Capitaland India Trust · SGX:CY6U
Capitaland India Trust — Ascendas India Trust — Shareholder Meeting (June 2015)
53 slides from Capitaland India Trust's shareholder meeting presentation, Jun 30, 2015
Slide 1: Ascendas India Trust 8th Annual General Meeting Investor Presentation
Ascendas India Trust 3Q FY12/13 8th Annual General Meeting Investor Presentation 30th June 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 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: Our business model
Our business model Global/Indian economy 3
Slide 4: Agenda
Agenda • a-iTrust • Earnings review • What affects us • What we do • What sustains our business 4
Slide 5: a-iTrust
a-iTrust International Tech Park Bangalore The V, Hyderabad INDIA Hyderabad International Tech Park Chennai CyberPearl, Hyderabad Bangalore Chennai CyberVale, Chennai aVance Business Hub, Hyderabad 5
Slide 6: International Tech Park Bangalore
International Tech Park Bangalore Site area 68.5 acres 27.9 ha Operating 3.4m sq ft buildings1 Park population 35,600 Land available for 2.9m sq ft of 1. Only includes floor area owned by a-iTrust development1 building space All information as at 31 March 2015 6
Slide 7: International Tech Park Chennai
International Tech Park Chennai Site area 15 acres 6.1 ha Operating buildings 2.0m sq ft Park 21,050 All information as at 31 March 2015 population 7
Slide 8: CyberVale, Chennai
CyberVale, Chennai Site area 13.9 acres 5.6 ha Operating 0.6m sq ft buildings Park population 6,600 Land available for 0.4 m sq ft of All information as at 31 March 2015 development building space 8
Slide 9: CyberPearl, Hyderabad
CyberPearl, Hyderabad Site area 6.1 acres 2.4 ha Operating 0.4m sq ft buildings All information as at 31 March 2015 Park population 4,500 9
Slide 10: The V, Hyderabad
The V, Hyderabad Site area 19.4 acres 7.7 ha Operating 1.3m sq ft buildings Park population 12,000 Land available 0.4 m sq ft of All information as at 31 March 2015 for development building space 10
Slide 11: aVance Business Hub, Hyderabad
aVance Business Hub, Hyderabad Site area 25.7 acres 10.3 ha Operating 0.4m sq ft buildings1 Park 1. Only includes floor area owned by a-iTrust 5,000 All information as at 31 March 2015 population 11
Slide 12: Increased portfolio valuation
Increased 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
Slide 13: Agenda
Agenda • a-iTrust • Earnings review • What affects us • What we do • What sustains our business 13
Slide 14: Earnings review
Earnings review FY14/15 FY13/14 Variance INR/SGD FX rate1 47.5 47.9 (1%) Total Property Income ₹6,108m ₹5,774m 6% Net Property Income ₹3,681m ₹3,450m 7% Income available for ₹2,362m ₹2,210m 7% distribution S$49.8m S$46.1m 8% ₹2,126m ₹1,989m 7% Income to be distributed2 S$44.8m S$41.5m 8% DPU (income
Slide 15: Revenue growth trends
Revenue growth trends Total Property Income (INR) Total Property Income (SGD) 3% INR million 12% S$ 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 16: 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) 16
Slide 17: 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 18: Agenda
Agenda • a-iTrust • Earnings review • What affects us • What we do • What sustains our business 18
Slide 19: What affects us
What affects us Recovering Indian economy • India’s GDP grew by 7.2% in 2014 and is forecast to grow at 7.5% in 2015 and 20161. • Current account deficit is forecast to decrease from its peak of 4.9% in FY11/12 to 1.3% in FY14/152. • Inflation in India has fallen from 8.3% in March 2014 to 5.0% as a
Slide 20: 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 21: Office markets remained stable
Office markets remained stable Bangalore (Whitefield) 6.0 25.0% 23.0% 5.0 20.4% 4.0 16.4% 14.3% 3.0 2.0 1.0 0.0 2011 2012 2013 2014 2015 (F) Supply (in million sq ft) Absorption (in million sq ft) Vacancy (%) Source: C&W Research Chennai (OMR) Hyderabad (Madhapur) 8.9% 4.0 4.0 6.6% 16.5% 12.0% 24.5%
Slide 22: Agenda
Agenda • a-iTrust • Earnings review • What affects us • What we do • What sustains our business 22
Slide 23: What we do
What we do Investment management Asset management Capital management 23
Slide 24: Growth strategy
Investment management • 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 25: Bangalore pipeline
Bangalore 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 Special Econo
Slide 26: Voyager case study
Voyager case study Valuation (31 March 2015) ₹2.93 billion Amount invested ₹1.50 billion Developmental gains1 ₹1.43 billion FY14/15 net property income ₹266 million Development yield2 17.7% 1. Development gains calculated by deducting amount invested from 31 March 2015 valuation. 2. Development yiel
Slide 27: New buildings in ITPB
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 27
Slide 28: Hyderabad pipeline
Hyderabad 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 and adja
Slide 29: Acquired CyberVale from sponsor
Acquired CyberVale from sponsor 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 using spot
Slide 30: Right of first refusal to sponsor assets
Right of first refusal to sponsor 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 fu
Slide 31: Acquisition criteria
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 31
Slide 32: aVance Business Hub, Hyderabad
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: 0.43m sq ft Vendor assets: marked in black Conditional acquisitions of (3), (4) & (5): 1.92m sq ft Land owner assets: marked in white ROFR to (6), (
Slide 33: aVance details
aVance details • aVance 1 & 2 (0.43m 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 additional ₹42
Slide 34: aVance Building 3
aVance Building 3 Location HITEC City, Madhapur, Hyderabad Total floor area 682,928 sq ft Construction status Completed Leasing commitment 86% 34
Slide 35: BlueRidge Phase II, Pune
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 BlueRidge IT/I
Slide 36: BlueRidge acquisition details
BlueRidge acquisition details • Acquisition process: • a-iTrust invested ₹2,600 m (S$57m1) in March 20152. • a-iTrust earns interest income on the amount invested. • On 31 December 2016, a-iTrust will complete the acquisition provided at least 65% of the property is leased. • a-iTrust may complete t
Slide 37: Asset management
Asset management 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 37
Slide 38: 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 39: 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 39
Slide 40: 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 41: Quality tenants
Quality tenants No. Top ten tenants (in 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 42: 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 43: 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 44: Getting tenant employees to work
Getting tenant employees to work Property ITPB Partner Bangalore Metropolitan Transport Corporation Service Provide dedicated bus services to park employees ITPB bus depot Accommodates 40 buses Bus routes 88 Users 6,000 park employees Benefit Average travelling time of park employees reduced by 25%
Slide 45: Activities throughout the year
Activities throughout the year Quarter Location Event 1 Chennai & Hyderabad Go Green Month Hyderabad Livewire 2014 2 Chennai Livewire 2014 Hyderabad Ascendas Connect 2014, Independence Day, Movie 3 Bangalore & Hyderabad Christmas Celebrations Bangalore Ascendas Connect 2014, Soul Sante 2014 Chennai
Slide 46: Capital management
Capital management 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 47: Debt expiry profile
Debt expiry profile Effective borrowings: S$312m1 Effective borrowing ratio INR: 67% SGD: 33% S$ Million 88.3 76.0 39.3 65.8 42.5 42.9 40.2 44.8 49.0 42.9 40.2 33.5 21.0 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 SGD Denominated debt INR Denominated debt Information as at 31 March 2015 1. Calculated by
Slide 48: 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 49: 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 50: Agenda
Agenda • a-iTrust • Earnings review • What affects us • What we do • What sustains our business 50
Slide 51: What sustains our business
What sustains our business Financial Stability Good Governance • Financial Sustainability • Code of Ethics and Conduct • Investors • Customers Social Responsibility Environmental Awareness • People • Energy Conservation • Health & Safety • Carbon Emissions • Community • Water Consumption • Green Bui
Slide 52: Under the stars
“Under the stars” aifrust
Slide 53: Visit to Divine Light School of the Blind
“Visit to Divine Light School of the Blind” 53
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