Post on 21-Aug-2020
1
2Q FY 2008/09
Financial Results
Presentation
30 October 2008
Singapore’s First Listed Indian Property Trust
2
Disclaimers
This presentation focuses on results for the financial quarter ended 30
September 2008 (“2Q FY 2008/09”). This shall be read in conjunction with
a-iTrust‟s announcement of results for the quarter in the SGXNet
announcement, either from www.sgx.com or www.a-itrust.com .
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. Representative
examples of these factors include (without limitation) general industry and economic conditions,
interest rate trends, cost of capital and capital availability, competition from other developments or
companies, shifts in expected levels of property rental income and occupancy rate, changes in
operating expenses (including employee wages, benefits and training, property expenses),
governmental and public policy changes and the continued availability of financing in the amounts
and the terms necessary to support future business. Investors are cautioned not to place undue
reliance on these forward-looking statements, which are based on the Trustee-Manager’s current
view on future events.
3
• Overview
• Financial Results
• Growth Strategies
• Financial Indicators
Agenda
4
• Overview
• Financial Results
• Growth Strategies
• Financial Indicators
Agenda
5
Key Highlights
2Q FY 08/09 DPU of 1.82 Singapore cents, being:
- 23% above same period last year*
- 10% above last quarter
1H FY 08/09 distribution reflects annualised yield of:
- 13.2% over the closing price of S$0.525 on 30 September 2008
- 16.3% over the closing price of S$0.425 on 29 October 2008
* Results and DPU for the first and second quarters last year were reported together, post listing of
a-iTrust, at 2.95 Singapore cents. For illustrative purposes, had the DPU been equal and hence 1.475
Singapore cents for each quarter, 2Q FY 08/09 would have been 23% higher.
1H FY 08/09 DPU of 3.47 Singapore cents, 18% above same
period last year
Net Asset Value was S$750 million or S$0.99 per unit as at 30
September 2008
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Key Highlights
For 1H FY 08/09, 0.6 million sq ft of space was leased or renewed
at a higher rental rate, posting a strong retention rate of 85%
98% portfolio occupancy as at 30 September 2008
During 2Q FY 08/09, 96,050 sq ft of space in ITPB was acquired
and leased back to Tata Consultancy Services (TCS). This S$10
million acquisition was immediately yield enhancing
Current gearing at 5% (loan to value), hence substantial debt
capacity to fund future development space / acquisition
7
• Overview
• Financial Results
• Growth Strategies
• Financial Indicators
Agenda
8
Financial Results –2Q FY08/09 vs 2Q FY07/08
2Q FY08/09
(S$ „000)
2Q FY07/08
(S$ „000)
Variance
(%)
Reasons
Total
Property
Income
29,820 25,292 18% • Income from newly completely buildings,
Vega & Crest
• Higher rental rates
• One time income of S$ 2.7 million for
provision of extra power by TCS‟s built-to-suit
building amortized over 36 months from Sep
08; effect in 2Q FY08/09 minimal
Net
Property
Income
15,691 15,371 2% • Marketing fee for Vega & Crest
• Increased maintenance expenses due to
larger portfolio
• Increased charges to tenant to mitigate higher
utilities expenses
Net Profit
after tax
11,006 9,120 21% • Lower finance cost
• Fair value gain on derivatives this quarter
• No IPO cost
DPU
(Singapore
cents)
1.82 1.475 23% • Results for 1Q and 2Q last yr were announced
together
• Total Distribution was 22.7m and DPU 2.95
cents
• Comparison assumes equal amt for those
2 quarters
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1Q FY08/09
1 April 2008 to 30 September 2008
1.65 ¢ per unit
Distributions are paid on semi-annual basis, for the six-month periods ending
31 March and 30 September of each year
Period
1.82 ¢ per unit
Distribution per Unit
18% increase
over same
period last FY
2Q FY08/09
1H FY08/09 3.47 ¢ per unit
1H FY07/08 2.95 ¢ per unit
Books Closure Date
Distribution Payment Date
14 November 2008
25 November 2008
10% increase q-o-q
23% increase y-o-y
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• Overview
• Financial Results
• Growth Strategies
• Financial Indicators
Agenda
11
Pro
pose
d D
evelo
pm
ent
Mar 07
Total Owned SBA of 4.8 mm sq ftOperating
Buildings
Upcoming SBA of 1.5
mm sq ft
Proposed
Developments
Land Available
for
Development
Potential SBA of
2.7 mm sq ft
Unique three-pronged acquisition
strategy
Exte
rnal
Acquisitions
Org
anic
4.2 mm sq. ft.
= 89% of current
operating
buildings
Growth Strategy
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100,000
200,000
300,000
400,000
500,000
600,000
700,000
Organic GrowthLease Activities From 1 April 2008 to 30 September 2008
85%
Retention
Renewed
Leases
New
Leases
Renewed & New
Leases
Leases Concluded
Over The Year
Forward
Leasing*
Area (Sqft)
218,000
381,500
73,500
* Include signed leases which have not commenced
Expired
Leases
186,000
567,500
186,000
567,500
641,000
381,500
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Organic Growth - Stability
Portfolio Weighted Average Occupancy as at 30 September 2008 is 98%.
100% 96%1 96% 100%
Maintaining High Occupancy Rates
ITPB ITPC The V CyberPearl
1 Includes retail space. Occupancy rate for office space in ITPC is 100%
a-iTrust Occupancy
Market
Occupancy of
Peripheral Area2
2 Jones Lang Laselle Market Report as at 30 September 08
77%
83%
98% 98%
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-
500,000
1,000,000
1,500,000
2,000,000
Organic Growth - Lease Expiry Profile
17.4%
12.4%
34.8%
Financial
Year 2009
Financial
Year 2010
Portfolio Lease Expiry Profile
Financial
Year 2011
Financial
Year 2012
Financial Year
2014 & Beyond
13.6%14.4%
Sq ft expiring
7.4%
Weighted Average Lease Term – 3.9 yrs as at 30 September 2008
Financial
Year 2013
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Hyderabad35.5%
Chennai27.0%
Bangalore37.5%
Organic Growth - Stability
Geographical Diversification of Properties
Total Owned SBA = 4.8 million sq. ft.
Strong Tenant Base
Total Number of Tenants
Average space
per tenant
No single tenant takes up
more than 4%
of the portfolio base rent
250
18,462 sq. ft.
As at 30 September 2008
Operating Buildings of a-iTrust
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Affiliated Computer Services of India Pvt. Ltd.
Applied Materials India Pvt. Ltd.
Cognizant Technology Solution (India) Pvt. Ltd.
General Motors India Pvt. Ltd.
iNautix Technologies India Pvt. Ltd.
Invensys Development Center India Pvt. Ltd.
Merrill Lynch (India) Technology Services
Paprikaas Interactive Services Pvt. Ltd.
Pfizer Pharmaceutical India Pvt. Ltd.
ZapApp / First Indian Corporation / First Advantage
Top 10 Tenants collectively accounted for about 29% of the portfolio base rent
Portfolio - Top Ten Tenants in Alphabetical Order
Portfolio Top 10 Tenants
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IT63.0%
R&D4.8%
F&B0.9%
Others5.1%
ITES17.1%
IT/ITES9.2%
Organic Growth - Tenant Development
30 September 2008
Tenant sector by base rental
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MNC90.7%
India Based Company
9.3%
Organic Growth - Tenant Development
30 September 2008
Tenants‟ country origin & company structure by base rental
US67.1%
India15.6%
Germany5.3%
UK3.7%
Japan1.9%
Netherland1.9%
Singapore1.9%
Finland1.0% France
0.6%Others1.0%
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Work Live Play at the Parks
Ascendas excellence award
@ ITPCVega inauguration ceremony
@ THE V
Talentz & Techpark
@ ITPB
Livewire 2008 @ CyberPearl Livewire 2008 @ The V
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Development
3 property development in the parks – additional 1.5 mil sq ft
BTS for Avestha Gengraine
Technologies (ITPB)Retail Mall (ITPB)
Zenith
3rd building (ITPC)
440,000 sq ft SBA mall 294,000 sq ft SBA 802,000 sq ft SBA
• Funding of S$140 million loan at SOR* + 70 basis points organised
• Design & construction tender
completed
• Site preparation and barricading
in progress
• After value engineering, floor area
increased by 13% from 708,000 sq
ft as previously disclosed
• Marketing yet to commence,
received interest indication for
30% of space
• Fully pre-leased
• Site preparation and
barricading in progress
• Construction scheduled to
commence in 3Q FY 08/09
* Citibank 6 months SOR as of 16 October 2008 was 1.69%
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Development
Further development in ITPB – additional 2.7 million sq. ft.
• Completed master plan to
develop balance 2.7 million
sq ft of space as SEZ
• Building approval
submission for a 536,000
sq ft multi-tenanted
building in progress
Existing Income-
producing space
Hotel
Amenities / Future
developments
SEZ
Proposed BTS Proposed Retail Mall
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Completed Acquisition
Space Acquisition @ ITPB from Tata Consultancy Service Limited
Acquired 96,051.88 sq ft of office space in International Tech Park
Bangalore from Tata Consultancy Services Limited (TCS) for Rs 307.8
million (S$9.8 million1)
1 Based on exchange rate of Rs 1 = S$0.032.
Acquisition will be funded by drawing down existing loan facility at
interest rate of 70 bps above Swap Offer Rate
Upon this yield accretive acquisition, pro forma effect on DPU for FY
ended 31 March 2008, is expected to be additional 0.088 Singapore
cents per unit2
2 Assuming a-iTrust had purchased, held and operated the office unit for whole FY ended 31 March 08,
and the Trustee-Manager had elected to receive half of base and performance fees.
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Acquisition
CyberVale in Chennai, an IT SEZ comprising a proposed 1.1M sq ft of SBA
over 4 buildings over 18.5 acres of land
Right of First Refusal – Ascendas Land International Pte Ltd
3 pronged acquisition strategy
Building 1
SBA (sq. ft.)
Building 2
Building 3
Building 4
250,000
280,000
285,000
280,000
Completed and fully leased
BTS for MindTree Consulting
(completed) *
Land available for development
Pre – committed to a single tenant
and construction targeted to complete
in end January 2009
* 99-year lease CyberVale represents an opportunity for a-iTrust to acquire
535,000 sq ft of space and 4.4 acres of land for development
24
Acquisition
9.7 mil sq ft development potential identified in key cities such as
Gurgaon, Pune and Coimbatore
Right of First Refusal – Ascendas India Development Trust
3 pronged acquisition strategy
AIDT has committed equity of S$500 mil & target investment size of
S$1 billion
This ROFR represents a strong acquisition pipeline for a-iTrust once
AIDT progressively completes the development of space
AIDT finalising further investments & will announce at appropriate stage
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Acquisition
a-iTrust has substantial debt capacity before reaching its voluntary
gearing limits*
Acquisition from the market
3 pronged acquisition strategy
Trustee-Manager pursuing opportunities
* Voluntary gearing limits stipulated in the trust deed. Business trusts have no gearing limit under the
Business Trust Act.
Preference is to fund third-party properties acquisition or development
beyond the said 1.5 mil sq ft of additional space within the portfolio via
debt
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Agenda
• Overview
• Financial Results
• Growth Strategies
• Financial Indicators
27
0
100
200
300
400
500
600
700
800
900
1,000
Substantial Debt Headroom
S$ Million
Available Debt Capacity to 35% & 60% Leverage as at 30 September 08
Total Debt * Total Assets * Available Debt Capacity
* Exclude Minority Interests
35% Cap About S$280 mil
Debt Capacity
60% Cap About S$520 mil
Debt Capacity
Current
Gearing 5%
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Hedging Strategy
To enhance the stability of distribution to Unitholders, the Trustee-Manager
had put in place forward contracts to hedge a substantial portion of the
forecast repatriation from India to Singapore for FY 08/09 and 1H FY 09/10
distributions
The Trustee-Manager does not intend to take speculative position on the
currency market and had, as a matter of policy continued to hedge at least a
year prior to the planned repatriation date
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0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Delivering Attractive Yield
Yield (%)
a-iTrust
13.20%1 /
16.3%%7
Source: CEIC, CPF, IBES
3.21% 2.40%
3.99% 3.97%
2.50%
0.73%
10-yr Govt
Bond 35-yr Govt
Bond 312-mth (S$)
Fixed
Deposit 3
SGX
Stocks 4SGX
Property
Counters 5
CPF
Ordinary
Account 6
1 Annualised yield based on DPU 3.47 cents for 1H FY0809 and at closing price of S$0.525 per unit as at 30 September 2008
2 IBES Estimates, Bloomberg as at 30 September 2008
3 As at September 2008
4 Average 12 months dividend yield of total stocks listed in SGX, as at August 2008
5 Average 12 months dividend yield of all SGX listed property counters inclusive of REITs, as at August 2008
6 Prevailing CPF Ordinary Account saving rate
7 Annualised yield based on 1H FY08/09 DPU and closing price of S$0.425 per unit as at 29 October 2008
a-iTrust’s annualised yield (30 September 2008) is
4.80% – 12.47% above various indicators.
a-iTrust is targeted to grow its income organically,
through development and acquisition.
Wtd Avg
S-Reit Yield2
8.40%
30
20
40
60
80
100
120
140
160
180a-iTrust
Property Index
STI Index
All Share Index
REITs Index
Sensex Index
Dow Jones Index
Bombay SE Realty Index
Trading Price (Indexed)
a-iTrust
IPO Sep 07 Dec 07 Mar 08 Jun 08
Data Source: Bloomberg
Oct 08
31
0
25
50
75
100
125
150
175
200
225
250a-iTrust
Indiabulls Real Estate Ltd
DLF Ltd
Unitech Ltd
HDIL
Ishaan Property Trust
Hirco Property Trust
Indiabulls Properties Investment Trust
Trading Price vs Equities (Indexed)
a-iTrust
IPO Sep 07 Dec 07 Mar 08 Jun 08
Data Source: Bloomberg
Oct 08
32
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
30,000
Maintain Stable Performance
Net Property IncomeTotal Property Income
S$‟000
1Q 2Q 3Q
23,220
25,290
26,970
15,71015,370
13,340
S$‟000
27,233
4Q
16,116
FY 2007 / 08
16,03028,641
1Q
FY 2008 / 09
* Net Property Income in SGD terms was about 2% lower as compared to last quarter due to strengthening of SGD against INR
and functional currency of a-iTrust being INR. In INR term, there is no change in the net property income. The exchange rates are
hedged for the distribution for 1H FY 08/09 and 2H FY 08/09.
15,691*
2Q 1Q 2Q 3Q 4Q 1Q 2Q
29,820
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1.00
1.20
1.40
1.60
1.80
2.00
DPU Growth
S$cents
3Q
1.640
1.500
1.475*
4Q
FY 2007 / 08
1Q
FY 2008 / 09
* DPU for first and second quarters last year were reported together, post listing of a-iTrust. DPU for both quarters
was 2.95 cents. For illustrative purposes, has the DPU been equal for both quarters, ie 1.475 cents.
1.475*
1.650
1Q 2Q
1.820
2Q
34
Putting things in perspective
Indian investment case remains attractive:
- GDP forecast to be ahead of many other economies
- Large population, increasing affluence including that
from a middle income class and room for further market
liberalization augur well for its market potential
- Current credit conditions may slowdown new supply of space
- Quality labour for IT at competitive rates
Countries Local Currency US Dollar
India 300,000 6,200
Malaysia 35,555 10,000
China 100,000 15,000
Korea 31,537,450 24,000
Singapore 37,588 26,000
Hong Kong 200,000 26,000
Japan 3,683,078 36,000
Australia 53,525 38,000
UK 27,002 47,000
US 63,979 64,000
Source and date : PayScale (provider of global online compensation date), October 2008
35
Putting things in perspective
Portfolio well positioned to serve target market of MNCs
Stable Income stream:
- Low single client exposure
- Less than 18% of space is due for renewal in this current
financial year, and less than 13% in the next year
Healthy balance sheet to leverage on growth from:
- Developing land within portfolio
- Tap on acquisition opportunities, be it through Right of First
Refusal (ROFR) or from the market
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Moving Forward
The Trustee-Manager will continue to focus on enhancing
the operating earnings of its assets, optimising its capital
structure and growing its portfolio through development
and acquisition.
The Trustee-Manager is maintaining the DPU forecast of
6.85 Singapore cents for FY 2008 / 2009 provided in the
listing prospectus, bearing any unforeseen circumstances.
37
Ascendas Property Fund Trustee Pte Ltd
(Trustee-Manager of a-iTrust)
www.a-itrust.com
THANK YOU
38
International Tech Park Bangalore
Park Statistics
Site area: 69 acres
Operating buildings: 1.8 mm
sq ft Owned SBA
Proposed Development:
744,000 sq ft SBA
Land Available for Development:
24 acres or 2.7 million sq ft SBA (based on
max. plot ratio of 2.5)
Park Population: 24,200 people
39
International Tech Park Chennai
Park Statistics
Site area: 15 acres
Operating Buildings: 1,258,000 sq ft
Owned SBA
Proposed Development: Up to 708,000 sq ft
SBA
Park Population: 12,300 people
40
CyberPearl
Park Statistics
Site area: 6 acres
Operating Buildings: 431,000 sq
ft Owned SBA
Park Population: 5,000 people
41
The V
Park Statistics
Site area: 19 acres
Operating Buildings: 1,288,000 sq ft
Owned SBA
Park Population: 10,500 people
42
Structure of Ascendas India Trust
Unitholders
a-iTrustAscendas Property Fund Trustee Pte. Ltd.
(the Trustee-Manager), a wholly-owned subsidiary
of Ascendas Pte Ltd
Ascendas Property Fund (India) Pte. Ltd.
(the Singapore SPV)
The VCUs
Information Technology Park Limited (92.8% ownership)1
Ascendas Information Technology Park Chennai Ltd. (89.0% ownership)1
Cyber Pearl Information Technology Park Private Limited (100.0% ownership)
VITP Private Limited (100.0% ownership)
Ascendas Property
Management Services
(India) Private Limited
(the property manager)
Holding of units Distributions
Trustee’s fee and management fees
Acts on behalf of unitholders/
management services
100% ownership and
shareholder’s loan
Dividends, principal
repayment
of shareholder’s loan
Ownership of ordinary
shares, compulsorily convertible preference shares
(“CCPS”) and shareholder’s loans
Dividends on ordinary shares and CCPS, interest
income, principal repayment of shareholder’s loans
and proceeds from share buyback
The Properties
ITPB
ITPC
Cyber Pearl
The VProperty management fees
Provides property
management services
Ownership4 Net property income
Singapore
India
1 ITPB is 7.2% owned by Karnataka State Government and ITPC is 11.0% owned by Tamil Nadu State Government respectively
43
REIT-like characteristics enhance stability of distributions
a-iTrust will possess key safeguarding provisions while retaining
upside potential through 20% development limit
Adherence to safeguarding
provisions on allowable investments
under Property Fund Guidelines
Permissible
Investment
100% distributions to 31 March 2009
and ≥ 90% thereafter
Distributable
income
≤ 35% of deposited property
(≤ 60.0% with credit rating)Gearing
Distribution exempt from Singapore taxTax-free
distributions