CapitaLand India Trust's FY2023 net property income increased 8% year-on-year
- Driven by quality acquisitions and higher rental income from existing properties
- DPU dropped 21% y-o-y mainly due to the enlarged unit base1, higher finance costs and appreciation of SGD against INR
- Net assets grew 19% y-o-y
Summary of CLINT results
2H 2023 | 2H 2022 | Variance (%) | fy 2023 | FY 2022 | Variance (%) | |
---|---|---|---|---|---|---|
In Indian Rupee (INR/₹): | ||||||
Total property income (million) | 7,582 | 6,148 | 23 | 14,377 | 11,906 | 21 |
Net property income (million) | 5,768 | 4,781 | 21 | 11,033 | 9,429 | 17 |
Income available for distribution (million) | 2,803 | 2,900 | (3) | 5,812 | 5,974 | (3) |
Income to be distributed (million) | 2,523 | 2,610 | (3) | 5,231 | 5,376 | (3) |
Net assets (million) | 100,933 | 84,330 | 20 | 100,933 | 84,330 | 20 |
In Singapore Dollar (SGD/S$): | ||||||
Total property income (million) | 123.6 | 107.3 | 15 | 234.1 | 210.6 | 11 |
Net property income (million) | 94.0 | 83.4 | 13 | 179.6 | 166.8 | 8 |
Income available for distribution (million) | 45.7 | 50.6 | (10) | 94.6 | 105.7 | (10) |
Income to be distributed (million) | 41.1 | 45.5 | (10) | 85.2 | 95.1 | (10) |
Income to be distributed (DPU2 ) (Singapore cents) | 3.09 | 3.91 | (21) | 6.45 | 8.19 | (21) |
Net assets (million) | 1,639 | 1,376 | 19 | 1,639 | 1,376 | 19 |
Exchange rate movements
2H 2023 | 2H 2022 | Variance (%) | FY 2023 | FY 2022 | Variance (%) | |
---|---|---|---|---|---|---|
Average SGD/INR exchange rate3 | 61.3 | 57.3 | 7.04 | 61.4 | 56.5 | 8.7%3 |
Singapore, 29 January 2024 – CapitaLand India Trust has increased its total property income and net property income for FY 2023 in SGD terms by 11% and 8% year-on-year (y-o-y) to S$234.1 million and S$179.6 million respectively. DPU for 2H 2023 was lower y-o-y at 3.09 Singapore cents mainly due to the preferential offering, appreciation of SGD against INR and higher finance costs.
Mr Sanjeev Dasgupta, Chief Executive Officer of CapitaLand India Trust Management Pte. Ltd. (the Trustee-Manager of CLINT), said, “CLINT achieved strong operating performance in FY 2023 driven by our acquisitions of quality assets to build a resilient and diversified portfolio. The Trust’s FY 2023 property income grew 21% in INR terms and 11% in SGD terms y-o-y while our committed occupancy improved to 93% across the portfolio. CLINT’s net assets increased by S$263 million or 19% from a year ago due to our new acquisitions and uplift in valuation. Despite the elevated interest rate environment, our weighted average cost of debt remained unchanged at 6.3% in both 1H 2023 and 2H F2023."
"In FY 2024, we anticipate the full-year income from Block A, International Tech Park Hyderabad (ITPH) as well as 100% leased Industrial Facility 2 and 3 at Mahindra World City, Chennai (IF2 and IF3), to contribute to CLINT’s overall growth.”
Mr Sanjeev Dasgupta, CEO of CLINT
Financial Performance
In INR terms, FY 2023 total property income increased by 21% to ₹14.4 billion. This was mainly due to income contribution from Arshiya Warehouse 7 acquired in March 2022, Industrial Facility 1 at Mahindra World City, Chennai (IF1) acquired in May 2022, Block A, ITPH which was completed in January 2023, International Tech Park Pune – Hinjawadi (ITPP-H) which was acquired in May 2023 and higher rental income of existing properties compared to the same period last year.
Total property expenses increased by 35% to ₹3.3 billion mainly due to higher operations and maintenance expenses and property management fees from existing and newly acquired properties. As a result, FY 2023 net property income increased by 17% to ₹11.0 billion.
Income available for distribution decreased by 3% to ₹5.8 billion mainly due to higher finance costs and current income tax. The enlarged unit base following the preferential offering, combined with the appreciation of SGD against INR, led to a 21% y-o-y decrease in FY 2023 DPU to 6.45 Singapore cents per unit.
Portfolio Performance and Capital Management
CLINT’s portfolio committed occupancy improved as ITPP-H as well as IF2 and IF3 were acquired with 100% occupancy, while Block A, ITPH, which was completed in January 2023, achieved committed occupancy of 98% as at 31 December 2023.
As at 31 December 2023, CLINT’s gearing ratio was 35.8%. After including cash and cash equivalents of S$180 million, the gearing was 32.6%. The Trust has a debt headroom of approximately S$1.1 billion4, and uncommitted facilities of S$90.2 million. CLINT's total borrowings that were on a fixed-interest rate basis stood at 75% and 60% was hedged into INR. The Trust’s sustainability-linked-loans stood at S$810 million, which is 58% of the total loan book.
Growth Initiatives
In 2H 2023, CLINT announced the development of a 0.21 million square feet (sq ft) Free Trade Warehousing Zone on vacant land within CyberVale which is located at Mahindra World City, Chennai. The development of MTB 6 in International Tech Park Bangalore (ITPB) is currently underway and is scheduled for completion by the end of 2024. The Trust’s data centres in Navi Mumbai and ITPH have commenced superstructure works while the development of the data centres in Chennai and ITPB are expected to commence in the first half of 2024.
Construction activities for existing projects, including the Trust’s committed forward purchase pipeline, are progressing smoothly. As at 31 December 2023, CLINT's completed floor area stands at 19.6 million sq ft with the addition of Block A in ITPH, ITPP-H as well as IF2 and IF3. CLINT's total development potential is 7.1 million sq ft.
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- Following the preferential offering in July 2023.
- Distribution per unit (income to be distributed) in SGD terms inclusive of preferential offering impact.
- Average exchange rates used in the income statement.
- SGD appreciated by 7.0% and 8.7% against the INR in 2H 2023 and FY 2023 respectively.
- Based on the gearing limit of 50%.
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