Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — Q1 FY2013/14 Earnings Presentation
42 slides from Capitaland India Trust's earnings presentation, Jul 22, 2013
Slide 1: 1Q FY2013/14 Financial Results Presentation
1Q FY2013/14 3Q FY2011/12 Financial Results PresentationInvestor Presentation 22 July 2013 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 quarter ended 30 June 2013 (“1Q FY13/14”) 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 state
Slide 3: Agenda
Agenda • Financial review 3 3
Slide 4: 1Q FY13/14 results
1Q FY13/14 results 1Q FY13/14 1Q FY12/13 Variance INR/SGD FX rate1 44.5 43.5 2% Total Property INR 1,392m INR 1,393m - Income • Lower property expenses (INR 44m) mainly Net Property due to lower utilities and other operating INR 815m INR 772m 6% Income expenses. • Increase in INR terms (INR 76m) lar
Slide 5: Revenue growth trends
Revenue growth trends Total Property Income (INR) Total Property Income (SGD) INR million 12% S$ million 3% CAGR CAGR 5,540 5,566 127.5 126.3 120.9 121.5 125.0 4,899 118.1 102.7 4,182 4,007 3,783 2,801 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 Annualised FY13/14 FY07/08 FY08/09 FY09/10 FY10/11
Slide 6: Income growth trends
Income growth trends Net Property Income (INR) Net Property Income (SGD) 12% 3% INR million S$ million CAGR CAGR 3,260 73.8 3,165 73.0 72.1 73.3 70.6 2,805 66.2 60.5 2,448 2,425 2,117 1,651 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 Annualised FY13/14 Annualised FY07/08 FY08/09 FY09/10 FY10/11
Slide 7: SGD DPU moderated by weak Indian Rupee
SGD DPU moderated by weak Indian Rupee INR/SGD exchange rate2 S¢ 110 2.02 2.05 2.06 100 1.82 1.85 1.85 1.79 1.72 1.64 1.65 1.66 1.70 90 1.50 1.48 1 1.481 1.50 1.50 1.54 1.50 1.46 1.3331.34 1.34 80 1.27 1.15 70 60 50 40 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1
Slide 8: Debt expiry profile
Debt expiry profile Debt maturity profile S$ Million 66.0 65.0 50.0 35.0 41.0 22.5 25.0 27.5 30.0 25.0 25.0 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 INR-Denominated debt SGD-Denominated debt Information as at 30 June 2013 8
Slide 9: Capital structure
Capital structure Indicator As at 30 June 2013 Interest service coverage 5.2 times (EBITDA1 / Interest expenses2) (1Q FY13/14) Gearing: 24%4 Percentage of fixed rate debt 100% Secured borrowings / Asset value 3.1%3 Effective weighted average cost of debt 5.9% (Net of tax shield benefits) 1. Earnings
Slide 10: Debt headroom
Debt headroom S$ Million 1,000 60% Cap S$706m debt 900 headroom1 800 700 600 500 40% Cap S$200m debt 400 headroom1 300 200 Current gearing 24% 100 0 Assets2 Total debt Available debt headroom All information as at 30 June 2013 1. Calculation of debt headroom assumes further gearing capacity on new a
Slide 11: 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 12: Agenda
Agenda • Operational review 12 12
Slide 13: Strong portfolio occupancy
Strong portfolio occupancy 99% 100% 97% 96% 95% 96% 94% 95% 95% 1% 96% 1% 93% 86% 86% 76% Portfolio ITPB ITPC The V CyberPearl aVance a-iTrust occupancy Committed occupancy Market occupancy of peripheral area1 All information as at 30 June 2013 1. Jones Lang LaSalle Meghraj market report as at 30 Ju
Slide 14: Spread-out lease expiry profile
Spread-out lease expiry profile Portfolio lease expiry profile Sq ft expiring 2,000,000 Weighted average 30% lease term: 4.9 years 24% 25% 1,500,000 20% 17% 17% 15% 1,000,000 14% 15% 11% 10% 500,000 5% 1% - 0% FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 & Beyond All information as at 30
Slide 15: Healthy leasing momentum
Healthy leasing momentum Leasing activities from 1 April 2013 to 30 June 2013 Area (sq ft) 450,000 Retention rate: 99% 58,176 426,350 400,000 130,718 350,000 300,000 237,920 237,456 250,000 200,000 150,000 100,000 50,000 0 Expired / Terminated Lease Renewed/Extended Leases New Leases Forward Leasing
Slide 16: Diversified portfolio
Diversified portfolio Portfolio breakdown Customer Base Total number of tenants 333 Average space per tenant 19,620 sq ft Bangalore Hyderabad 40% 31% Largest tenant accounts for Chennai 5% of the portfolio base rent 29% Total Owned SBA = 6.9 million sq ft All information as at 30 June 2013 16
Slide 17: Quality tenants
Quality tenants No. Top ten tenants (by alphabetical order) Parent company 1 Affiliated Computer Services of India Pvt. Ltd. Xerox 2 Applied Materials India Pvt. Ltd. Applied Materials 3 BA Continuum Pvt. Ltd. Bank of America Merrill Lynch 4 Bally Technologies India Pvt Ltd Bally Technologies 5 Cogn
Slide 18: Diversified tenant base
Diversified tenant base Tenant core business & activity by base rental Telecommunication ITES Retail & Network Automobile 12% Others 4% 3% 3% 2% Oil & Gas Banking & Finance 19% Retail & F&B 2% 6% Corporate and R&D, 3% Professional Services 1% Others 2% Design, Gaming and Media 10% IT, Software & Ele
Slide 19: Diversified tenant base
Diversified tenant base Tenant country of origin & company structure by base rental Indian Co2 10% 1 3 MNC 90% All information as at 30 June 2013 1. Comprises Indian companies with local and overseas operations. 2. Comprises Indian companies with local operations only. 3. Multinational corporations,
Slide 20: Livewire @ Hyderabad
jas india trust aitrust Livewire @ Hyderabad
Slide 21: Eco bazaar @ Bangalore
Eco bazaar @ Bangalore 21
Slide 22: Agenda
Agenda • Growth strategy 22 22
Slide 23: Good growth track record
Good growth track record Floor area (million square feet) 12% CAGR 6.9 6.9 6.9 0.4 5.9 0.5 1.2 4.7 4.8 4.8 0.1 1.2 3.6 6.9 6.9 6.0 4.8 4.8 4.8 3.6 3.6 At listing Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Jun-13 Portfolio Development Acquisition 23
Slide 24: Clear growth strategy
Clear growth strategy • Completions added 2.9 million sq ft to portfolio • Constructing 0.6 million sq ft Development • Land for 1.9 million sq ft of space pipeline available for development Growth Sponsor • Right of first refusal from Ascendas Land International Pte Ltd assets strategy • Right of f
Slide 25: Substantial development pipeline
Substantial development pipeline Further development in ITPB – additional 2.5 million sq ft Park Square (Retail) Taj Vivanta New Multi-Tenanted Office (Hotel) Building (“Aviator”) Existing income- • 601,360 sq ft development producing space Future Development Potential • Balance 1.9 million sq ft of
Slide 26: Aviator – new multi-tenanted office building
Aviator – new multi-tenanted office building • 601,360 sq ft development in ITPB • Construction started in May 2012 • 67% of construction completed as at June 2013 Artist’s impression • Expected completion by Dec 2013 26% of space pre-committed Current status 26
Slide 27: Right of first refusal (ROFR) from sponsor
Right of first refusal (“ROFR”) from sponsor Ascendas Land International Pte Ltd • CyberVale, Chennai: • 0.6m sq ft of completed space • Vacant land with development potential of 0.3m sq ft • International Tech Park Pune, Pune: Cybervale, Chennai • Development potential of 2.5m sq ft • First phase o
Slide 28: 3rd party acquisitions
3rd party acquisitions • Target cities: • Bangalore • Chennai • Hyderabad • Mumbai • Delhi • Gurgaon • Pune • Investment criteria: • Location • Tenancy profile • Design • Clean land title and land tenure • Rental and capital growth prospects • Opportunity to add value 28
Slide 29: aVance Business Hub
aVance Business Hub (1) (3) (7) (4) (6) (2) Not part of (1) acquisition (5) (8) (9) (2) Park Statistics Site area: 25.7 acres / 10.4 ha (1) & (2) owned by a-iTrust: 0.43m sq ft Vendor assets: marked in black Conditional acquisitions of (3), (4) & (5): 1.78m sq ft Land owner assets: marked in white R
Slide 30: aVance Business Hub
aVance Business Hub • aVance 1 & 2 : • a-iTrust completed the acquisition of aVance 1 & 2 (0.43m sq ft) in February 2012. • Purchase consideration of INR 1,765m (S$45m1) was fully debt funded. • aVance 3 : • a-iTrust invested INR 1,750 million (S$40m1) in aVance 3 (0.69m sq ft) in March 2013. • As f
Slide 31: aVance Building 3
aVance Building 3 • Leasing commitment level: 41% • 690,520 sq ft development • Construction status: completed 31
Slide 32: Agenda
Agenda • Summary 32 32
Slide 33: a-iTrust unit price versus market indices
a-iTrust unit price versus market indices (Indexed) Indicator 250 Trading yield 6.4%1 (as at 30 June 2013) 225 Average daily trading volume 200 1.2 million units (1Q FY13/14) 175 150 125 Sensex Index 100 FTSE STI Index 75 FTSE ST REIT Index a-iTrust 50 25 Bombay SE Realty Index 0 IPO Jun 08 Jun 09 J
Slide 34: a-iTrust unit price versus Indian peers
a-iTrust unit price versus Indian peers (Indexed) 250 225 200 175 150 125 100 75 a-iTrust 50 DLF 25 IPIT HDIL 0 Unitech IPO Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Source: Bloomberg 34
Slide 35: Attractive Indian fundamentals
Attractive Indian fundamentals Salary for IT/software engineer, • India is world’s third largest economy by developer or programmer3 purchasing power parity. Countries US$ (p.a.) • RBI provided India GDP forecast growth of India 6,029 6.0% in FY13/141. Malaysia 14,412 • Rapid IT-BPO export revenues
Slide 36: Appendix
Appendix Appendix 36
Slide 37: INR financial statement
INR financial statement 1Q 1Q 4Q FY13/14 FY12/13 FY12/13 INR'000 INR'000 INR'000 Gross Rent 821,231 803,622 802,332 Amenities 22,841 22,912 24,200 Fit out Rental 19,544 23,164 16,409 Operations & Maintenance 470,316 481,971 445,166 Car Park & other income 57,585 61,033 55,294 Gross Property Income 1
Slide 38: Balance sheet
Balance sheet As at 30 June 2013 INR SGD Total assets INR 46.3 billion S$990 million Total borrowings INR 9.59 billion S$205 million Fully & compulsorily convertible debentures - Intercompany INR 4.93 billion S$105.5 million - aVance 3 INR 1.75 billion S$37.45 million Net asset value INR 28 per unit
Slide 39: World-class IT parks
World-class IT parks ITPB ITPC CyberPearl The V aVance Name International Tech International Tech CyberPearl, The V, aVance Business Park Bangalore Park Chennai Hyderabad Hyderabad Hub, Hyderabad (“ITPB”) (“ITPC”) (“CP”) (“aVance”) Site area (acres) 68.5 15.0 6.1 19.4 25.7 (ha) 27.9 6.1 2.4 7.7 10.3
Slide 40: 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 41: 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 Apr May Jun Indian Rupee 2013 43.9 43.9 45.9 2012 41.7 43.5 45.5 SGD appreciation 5.3% 0.9% 0.9% 1 Singapore Dollar buys Q1 Q2 Q3 Q4 FY Indian Rupee FY 13/14 44.5 FY
Slide 42: Investor contact
Investor contact James Goh, CFA Investor Relations 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 42
Ascendas India Trust — Q1 FY2013/14 Earnings Presentation on 6ix