develops, manages & markets IT Parks, industrial parks (manufacturing, logistics & distribution centres), business parks, science parks, hi-tech facilities, office
Ascendas India Trust — Shareholder Meeting (June 2011) on 6ix