Ascendas India Trust reports 24% (YoY) growth in DPU for 1H FY2020
Summary of a-iTrust Results
|
1H FY2020 (Jan to Jun 2020) |
1H FY20191 (Jan to Jun 2019) |
YoY Change (%) |
In Indian Rupee (“INR/₹”): |
|
|
|
Total property income (million) |
5,199 |
4,982 |
4 |
Net property income (million) |
3,861 |
3,776 |
2 |
Income available for distribution (million) |
3,101 |
2,238 |
39 |
Income to be distributed (million) |
2,791 |
2,014 |
39 |
|
|
|
|
In Singapore Dollar (“SGD/S$”): |
|
|
|
Total property income (million) |
99.0 |
96.5 |
3 |
Net property income (million) |
73.5 |
73.1 |
1 |
Income available for distribution (million) |
59.0 |
43.3 |
36 |
Income to be distributed (million) |
53.1 |
39.0 |
36 |
Income to be distributed (DPU2) (S¢) |
4.64 |
3.75 |
24 |
Exchange rate movements
|
1H FY2020 (Jan to Jun 2020) |
1H FY20191 (Jan to Jun 2019) |
Variance (%) |
Average SGD/INR exchange rate3 |
52.5 |
51.7 |
1.54 |
Singapore, 28 July 2020 - Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust
(“a-iTrust” or the “Trust”), has announced today the results of a-iTrust for the first half ended 30th June 2020 (“1H FY2020”).
Mr Sanjeev Dasgupta, Chief Executive Officer said, “We are pleased to report continued growth in a-iTrust’s first half DPU of 24% in Singapore Dollar terms, compared to the same period last year. This increase was supported mainly by the reversal of dividend distribution tax (“DDT”) provision and higher interest income from investments in forward purchases, with modest growth in net property income.
Operationally, all our IT parks have remained open throughout the first half of 2020, including the lockdown period to support our tenants’ operations. Park Square, our retail mall in International Tech Park Bangalore, reopened on 8th June after 12 weeks of mandatory closure but has been closed again from 14th to 21st July due to Bangalore city lockdown. Attendance in our IT parks is increasing slowly as most tenants remain cautious.
We continue to work closely with all our stakeholders to enhance safety within our parks, stepping up cleaning and adopting contactless technologies to provide a safe environment to our occupiers. We have committed to rental reliefs primarily to our retail tenants to help them ride through this challenging period. The situation remains fluid and the weak economic conditions brought about by COVID-19 could have an adverse impact on the performance of our properties. We have made higher provision for doubtful debts in 1H FY2020 on prudence basis and will continue to monitor the situation closely.
We are also pleased to report that a-iTrust’s was included in the MSCI Singapore Small Caps Index effective 29th May 2020. This will enhance the trading liquidity and visibility of the Trust to a larger investor pool.”
Financial performance (1H FY2020 vs 1H FY20191)
In Indian Rupee terms, first half revenue grew by 4% to ₹5.2 billion mainly due to income from Anchor building and positive rental reversions from existing properties. Total property expenses increased by 11% to ₹1.3 billion largely from higher provision for doubtful debts, partially offset by the higher provision of Singapore Goods and Services Tax (“GST”) in 1H FY2019 which increased the cost base last year. Overall, as a result of these factors, net property income increased slightly by 2% to ₹3.9 billion.
In Singapore Dollars terms, 1H FY2020 DPU increased by 24% year-on-year to 4.64 S₵ mainly on account of lower current tax expense due to the reversal of DDT provision as a result of India’s abolition of the DDT policy effective from 1st April 2020 and reduction in Minimum Alternative Tax rate, higher interest income from investments in forward purchases and higher provision of Singapore GST in 1H FY2019.
Portfolio performance & Capital management
As at 30th June 2020, a-iTrust’s committed portfolio occupancy remained healthy at 98%.
a-iTrust remains in a strong financial position to fulfil all its financial and operational obligations. As at 30th June 2020, the Trust has a low gearing ratio of 29% and ample total debt headroom of S$1,109 million5. Cash and undrawn committed facilities amounted to S$198 million. Out of the Trust’s total borrowings, 82% were effectively on a fixed-interest rate basis and 65% were hedged into Indian Rupees.
Growth Initiatives
Existing projects under construction, including those in the Trust’s committed forward purchase pipeline, were affected by the COVID-19 lockdown and subsequent labour shortages. Construction of MTB 5, a 0.7 million square feet multi-tenanted building in ITPB which is fully pre-leased, is expected to complete by the second half of 2020. Steps are being taken to minimise the delays expected in the construction of the other projects.
Notes:
1 a-iTrust financial year end has changed from 31 March to 31 December as announced on 19th July 2019. 1H FY2019, which comprises of results for Q4 FY18/19 and Q1 FY2019, is used solely for comparative purposes only.
2 Distribution per unit (income to be distributed) in Singapore Dollar terms.
3 Average exchange rates used in the income statement.
4 The Singapore Dollar appreciated by 1.5% against the Indian Rupee.
5 Based on the revised regulatory gearing limit of 50%, as announced by the Monetary Authority of Singapore (MAS) on 16th April 2020.