Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust (a-iTrust) — Q3 FY2011/12 Earnings Presentation
50 slides from Capitaland India Trust's earnings presentation, Jan 26, 2012
Slide 1: 3Q FY2011/12 Financial Results Presentation
3Q FY2011/12 Financial Results Presentation 26 January 2012 Asia’s First Listed Indian Property Trust 1
Slide 2: Disclaimer
Disclaimer This presentation on a-iTrust’s results for the financial quarter ended 31 December 2011 (“3Q FY11/12”) 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 s
Slide 3: Agenda
Agenda • Financial & operational review • Growth strategy • Performance review • Summary 3
Slide 4: Key financial highlights
Key financial highlights • 3Q FY11/12 SGD revenue grew 2% y-on-y • Underlying INR revenue up 19% y-on-y • 3Q FY11/12 SGD net property income grew 3% y-on-y • Underlying INR net property income up 19% y-on-y • SGD financial performance depressed by the 16% appreciation of SGD against INR from a year
Slide 5: Key operational highlights
Key operational highlights • 2.2 million sq ft1 of floor space was leased/renewed in YTD FY11/12, exceeding freed-up space from expired/pre-terminated leases • 96%2 portfolio occupancy • Low client concentration: • Top 10 tenants account for 33%3 of portfolio base rent • Robust balance sheet: • No o
Slide 6: 3Q FY11/12 results – YoY comparison
3Q FY11/12 results – YoY comparison 3Q FY11/12 3Q FY10/11 Variance Explanation (%) Total Property S$30.6m S$29.9m 2% • In INR terms, total property income rose 19% due to income Income INR 1,225m INR 1,031m 19% contributions from new buildings1. • Total property income growth was lower in SGD terms
Slide 7: 3Q FY11/12 results – QoQ comparison
3Q FY11/12 results – QoQ comparison 3Q FY11/12 2Q FY11/12 Variance Explanation (%) Total Property S$30.6m S$31.4m (2%) • In INR terms, total property income was up 3% due to higher Income INR 1,225m INR 1,192m 3% income contribution from the new buildings • Total property income growth was lower in
Slide 8: Distribution per Unit
Distribution per Unit Period 1 April 2011 to 31 December 2011 1Q FY11/12 1.50¢ per unit 2Q FY11/12 1.54¢ per unit 3Q FY11/12 1.50¢ per unit YTD FY11/12 4.54¢ per unit Distributions are paid on a semi-annual basis for the six-month periods ending 31 March & 30 September of each year 8
Slide 9: 96% portfolio occupancy
96% portfolio occupancy1 3 a-iTrust Occupancy Market Occupancy of Peripheral Area2 New Buildings ITPB (excl. ITPC (excl. The V CyberPearl Zenith ParkSquare Voyager Park Square Zenith) (ITPC) (ITPB) (ITPB) 1. As at 31 Dec 2011, excluding Zenith (ITPC), Park Square (ITPB) & Voyager (ITPB) which were c
Slide 10: Strong leasing momentum
Strong leasing momentum Leasing activities from 1 April 2011 to 31 December 2011 Area (Sq ft) 2,500,000 2,197,500 Voyager 230,500 2,000,000 Retention rate: 79% Park Square 116,1002 Committed leases for new buildings Zenith 482,000 1,500,000 140,500 328,200 1,134,300 1,000,000 900,200 234,000 1,369,0
Slide 11: Spread-out lease expiry profile
Spread-out lease expiry profile Portfolio lease expiry profile1 Sq ft expiring 22.8% WALE: 4.5 years2 22.1% 15.2% 14.8% 9.6% 10.3% 5.2% FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 & Beyond All information as at 31 December 2011 1. Includes leases in Zenith (ITPC), Park Square (ITPB) & Vo
Slide 12: Diversified portfolio
Diversified portfolio Portfolio breakdown Customer Base Total number of tenants 308 Average space per tenant 19,397 sq ft Hyderabad 27% Bangalore 43% Largest tenant accounts for Chennai 6.8% of the portfolio base rent 30% Total Owned SBA = 6.4 million sq. ft. All information as at 31 December 2011 N
Slide 13: Quality tenants
Quality tenants Top ten tenants in alphabetical order 1 Affiliated Computer Services of India Pvt. Ltd. 2 Applied Materials India Pvt. Ltd. 3 BA Continuum Pvt. Ltd.1 4 Cognizant Technology Solution (India) Pvt. Ltd. 5 First American (India) Private Limited Top 10 Tenants 6 General Motors India Pvt.
Slide 14: Diversified tenant base
Diversified tenant base Tenant core business & activity by base rental1 All information as at 31 December 2011 1. Includes leases in Zenith (ITPC), Park Square (ITPB) & Voyager (ITPB) for which possession of units have taken place. 2. IT - Information Technology; R&D: Research & Development; F&B – F
Slide 15: Diversified tenant base
Diversified tenant base Tenant country of origin & company structure by base rental1 3 2 4 All information as at 31 December 2011 1. Includes leases in Zenith (ITPC), Park Square (ITPB) & Voyager (ITPB) for which possession of units have taken place. 2. Comprises Indian companies with local and over
Slide 16: Social events
Social events ITPC Talent Hunt ITPB Talent Fesitival “Livewire” 2011 Hyderabad – CSR activities ITPC Diwali Dharmaka 16
Slide 17: Low gearing ratio
Low gearing ratio Indicator As at 31 Dec 2011 Interest service coverage 3.8 times (EBITDA1 / Interest expenses2) (YTD FY11/12) Percentage of fixed rate debt 100% Gearing: 24.6%4 Secured borrowings / Asset value 6.1%3 Effective weighted average cost of debt 6.0% (Net of tax shield benefits) 1. Earnin
Slide 18: Spread-out loan expiry profile
Spread-out loan expiry profile Debt maturity profile S$ Million Zero debt expiring in current Financial Year INR-Denominated Loan1 SGD-Denominated Loan1 All information as at 31 December 2011 1. Excluding minority interests. 18
Slide 19: Significant debt headroom
Significant debt headroom S$ Million 60% Cap S$715m debt capacity1 35% Cap S$130m debt capacity1 Current gearing 25% Total assets2 Current debt2 Available debt capacity 1. Calculation of debt headroom assumes further gearing capacity on new asset acquired. 2. Excluding minority interests. 19
Slide 20: Currency hedging strategy
Currency hedging strategy • Trustee-Manager engages in hedging to manage the impact of foreign exchange fluctuations on distributable income. Trustee-Manager does not intend to take speculative positions on the currency market. • Plain vanilla forward contracts are used to hedge a substantial portio
Slide 21: Agenda
Agenda • Financial & operational review • Growth strategy • Performance review • Summary 21
Slide 22: Clear growth strategy
Clear growth strategy • New completions added 1.7 million sq ft to portfolio Development • Planning for 0.5 million sq ft for pipeline end Dec 2013 completion • 2.0 million sq ft of land available for development Growth Sponsor • Right of First Refusal (“ROFR”) from Ascendas Land International asset
Slide 23: New completions added 1.7m sq ft to portfolio
New completions added 1.7m sq ft to portfolio Zenith (ITPC) Park Square (ITPB) Voyager (ITPB) Multi-Tenanted Retail Mall Multi-Tenanted Office Building Office Building • Completed Dec 2010 • Completed Dec 2010 • Completed Jun 2011 • Tenancy commitment level as at • Tenancy commitment level as at • T
Slide 24: Park Square officially launched on 21 Dec 2011
Park Square officially launched on 21 Dec 2011 Tenant mix 24
Slide 25: Substantial development pipeline
Substantial development pipeline Further development in ITPB – additional 2.5 million sq. ft. Park Square (Retail) New Multi-Tenanted Office Taj Vivanta (Hotel) Building (ITPB) Existing income- • 540,000 sq ft development producing space • Finalising design, & procuring approval & construction contr
Slide 26: ROFR – Ascendas Land International Pte Ltd
ROFR – Ascendas Land International Pte Ltd • ALI owns CyberVale, an IT SEZ in Chennai, and International Tech Park Pune (“ITPP”), a development project in Pune • CyberVale comprises 535,000 sq ft of income producing space & 4.4 acres of land (which can Cybervale, Chennai be developed into a 280,000
Slide 27: ROFR – Ascendas India Development Trust
ROFR – Ascendas India Development Trust • AIDT focuses on integrated real estate development & has committed equity of S$500 million with target investment size of S$1 billion • About 10 million sq ft of business space development potential in key Ascendas OneHub Gurgaon cities such as Gurgaon, Chen
Slide 28: 3rd party acquisitions
3rd party acquisitions • Trustee-Manager actively pursuing investment opportunities • a-iTrust has substantial debt capacity before reaching its voluntary gearing limits1 • S$130 million debt headroom to 35% gearing limit • S$715 million debt headroom to 60% gearing limit • Flexibility to fund acqui
Slide 29: Acquisition of aVance Business Hub
Acquisition of aVance Business Hub • a-iTrust announced that it will conditionally acquire a portfolio of up to 5 buildings at an IT/ITES1 Special Economic Zone (“SEZ”) in Hyderabad, India, to be known as aVance Business Hub • Key regulatory approval was obtained in September 2011, and the transacti
Slide 30: aVance Business Hub
aVance Business Hub (1) (2) Park Statistics Site area: 25.7 acres / 10.4 ha Potential acquisition of 4 landowners’ Imminent acquisitions of buildings (1) & (2): buildings from right of first refusal: 0.43m sq ft 1.16m sq ft Future acquisitions of buildings (3), (4) & (5): Vendor assets: buildings ma
Slide 31: Agenda
Agenda • Financial & operational review • Growth strategy • Performance review • Summary 31
Slide 32: Trading yield versus other Singapore investments
Trading yield versus other Singapore investments Trading yield 8.8%1 8.1%2 6.9%3 6.6%4 a-iTrust FTSE ST 10-yr S’pore 5-yr S’pore STI Stocks6 CPF Ordinary 12-mth (S$) REIT Index Govt Bond5 Govt Bond5 Account7 Fixed Deposit8 Source: MAS, CPF, Bloomberg 1. Distribution yield based on annualised DPU of
Slide 33: Trading yield versus Indian Government Bond
Trading yield versus Indian Government Bond Total return for India Government Bonds is further reduced by additional capital gains tax of 10%-40% imposed on sale of securities (capital gains tax rate is determined by investor type & holding period). Trading yield 8.8%1 8.1%2 a-iTrust India 10-yr Gov
Slide 34: a-iTrust unit price versus market indices
a-iTrust unit price versus market indices a-iTrust Source: Bloomberg 34
Slide 35: a-iTrust unit price versus Indian peers
a-iTrust unit price versus Indian peers a-iTrust Source: Bloomberg 35
Slide 36: Revenue growth moderated by weak Indian Rupee
Revenue growth moderated by weak Indian Rupee Total Property Income in Total Property Income Singapore Dollar in Indian Rupee FY2007/08 FY2008/09 FY2009/10 FY2010/11 FY2011 /12 36
Slide 37: Income growth moderated by weak Indian Rupee
Income growth moderated by weak Indian Rupee Net Property Income Net Property Income in Singapore Dollar in Indian Rupee FY2007/08 FY2008/09 FY2009/10 FY2010/11 FY2011 /12 37
Slide 38: DPU dampened by weak Indian Rupee
DPU dampened by weak Indian Rupee SGD/INR exchange rate2 1 1 DPU SGD/INR exchange rate 1. DPU for first & second quarters of FY2007/08 were reported together post listing of a-iTrust. The reported DPU was split equally between the 2 quarters for illustrative purposes. 2. Relative SGD/INR exchange ra
Slide 39: Agenda
Agenda • Financial & operational review • Growth strategy • Performance review • Summary 39
Slide 40: Attractive Indian fundamentals
Attractive Indian fundamentals Salary for IT/software engineer, • India is world’s fourth largest economy by developer or programmer2 purchasing power parity Countries US$ (p.a.) • India GDP grew 6.9% for the quarter ended 31 India 7,554 December 2011. IMF has forecast India GDP Malaysia 18,713 grow
Slide 41: Summary
Summary • Quality income assets & significant debt capacity • Customer diversification • Current gearing of 25% • Portfolio occupancy of 96% • WALE of 4.5 years • Clear growth strategy • Development pipeline • Acquisition of 3rd party/sponsor assets • Income upside • Increasing income recognition fr
Slide 42: Appendix
Appendix Appendix 42
Slide 43: “Ascendas Advantage”
“Ascendas Advantage” • Quality space • Reliable solutions • International business lifestyle: • Recreational activities Park Square Retail Mall • Retail mall • Fitness centre • Restaurants & food courts • Clinics • Banks Gym at Pinnacle Social activities 43
Slide 44: World-class IT parks
World-class IT parks ITPB ITPC CyberPearl The V Name International Tech Park International Tech CyberPearl, The V, Bangalore (“ITPB”) Park Chennai (“ITPC”) Hyderabad Hyderabad Site area (acres) 69 15 6 19 (ha) 27.9 6.1 2.4 7.7 Operating buildings1 2.8 1.9 0.4 1.3 (‘mil sq ft) Park 27,000 22,000 5,00
Slide 45: 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 Dividends, principal
Slide 46: REIT-like characteristics enhance stability of distributions
REIT-like characteristics enhance stability of distributions Adherence to safeguarding provisions Permissible on allowable investments under Investment Property Fund Guidelines Distributable Minimum 90% to be distributed income ≤ 35% of deposited property Gearing (≤ 60.0% with credit rating) Tax-fre
Slide 47: Proposed acquisition of aVance Business Hub
Proposed acquisition of aVance Business Hub Building Completion (1) Mar IMMEDIATE 231,622 sq ft 2008 2 Operating 427,6512 ACQUISITION VENDOR’S Buildings sq ft (S$50.4 million1) BUILDINGS (2) Nov 196,0292 sq ft 2008 2.18m sq ft over 5 buildings to be (3) acquired from 20123 Phoenix Infocity Pvt FUTUR
Slide 48: Net property income in INR
Net property income in INR 3Q 3Q 2Q YTD YTD FY11/12 FY10/11 FY11/12 FY11/12 FY10/11 INR'000 INR'000 INR'000 INR'000 INR'000 Gross Rent 720,410 588,426 695,889 2,044,700 1,775,394 Amenities 24,998 21,197 22,673 69,804 64,930 Fit Out Rental 24,419 32,473 26,000 78,614 99,690 Operations & Maintenance 4
Slide 49: Average currency exchange rate
Average currency exchange rate Weighted average exchange rates for total property income & net property income 1 Singapore Dollar buys Q1 Q2 Q3 Q4 Indian Rupee FY 11/12 36.2 38.0 40.0 FY 10/11 33.0 34.5 34.5 35.7 Change (last corresponding period) -10% -10% -16% Note: These rates represent the deriv
Slide 50: 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 50
Ascendas India Trust (a-iTrust) — Q3 FY2011/12 Earnings Presentation on 6ix