Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Q1 FY2009/10 Earnings Presentation
47 slides from Capitaland India Trust's earnings presentation, Jul 30, 2009
Slide 1: 1Q FY 2009/10 Financial Results Presentation
1Q FY 2009/10 Financial Results Presentation 30 July 2009 1 Singapore’s First Listed Indian Property Trust
Slide 2: Disclaimers
Disclaimers This presentation focuses on a-iTrust‟s results for the financial quarter ended 30 June 2009 (“1Q FY 09/10”). This shall be read in conjunction with a-iTrust‟s announcement of results for the quarter in SGXNet, copy of which obtained either from www.sgx.com or www.a-itrust.com . This pre
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 Revenue Growth : - Total Property income for 1Q FY 09/10 rose 4% over same period last year - Net Property income for 1Q FY 09/10 exceeded same period last year by 15% 1Q FY 09/10 DPU of 2.06 Singapore cents, being: - 25% above same period last year - 0.5% above last quarter 1Q FY 09/
Slide 6: Key Highlights
Key Highlights Net Asset Value was S$652 million or S$0.86 per unit as at 30 June 2009 Strong & stable 97% portfolio occupancy About 10% of space due for renewal in current financial year Low client concentration with 10 largest tenants accounted for about 30% of portfolio base rent Strong Balance S
Slide 7: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 7
Slide 8: Financial Results – 1Q FY09/10 vs 1Q FY08/09
Financial Results – 1Q FY09/10 vs 1Q FY08/09 1Q FY09/10 1Q FY08/09 Variance Reasons (S$ „000) (S$ „000) (%) Total 29,652 28,641 4% • Higher income contribution from Crest, which was Property completed in 4Q FY07/08. Income • Higher rental rates. • Higher operations and maintenance income. Net 18,343
Slide 9: Distribution per Unit
Distribution per Unit Period 1 April 2009 to 30 June 2009 2.06 ¢ per unit 0.5% increase 1Q FY09/10 q-o-q 25% increase y-o-y 1Q FY08/09 1.65 ¢ per unit Distributions are paid on semi-annual basis, for the six-month periods ending 31 March and 30 September of each year 9
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 1.7 Developments mm sq ft 4.2 mm sq. ft. = 89% of current operating buildings Land Available for Potential SBA of Development 2.5 mm sq ft External Acquisitions Unique thr
Slide 12: Organic Growth – Leasing activities
Organic Growth Leasing activities from 1 April to 30 June 2009 Area (Sqft) 250,000 212,500 200,000 53% Retention Forward 150,000 Leasing* 107,500 105,000 103,000 100,000 50,000 55,000 50,000 105,000 50,000 55,000 0 Expired Renewed New Renewed & New Leases Concluded Leases Leases Leases Leases Over T
Slide 13: Organic Growth - Stability
Organic Growth - Stability Maintaining High Occupancy Rates 100% 99% 95% 91% 88% 86% 3% 2 86% 70% 72% 88% a-iTrust Occupancy Market Occupancy of Peripheral Area1 ITPB ITPC The V CyberPearl Portfolio Weighted Average Occupancy as at 30 June 2009 is 97% 1 Jones Lang LaSalle Market Report as at 30 June
Slide 14: Organic Growth - Lease Expiry Profile
Organic Growth - Lease Expiry Profile Portfolio Lease Expiry Profile Sq ft expiring 2,000,000 33.2% 1,500,000 25.1% 18.3% 1,000,000 10.1% 8.5% 4.8% 500,000 - Financial Financial Financial Financial Financial Financial Year Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 2015 & Beyond Weighted Aver
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 18,463 sq. ft. Bangalore Hyderabad 35.5% per tenant 37.5% Largest tenant takes up Chennai 27.0% about 4.6% of the portfolio base rent Tot
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 10.1% 10.6% ITES ITES 15.2% 15.4% Others Others 3.5% 3.7% IT IT 63.5% F&B 64.4% F&B 1.0% 1.0% R&D R&D 5.8% 5.9% 31 March 2009 30 June 2009 17
Slide 18: Organic Growth - Tenant Development
Organic Growth - Tenant Development Tenants‟ country of origin & company structure by base rental Singapore Finland Netherland 1.0% 1.2% France India Based 1.0% 1.5% Others Company Japan 2.2% 9.2% 0.5% UK 5.4% Germany 4.2% India 14.6% US 68.5% MNC 90.8% 30 June 2009 18
Slide 19: Work Live Play at the Parks
Work Live Play at the Parks Livewire Festivities Cultural Performance Go Green Cleaning 19
Slide 20: Work Live Play at the Parks
Work Live Play at the Parks Eco-Friendly Product Sale Eco-Drive Week Organic Lunch Menu at Showcasing Electric-Driven Cafeteria Motorcycles 20
Slide 21: Development
Development 3 property development in the parks – additional 1.7 mil sq ft Zenith Multi-tenanted Retail Mall (ITPB) 3rd building (ITPC) office building (ITPB) • Construction in progress • Construction in progress • Authorities‟ approval • Expected completion in 2nd • Expected completion in obtained
Slide 22: Development
Development BTS for Avestha Gengraine – will not be carried out Both parties agreed to terminate contract, all costs incurred by a-iTrust will be recovered from deposit. Debt originally for this project to be directed towards the proposed multi-tenanted building in ITPB. Completion of the multi-tena
Slide 23: Development
Development Further development in ITPB – additional 2.5 million sq. ft. Proposed BTS Proposed Retail Mall • Completed master plan to develop balance 2.5 million Hotel sq ft of space, mainly within SEZ Amenities / Future Existing Income- developments producing space SEZ 23
Slide 24: Acquisition – Right of First Refusal, Ascendas Land International
Acquisition 3 pronged acquisition strategy Right of First Refusal – Ascendas Land International Pte Ltd CyberVale is an IT SEZ in Chennai CyberVale represents an opportunity for a-iTrust to acquire 535,000 sq ft of income producing space and 4.4 acres of land for development 24
Slide 25: Acquisition – Right of First Refusal, AIDT
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$1 billion 9.7 mil sq ft of business space development potential in key cities su
Slide 26: Acquisition from the market
Acquisition 3 pronged acquisition strategy Acquisition from the market Trustee-Manager pursuing opportunities a-iTrust has substantial debt capacity before reaching its voluntary gearing limits* Preference is to fund third-party properties acquisition or development beyond the said 1.7 mil sq ft of
Slide 27: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 27
Slide 28: Substantial Debt Headroom
Substantial Debt Headroom Available Debt Capacity to 35% & 60% Leverage as at 30 June 2009 S$ Million 900 800 700 600 60% Cap About S$420 mil 500 Debt Capacity 400 35% Cap About S$210 mil 300 Debt Capacity 200 100 Current Gearing 9% 0 Total Debt * Total Assets * Available Debt Capacity * Exclude Min
Slide 29: Debt Maturity Profile
Debt Maturity Profile Financial 6.79 Year 2010 13.94 50.0 Financial 63.94 Year 2011 Financial 6.79 Year 2012 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 S$ Million JPY Loan* SGD Loan *The Group has entered into a cross currency swap to swap JPY denominated borrowings into INR & exchange floating-
Slide 30: Hedging Strategy
Hedging Strategy To manage currency visibility 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 Trustee-Manager does not intend to take speculative position on the curre
Slide 31: Delivering Attractive Yield
Delivering Attractive Yield Yield (%) a-iTrust’s annualised yield (30 June 2009) is 11.97%1 11.43% - 2.28% above various indicators. 14.0% 9.84%2 a-iTrust is targeted to grow its income organically, 9.69%3 # 9.03%4 through development and acquisition. 12.0% 10.0% 8.0% 4.15% 6.0% 2.59% 2.50% 4.0% 1.4
Slide 32: Delivering Attractive Yield
Delivering Attractive Yield Yield (%) a-iTrust’s annualised yield (30 June 2009) is 11.97%1 7.17% - 5.47% above various indicators. 14.0% 9.84%2 a-iTrust is targeted to grow its income organically, 12.0% through development and acquisition. 10.0% 6.50% 6.05% 8.0% 5.15% 4.80% 6.0% 4.0% 2.0% 0.0% a-iT
Slide 33: Trading Price (Indexed)
Trading Price (Indexed) a-iTrust 180 Property Index STI Index 160 All Share Index a-iTrust REITs Index 140 Sensex Index Dow Jones Index 120 Bombay SE Realty Index 100 80 60 40 20 0 IPO Dec 07 Jun 08 Dec 08 Jun 09 Data Source: Bloomberg 33
Slide 34: Trading Price vs Equities (Indexed)
Trading Price vs Equities (Indexed) a-iTrust 250 Indiabulls Real Estate Ltd 225 DLF Ltd Unitech Ltd 200 HDIL 175 Ishaan Property Trust a-iTrust Hirco Property Trust 150 Indiabulls Properties Investment Trust 125 100 75 50 25 0 IPO Dec 07 Jun 08 Dec 08 Jun 09 Data Source: Bloomberg 34
Slide 35: Maintain Stable Performance
Maintain Stable Performance Total Property Income Net Property Income S$'000 S$'000 1 18,343 29,820 30,827 30,000 29,652 18,000 17,424 17,046 28,641 28,793 16,116 16,030 28,000 15,710 15,691 26,970 27,233 16,000 15,370 26,000 25,290 14,000 13,340 24,000 23,220 12,000 22,000 20,000 10,000 FY 2007 / 0
Slide 36: DPU Growth
DPU Growth S$cents 2.20 2.050 2.060 2.020 2.00 1.820 1.80 1.640 1.650 1.60 1.500 1.475* 1.475* 1.40 1.20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY 2007 / 08 FY 2008 / 09 FY 2009 / 10 * DPU for first and second quarters of FY 2007/08 were reported together, post listing of a-iTrust. The reported DPU was split eq
Slide 37: Putting things in perspective
Putting things in perspective India‟s investment scenario remains attractive: - Fourth largest economy at purchasing power parity exchange rates - Large population, which has about 28% of Asia‟s population - Expanding middle income class estimated to grow 12 times by 2025 (Source: Mckinsey Global In
Slide 38: Putting things in perspective
Putting things in perspective - In July 2009, A.T. Kearney‟s Global Services Location Index 2009 ranked India as the most attractive offshoring destinations, followed by China and Malaysia. - India remained a leader in the outsourcing industry because of skilled labour, positive business environment
Slide 39: Putting things in perspective
Putting things in perspective Despite challenging conditions, a-iTrust has achieved : - High portfolio occupancy rate of 97% - Approximately 100,000 sq ft of space renewed / leased during 1Q FY 09/10 Portfolio continues to be well positioned to serve target market of MNCs, with ideal quality space a
Slide 40: Thank You
THANK YOU Ascendas Property Fund Trustee Pte Ltd (Trustee-Manager of a-iTrust) www.a-itrust.com 40
Slide 41: Portfolio in India
PORTFOLIO IN INDIA The V, Hyderabad CyberPearl, Hyderabad INDIA Hyderabad Bangalore Chennai International Tech Park Bangalore International Tech Park Chennai 41
Slide 42: 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 2.5 million sq ft SBA (based on sq ft Owned SBA max. plot ratio of 2.5) Proposed Development: Park Population: 24,000 people 986,000 sq ft SBA 42
Slide 43: 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: 14,000 people 43
Slide 44: CyberPearl, Hyderabad
CyberPearl, Hyderabad Park Statistics Site area: 6 acres Park Population: 5,000 people Operating Buildings: 431,000 sq ft Owned SBA 44
Slide 45: The V, Hyderabad
The V, Hyderabad Park Statistics Site area: 19 acres Park Population: 10,000 people Operating Buildings: 1,288,000 sq ft Owned SBA 45
Slide 46: 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 47: 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% income ≤ 35% of deposited property Gearing (≤ 60.0% with credit rating) Tax-free Distribution exe
CapitaLand India Trust — Q1 FY2009/10 Earnings Presentation on 6ix