Ascendas India Trust reports 15% growth in DPU for FY2019

Singapore, 30 January 2020 – Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust  (“a-iTrust” or the “Trust”), has reported the results of a-iTrust for the third quarter and nine-month period ended 31^st December 2019 (“3Q FY2019” & “FY2019”).

Mr Sanjeev Dasgupta, Chief Executive Officer said, “We are pleased to announce that a-iTrust has delivered a healthy set of results for the quarter and nine-month period ended 31^st December 2019. In Singapore Dollars terms, the 3Q FY2019 and FY2019 net property income grew by 8% and 13%¹ YoY respectively. Rental income from the completion of Anchor building, higher occupancies and positive rental reversions contributed to the strong performance. 

In November 2019, we raised approximately S$150 million of equity through a private placement that was more than four times² covered, backed by strong support from institutional investors.  The Trust’s 3Q FY2019 DPU grew by 4% YoY to 2.12 S¢. Our nine-month FY2019 DPU increased 15%¹ YoY to 6.45 S¢.

As at 31^st December 2019, total completed floor area for a-iTrust’s portfolio stood at 13.1 million square feet. I am pleased to announce that the development potential at ITPB³ has further increased by 1.1 million square feet to 3.8 million square feet due to revised government regulations. With a total development potential of 7.7 million square feet, coupled with our committed pipeline of forward purchase acquisitions, a-iTrust is poised for further growth in the coming years.”

Financial performance (FY2019 vs Dec 2018 YTD)

In Indian Rupee terms, revenue for the nine-month period ended 31^st December 2019 grew by 12%¹, to ₹7.7 billion due to incremental income from Anchor building, higher occupancy in aVance Pune and positive rental reversions from existing properties. Total property expenses increased by 7%¹ to ₹1.9 billion largely due to an increase in operation and maintenance expenses. These factors have resulted in an increase of 13% in FY2019’s net property income, to ₹5.8 billion.

DPU for the nine-month period ended 31^st December 2019 increased by 15% YoY to 6.45 S₵ mainly due to increased net property income and higher construction funding interest income from Arshiya, AURUM IT SEZ, aVance 5 & 6, aVance A1 & A2 and BlueRidge 3. 

Portfolio performance & capital management

a-iTrust’s committed portfolio occupancy remained healthy at 99% as at 31^st December 2019.  The Trust’s portfolio valuation increased by 7% to S$2.1 billion as compared to 31^st March 2019. This is driven mainly by higher portfolio rent, development gains and lower capitalisation rates.

Due to the November 2019 private placement, as at 31^st December 2019, a-iTrust’s gearing ratio decreased to 28% from 33% as at 30^th September 2019. Based on the gearing limit of 45%, the Trust has a total debt headroom of S$802 million. 89% of the Trust’s borrowings are effectively on a fixed-interest rate basis. 71% of these total borrowings were hedged into Indian Rupees. 

Growth Initiatives

Construction of MTB 5, a 0.7 million square feet multi-tenanted building in ITPB, is underway and more than half the structure works have been completed. The building has been 100% pre-leased to a leading IT services company and is expected to complete by the second half of 2020. 

Summary of a-iTrust Results

Exchange rate movements

¹ FY2019 is compared against the corresponding nine-month period from 1^st April 2018 to 31^st December 2018.

² Based on initial Private Placement base size of S$100 million.

³ International Tech Park Bangalore

⁴ a-iTrust financial year end has changed from 31^st March to 31^st December as announced on 19^th July 2019.

⁵ Distribution per unit (income to be distributed) in Singapore Dollar terms.

⁶ Average exchange rates used in the income statement.

⁷ The Singapore Dollar depreciated by 1.9% against the Indian Rupee.

⁸ The Singapore Dollar appreciated by 0.2% against the Indian Rupee.