Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascendas India Trust — H1 2020 Earnings Presentation
52 slides from Singapore Exchange's earnings presentation, Jul 28, 2020
Slide 1: 1H FY2020 Financial Results Presentation
Ascendas India Trust 1H FY2020 Financial Results Presentation 28 July 2020
Slide 2: Disclaimer
Disclaimer This presentation on a-iTrust’s results for the 6-month period ended 30 June 2020 (“1H FY2020”) should be read in conjunction with a-iTrust’s half-yearly results announcement, a copy of which is available on www.sgx.com or www.a-iTrust.com. This presentation may contain forward-looking st
Slide 3: Notice: Change to Half-yearly Reporting
Notice: Change to Half-yearly Reporting Ascendas Property Fund Trustee Pte. Ltd. (the “Trustee-Manager”), as trustee-manager of a- iTrust, refers to the recent amendments to Rule 705(2) of the Listing Manual of the Singapore Exchange Securities Trading Limited which were effective from 7 February 20
Slide 4: COVID-19 update
COVID-19 update International Tech Park Bangalore
Slide 5: COVID-19 in India
COVID-19 in India Geographical spread of COVID-19 cases in India • First COVID-19 case reported in end January. • Nationwide lockdown from 25 March 2020; phase-wise reopening of areas outside containment zones effective from 1 June 2020. • Lockdown and fresh restrictions of varying duration was re-i
Slide 6: Impact of COVID-19
Impact of COVID-19 Safeguarding the health and safety of all staff, tenants and parkites in our properties remains our highest priority. We are closely monitoring the evolving situation and will take appropriate actions to protect our tenants’ premises and their employees. Current Assessment of Impa
Slide 7: Financial review
Financial review International Tech Park Bangalore
Slide 8: 1H FY2020 results
1H FY2020 results 1H FY20201 1H FY20191 Variance SGD/INR FX rate2 52.5 51.7 1.5% • Income from Anchor building at ITPB; • positive rental reversions; and ₹5,199m ₹4,982m 4% • partially offset by lower utilities and Total property income S$99.0m S$96.5m 3% carpark income due to COVID-19 lockdown. ₹3,
Slide 9: Cumulative Distribution
Cumulative Distribution Period 1 January 2020 to 30 June 2020 Distribution details 1H FY2020 4.64¢ per unit Period: 1 January 2020 – 30 June 2020 Amount: 4.64¢ Total YTD 4.64¢ per unit Ex-date: 17 August 2020 Payment date: 26 August 2020 With effect from 1 April 2019, a-iTrust’s financial year end w
Slide 10: Half-yearly revenue trend
Half-yearly revenue trend Total Property Income (INR) Total Property Income (SGD) 10% 8% INR million CAGR S$ million CAGR 5,500 115.0 5,000 105.0 95.0 4,500 85.0 4,000 75.0 3,500 65.0 3,000 55.0 2,500 45.0 2,000 35.0 1,500 25.0 1,000 15.0 1H 2H 1H 2H 1H 2H 1H 2H 1H 1H 2H 1H 2H 1H 2H 1H 2H 1H CY2016
Slide 11: Half-yearly income trend
Half-yearly income trend Net Property Income (INR) Net Property Income (SGD) 12% INR million 14% CAGR 4,400 80.0 CAGR 75.0 3,900 70.0 65.0 3,400 60.0 2,900 55.0 50.0 2,400 45.0 40.0 1,900 35.0 30.0 1,400 25.0 900 20.0 15.0 400 10.0 1H 2H 1H 2H 1H 2H 1H 2H 1H 1H 2H 1H 2H 1H 2H 1H 2H 1H CY2016 CY2017
Slide 12: Half-yearly DPU since listing
Half-yearly DPU since listing INR/SGD exchange rate2 INR/SGD DPU1 (S¢) (Indexed) Change since listing exchange rate (indexed) 10.00 INR depreciation against SGD: -51% 130 SGD DPU3: +65% 9.00 120 8.00 110 7.00 100 6.00 90 5.00 80 4.00 70 3.00 60 2.00 1.00 50 0.00 40 CY2007 CY2008 CY2009 CY2010 CY2011
Slide 13: Capital management
Capital management International Tech Park, Chennai
Slide 14: Capital management
Capital management Currency hedging strategy Funding strategy Balance sheet • The Trustee-Manager’s approach to equity raising is predicated on maintaining a strong • Trustee-Manager does not hedge equity. balance sheet by keeping the Trust’s gearing • At least 50% of debt must be denominated in rat
Slide 15: Debt maturity profile
Debt maturity profile Hedging ratio Effective borrowings: S$771 million INR: 65% SGD: 35% S$ Million 237.1 218.8 1 134.1 190.1 172.6 94.9 134.1 48.5 51.9 0.0 48.5 47.0 46.2 43.0 38.0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 SGD Denominated debt INR Denominated debt Information as at 30 June 2020. 1
Slide 16: Capital structure
Capital structure Indicator As at 30 June 2020 Interest service coverage 4.0 times (EBITDA/Interest expenses) (YTD FY2020) Percentage of fixed rate debt 82% Percentage of unsecured borrowings 100% Gearing: 29%3 Effective weighted average cost of debt1 5.7% Gearing limit 50%2 Available debt headroom
Slide 17: Operational review
Operational review International Tech Park Hyderabad
Slide 18: Office markets update
Office markets update Bangalore (Whitefield) Hyderabad (IT Corridor I1) 14.9% 5.0 4.0 4.0 12.0% 9.7% 3.0 8.9% 3.0 7.2% 2.0 2.0 6.2% 6.0% 5.7% 1 1.0 1.0 2.6% 3.0% 0.0 0.0 CY 2016 CY 2017 CY 2018 CY 2019 1H 2020 CY 2016 CY 2017 CY 2018 CY 2019 1H 2020 Chennai (OMR) 14.9% Pune (Hinjawadi) 3.0 2.0 2.0 9
Slide 19: Diversified portfolio
Diversified portfolio Portfolio breakdown by area Customer Base Mumbai 6% Total number of tenants 326 Pune Average space per tenant 39,300 sq ft 12% Bangalore 34% Largest tenant accounts for Chennai 9% of the portfolio base rent 22% Hyderabad 26% Floor area 13.1 million sq ft All information as at 3
Slide 20: Healthy portfolio occupancy
Healthy portfolio occupancy Committed portfolio occupancy: 98% 100% 100% 100% 98% 97% 98% 95% 94% 96% 94% 96% 94% 89% 85% 85% ITPB ITPC CyberVale aVance CyberPearl ITPH aVance Arshiya Arshiya Panvel 1 Hyderabad Pune Panvel a-iTrust occupancy Market occupancy of peripheral area2 All information as at
Slide 21: Transacted vs effective rents
Transacted vs effective rents1 Bangalore Chennai Hyderabad 40% 37% 35% 30% 28% 25% 22% 20% 15% 9% 9% 10% 9% 5% 0% 0% ITPB ITPC CyberVale aVance ITPH CyberPearl aVance Pu Hyderabad All information as at 30 June 2020. 1. Difference in average transacted rents by a-iTrust over the past 12 months agains
Slide 22: Spread-out lease expiry profile
Spread-out lease expiry profile Weighted average lease term: Weighted average lease expiry: 6.6 years 3.6 years Sq ft expiring 45% 5,500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 22% 2,500,000 17% 2,000,000 1,500,000 8% 8% 1,000,000 500,000 - FY2020 FY2021 FY2022 FY2023 FY2024 & beyond A
Slide 23: Quality tenants
Quality tenants Top 10 tenants (in alphabetical order) Top 5 sub-tenants of Arshiya Panvel (in alphabetical order) 1 Applied Materials 1 DHL Logistics 2 Arshiya Panvel 2 Huawei Telecommunications 3 Bank of America 3 Labdhi Manufacturing 4 Cognizant 4 Rolex Logistics (CISCO) 5 Mu Sigma 5 UPL Limited
Slide 24: Diversified tenant base
Diversified tenant base Tenant core business & activity by base rental 1 Retail Oil & Gas F&B Telco 1% 1% 1 Others Others 1% R&D 2% Retail & F&B 1% 3% 1 1% ITES 3% Healthcare & IT, Software & Application Development and Service Support 4% Pharma 3% 51% Logistics & warehousing Automobile 7% 5% Electr
Slide 25: Diversified tenant base
Diversified tenant base Tenant country of origin & company structure by base rental UK Others Singapore 1% 4% 2% Japan 2% India Co 2 14% USA France 55% 7% Country of Company origin structure India 1 29% 3 MNC 86% All information as at 30 June 2020. 1. Comprises Indian companies with local and overse
Slide 26: Growth strategy
Growth strategy International Tech Park Chennai
Slide 27: Good growth track record
Good growth track record Total developments: Total acquisitions: 5.0 million sq ft 4.8 million sq ft 11% Floor area CAGR (million square feet) 12.6 1 13.1 13.1 11.9 0.5 0.8 1.9 9.7 0.4 8.8 0.3 0.6 7.5 1.3 6.9 6.9 6.5 0.6 6.0 0.4 13.1 0.5 11.9 12.6 4.7 4.8 4.8 1.2 0.1 9.7 3.6 1.1 8.8 6.9 6.9 7.5 6.0
Slide 28: Clear growth strategy
Clear growth strategy • 3.8m sq ft1 in Bangalore Development pipeline • 3.5m sq ft in Hyderabad • 0.4m sq ft in Chennai • 2.3m sq ft from CapitaLand Sponsor • Ascendas India Growth Programme assets Growth strategy • 1.8m sq ft aVance Hyderabad 3rd party • 2.1m sq ft aVance Business Hub 2 acquisition
Slide 29: Outlook
Outlook International Tech Park Bangalore
Slide 30: Growth based on committed pipeline
Growth based on committed pipeline Floor area (million square feet) 22.8 0.2 74% 0.3 1.8 2.1 1.8 1.4 13.1 1.4 0.7 13.1 Jun-20 Growth pipeline Portfolio MTB 5 ITPH redevelopment - Phase I AURUM IT SEZ aVance 5 & 6 aVance A1 & A2 30 BlueRidge 3 - Phase 1 & 2 Arshiya Panvel Arshiya Khurja
Slide 31: Growth Pipeline
Growth Pipeline aVance Hyderabad aVance Business Hub 2 AURUM IT SEZ BlueRidge 3 Arshiya Panvel Arshiya Khurja TOTAL aVance 5 aVance 6 aVance A1 aVance A2 Building 1 Building 2 Phase 1 Phase 2 7th warehouse 1 warehouse Floor area 1.16 0.64 1.05 1.05 0.60 0.80 1.41 0.43 0.33 0.19 7.66 (mil sq ft) Time
Slide 32: Appendix: Glossary
Appendix Glossary Trust properties : Total assets. Derivative financial : Includes cross currency swaps (entered to hedge SGD borrowings into INR), interest rate swaps, options and instruments forward foreign exchange contracts. DPU : Distribution per unit. EBITDA : Earnings before interest expense,
Slide 33: Balance sheet
Balance sheet As at 30 June 2020 INR SGD Total assets ₹140.60 billion S$2,652 million Total borrowings ₹41.91 billion S$790 million Derivative financial instruments (₹1.01 billion) (S$19 million) Effective borrowings1 ₹40.90 billion S$771 million Long term receivables ₹17.79 billion S$336 million Ne
Slide 34: Development: ITPB pipeline
Growth strategy Development: ITPB pipeline Future development potential International Tech Park Bangalore • Increase in development potential from 2.7 million sq ft to 3.8 million sq ft1. • Construction of MTB 5 (0.7 million sq ft) is in progress. Anchor Park Square (Multi-tenanted (Mall) building)
Slide 35: Development: MTB 5, Bangalore
Growth strategy Development: MTB 5, Bangalore Artist’s impression Property International Tech Park Bangalore Floor area 0.68m sq ft • Construction is in progress and structure works are completed up to terrace level Construction status • Completion expected by 2H 2020 Leasing status 100% pre-leased
Slide 36: Development: ITPH redevelopment
Growth strategy Development: ITPH redevelopment Existing Master Plan (1.5m sq ft1) Proposed Master Plan (5.0m sq ft) MLCP BLOCK E Capella Vega BLOCK D Atria Atria Phase I Phase I BLOCK C BLOCK B Orion BLOCK A Auditorium Auriga Mariner Key Highlights Redevelopment to increase the development potentia
Slide 37: Development: ITPH redevelopment – Phase I
Growth strategy Development: ITPH redevelopment – Phase I Artist’s impression Name International Tech Park Hyderabad (ITPH) redevelopment – Phase I Floor area 1.36m sq ft • Excavation is in progress and foundation work has commenced Development status • Completion expected by 2H 20221 1. Expected co
Slide 38: Sponsor: Assets in India
Growth strategy Sponsor: Assets in India Sponsor presence1 International Tech Park, Pune • Three phases comprising 1.9 million sq ft completed • Construction of final phase of 0.4 million sq ft is completed. Active discussions with Gurgaon prospective tenants are ongoing. Pune Chennai Private fund m
Slide 39: 3rd party: Acquisition criteria for commercial space
Growth strategy 3rd party: Acquisition criteria for commercial space • 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 • Opportunit
Slide 40: 3rd party: aVance Hyderabad
Growth strategy 3rd party: aVance Hyderabad (5) (3) (6) (8) (4) (7) (2) (5) (1) (9) Artist’s impression (10) (6) Park Statistics Site area: 25.7 acres / 10.4 ha (1), (2), (3) & (4) owned by a-iTrust: 1.50m sq ft Vendor assets: marked in black Proposed acquisitions of (5) & (6)1: 1.80m sq ft Land own
Slide 41: 3rd party: aVance Business Hub 2, Hyderabad
Growth strategy 3rd party: aVance Business Hub 2, Hyderabad aVance (6) Hyderabad (7) (A1) Artist’s impression (A2) (A3) (A4) (A5) Artist’s impression Park Statistics Proposed acquisition of Site area: 14.4 acres / 5.8 ha (A1) to (A5)1: 4.53m sq ft Construction status: Excavation work commenced Vendo
Slide 42: 3rd party: AURUM IT SEZ, Navi Mumbai
Growth strategy 3rd party: AURUM IT SEZ, Navi Mumbai (3) (2) (1) Artist’s impression Location Ghansoli, Navi Mumbai • Building 1: 0.6m sq ft; Building 2: 0.8m sq ft Floor area • Right of First Refusal on Building 3: up to 1.1m sq ft Expected completion • Building 1 - Occupancy Certificate received;
Slide 43: 3rd party: BlueRidge 3, Pune
Growth strategy 3rd party: BlueRidge 3, Pune Location Hinjawadi Phase 1, Pune Floor area Phase 1: 1.4m sq ft; Phase 2: 0.4m sq ft Expected completion Phase 1: 1H 2021; Phase 2: 2H 2023 Leasing Status Phase 1: 11% pre-committed for long-term space • Construction work in progress for IT Building 1 Con
Slide 44: Logistics: Arshiya Panvel warehouses, Mumbai
Growth strategy Logistics: Arshiya Panvel warehouses, Mumbai Location Panvel, near Mumbai Site area 24.5 acres / 9.9 ha Floor area 0.8m sq ft Forward purchase At least 2.8m sq ft (includes 0.3m sq ft warehouse under construction) 44
Slide 45: Logistics: Arshiya Khurja warehouse, NCR
Growth strategy Logistics: Arshiya Khurja warehouse, NCR Location Khurja, NCR Site area 4.5 acres / 1.8 ha Floor area 0.19m sq ft1 Right to acquire 3.85m sq ft 1. Acquisition of the warehouse subject to completion of certain Conditions Precedent as specified in the Share Purchase Agreement. 45
Slide 46: World-class IT and logistics parks
World-class IT and logistics parks City Bangalore Chennai Hyderabad Pune Mumbai • Intl Tech Park • Intl Tech Park • Intl Tech Park • aVance Pune • Arshiya Panvel Property Bangalore Chennai Hyderabad warehouses • CyberVale • CyberPearl • aVance Hyderabad Type IT Park IT Park IT Park IT Park Warehouse
Slide 47: Lease expiry profile
Lease expiry profile FY2024 City FY2020 FY2021 FY2022 FY2023 Total & beyond Bangalore 227,200 1,258,200 649,200 101,600 2,184,200 4,420,400 Chennai 530,200 885,600 678,300 310,900 375,800 2,780,800 Hyderabad 228,300 696,000 759,100 579,900 997,100 3,260,400 Pune 68,500 - 64,100 58,300 1,312,800 1,50
Slide 48: Revenue growth trends
Revenue growth trends Total Property Income (INR) Total Property Income (SGD) 10% 5% INR million CAGR S$ million CAGR 10,188 9,336 197.6 184.0 183.0 8,626 7,220 148.4 141.1 6,579 129.9 6,124 124.4 127.3 120.8 121.3 119.8 5,550 5,584 4,658 4,005 4,078 48
Slide 49: Income growth trends
Income growth trends Net Property Income (INR) Net Property Income (SGD) 12% 7% INR million CAGR S$ million CAGR 148.6 7,668 133.8 6,791 123.6 5,827 98.4 4,790 91.1 4,249 74.3 74.9 75.9 3,654 71.1 70.1 69.8 3,197 3,260 2,628 2,460 2,391 49
Slide 50: a-iTrust unit price versus major indices
a-iTrust unit price versus major indices (Indexed) Indicator 175 a-iTrust Trading yield 6.9%1 (as at 30 June 2020) FTSE STI Index 150 FTSE ST REIT Index Average daily trading 2,380,000 units volume (1H FY2020) Bombay SE Realty Index 125 INR/SGD FX rate 100 a-iTrust 75 FTSE ST REIT Index FTSE STI Ind
Slide 51: 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/ CapitaLand Dividends, principal management services 100% o
Slide 52: Investor contact
Investor contact Tan Choon Siang Chief Financial Officer Ascendas Property Fund Trustee Pte Ltd (Trustee-Manager of a-iTrust) Office: +65 6774 1033 Email: choonsiang.tan@a-iTrust.com Website: www.a-iTrust.com