Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — Q4 FY2014/15 Earnings Presentation
48 slides from Capitaland India Trust's earnings presentation, Apr 29, 2015
Slide 1: 4Q FY2014/15 Financial Results Presentation
4Q FY2014/15 4Q FY2011/12 Financial Results PresentationInvestor Presentation 29 April 2015 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 and year ended 31 March 2015 (“4Q FY14/15” & “FY14/15”) 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 contai
Slide 3: Content: Financial review
Content • Financial review 3 3
Slide 4: 4Q FY14/15 results
4Q FY14/15 results 4Q FY14/15 4Q FY13/14 Variance SGD/INR FX rate1 45.9 48.6 (6%) • The decline in utilities income (arising from Total Property lower fuel rates) more than offset the increase ₹1,518m ₹1,534m (1%) in base rental income. Income • Mainly due to lower property expense Net Property (uti
Slide 5: FY14/15 results
FY14/15 results FY14/15 FY13/14 Variance SGD/INR FX rate1 47.5 47.9 (1%) • Mainly due to income from Aviator which Total Property ₹6,108m ₹5,774m 6% became operational in January 2014, and Income positive rental reversions in Chennai. Net Property • Revenue grew faster than property expense. ₹3,681m
Slide 6: Cumulative distribution
Cumulative distribution Period 1 April 2014 to 31 March 2015 1Q FY14/15 1.15¢ per unit 2Q FY14/15 1.25¢ per unit Cumulative distribution 3Q FY14/15 1.16¢ per unit Amount: 2.46¢ Ex-date: 6 May 2015 4Q FY14/15 1.30¢ per unit Payment date: 26 May 2015 Total 4.86¢ per unit Distributions are paid on a se
Slide 7: Revenue growth trends
Revenue growth trends Total Property Income (INR) Total Property Income (SGD) 3% INR million 12% S$ million CAGR CAGR 128.8 127.5 126.3 6,108 120.9 121.5 120.7 118.1 5,774 5,540 102.7 4,899 4,182 4,007 3,783 2,801 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 (IPO)
Slide 8: Income growth trends
Income growth trends Net Property Income (INR) Net Property Income (SGD) 12% INR million CAGR S$ million 4% 3,681 CAGR 3,450 77.6 73.8 73.0 3,165 70.6 72.1 72.1 66.2 2,805 60.5 2,448 2,425 2,117 1,651 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 (IPO) (IPO) 8
Slide 9: SGD DPU moderated by weak Indian Rupee
SGD DPU moderated by weak Indian Rupee S¢ INR/SGD exchange rate2 Change since 1Q08 INR depreciation against SGD: -42% 110 SGD DPU: -2% 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 1.48 1.50 1.50 1.54 1.50 1.46 1.40 1.44 1.33 1.34 1.34 1.34 1.29 80 1.27 1.28 1.22 1.22
Slide 10: Debt expiry profile
Debt expiry profile Effective borrowings: S$312m1 Effective borrowing ratio INR: 67% SGD: 33% Drew down S$25m 5-year Secured facilities to refinance loan in Mar 2015 for debt expiring in FY15/16 CyberVale acquisition. S$ Million 88.3 76.0 Drew down S$40m 3-year loan in 39.3 Feb 2015 for BlueRidge II
Slide 11: Capital structure
Capital structure Indicator As at 31 Mar 2015 Interest service coverage 4.2 times (EBITDA1/Interest expenses2) (FY14/15) Gearing: 25%4 Percentage of fixed rate debt 100% Secured borrowings/Asset value 2.0%3 Effective weighted average cost of debt 6.7% 1. Earnings before interest, tax, depreciation &
Slide 12: Debt headroom
Debt headroom S$ Million 2,000 1,800 60% Cap S$1,105m debt 1,600 headroom1 1,400 1,200 1,000 800 40% Cap S$318m debt 600 headroom1 400 Current 200 gearing 25% 0 Deposited property2 Effective borrowings Available debt headroom All information as at 31 March 2015 1. Calculation of debt headroom assume
Slide 13: Currency hedging strategy
Currency hedging strategy Income • Trustee-Manager hedges distributable income and does not intend to speculate on currency. • Plain vanilla forward contracts are used to hedge a substantial portion of forecast repatriation from India to Singapore. On the designated date, Trustee- Manager will excha
Slide 14: Portfolio valuation
Portfolio valuation 31 Mar 2015 YoY 31 Mar 2015 YoY Market valuation1,2 INR million variance S$ million4 variance International Tech Park Bangalore 20,671 1.7% 456.8 7.6% International Tech Park Chennai 11,809 10.0% 261.0 16.2% CyberVale, Chennai3 1,653 N.A 36.5 N.A CyberPearl, Hyderabad 2,145 6.0%
Slide 15: Content: Operational review
Content • Operational review 15 15
Slide 16: India remains dominant IT/offshoring hub
India remains dominant IT/offshoring hub Salary for IT/software engineer, • India moving up value chain to offer cutting developer or programmer2 edge product development and R&D hubs for global tech companies Countries US$ (p.a.) India 5,678 • Highly cost competitive environment Malaysia 10,871 • A
Slide 17: Strong portfolio occupancy
Strong portfolio occupancy 100% 100% 100% 97% 99% 98% 1% 95% 95% 95% 1% 93% 98% 96% 91% 1% 89% 91% 92% 87% Portfolio ITPB ITPC CyberVale The V CyberPearl aVance a-iTrust occupancy Committed occupancy Market occupancy of peripheral area1 All information as at 31 March 2015 1. Jones Lang LaSalle Meghr
Slide 18: Spread-out lease expiry profile
Spread-out lease expiry profile Sq ft expiring 3,000,000 40% Weighted average 34% lease term: 5.3 years 35% 2,500,000 30% 2,000,000 24% 25% 20% 1,500,000 20% 15% 1,000,000 11% 11% 10% 500,000 5% - 0% FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 & Beyond All information as at 31 March 2015 18
Slide 19: Healthy leasing momentum
Healthy leasing momentum Leasing activities from 1 April 2014 to 31 March 20151 Area (sq ft) 3,000,000 Retention rate: 86% 2,500,000 62,290 2,312,149 2,264,544 2,249,859 2,000,000 1,500,000 1,000,000 500,000 0 Expired leases/Pre-terminations Renewed/Extended/New Leases Forward Leasing Total Leases c
Slide 20: Diversified portfolio
Diversified portfolio Portfolio breakdown Customer Base Total number of tenants 324 Average space per tenant 24,250 sq ft Chennai 31% Bangalore 42% Largest tenant accounts for 5% of the portfolio base rent Hyderabad 27% Floor area 8.1 million sq ft All information as at 31 March 2015 20
Slide 21: 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 22: Diversified tenant base
Diversified tenant base Tenant core business & activity by base rental Healthcare & Pharmaceutical 2% Oil & Gas F&B 1% Others ITES Retail 2% 2% 12% 2% Retail & F&B IT, Software & Automobile 4% Application 8% Development R&D Tele- and Service 2% communication Support & Network Others 43% 4% 1% IT Ele
Slide 23: Diversified tenant base
Diversified tenant base Tenant country of origin & company structure by base rental Indian Co 2 10% 1 3 MNC 90% All information as at 31 March 2015 1. Comprises Indian companies with local and overseas operations. 2. Comprises Indian companies with local operations only. 3. Multinational corporation
Slide 24: Engaging park employees
Engaging park employees Event Art exhibition Ascendas Sports Meet 2014 City Hyderabad Bangalore Month February 2015 March 2015 24
Slide 25: Content: Growth strategy
Content • Growth strategy 25 25
Slide 26: Clear growth strategy
Clear growth strategy • 2.86m sq ft in Bangalore Development • 0.37m sq ft in Chennai pipeline • 0.41m sq ft in Hyderabad Growth Sponsor • 2.27m sq ft from Ascendas Land International Pte Ltd pipeline strategy • Ascendas India Development Trust • Ascendas India Growth Programme 3rd party • 3.08m sq
Slide 27: Good growth track record
Good growth track record CAGR growth since listing Floor area Floor area: 11% (million square feet) Total property income: 12%1 11% CAGR Net property income: 12%1 8.1 7.5 0.6 6.9 6.9 0.6 0.4 5.9 0.5 4.8 1.2 4.7 4.8 0.1 3.6 1.2 7.5 6.9 6.9 6.0 4.8 4.8 4.8 3.6 3.6 IPO Mar-08 Mar-09 Mar-10 Mar-11 Mar-1
Slide 28: Development: ITPB pipeline
Development: ITPB pipeline Future Development Potential International Tech Park Bangalore • Started construction of 0.62 million sq ft multi-tenanted IT building (“Victor”). • 2.24 million sq ft of additional space can be developed over time. Park Square (Mall) Taj Vivanta (Hotel) New Building Speci
Slide 29: Development: New buildings in ITPB
Development: New buildings in ITPB Name Aviator Victor Property ITPB ITPB Size (sq ft) 601,360 620,000 Construction status Completed Under construction Operational status Operational since Jan 2014 Completion expected by 1H 2016 Lease commitment 100% 0% Income recognition 100% NA 29
Slide 30: Development: The V pipeline
Development: The V pipeline • Multi-level car park: The V site plan • To be developed on vacant land plot. • Provides 660 parking lots over 8 levels. Auriga Capella • Construction expected to complete by 2H 2015. Vega • New IT building (408,000 sq ft): • To be developed on existing Mariner cafeteria
Slide 31: Sponsor: Acquired CyberVale in Chennai
Sponsor: Acquired CyberVale in Chennai Location Mahindra World City SEZ, Chennai Total floor area 567,480 sq ft Land bank 4.4 acres with potential to build another 370,000 sq ft building Date of acquisition 31 March 2015 Acquisition price INR 1.65 billion (S$35.9 million1) 1. Converted into SGD usin
Slide 32: Sponsor: Right of first refusal to assets
Sponsor: Right of first refusal to assets Ascendas Land International Pte Ltd • International Tech Park Pune, Pune: • 0.66m sq ft completed space • Started construction of 0.62m sq ft • Vacant land with remaining development potential of 0.99m sq ft Ascendas India Development Trust • A real estate f
Slide 33: 3rd party: Acquisition criteria
3rd party: Acquisition criteria • 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 33
Slide 34: 3rd party: aVance Business Hub, Hyderabad
3rd party: aVance Business Hub, Hyderabad (1) (3) (7) (4) (6) (2) (1) (5) (8) (9) (2) Park Statistics Site area: 25.7 acres / 10.4 ha (1) & (2) owned by a-iTrust: 0.46m sq ft Vendor assets: marked in black Conditional acquisitions of (3), (4) & (5): 1.92m sq ft Land owner assets: marked in white ROF
Slide 35: 3rd party: aVance details
3rd party: aVance details • aVance 1 & 2 (0.46m sq ft): • a-iTrust completed the acquisition of aVance 1 & 2 in February 2012. • Purchase consideration of ₹1,765m (S$45m1) was fully debt funded. • aVance 3 (0.68m sq ft): • a-iTrust invested ₹1,750m (S$40m1) in March 20132. • a-iTrust invested an add
Slide 36: 3rd party: aVance Building 3
3rd party: aVance Building 3 Location HITEC City, Madhapur, Hyderabad Total floor area 682,928 sq ft Construction status Completed Leasing commitment 86% 36
Slide 37: 3rd party: BlueRidge Phase II, Pune
3rd party: BlueRidge Phase II, Pune Location Hinjewadi IT Park Phase II, Pune Floor area 1.52 million sq ft Tenure 99 year lease, renewable at FDPL’s option1 Construction progress2 85% Expected construction completion 2H 2015 1. Flagship Developers Private Limited (“FDPL”) is the co-developer of Blu
Slide 38: 3rd party: BlueRidge acquisition details
3rd party: BlueRidge acquisition details • Acquisition process: • a-iTrust invested ₹2,600 m (S$57m1) in March 20152. • On 31 December 2016, a-iTrust will complete the acquisition provided at least 65% of the property is leased. • a-iTrust may complete the acquisition before 31 December 2016 if the
Slide 39: Growth based on committed pipeline
Growth based on committed pipeline Floor area (million square feet) 11.30 40% 1.52 0.68 0.41 8.07 0.62 8.07 Mar-15 Growth pipeline Portfolio Victor New V building aVance 3 BlueRidge II 39
Slide 40: Appendix: Glossary
Appendix Glossary Deposited properties : Comprises total assets after deducting non-controlling interests & derivative financial instruments assets. Derivative financial : Includes cross currency swaps (entered to hedge SGD borrowings into INR), interest rate swaps and instruments forward foreign ex
Slide 41: Balance sheet
Balance sheet As at 31 March 2015 INR SGD Total assets ₹56.87 billion S$1,257 million Total borrowings ₹14.26 billion S$315 million Derivative financial instruments ₹0.14 billion S$3 million Effective borrowings ₹14.12 billion S$312 million Fully & compulsorily convertible debentures - Intercompany
Slide 42: 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 2015 46.7 45.9 45.2 2014 48.5 49.0 48.3 SGD depreciation 3.7% 6.4% 6.3% 1 Singapore Dollar buys Q1 Q2 Q3 Q4 FY Indian Rupee FY 14/15 47.7 48
Slide 43: World-class IT parks
World-class IT parks Name International International CyberVale CyberPearl The V aVance Tech Park Tech Park Business Hub Bangalore Chennai City Bangalore Chennai Chennai Hyderabad Hyderabad Hyderabad 68.5 acres 15.0 acres 13.9 acres 6.1 acres 19.4 acres 25.7 acres Site area 27.9 ha 6.1 ha 5.6 ha 2.4
Slide 44: 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 45: a-iTrust unit price versus major indices
a-iTrust unit price versus major indices (Indexed) 175 Indicator Trading yield 5.4%1 150 (as at 31 March 2015) Average daily trading volume 791,856 units 125 (4Q FY14/15) 100 FTSE STI Index FTSE ST REIT Index 75 a-iTrust INRSGD FX Rate 50 25 Bombay SE Realty Index 0 Mar 15 Dec 07 Dec 08 Dec 09 Dec 1
Slide 46: a-iTrust unit price versus Indian peers
a-iTrust unit price versus Indian peers (Indexed) 200 175 150 125 100 a-iTrust 75 50 25 DLF HDIL IPIT 0 Unitech Mar 15 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 IPO Jun 08 Jun 09 Jun 10 Jun 11 Jun 13 Jun 14 Jun 12 Source: Bloomberg 46
Slide 47: Investor contact
Investor contact James Goh, CFA Head, Investor Relations Deputy Head, 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 47
Slide 48: 4Q FY2014/15 Financial Results Presentation
4Q FY2014/15 4Q FY2011/12 Financial Results PresentationInvestor Presentation 29 April 2015 ASEAN Stars Conference 2012 1 March 2012 Asia’s First Listed Indian Property Trust 48 Asia’s First Listed Indian Property Trust
Ascendas India Trust — Q4 FY2014/15 Earnings Presentation on 6ix