Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — FY2011/12 Earnings Presentation
51 slides from Capitaland India Trust's earnings presentation, Apr 27, 2012
Slide 1: 4Q FY2011/12 & FY2011/12 Financial Results Presentation
3Q FY2011/12 4Q FY2011/12 & FY2011/12 Investor Presentation Financial Results Presentation 27 April 2012 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 31 March 2012 (“4Q 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 stat
Slide 3: Agenda
Agenda • Financial & operational review • Growth strategy • Performance review • Summary 3
Slide 4: FY11/12 accomplishments
FY11/12 accomplishments • Completed first major acquisition with the purchase of two properties which were renamed aVance Business Hub • Completed construction of Voyager, a 537,300 sq ft multi-tenanted office building in ITPB • Launched first full-fledged mall, Park Square in ITPB • Stabilised newl
Slide 5: Key highlights
Key highlights • FY11/12 INR revenue grew 17% y-on-y • FY11/12 INR net property income grew 16% y-on-y • FY11/12 DPU of S¢6.0 reflects a yield of: • 7.2% over the closing price of S$0.83 on 30 March 2012 • 7.1% over the closing price of S$0.85 on 26 April 2012 • Net asset value was S$547 million or
Slide 6: 4Q FY11/12 results
4Q FY11/12 results 4Q FY11/12 4Q FY10/11 Variance Explanation INR/SGD FX rate1 39.5 35.7 11% SGD strengthened by 11% against the INR Total Property INR 1,353m INR 1,111m 22% • INR terms: ↑ due to income contributions from aVance Income S$34.3m S$31.1m 10% & new buildings2. • SGD terms: ↑ moderated b
Slide 7: FY11/12 results
FY11/12 results FY11/12 FY10/11 Variance Explanation INR/SGD FX rate1 38.4 34.4 12% SGD strengthened by 12% against the INR Total Property INR 4,899m INR 4,182m 17% • INR terms: ↑ mainly due to higher income contributions Income S$127.5m S$121.5m 5% from new buildings. • SGD terms: ↑ moderated by st
Slide 8: Distribution per unit
Distribution per unit Period 1 April 2011 to 31 March 2012 1Q FY11/12 1.50¢ per unit 2Q FY11/12 1.54¢ per unit 2H FY11/12 DPU 3Q FY11/12 1.50¢ per unit Amount: 2.96¢ Ex-date: 11 May 2012 4Q FY11/12 1.46¢ per unit Payment date: 25 May 2012 FY11/12 6.00¢ per unit Distributions are paid on a semi-annua
Slide 9: 97% portfolio occupancy
97% portfolio occupancy1 97% 98% 98% 97% 100% 100% 98% 97% 97% 4%2 94% 80% 3 82% 79% 75% a-iTrust Occupancy Market Occupancy of Peripheral Area4 New Buildings ITPB ITPC The V CyberPearl aVance Zenith Park Square Voyager (excl. Park (excl. Zenith) (ITPC) (ITPB) (ITPB) Square & Voyager) All informatio
Slide 10: Strong leasing momentum
Strong leasing momentum Leasing activities from 1 April 2011 to 31 March 2012 Area (Sq ft) 3,000,000 2,524,260 2,500,000 Retention rate: 78% Committed 696,570 leases for new 2,000,000 buildings 537,560 65,780 1,573,050 1,500,000 1,224,350 234,000 1,000,000 1,827,690 500,000 0 Expired/ Renewed leases
Slide 11: Spread-out lease expiry profile
Spread-out lease expiry profile Portfolio lease expiry profile1 Sq ft expiring Weighted average 2,000,000 lease term: 4.8 years 24.5% 1,500,000 20.8% 1,000,000 14.1% 14.5% 14.0% 12.1% 500,000 - FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 & Beyond All information as at 31 March 2012 1. Includes l
Slide 12: Diversified portfolio
Diversified portfolio Portfolio breakdown Customer Base Total number of tenants 309 Average space per tenant 20,894 sq ft Hyderabad 31% Bangalore 40% Largest tenant accounts for Chennai 5% of the portfolio base rent 29% Total Owned SBA = 6.9 million sq ft All information as at 31 March 2012 Note: Th
Slide 13: Varied social events & activities
Varied social events & activities Art exhibition Healthy Lifestyle & Sports Meet Women’s Day X’mas celebrations 13
Slide 14: 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 Cognizant Technology Solution (India) Pvt. Ltd. Cognizant
Slide 15: Diversified tenant base
Diversified tenant base Tenant core business & activity by base rental1 Retail Automobile F&B 2.0% 4.5% 3.4% Advertising IT/ITES Petrochemical 0.2% Engineering 1.1% 16.9% R&D 3.1% Pharma & Banking & Financial Healthcare 3.6% 19.4% ITES 11.4% Corporate Services 4.1% Others Electronic, 1.2% IT SemiCon
Slide 16: Diversified tenant base
Diversified tenant base Tenant country of origin & company structure by base rental1 Others India Based 2.1% France 8.3% Company 3 Singapore 2.1% 11.7% Netherland 0.6% Switerland 1.1% UK 4.4% Germany 2.9% India 2 US 15.3% 65.1% 4 MNC 88.3% All information as at 31 March 2012 1. Includes leases in Ze
Slide 17: Conservative capital structure
Conservative capital structure Indicator As at 31 Mar 2012 Interest service coverage 4.0 times (EBITDA1 / Interest expenses2) (FY11/12) Percentage of fixed rate debt 100% Gearing: 29%4 Secured borrowings / Asset value 5.8%3 Effective weighted average cost of debt 6.2% (Net of tax shield benefits) 1.
Slide 18: Spread-out loan expiry profile
Spread-out loan expiry profile Debt maturity profile S$ Million 115 60 25 25 25 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 INR-Denominated Loan1 SGD-Denominated Loan1 All information as at 31 March 2012 1. Excluding minority interests. 18
Slide 19: Debt headroom
Debt headroom S$ Million 1,000 60% Cap S$670m debt 900 headroom1 800 700 600 500 400 35% Cap S$81m debt 300 headroom1 Current 200 gearing 29% 100 0 Total assets2 Current debt2 Available debt capacity All information as at 31 March 2012 1. Calculation of debt headroom assumes further gearing capacity
Slide 20: Currency hedging strategy
Currency hedging strategy • 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 exchange wit
Slide 21: Increased portfolio valuation
Increased portfolio valuation 31 March 2012 31 March 2011 Market INR million Market Cap Market Cap valuation valuation1 rate valuation1 rate variance International Tech Park Bangalore 17,868 10.50% 16,917 10.50%3 5.6% (including Park Square & Voyager2) International Tech Park Chennai 9,060 10.50% 8,
Slide 22: Agenda
Agenda • Financial & operational review • Growth strategy • Performance review • Summary 22
Slide 23: Good growth track record
Good growth track record Floor area (million square feet) 14% CAGR 6.9 0.4 5.9 0.5 4.8 4.8 1.2 4.7 0.1 3.6 1.2 6.0 4.8 4.8 4.8 3.6 3.6 At listing 31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 Portfolio Development Acquisition 23
Slide 24: Clear growth strategy
Clear growth strategy • New completions added 1.7 million sq ft to portfolio Development • Planning for 0.6 million sq ft for pipeline end Dec 2013 completion • Land for 1.9 million sq ft of space available for development Growth Sponsor • Right of first refusal from Ascendas Land International Pte
Slide 25: 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 26: 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 Existing income- • 600,000 sq ft development producing space Future Development Potential • Balance 1.9 million sq ft of additional
Slide 27: New multi-tenanted office building
New multi-tenanted office building • 600,000 sq ft development located within the SEZ of ITPB • Secured governmental & regulatory approvals • Construction to start in May 2012 • Expected completion by December 2013 Artist’s impression of the building 27
Slide 28: Right of first refusal (ROFR) from sponsor
Right of first refusal (“ROFR”) from sponsor Ascendas Land International Pte Ltd • CyberVale, an IT SEZ in Chennai, comprises 535,000 sq ft of income producing space & 4.4 acres of land (which can be developed into a 280,000 sq ft building) • International Tech Park Pune is a 2.5 million sq ft Cyber
Slide 29: 3rd party acquisitions
3rd party acquisitions • Target cities: • Bangalore • Chennai • Hyderabad • Mumbai • Dehli • Gurgaon • Pune • Investment criteria: • Location • Tenancy profile • Design • Clean land title and land tenure • Rental and capital growth prospects • Opportunity to add value 29
Slide 30: Acquired 2 buildings in aVance Business Hub
Acquired 2 buildings in aVance Business Hub • a-iTrust announced in February 2012 that it has completed the acquisition of 2 operational & 100% occupied buildings (0.43m sq ft). • Purchase consideration was INR 1,765m (S$44.8m), and the acquisition was fully funded by bank borrowings. INDIA Hyderaba
Slide 31: aVance Business Hub
aVance Business Hub (1) (3) (7) (4) (6) (2) Not part of (1) acquisition (5) (8) (9) (2) Park Statistics Site area: 25.7 acres / 10.4 ha (1) & (2) owned by a-iTrust: 0.43m sq ft Vendor assets: marked in black Conditional acquisitions of (3), (4) & (5): 1.75m sq ft Landowner assets: marked in white RO
Slide 32: aVance Building 3
aVance Building 3 • 660,000 sq ft development • Expected construction completion by early 2013 • Acquisition subject to required occupancy levels being met, amongst other conditions Artist’s impression of the building 32
Slide 33: Agenda
Agenda • Financial & operational review • Growth strategy • Performance review • Summary 33
Slide 34: Trading yield versus other Singapore investments
Trading yield versus other Singapore investments Trading yield 10.0% 7.2%1 8.0% 7.1%2 6.6%3 6.9%4 6.0% 4.0% 3.6% 2.5% 1.7% 2.0% 0.6% 0.3% 0.0% a-iTrust FTSE ST 10-yr S’pore 5-yr S’pore STI Stocks6 CPF Ordinary 12-mth (S$) REIT Index Govt Bond5 Govt Bond5 Account7 Fixed Deposit5 Source: MAS, CPF, Blo
Slide 35: 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 10.0% 8.6% 8.0% 7.2%1 7.1%2 6.8% 6.0
Slide 36: a-iTrust unit price versus market indices
a-iTrust unit price versus market indices 250 a-iTrust 225 FTSE STI Index 200 FTSE ST REIT Index 175 Sensex Index 150 Bombay SE Realty Index 125 100 75 50 25 0 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 IPO Mar 12 Jun 08 Jun 09 Jun 10 Jun 11 Source: Bloomberg 36
Slide 37: a-iTrust unit price versus Indian peers
a-iTrust unit price versus Indian peers 250 225 a-iTrust 200 DLF Ltd 175 Unitech Ltd 150 HDIL 125 Indiabulls Properties Investment Trust 100 75 50 25 0 IPO Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Mar 12 Jun 08 Jun 09 Jun 10 Jun 11 Source: Bloomberg 37
Slide 38: Revenue growth trends
Revenue growth trends Total Property Income (INR) Total Property Income (SGD) 15% CAGR S$ million 6% INR million 4,899 CAGR 127.5 4,182 120.9 121.5 4,007 118.1 3,783 102.7 2,801 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 38
Slide 39: Income growth trends
Income growth trends Net Property Income (INR) Net Property Income (SGD) 14% INR million CAGR S$ million 5% 2,805 CAGR 2,425 73.8 73.0 2,448 70.6 66.2 2,117 60.5 1,651 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 39
Slide 40: SGD DPU moderated by weak Indian Rupee
SGD DPU moderated by weak Indian Rupee SGD/INR exchange rate2 S¢ 120 110 2.02 2.05 2.06 1.82 1.85 1.85 1.79 100 1.72 1.64 1.65 1.66 1.70 1.50 1.48 1 1.48 1 1.50 1.50 1.54 1.50 1.46 90 80 70 60 50 40 DPU SGD/INR exchange rate 1. DPU for first & second quarters of FY2007/08 were reported together post
Slide 41: Agenda
Agenda • Financial & operational review • Growth strategy • Performance review • Summary 41
Slide 42: Attractive Indian fundamentals
Attractive Indian fundamentals Salary for IT/software engineer, • India is world’s third largest economy by developer or programmer3 purchasing power parity1. Countries US$ (p.a.) • IMF forecast India GDP growth of 6.9% in 20121. India 7,893 Malaysia 19,677 • Rapid IT-BPO export revenues growth Hong
Slide 43: Summary
Summary • Quality income assets & conservative capital structure • Customer diversification • Gearing of 29% • Portfolio occupancy of 97%1 • Weighted average lease term of 4.8 years • Clear growth strategy • Development pipeline • Acquisition of 3rd party/sponsor assets • Growth drivers • New buildi
Slide 44: Appendix
Appendix Appendix 44
Slide 45: INR financial statement
INR financial statement 4Q 4Q 3Q YTD YTD FY11/12 FY10/11 FY11/12 FY11/12 FY10/11 INR'000 INR'000 INR'000 INR'000 INR'000 Gross Rent 787,424 629,063 720,410 2,832,124 2,404,457 Amenities 21,577 21,174 24,985 91,344 86,104 Fit Out Rental 24,139 31,969 24,419 102,752 131,659 Operations & Maintenance 46
Slide 46: Average currency exchange rate
Average currency exchange rate Weighted average exchange rates used to translate a-iTrust’s INR P&L to SGD 1 Singapore Dollar buys Q1 Q2 Q3 Q4 FY Indian Rupee FY 11/12 36.2 38.0 40.0 39.5 38.4 FY 10/11 33.0 34.5 34.5 35.7 34.4 SGD appreciation 10% 10% 16% 11% 12% Note: These rates represent the deri
Slide 47: 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 48: 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 49: Proposed acquisition of aVance Business Hub
Proposed acquisition of aVance Business Hub Building Completion (1) Mar COMPLETED 231,622 sq ft 2008 2 Operating 427,6511 ACQUISITION VENDOR’S Buildings sq ft (S$44.8 million) BUILDINGS (2) Nov 196,0291 sq ft 2008 2.18m sq ft over 5 buildings to be (3) acquired from 20132 Phoenix Infocity Pvt FUTURE
Slide 50: Growth in total assets
Growth in total assets Total assets (INR mil) 42,526 37,571 37,000 33,882 33,733 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 50
Slide 51: 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 51
Ascendas India Trust — FY2011/12 Earnings Presentation on 6ix