Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — FY2008/09 Earnings Presentation
50 slides from Capitaland India Trust's earnings presentation, Apr 28, 2009
Slide 1: FY 2008/09 Financial Results Presentation
FY 2008/09 Financial Results Presentation 28 April 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 and financial year ended 31 March 2009 (“FY 2008/09”). This shall be read in conjunction with a-iTrust’s full result announcement lodged via SGXNet, copy of which obtained either from www.sgx.com or www.a-itrust.co
Slide 3: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Full Year Performance 3
Slide 4: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Full Year Performance 4
Slide 5: Key Highlights
Key Highlights Revenue Growth : - Total Property income for FY 08/09 rose 15% over last FY - Net Property income for FY 08/09 exceeded last FY by 9% 4Q FY 08/09 DPU of 2.05 Singapore cents, being: - 25% above same period last year - 1.5% above last quarter FY 08/09 DPU of 7.54 Singapore cents, 24% a
Slide 6: Key Highlights
Key Highlights Over FY 08/09, 1.6 million sq ft of space was leased or renewed, posting a strong retention rate of 89% and about 13% of space due for renewal in next financial year Largest tenant accounted for about 4% of portfolio base rent As at 31 March 2009, portfolio occupancy of 98% continue t
Slide 7: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Full Year Performance 7
Slide 8: Financial Results – 4Q FY08/09 vs 4Q FY07/08
Financial Results – 4Q FY08/09 vs 4Q FY07/08 4Q FY08/09 4Q FY07/08 Variance Reasons (S$ ‘000) (S$ ‘000) (%) Total 30,827 27,233 13% • Income from completed building in Chennai, Crest. Property • Higher rental rates. Income • One time income of S$ 2.7 million for provision of extra power to TCS’s bui
Slide 9: Financial Results – FY08/09 vs FY07/08
Financial Results – FY08/09 vs FY07/08 FY08/09 FY07/08 Variance Reasons (S$ ‘000) (S$ ‘000) (%) Total 118,079 102,713 15% • Income from completed building in Chennai, Crest. Property • Higher rental rates. Income • Higher operation and maintenance income due to revision in the charges to defray util
Slide 10: Financial Results – FY2008/09 vs Forecast
Financial Results – FY2008/09 vs Forecast Actual Forecast Variance Reasons FY08/09 FY08/09 (%) (S$ ‘000) (S$ ‘000) Total 118,079 124,317 (5%) • Due to difference in exchange rates (forecast was SGD Property 1 to INR 29, actual was SGD1 to INR32 or 10% lower) Income • In INR terms, up 5% due to 1) hi
Slide 11: Distribution per Unit
Distribution per Unit Period 1 April to 31 March 2009 1Q FY08/09 1.65 ¢ per unit 2Q FY08/09 1.82 ¢ per unit 3Q FY08/09 2.02 ¢ per unit 1.5% increase q-o-q 2.05 ¢ per unit 25% increase y-o-y 4Q FY08/09 FY0809 7.54 ¢ per unit 24% increase over FY07/08 6.09 ¢ per unit previous FY Distributions are paid
Slide 12: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Full Year Performance 12
Slide 13: 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 14: Organic Growth
Organic Growth 1.63 mil sq ft leased from 1 April to 31 March 2009 (FY 08/09) Area (Sqft) 1,630,500 1,800,000 Forward 89% 1,564,500 Leasing* 66,000 1,600,000 Retention 1,400,000 1,157,500 539,500 1,200,000 1,025,000 1,000,000 800,000 1,564,500 539,500 600,000 400,000 1,025,000 200,000 0 Expired Rene
Slide 15: Organic Growth - Stability
Organic Growth - Stability Maintaining High Occupancy Rates 99% 99% 98% 97% 87% 87% 78% 72% a-iTrust Occupancy Market Occupancy of Peripheral Area1 ITPB ITPC The V CyberPearl Portfolio Weighted Average Occupancy as at 31 March 2009 is 98% 1 Jones Lang LaSalle Market Report as at 31 March 09 15
Slide 16: Organic Growth - Lease Expiry Profile
Organic Growth - Lease Expiry Profile Portfolio Lease Expiry Profile Sq ft expiring 2,000,000 32.7% 24.7% 1,500,000 16.0% 13.5% 13.1% 1,000,000 500,000 - Financial Financial Financial Financial Financial Year Year 2010 Year 2011 Year 2012 Year 2013 2014 & Beyond Weighted Average Lease Term – 3.9 yrs
Slide 17: Organic Growth - Stability
Organic Growth - Stability Geographical Diversification of Properties Strong Tenant Base Operating Buildings of a-iTrust Total Number of Tenants 239 Average space 19,213 sq. ft. Bangalore Hyderabad 35.5% per tenant 37.5% Largest tenant takes up Chennai 27.0% about 4% of the portfolio base rent Total
Slide 18: 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 19: Organic Growth - Tenant Development
Organic Growth - Tenant Development Tenant sector by base rental IT/ITES IT/ITES 10.0% 10.1% ITES ITES 16.8% 15.2% Others Others 3.7% 3.5% IT 62.9% IT F&B 64.4% F&B 1.1% 1.0% R&D R&D 5.5% 5.8% 31 December 2008 31 March 2009 19
Slide 20: Organic Growth - Tenant Development
Organic Growth - Tenant Development Tenants’ country of origin & company structure by base rental Finland Singapore Netherland 1.1% France India Based 0.9% Others 1.1% 1.5% Company 2.2% 8.9% Japan 0.6% UK 5.3% Germany 4.3% India 14.2% US 68.8% MNC 91.1% 31 March 2009 20
Slide 21: Work Live Play at the Parks
Work Live Play at the Parks Healthy Lifestyle Meet 2009 Fashion & Rock Show Ascendas Chess Champion 2 Performance during CEO Night 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) • Construction in progress • Construction not started, • Construction in progress • Expected completion in 2nd balance security depos
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
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
Acquisition Cybervale 25
Slide 26: Acquisition
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$1 billion 9.7 mil sq ft of business space development potential in key cities su
Slide 27: Acquisition
Acquisition 3 pronged acquisition strategy Acquisition from the market Trustee-Manager pursuing opportunities a-iTrust has substantial debt capacity before reaching its voluntary gearing limits* Preference is to fund third-party properties acquisition or development beyond the said 1.5 mil sq ft of
Slide 28: Agenda
Agenda • Overview • Financial Results • Growth Strategies • Full Year Performance 28
Slide 29: Market Valuation as at March 2009
Market Valuation as at 31 March 2009 INR million Market Valuation Market Valuation Variance as at as at (%) 31 March 2009 1 31 March 2008 1 International Tech Park 13,8582 13,623 2% 2 Bangalore International Tech Park 6,611 7,088 (7%) Chennai The V 5,646 6,544 (14%) CyberPearl 1,810 2,043 (11%) Port
Slide 30: Growing Income-producing Space
Growing Income-producing Space 4.7 mil sq ft 4.8 mil sq ft The V CyberPearl The V CyberPearl ITPC ITPC ITPB ITPB Space Acquisition Owned SBA as at 31 March 08 Owned SBA as at 31 March 09 Yield accretive acquisition of about 0.1 million sq ft of space in ITPB from Tata Consultancy Services Limited (T
Slide 31: Substantial Debt Headroom
Substantial Debt Headroom Available Debt Capacity to 35% & 60% Leverage as at 31 March 09 S$ Million 1,000 900 800 700 600 60% Cap About S$440 mil 500 Debt Capacity 400 35% Cap About S$220 mil 300 Debt Capacity 200 100 Current Gearing 9% 0 Total Debt * Total Assets * Available Debt Capacity * Exclud
Slide 32: Hedging Strategy
Hedging Strategy To manage currency volatility on the distribution to Unitholders, the Trustee- Manager had put in place forward contracts to hedge a substantial portion of the forecast repatriation from India to Singapore The Trustee-Manager does not intend to take speculative position on the curre
Slide 33: Delivering Attractive Yield
Delivering Attractive Yield Yield (%) 14.36%1 a-iTrust’s full year distribution yield (31 March 14.78%2 2009) is 1.08% - 13.76% above various indicators. 13.28%3 16.0% 13.73%4 a-iTrust is targeted to grow its income organically, through development and acquisition. 14.0% 12.0% 10.0% 6.41% 8.0% 6.0%
Slide 34: Delivering Attractive Yield
Delivering Attractive Yield Yield (%) 14.36%1 / a-iTrust’s annualised yield (31 March 2009) is 14.78%2 7.36% - 9.56% above various indicators. 16.0% a-iTrust is targeted to grow its income organically, through development and acquisition. 14.0% 12.0% 10.0% 7.00% 6.05% 5.56% 8.0% 4.80% 6.0% 4.0% 2.0%
Slide 35: Trading Price (Indexed)
Trading Price (Indexed) 180 a-iTrust Property Index 160 STI Index a-iTrust All Share Index 140 REITs Index Sensex Index 120 Dow Jones Index Bombay SE Realty Index 100 80 60 40 20 0 IPO Dec 07 Mar 08 Jun 08 Oct 08 Dec 08 Mar 09 Data Source: Bloomberg 35
Slide 36: Trading Price vs Equities (Indexed)
Trading Price vs Equities (Indexed) 250 a-iTrust Indiabulls Real Estate Ltd 225 DLF Ltd 200 Unitech Ltd HDIL 175 a-iTrust Ishaan Property Trust 150 Hirco Property Trust Indiabulls Properties Investment Trust 125 100 75 50 25 0 IPO Dec 07 Mar 08 Jun 08 Oct 08 Dec 08 Mar 09 Data Source: Bloomberg 36
Slide 37: Maintain Stable Performance
Maintain Stable Performance Total Property Income Net Property Income S$’000 S$’000 17,424 18,000 17,046 32,000 30,827 16,116 29,820 16,030 15,710 15,691 30,000 28,641 28,793 * 16,000 15,370 27,233 28,000 26,970 14,000 13,340 25,290 26,000 23,220 12,000 24,000 22,000 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1
Slide 38: DPU Growth
DPU Growth S$cents 2.20 2.020 2.050 2.00 1.820 1.80 1.640 1.650 1.60 1.475* 1.475* 1.500 1.40 1.20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 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
Slide 39: Increasing DPU
Increasing DPU DPU for FY08/09 outperformed forecast by 10% S$ cents 8.0 7.54 +24% +10% 7.0 6.85 6.09 Q4 2.05 6.0 5.0 Q3 2.02 4.0 3.0 Q2 1.82 2.0 1.0 Q1 1.65 0.0 Actual Actual Forecast FY07/08 FY08/09 FY08/09 39
Slide 40: Putting things in perspective
Putting things in perspective Difficult year: - Global financial market sentiment remained strained and asset values have dropped across both mature and emerging economies - Credit crunch may have softened the demand and supply of real estate space in India However India’s investment scenario remain
Slide 41: Putting things in perspective
Putting things in perspective - IT Research & Consultancy firm, Gartner has recently identified top 30 countries for offshore services in 2008, over total of 72 countries & India continues to be rated as the leader in offshore services - Quality labour for IT at competitive rates Salary for IT / sof
Slide 42: Putting things in perspective
Putting things in perspective Despite challenging conditions, a-iTrust’s has achieved : - High portfolio occupancy rate of 98% - Approximate 1.6 million sq ft of space renewed / leased - Retention rate of 89% as at end of 31 March 2009 Portfolio continues to be well positioned to serve target market
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 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 45
Slide 46: 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 46
Slide 47: CyberPearl
CyberPearl Park Statistics Site area: 6 acres Park Population: 5,000 people Operating Buildings: 431,000 sq ft Owned SBA 47
Slide 48: The V
The V 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 100% distributions to 31 March 2009 income and ≥ 90% thereafter ≤ 35% of deposited property Gearing (≤ 60.0%
Ascendas India Trust — FY2008/09 Earnings Presentation on 6ix