Ascendas India Trust reports 20% growth in DPU for FY18/19
Summary of a‐iTrust Results |
4Q FY18/19 |
YoY Change |
FY18/19 |
YoY Change |
In Indian Rupee (“INR/₹”): |
||||
Total property income (million) |
2,459 |
2% |
9,389 |
5% |
Net property income (million) |
1,840 |
13% |
6,999 |
15% |
Income available for distribution (million) |
1,023 |
15% |
4,357 |
42% |
Income to be distributed (million) |
920 |
15% |
3,921 |
42% |
In Singapore Dollar (“SGD/S$”): |
||||
Total property income (million) |
47.2 |
(4%) |
182.0 |
(3%) |
Net property income (million) |
35.3 |
5% |
135.7 |
6% |
Income available for distribution (million) |
19.6 |
9% |
84.5 |
32% |
Income to be distributed (million) |
17.7 |
9% |
76.1 |
32% |
Income to be distributed (DPU1) (S¢) |
1.70 |
3% |
7.33 |
20% |
Exchange rate movements |
4Q FY18/19 |
YoY Change |
FY18/19 |
YoY Change |
Average SGD/INR exchange rate2 |
52.1 |
6.8%3 |
51.5 |
8.5%4 |
25th April 2019, Singapore
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 fourth quarter and financial year ended 31st March 2019 (“4Q FY18/19” & “FY18/19”). Incremental income from the acquisition of Arshiya warehouses, higher occupancy at BlueRidge 2 and positive rental reversions further contributed to DPU growth.
At the overall portfolio level, committed occupancy continued to be robust at 99% as of 31st March 2019. I am also happy to announce that there is an increase in development potential from 2.2 million square feet to 3.2 million square feet at ITPB due to the widening of the road in front of the park. This would allow us to further deepen our presence in Bangalore.
As at 31st March 2019, the Trust’s portfolio valuation has increased by 10% to S$1.9 billion, compared to S$1.7 billion as at 31st March 2018. New developments as well as higher portfolio rents were key drivers behind the improvement in valuations.”
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1 Distribution per unit.
2 Average exchange rates used in the income statement.
3 The Singapore Dollar appreciated by 6.8% against the Indian Rupee.
4 The Singapore Dollar appreciated by 8.5% against the Indian Rupee.
Financial performance (FY18/19 vs FY17/18)
In Indian Rupee terms, FY18/19 revenue grew by 5% to ₹9.4 billion due to incremental rental income from BlueRidge 2 (acquired in February 2017), Atria building (completed in September 2017), Arshiya warehouses (acquired in February 2018), and positive rental reversions from existing properties, partly offset by lower utilities income with the phasing out of the Dedicated Power Plant at ITPB (“DPP”). Total property expenses for FY18/19 decreased by 16% to ₹2.4 billion mainly due to lower utilities expenses with the phasing out of the DPP and a one‐off gain from scrap sale of the DPP, partly offset by higher property management fees on account of new properties and a one‐off provision for water and sanitary connection charges in ITPB. As a result, net property income increased by 15% to ₹7.0 billion.
In Singapore Dollar terms, FY18/19 DPU increased by 20% year‐on‐year to 7.33 S₵ despite the depreciating Indian Rupee. This was mainly due to higher interest income from investments in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2. Higher net property income and a one‐off tax benefit from the merger of the legal entities of The V and BlueRidge 2 also contributed to DPU growth.
Portfolio performance & capital management
a‐iTrust’s committed portfolio occupancy increased by 1% q‐o‐q to 99% as at 31st March 2019, due to increase in committed occupancy at ITPB, The V and BlueRidge 2.
a‐iTrust’s gearing ratio was 31% as at 31st March 2019. Based on its current gearing limit of 45%, the Trust has total debt headroom of S$593 million. Out of the Trust’s total borrowings, 77% were effectively on a fixed‐interest rate basis and 62% were hedged into Indian Rupees. In April 2019, to support its expected growth pipeline, the Trust has increased the programme limit of its multicurrency debt issuance programme from S$500 million to S$1.5 billion.
Growth initiatives
a‐iTrust has received building plan approval to redevelop The V in Hyderabad. The complete rejuvenation of The V will happen in phases over the next seven to ten years and will increase net leasable area by 3.5 million square feet. Phase One of redevelopment at The V has commenced with the construction of a new 1.4 million square feet building to replace the previous Auriga building and auditorium, which is expected to complete by the second half of 2021.
In Bangalore, we have obtained the Occupancy Certificate for MTB 4, a new 0.5 million square feet building with tenant handover expected by the first half of 2019. Construction on a second building, MTB 5, with total floor area of 0.7 million square feet has commenced and is expected to complete by the second half of 2020. Both buildings have been 100% pre‐leased to a leading IT Services company.