Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascendas India Trust — Q3 FY2009/10 Earnings Presentation
51 slides from Singapore Exchange's earnings presentation, Jan 22, 2010
Slide 1: 3Q FY 2009/10 Financial Results Presentation
3Q FY 2009/10 Financial Results Presentation 22 January 2010 1 Asia’s First Listed Indian Property Trust
Slide 2: Disclaimers
Disclaimers This presentation focuses on a-iTrust‟s results for the financial quarter ended 31 December 2009 (“3Q FY 09/10”). This shall be read in conjunction with a-iTrust‟s announcement of results for the quarter via SGXNet, a copy of which available on www.sgx.com or www.a-itrust.com. This prese
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 3Q FY 09/10 rose 4% over same period last year - Net Property Income for 3Q FY 09/10 exceeded same period last year by 13% YTD 3Q FY 09/10 DPU of 5.76 Singapore cents was 5% above same period last year and 82% of average analyst DPU forecas
Slide 6: Key Highlights
Key Highlights YTD 3Q FY 09/10, 0.6 million sq ft of space was leased or renewed, posting a strong retention rate of 79% Strong & stable 97% portfolio occupancy About 3% of space due for renewal in current financial year Low client concentration with 10 largest tenants accounted for about 30% of por
Slide 7: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 7
Slide 8: Financial Results – 3Q FY09/10 vs 3Q FY08/09
Financial Results – 3Q FY09/10 vs 3Q FY08/09 3Q FY09/10 3Q FY08/09 Variance Reasons (S$ „000) (S$ „000) (%) Total Property 29,884/ 28,793/ 4% • Higher base rent due to higher average rental rates Income INR 996m INR 949m 5% • Higher operations and maintenance income due to: Increase in energy bill
Slide 9: Financial Results – 3Q FY09/10 vs 2Q FY09/10
Financial Results – 3Q FY09/10 vs 2Q FY09/10 3Q FY09/10 2Q FY09/10 Variance Reasons (S$ „000) (S$ „000) (%) Total Property 29,884/ 30,427/ -2% • Lower operations and maintenance income due to Income INR 996m INR 1,025m -3% lower energy billings from ITPB‟s dedicated power plant Net Property 19,320/
Slide 10: Distribution per Unit
Distribution per Unit Period 1 April to 31 December 2009 1Q FY09/10 2.06 ¢ per unit 2Q FY09/10 1.85 ¢ per unit 3Q FY09/10 1.85 ¢ per unit YTD 3Q FY09/10 5.76 ¢ per unit 5% increase over same period last FY YTD 3Q FY08/09 5.49 ¢ per unit Distributions are paid on semi-annual basis, for the six-month
Slide 11: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 11
Slide 12: 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 13: Organic Growth
Organic Growth Leasing activities from 1 April to 31 December 2009 Area (Sqft) 700,000 620,500 Forward * 600,000 567,000 Leasing 53,500 79% 500,000 Retention 462,500 201,500 400,000 365,500 300,000 567,000 201,500 200,000 365,500 100,000 0 Expired Renewed New Renewed & New Leases Concluded Leases Le
Slide 14: Organic Growth - Stability
Organic Growth - Stability Maintaining High Occupancy Rates 100% 98% 96% 95% 1% 2 87% 87% 71% 68% 94% a-iTrust Occupancy Market Occupancy of Peripheral Area1 ITPB ITPC The V CyberPearl Portfolio Weighted Average Occupancy as at 31 December 2009 was 97% 1 Jones Lang LaSalle Market Report as at 31 Dec
Slide 15: Organic Growth - Lease Expiry Profile
Organic Growth - Lease Expiry Profile Portfolio Lease Expiry Profile Sq ft expiring 2,000,000 34.7% 1,500,000 24.5% 21.3% 1,000,000 8.8% 7.3% 500,000 3.4% - Financial Financial Financial Financial Financial Financial Year Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 2015 & Beyond Weighted Avera
Slide 16: Organic Growth - Stability
Organic Growth - Stability Geographical Diversification of Properties Strong Tenant Base Operating Buildings of a-iTrust Total Number of Tenants 248 Average space 18,200 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 17: 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 18: Organic Growth - Tenant Development
Organic Growth - Tenant Development Tenant sector by base rental IT/ITES IT/ITES 11.6% 10.6% ITES ITES 15.4% 15.4% Others 3.6% Others IT 3.3% IT 64.1% 63.3% F&B F&B 1.0% 1.0% R&D R&D 5.3% 5.3% 30 September 2009 31 December 2009 * IT - Information Technology; ITES - IT-Enabled Services; R&D: Research
Slide 19: Organic Growth - Tenant Development
Organic Growth - Tenant Development Tenants‟ country of origin & company structure by base rental Singapore Finland India Based 2 Netherland 0.9% France 1.2% Company 1.0% 1.5% Others Japan 2.2% 8.4% 0.5% UK 5.3% Germany 3.8% 1 India 14.0% US 69.5% MNC 3 91.6% 31 December 2009 1 Comprises Indian comp
Slide 20: Work Live Play at the Parks
Work Live Play at the Parks ITPB Agents Night Ascendas Connect @ Cyberpearl ITPB CEOs Night Blood Donation Camp @ ITPC 20
Slide 21: Work Live Play at the Parks
Work Live Play at the Parks Healthy Lifestyle & Sports Meet in CyberPearl Healthy Lifestyle & Sports Meet in The V 21
Slide 22: Development
Development 3 property development in the parks – additional 1.7 mil sq ft Zenith Park Square Multi-tenanted 3rd building (ITPC) Retail Mall (ITPB) office building (ITPB) • Construction in progress • Construction in progress • Contractor commenced work • Expected completion in 2nd • Expected complet
Slide 23: Development
Development Further development in ITPB – additional 2.5 million sq. ft. Proposed Retail Mall • Completed master plan to Hotel develop balance 2.5 million sq ft of space, mainly within SEZ Existing Income- Producing Space SEZ Proposed Multi- Tenanted Building 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 (which can be developed into a 280,000 s
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$1 billion 9.7 mil sq ft of business space development potential in key cities su
Slide 26: Acquisition from the market
Acquisition 3 pronged acquisition strategy Acquisition from the market Trustee-Manager pursuing opportunities a-iTrust has substantial debt capacity before reaching its voluntary gearing limits* Preference is to fund third-party properties acquisition or development beyond the said 1.7 mil sq ft of
Slide 27: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Financial Indicators 27
Slide 28: Substantial Debt Headroom
Substantial Debt Headroom Available Debt Capacity to 35% & 60% Leverage as at 31 December 2009 S$ Million 900 800 700 600 60% Cap 500 About S$350 mil Debt Capacity 400 35% Cap 300 About S$140 mil Debt Capacity 200 Current 100 Gearing 19% 0 Total Debt * Total Assets * Available Debt Capacity * Exclud
Slide 29: Funding Update
Funding Update Debt funding for the proposed development of 1.7 million sq ft : Two operating subsidiaries of a-iTrust accepted bilateral INR term loan facilities amounting to total of Rs 2.50b or approximately S$ 74m^. • Interest rate of 10%, or 6.6%* if considering effect of tax shield • Matures i
Slide 30: Debt Maturity Profile
Debt Maturity Profile FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 S$ Million INR Loan*^ SGD Loan* As at 31 December 2009 * Exclude Minority Interest ^ Of this, S$21 million was originally floating-rate JPY-denominated borrowings for which the Group has entered into a cross-currency swap to
Slide 31: Financial Indicators
Financial Indicators As at 31 December 2009 Indicator As at 31 Dec 09 Interest Service Coverage 10 times - (PAT+Depreciation+Interest)/Interest Expenses^ (YTD 3Q FY09/10) Secured Borrowings / Asset Value 11.8%* Effective Weighted Average Cost of Debt (Net of tax shield benefits) 6.2% ^ Includes Capi
Slide 32: Hedging Strategy
Hedging Strategy To manage currency visibility on the distribution to Unitholders, the Trustee- Manager had put in place forward contracts to hedge a substantial portion of the forecast repatriation from India to Singapore The Trustee-Manager does not intend to take speculative position on the curre
Slide 33: DPU Performance
DPU Performance FY09/10 DPU S$ Cents 82% 79% 81% 87% a-iTrust actual Average DBS Vickers, JP Morgan, Citigroup, YTD 3Q FY09/10 analysts‟ full 23 Oct 2009 23 Oct 2009 22 Oct 2009 FY forecast * Based on the latest analyst reports on a-iTrust issued following the preceding quarterly results announcemen
Slide 34: Delivering Attractive Yield
Delivering Attractive Yield Yield (%) a-iTrust’s annualised yield (31 December 2009) is 12.0% 0.4% - 7.3% above various indicators. 7.8%1 7.4%3 a-iTrust is targeted to grow its income organically, 7.4%2 10.0% 7.1%4 through development and acquisition. 8.0% 6.0% 2.7% 2.9% 2.5% 4.0% 1.3% 0.5% 2.0% 0.0
Slide 35: Delivering Attractive Yield
Delivering Attractive Yield Yield (%) a-iTrust’s annualised yield (31 December 2009) is 12.0% 0.5% - 2.3% above various indicators. a-iTrust is targeted to grow its income organically, 7.8%1 7.4%2 through development and acquisition. 10.0% 7.3% 6.9% 8.0% 5.8% 5.5% 6.0% 4.0% 2.0% 0.0% a-iTrust India
Slide 36: Trading Price (Indexed)
Trading Price (Indexed) a-iTrust Data Source: Bloomberg 36
Slide 37: Trading Price vs Equities (Indexed)
Trading Price vs Equities (Indexed) a-iTrust Data Source: Bloomberg 37
Slide 38: Maintain Stable Performance
Maintain Stable Performance Total Property Income Net Property Income FY 2007 / 08 FY 2008 / 09 FY 2009 / 10 38
Slide 39: DPU Growth
DPU Growth 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 equally between the 2 quarters for illustrative purposes. 39
Slide 40: Putting things in perspective
Putting things in perspective India‟s investment scenario remains attractive: - Fourth largest economy at purchasing power parity exchange rates - India‟s GDP grew 7.9% in the quarter ended 30 Sep 09. Indian Government stated that growth could return to 9% in 2009/10 - Large population, which compri
Slide 41: Putting things in perspective
Putting things in perspective - India remained a leader in the outsourcing industry because of skilled labour, positive business environment and low cost. Salary for IT / software engineers / developer / programmer (1 to 4 years experience) Countries Local Currency US Dollar (p.a.) India 318,093 6,9
Slide 42: Putting things in perspective
Putting things in perspective Despite challenging conditions, a-iTrust has achieved : - High portfolio occupancy rate of 97% - Approximately 0.6 million sq ft of space renewed / leased during YTD 3Q FY 09/10 Portfolio continues to be well positioned to serve target market of MNCs, with ideal quality
Slide 43: Thank You
THANK YOU Ascendas Property Fund Trustee Pte Ltd (Trustee-Manager of a-iTrust) www.a-itrust.com 43
Slide 44: Portfolio in India
PORTFOLIO IN INDIA The V, Hyderabad CyberPearl, Hyderabad INDIA Hyderabad Bangalore Chennai International Tech Park Bangalore International Tech Park Chennai 44
Slide 45: International Tech Park Bangalore
International Tech Park Bangalore Park Statistics Site area: 69 acres Land Available for Development: Operating buildings: 1.8 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: 25,000 people 985,000 sq ft SBA 45
Slide 46: International Tech Park Chennai
International Tech Park Chennai Park Statistics Site area: 15 acres Proposed Development: 742,000 sq ft SBA Operating Buildings: 1,258,000 sq ft Park Population: 14,000 people Owned SBA 46
Slide 47: CyberPearl, Hyderabad
CyberPearl, Hyderabad Park Statistics Site area: 6 acres Park Population: 5,000 people Operating Buildings: 431,000 sq ft Owned SBA 47
Slide 48: 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 48
Slide 49: 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 50: 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
Slide 51: 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 and markets IT Parks, industrial parks (manufacturing, logistics and distribution centres), business parks, science parks, hi-tech facilities, of
Ascendas India Trust — Q3 FY2009/10 Earnings Presentation on 6ix