Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — Shareholder Meeting (July 2017)
42 slides from Capitaland India Trust's shareholder meeting presentation, Jul 13, 2017
Slide 1: 10th Annual General Meeting
3Q FY12/13 Investor Presentation ASEAN Ascendas Stars India Conference 2012 Trust 1 MarchGeneral 10th Annual 2012 Meeting 13th July 2017 Asia’s First Listed Indian Property Trust Asia’s First Listed Indian Property Trust
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Represen
Slide 3: Content: a-iTrust overview
Content • a-iTrust overview 3 3
Slide 4: a-iTrust Overview
a-iTrust Overview Our presence Pune 14% Chennai 25% 11.1 million sq ft of completed floor area Bangalore Pune 36% Hyderabad • BlueRidge 2 25% Bangalore Hyderabad Chennai 12% • International Tech • The V Park Bangalore Hyderabad • CyberPearl 14% • aVance Business Chennai Hub 3.0 million sq ft • Inter
Slide 5: World class IT parks
World class IT parks Our product International business lifestyle • Recreational activities Modern IT Parks built to international specifications & standards. ITPB Sports Meet 2016 Award winning properties Extensive amenities • ITPB: 2012 FIABCI Prix d’Excellence Award • Gymnasiums and fitness facil
Slide 6: Content: FY16/17 performance
Content • FY16/17 performance 6
Slide 7: 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 8: 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 9: Portfolio valuation
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% 2,522 10.75% 9.8% Cy
Slide 10: Content: Market and operational review
Content • Market and operational review 10 10
Slide 11: Improving market fundamentals
Improving market fundamentals Supply & demand trends Bangalore (Whitefield) Hyderabad (Hitec City) 4.0 17.9% 4.0 3.0 3.0 11.3% 2.0 2.0 6.8% 5.5% 5.3% 5.5% 5.2% 5.1% 4.9% 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
Slide 12: Quality tenants
Quality tenants Tenant statistics Top 10 tenants (in alphabetical order) 1 Bank of America 62% 2 Cognizant US companies 3 General Motors 4 Mu Sigma 5 Renault Nissan 6 Indian Co Societe Generale 7% 7 Tata Consultancy Services 8 The Bank of New York Mellon 93% 9 UnitedHealth Group multinational compan
Slide 13: Diversified tenant base
Diversified tenant base Tenant statistics 300 tenants Diversified tenant industry Oil & Telco F&B Gas Retail 100,900 park employees 2% 2% 1% 1% IT & Software Others Development 3% Healthcare & 51% Pharma Largest tenant accounts for 4% 6% of total base rent Electronics & Engineering 7% Design, Gaming
Slide 14: Healthy portfolio occupancy
Healthy portfolio occupancy Occupancy statistics Committed portfolio occupancy: 98% (excluding BlueRidge 21) 100% 100% 99% 100% 100% 95% 95% 96% 95% 95% 98% 95% 95% 55% 2 2 1% 54% ITPB ITPC CyberVale The V CyberPearl aVance BlueRidge 2 a-iTrust occupancy Committed occupancy Market occupancy of perip
Slide 15: Content: Marking our 10th anniversary
Content • Marking our 10th anniversary 15 15
Slide 16: Positive shareholder returns
Positive shareholder returns Total shareholder returns (Aug-07 to Mar-17) Unit Price (S$) 1.80 Absolute change Best performer of 1.60 the SGX S-REIT Index over past 3 86%1 1.40 years with total returns of 90.1%2 1.20 1.00 0.80 Compound Annual 0.60 Growth Rate 0.40 6.6%1 0.20 0.00 Mar 11 Mar 13 Mar 0
Slide 17: Consistent floor area growth
Consistent floor area growth Floor area growth (Aug-07 to Mar-17) Completed Victor in ITPB Acquired BlueRidge 2 in Pune Acquired Absolute change Million • aVance 3 in Hyderabad square feet • CyberVale 3 in Chennai Acquired CyberVale 1 & 2 in Chennai 7.6 mil sq ft Completed Aviator in ITPB Completed
Slide 18: Healthy income growth
Healthy income growth Net property income growth (FY08 to FY17) INR million Absolute change 5,047 4,415 ₹3,396 mil 3,681 3,450 3,165 2,805 2,448 2,425 2,117 Compound Annual 1,651 Growth Rate 13.2% IPO FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 18 18
Slide 19: SGD DPU movement
SGD DPU movement SGD DPU (FY08 to FY17) SGD/INR FX rate (Aug-07 vs Mar-17) INR/SGD exchange rate SGD DPU DPU (S¢) (indexed) (100% payout) 8.0 7.5 7.6 absolute change 7.0 6.6 120 6.3 6.1 6.0 6.1 3.8% 6.0 5.4 5.2 5.1 5.7 5.5 100 5.0 4.9 4.7 4.6 4.0 80 SGD/INR FX rate 3.0 absolute change 2.0 60 42.5% 1
Slide 20: Content: Capital management
Content • Capital management 20 20
Slide 21: Conservative balance sheet
Conservative balance sheet Key indicators 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% Availa
Slide 22: 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 23: Content: Risk management
Content • Risk management 23 23
Slide 24: Enhancing corporate governance
Enhancing corporate governance Guidelines and policies • The Trustee-Manager and Property Manager (the Managers) are part of Ascendas-Singbridge (ASB) and the employees of the Managers abide by ASB’s guidelines and policies: • Anti-Bribery and Corruption Policy and Guidelines • Code of Ethics and Co
Slide 25: Enhancing corporate governance
Enhancing corporate governance Enterprise risk management and compliance Enterprise-wide risk management process Compliance Board • Dedicated compliance team to focus on the • Establishes overall risk framework. oversight and management of corporate governance • Identifies key risks with Management.
Slide 26: Content: Growth strategy
Content • Growth strategy 26 26
Slide 27: Clear growth strategy
Clear growth strategy • 2.24m sq ft in Bangalore Development pipeline • 0.37m sq ft in Chennai • 0.43m sq ft in Hyderabad Growth Sponsor • 2.27m sq ft from Ascendas Land International Pte Ltd assets strategy 3rd party • 2.92m sq ft aVance Business Hub acquisitions Logistics • Modern warehouses 27 27
Slide 28: Development: Bangalore pipeline
Development: Bangalore pipeline 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. • 0.62 million sq ft Victor building •
Slide 29: Development: Hyderabad pipeline
Development: Hyderabad pipeline The V • 0.43 million sq ft multi-tenanted building under construction. • Completion expected by 2H 2017. Orion • 84%1 preleased. Multi-level Vega carpark New Capella building Mariner Auriga • Multi-level car park with 660 parking lots. • Completed in March 2016. 1. As
Slide 30: Sponsor: Assets in India
Sponsor: Assets in India Sponsor presence1 International Tech Park, Pune • 2 phases comprising 1.28 million sq ft completed and leased to Synechron and Infosys Gurgaon • Currently constructing Phase 3 (0.60 million sq ft) • Vacant land with remaining development Pune potential of 0.39 million sq ft
Slide 31: 3rd party: Acquiring third-party assets
3rd party: Acquiring third-party assets Acquisition criteria Target cities Investment criteria • Location • Tenancy profile Gurgaon Delhi • Design • Clean land title and land tenure • Rental and capital growth prospects Mumbai Pune • Opportunity to add value Hyderabad Bangalore Chennai 31 31
Slide 32: 3rd party: BlueRidge 2, Pune
3rd party: BlueRidge 2, Pune Acquisition details 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 d
Slide 33: 3rd party: aVance Business Hub pipeline
3rd party: aVance Business Hub pipeline Acquisition details Site plan Investment details (3) aVance 1 & 2 (0.43 million sq ft) (6) (4) • Acquired in February 2012. (2) (8) (7) (5) (1) aVance 3 (0.68 million sq ft) (9) • Acquired in July 2015. (10) aVance 4 (0.39 million sq ft) • Acquired in April 20
Slide 34: Logistics: Favourable macroeconomic factors
Logistics: Favourable macroeconomic factors 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 requir
Slide 35: Logistics: Impact of Goods and Services Tax (GST)
Logistics: Impact of Goods and Services Tax (GST) Consolidation of warehouses Pre GST • Multiple tax rates levied at different 36 Warehouses states. ` • Companies have to locate warehouses v in all the states that they operate in. • Results in many small, fragmented warehouses located within state b
Slide 36: 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 36 36
Slide 37: Logistics: Growing demand for warehousing space
Logistics: Growing demand for warehousing space Warehousing space requirement in top 7 Indian markets1 Million square feet 1000 900 8% CAGR 839 29 800 154 700 621 600 14 120 500 400 656 300 487 200 100 0 2016 2020E Manufacturing Brick and mortar retail E-commerce 1. Consisting of Mumbai, NCR, Bengal
Slide 38: Logistics: Sponsor launches Indian logistics platform
Logistics: Sponsor launches Indian logistics platform Details of joint venture • a-iTrust’s sponsor (Ascendas-Singbridge) is partnering with Indian industrial real estate specialist Firstspace Realty to deliver state-of-the-art logistics and industrial facilities across major warehousing and manufac
Slide 39: Logistics: Term sheet signed for Panvel warehouses
Logistics: Term sheet signed for Panvel warehouses Details of proposed acquisition • 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 acq
Slide 40: Content: Outlook
Content • Outlook 40 40
Slide 41: Growth pipeline
Growth pipeline Committed growth Million square feet 8% 12.4 0.4 Atria building 11.51 0.5 MTB 4 11.5 Portfolio Apr-17 Growth pipeline 1. Includes aVance 4, which was acquired on 11 April 2017. 41 41
Slide 42: Asia's First Listed Indian Property Trust
3Q FY12/13 Investor Presentation ASEAN Ascendas Stars India Conference 2012 Trust 1 MarchGeneral 10th Annual 2012 Meeting 13th July 2017 Asia’s First Listed Indian Property Trust Asia’s First Listed Indian Property Trust
Ascendas India Trust — Shareholder Meeting (July 2017) on 6ix