Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — FY2016/17 Earnings Presentation
52 slides from Capitaland India Trust's earnings presentation, Apr 26, 2017
Slide 1: 4Q FY16/17 Financial Results Presentation
4Q FY16/17 4Q FY2011/12 Financial Results PresentationInvestor Presentation 26 April 2017 ASEAN Stars Conference 2012 1 March 2012 Asia’s First Listed Indian Property Trust Asia’s First Listed Indian Property Trust
Slide 2: Disclaimer
Disclaimer This presentation on a-iTrust’s results for the financial year and quarter ended 31 March 2017 (“FY16/17” & “4Q FY16/17”) should be read in conjunction with a-iTrust’s quarterly results announcement, a copy of which is available on www.sgx.com or www.a-iTrust.com. This presentation may co
Slide 3: FY16/17 key highlights
FY16/17 key highlights Acquisition: • Acquired BlueRidge 2 in February 2017, a 1.5 million sq ft IT SEZ property, marking a-iTrust’s entry into Pune. Development: • Completed construction of Victor in June 2016, a 0.6 million sq ft multi- tenanted office building in ITPB. Victor was fully leased on
Slide 4: Content: Financial review
Content • Financial review 44
Slide 5: FY16/17 results
FY16/17 results FY16/17 FY15/16 Variance SGD/INR FX rate1 48.5 47.1 3% • Income from aVance 3, CyberVale 3, Victor Total property ₹7,587m ₹6,784m 12% and BlueRidge 2; and income • Positive rental reversions. Net property • Increase due to higher revenue. ₹5,047m ₹4,415m 14% income Income available ₹
Slide 6: 4Q FY16/17 results
4Q FY16/17 results 4Q FY16/17 4Q FY15/16 Variance SGD/INR FX rate1 47.3 48.0 (2%) • Income from CyberVale 3, Victor and Total property ₹2,088m ₹1,722m 21% BlueRidge 2; and income • Positive rental reversions. Net property • Increase due to higher revenue. ₹1,371m ₹1,114m 23% income Income available
Slide 7: Cumulative distribution
Cumulative distribution Period 1 April 2016 to 31 March 2017 1Q FY16/17 1.36¢ per unit 2Q FY16/17 1.37¢ per unit Cumulative distribution 3Q FY16/17 1.42¢ per unit Amount: 2.96¢ Ex-date: 16 May 2017 4Q FY16/17 1.54¢ per unit Payment date: 26 May 2017 Total 5.69¢ per unit Distributions are paid on a s
Slide 8: Revenue growth trends
Revenue growth trends Total Property Income (INR) Total Property Income (SGD) INR million S$ million 5% 12% CAGR CAGR 156.7 7,587 144.0 6,784 127.5 126.3 128.8 6,108 120.9 121.5 118.1 120.7 5,774 5,540 4,899 102.7 4,182 4,007 3,783 2,801 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY08 FY09 FY
Slide 9: Income growth trends
Income growth trends Net Property Income (INR) Net Property Income (SGD) INR million S$ million 6% 13% CAGR CAGR 104.2 5,047 93.7 4,415 77.6 3,681 73.8 70.6 73.0 72.1 72.1 3,450 66.2 3,165 60.5 2,805 2,448 2,425 2,117 1,651 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY08 FY09 FY10 FY11 FY12 F
Slide 10: SGD distributions moderated by weak Indian Rupee
SGD distributions moderated by weak Indian Rupee DPU1 (S¢) INR/SGD exchange rate2 Change since listing 110 INR depreciation against SGD: -43% SGD DPU: +16% 2.05 2.06 100 2.02 1.82 1.85 1.85 1.79 1.70 1.65 1.72 1.71 90 1.64 1.66 1.55 1.50 1.54 1.52 1.52 1.58 1.48 1.48 1.50 1.50 1.50 1.46 1.52 1.51 1.
Slide 11: Healthy growth in portfolio valuation
Healthy growth in portfolio valuation 31 March 2017 31 March 2016 Property1,2 (INR mil) Valuation Cap rate Valuation Cap rate Variance International Tech Park Bangalore 25,000 9.75%3 23,761 9.75%3 5.2% International Tech Park Chennai 14,704 9.75% 13,332 9.75% 10.3% CyberVale, Chennai 2,768 10.75% 2,
Slide 12: Capital management
Capital management Objectives • Employ the appropriate strategy to manage currency risk; • Diversify the Trust’s funding sources; • Maintain a healthy balance sheet by keeping gearing at an appropriate level; and • Ensure sufficient liquidity to meet the Trust’s business requirements. Funding strate
Slide 13: Currency hedging strategy
Currency hedging strategy Income • Trustee-Manager hedges distributable income and does not intend to speculate on currency. • Plain vanilla forward contracts are used to hedge a substantial portion of forecast repatriation from India to Singapore. On the designated date, Trustee- Manager will excha
Slide 14: Debt expiry profile
Debt expiry profile Effective borrowings: S$475 million Hedging ratio INR: 73% SGD: 27% S$ Million 0.0 138.0 0.0 0.0 0.0 99.5 88.9 85.5 119.0 69.5 0.0 49.2 61.9 52.0 0.0 39.2 14.2 27.0 33.5 30.0 11.6 19.0 2.6 10.0 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 SGD Denominated debt INR Denominated d
Slide 15: Capital structure
Capital structure Indicator As at 31 Mar 2017 Interest service coverage 3.7 times (EBITDA/Interest expenses) (FY16/17) Percentage of fixed rate debt 99% Percentage of unsecured borrowings 100% Gearing: 29% Effective weighted average cost of debt 6.8%1 Gearing limit 45% Available debt headroom S$456
Slide 16: Content: Operational review
Content • Operational review 1616
Slide 17: India remains a dominant IT/offshoring hub
India remains a dominant IT/offshoring hub • One of the fastest growing major economies in the Salary for IT/software engineer, developer or programmer4 world with GDP growth estimated at 6.6% in 20161 Countries US$ (p.a.) • India moving up value chain to offer cutting edge product development and R
Slide 18: Office markets improving
Office markets improving Bangalore (Whitefield) Hyderabad (Hitec City) 4.0 4.0 17.9% 3.0 3.0 11.3% 2.0 2.0 5.3% 5.5% 6.8% 5.5% 5.1% 4.9% 5.2% 4.6% 1.0 1.0 0.0 0.0 CY 2013 CY 2014 CY 2015 CY 2016 1Q 2017 CY 2013 CY 2014 CY 2015 CY 2016 1Q 2017 Chennai (OMR) Pune (Hinjewadi) 4.0 2.0 8.5% 16.3% 7.2% 3.
Slide 19: Diversified portfolio
Diversified portfolio Portfolio breakdown Customer Base Total number of tenants 300 Pune Chennai Average space per tenant 33,800 sq ft 14% 25% Bangalore Largest tenant accounts for 36% 6% of the portfolio base rent Hyderabad 25% Floor area 11.1 million sq ft All information as at 31 March 2017. 19
Slide 20: Healthy portfolio occupancy
Healthy portfolio occupancy Committed portfolio occupancy: 98% (excluding BlueRidge 2) 92% (including BlueRidge 2) 100% 100% 99% 100% 100% 95% 95% 95% 98% 96% 95% 95% 95% 55% 2 1%2 54% ITPB ITPC CyberVale The V CyberPearl aVance BlueRidge 2 a-iTrust occupancy Committed occupancy Market occupancy of
Slide 21: Spread-out lease expiry profile
Spread-out lease expiry profile Weighted average lease term: Weighted average lease expiry: Retention rate: 6.4 years 4.1 years 80%1 Sq ft expiring 4,500,000 45% 40% 4,000,000 40% 3,500,000 35% 3,000,000 30% 26% 2,500,000 25% 2,000,000 20% 13% 1,500,000 15% 10% 10% 1,000,000 10% 500,000 5% - 0% FY17
Slide 22: Quality tenants
Quality tenants Top 10 tenants (in alphabetical order) 1 Bank of America 2 Cognizant 3 General Motors Top 10 tenants 4 Mu Sigma accounted for 35% of 5 Renault Nissan portfolio base rent 6 Societe Generale 7 Tata Consultancy Services 8 The Bank of New York Mellon 9 UnitedHealth Group 10 Xerox All inf
Slide 23: Diversified tenant base
Diversified tenant base Tenant core business & activity by base rental Oil & 1 Telecommunication F&B Gas Retail R&D Retail & F&B 1 Others & Network 2% 1% 1% IT, Software & 3% 3% 1% 2% Application Others 3% Development and ITES 1 Healthcare & Service Support 7% 1 Pharmaceutical 51% IT 4% 49% Electron
Slide 24: Diversified tenant base
Diversified tenant base Tenant country of origin & company structure by base rental 2 Indian Co 7% 1 3 MNC 93% All information as at 31 March 2017. 1. Comprises Indian companies with local and overseas operations. 2. Comprises Indian companies with local operations only. 3. Multinational corporation
Slide 25: Engaging park employees
Engaging park employees Event Benny Dayal Charity Show International Women’s Day City Bangalore Chennai Month March 2017 March 2017 25
Slide 26: Content: Growth strategy
Content • Growth strategy 2626
Slide 27: Good growth track record
Good growth track record Total developments: Total acquisitions: 4.0 million sq ft 3.6 million sq ft 13% Floor area (million square feet) CAGR 11.1 1.5 BlueRidge 2 9.0 0.6 Victor 8.1 1.0 7.5 0.6 6.9 6.9 0.6 6.0 0.4 0.5 4.7 4.8 4.8 1.2 0.1 9.0 3.6 1.1 8.1 6.9 6.9 7.5 6.0 4.7 4.8 4.8 3.6 3.6 IPO Mar-0
Slide 28: Clear growth strategy
Clear growth strategy • 2.24m sq ft in Bangalore Development • 0.37m sq ft in Chennai pipeline • 0.43m sq ft in Hyderabad • 2.27m sq ft from Ascendas Land Growth Sponsor International Pte Ltd assets • Ascendas India Development Trust strategy • Ascendas India Growth Programme 3rd party • 2.92m sq ft
Slide 29: Development: ITPB pipeline
Development: ITPB pipeline Future Development Potential International Tech Park Bangalore • 2.24 million sq ft of additional space can be developed over time. • A new 0.50 million sq ft multi-tenanted building is currently being planned. Construction expected to commence in 2H 2017. Park Square (Mal
Slide 30: Development: New multi-tenanted building
Development: New multi-tenanted building Name MTB 4 Property International Tech Park Bangalore Floor area (sq ft) 500,000 Status Construction expected to commence in 2H 2017 30
Slide 31: Development: The V pipeline
Development: The V pipeline Development Potential The V master plan • Redeveloping the V in phases to gain additional floor area. • Constructing 0.43 million sq ft multi-tenanted building Orion named Atria. Multi-level Vega carpark Capella Mariner New multi-tenanted building (Atria) Auriga 31
Slide 32: Development: Atria building
Development: Atria building Property The V Floor area (sq ft) 428,000 Construction status Completion expected in 2H 2017 Lease commitment 84.3%1 1. As at 31 March 2017. 32
Slide 33: Sponsor: Assets in India
Sponsor: Assets in India Ascendas Land International Pte Ltd • International Tech Park, Pune: • 2 phases comprising 1.28 million sq ft completed and leased to Synechron and Infosys • Phase 3 of 0.6 million sq ft under construction • Vacant land with remaining development potential of 0.39 million sq
Slide 34: 3rd party: Acquisition criteria for commercial space
3rd party: Acquisition criteria for commercial space • Target cities: • Bangalore • Chennai • Hyderabad • Pune • Mumbai • Delhi • Gurgaon • Investment criteria: • Location • Tenancy profile • Design • Clean land title and land tenure • Rental and capital growth prospects • Opportunity to add value 3
Slide 35: 3rd party: aVance Business Hub, Hyderabad
3rd party: aVance Business Hub, Hyderabad (1) (3) (6) (8) (4) (7) (2) (1) (5) (9) (10) (2) Park Statistics Site area: 25.7 acres / 10.4 ha (1), (2), (3) & (4) owned by a-iTrust: 1.50m sq ft Vendor assets: marked in black Conditional acquisitions of (5) & (6)1: 1.76m sq ft Land owner assets: marked i
Slide 36: 3rd party: aVance Business Hub, Hyderabad
3rd party: aVance Business Hub, Hyderabad Completed Pipeline aVance 1 & 2 (0.43 million sq ft): aVance 5 (1.13 million sq ft): • Acquisition completed in February 2012. • a-iTrust has the right to acquire building, • Purchase consideration was ₹1.77 billion subject to required occupancy levels being
Slide 37: 3rd party: BlueRidge 2, Pune
3rd party: BlueRidge 2, Pune Location Hinjewadi IT Park Phase II, Pune Floor area 1.50 million sq ft Acquisition date 1 February 2017 Total acquisition price Expected to not exceed ₹6.9 billion1 (S$147.3million2) Lease commitment 55.3%3 (Additional 14.5% of space under advanced discussions) 1. Inclu
Slide 38: Logistics: Key demand drivers
Logistics: Key demand drivers 1 Rise of • Rapid progress under ‘Make in India’ campaign (e.g FDI increase in defence and railways; manufacturing new plants announced by MNCs like Samsung, Apple, Hitachi, Huawei, Xiaomi, Foxconn) sector 2 Retail & • Warehousing requirements of the “E-tail” segment se
Slide 39: Logistics: Impact of Goods and Services Tax (GST)
Logistics: Impact of Goods and Services Tax (GST) Pre GST • Multiple tax rates levied at different 36 Warehouses states. • Companies have to locate warehouses ` in all the states that they operate in. v • Results in many small, fragmented warehouses located within state boundaries. • GST will consol
Slide 40: Logistics: India warehouse overview
Logistics: India warehouse overview Grade A & B warehouse supply in top 7 Indian cities1 (2016) Hyderabad Ahmedabad Grade A 4% 30.9 million 8% sq ft Chennai Mumbai 10% 20% 30% 70% NCR Delhi Bangalore Grade B 29% 17% 71.9 million sq ft Pune 12% 1. Source: Jones Lang LaSalle Report 2017 40
Slide 41: Logistics: Growing demand for warehousing space
Logistics: Growing demand for warehousing space Warehousing space requirement in top 7 Indian markets1 (million sq ft) 1000 900 8% CAGR 839 29 800 621 154 700 600 14 120 500 400 656 300 487 200 100 0 2016 2020E Manufacturing Brick and mortar retail E-tail 1. Consisting of Mumbai, NCR, Bengaluru, Che
Slide 42: Logistics: Term sheet signed for Panvel warehouses
Logistics: Term sheet signed for Panvel warehouses • On 12 April 2017, a-iTrust signed a term sheet1 with Arshiya Limited for the proposed acquisition of operating warehouses at the Arshiya Free Trade Warehousing Zone located at Panvel, near Mumbai. • The proposed acquisition includes six income-pro
Slide 43: Content: Outlook
Content • Outlook 4343
Slide 44: Growth based on committed pipeline
Growth based on committed pipeline Floor area (million square feet) 8% 12.42 0.4 11.51 0.5 11.5 Apr-17 Growth pipeline Portfolio MTB 4 Atria building 1. Includes aVance 4, which was acquired on 11 April 2017. 2. a-iTrust’s pro-forma gearing rises to 32% on completion of development and acquisition o
Slide 45: Appendix: Glossary
Appendix Glossary Trust properties : Total assets. Derivative financial : Includes cross currency swaps (entered to hedge SGD borrowings into INR), interest rate swaps and instruments forward foreign exchange contracts. DPU : Distribution per unit. EBITDA : Earnings before interest expense, tax, dep
Slide 46: Average currency exchange rate
Average currency exchange rate Average exchange rates used to translate a-iTrust’s INR income statement to SGD 1 Singapore Dollar buys Jan Feb Mar Indian Rupee 2017 47.6 47.4 46.9 2016 46.7 48.5 48.8 SGD appreciation/(depreciation) 1.9% (2.4%) (3.8%) 1 Singapore Dollar buys 1Q 2Q 3Q 4Q FY Indian Rup
Slide 47: Balance sheet
Balance sheet As at 31 March 2017 INR SGD Total assets ₹75.41 billion S$1,614 million Total borrowings ₹21.17 billion S$453 million Deferred consideration1 ₹0.54 billion S$12 million Derivative financial instruments ₹0.50 billion S$11 million Effective borrowings2 ₹22.21 billion S$475 million Fully
Slide 48: World-class IT parks
World-class IT parks Name International International CyberVale CyberPearl The V aVance BlueRidge 2 Tech Park Tech Park Business Hub Bangalore Chennai City Bangalore Chennai Chennai Hyderabad Hyderabad Hyderabad Pune 68.5 acres 15.0 acres 18.2 acres 6.1 acres 19.4 acres 25.7 acres 5.4 acres Site are
Slide 49: Lease expiry profile
Lease expiry profile FY21/22 & City FY17/18 FY18/19 FY19/20 FY20/21 Total Beyond Bangalore 1,046,600 392,600 217,200 392,100 1,670,000 3,718,500 Chennai 1,103,000 265,900 471,900 123,500 848,900 2,813,100 Hyderabad 510,500 661,500 362,000 452,400 734,000 2,720,400 Pune - - - - 814,600 814,600 Total
Slide 50: a-iTrust unit price versus major indices
a-iTrust unit price versus major indices (Indexed) Indicator 175 Trading yield 5.1%1 (as at 31 Mar 2017) 150 Average daily trading volume 548,600 units (4Q FY16/17) 125 100 a-iTrust FTSE STI Index 75 FTSE ST REIT Index INRSGD FX Rate 50 25 Bombay SE Realty Index 0 IPO Mar 17 Dec 10 Dec 13 Dec 07 Dec
Slide 51: 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 100% ownership & Divi
Slide 52: Investor contact
Investor contact James Goh, CFA Head, Investor Relations & Asset Management Ascendas Property Fund Trustee Pte Ltd (Trustee-Manager of a-iTrust) Office: +65 6774 1033 Email: james.goh@a-iTrust.com Website: www.a-iTrust.com 52
Ascendas India Trust — FY2016/17 Earnings Presentation on 6ix