Ascendas India Trust reports 8% (YoY) growth in DPU for FY2020
Summary of a-iTrust Results
|
2H FY2020 (Jul to Dec 2020) |
2H FY20191 (Jul to Dec 2019) |
YoY Change (%) |
FY2020 (12-month period ended 31 Dec 2020) |
FY20191 (9-month period ended 31 Dec 2019) |
CY20191 (12-month period ended 31 Dec 2019) |
YoY Change2 (%) |
|
[a] |
[b] |
([a]-[b])/[b] |
[c] |
[d] |
[e] |
([c]-[e])/[e] |
In Indian Rupee (“INR/₹”): |
|
|
|
|
|
|
|
Total property income (million) |
5,051 |
5,205 |
(3) |
10,250 |
7,728 |
10,188 |
1 |
Net property income (million) |
4,049 |
3,892 |
4 |
7,910 |
5,827 |
7,668 |
3 |
Income available for distribution (million) |
2,925 |
2,666 |
10 |
6,026 |
3,881 |
4,904 |
23 |
Income to be distributed (million) |
2,632 |
2,399 |
10 |
5,423 |
3,493 |
4,413 |
23 |
|
|
|
|
|
|
|
|
In Singapore Dollar (“SGD/S$”): |
|
|
|
|
|
|
|
Total property income (million) |
92.7 |
101.1 |
(8) |
191.7 |
150.3 |
197.6 |
(3) |
Net property income (million) |
74.4 |
75.6 |
(2) |
147.9 |
113.4 |
148.6 |
(0) |
Income available for distribution (million) |
53.6 |
51.8 |
3 |
112.6 |
75.5 |
95.1 |
18 |
Income to be distributed (million) |
48.2 |
46.6 |
3 |
101.3 |
67.9 |
85.6 |
18 |
Income to be distributed (DPU3) (S¢) |
4.19 |
4.40 |
(5) |
8.83 |
6.45 |
8.15 |
8 |
Exchange rate movements
|
2H FY2020 (Jul to Dec 2020) |
2H FY20191 (Jul to Dec 2019) |
Variance (%) |
FY2020 (12-month period ended 31 Dec 2020) |
FY20191 (9-month period ended 31 Dec 2019) |
CY20191 (12-month period ended 31 Dec 2019) |
YoY Change2 (%) |
Average SGD/INR exchange rate4 |
53.5 |
51.5 |
3.95 |
53.5 |
51.4 |
51.6 |
3.76 |
Singapore, 28 January 2021 - Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust (“a-iTrust” or the “Trust”), reported the results of a-iTrust today for the second half and financial year ended 31 December 2020 (“2H FY2020” & “FY2020”).
Mr. Sanjeev Dasgupta, Chief Executive Officer said, “a-iTrust delivered FY2020 DPU growth of 8% YoY in Singapore Dollars terms at 8.83 S₵. This increase is largely the result of a one-off reversal of dividend distribution tax (“DDT”) provision7 and higher interest income from investments in forward purchases. Net property income remained stable despite the challenging environment caused by the COVID-19 pandemic, in part due to cost savings from operations. Office rental collections are healthy as reflected in the 4Q 2020 figure of 97%8.
All our business parks were operational throughout the year to support our tenants’ operations. We are committed to providing a safe environment and all our parks have been accredited with the British Safety Council’s certification for global benchmark in COVID-19 control measures.
Our committed occupancy of 94%9 reflects the resilience of our portfolio with its well-diversified tenant base. Work from Home trends do pose uncertainty for office demand globally. However, cost savings opportunities to our tenants in India may be limited given that office rents are relatively low while infrastructure constraints and productivity losses increase costs of remote working. Global IT spending for digital transformation, cloud services and e-commerce has created IT outsourcing opportunities for India and strong demand for some of our tenants. We will continue to pursue accretive opportunities to strengthen portfolio diversification and deliver sustainable returns to our Unitholders.”
Financial performance (FY2020 vs CY20191)
In Indian Rupee terms, total property income for FY2020 grew by 1% to ₹10.3 billion mainly due to income from Anchor building which was completed in May 2019 and positive rental reversions from existing properties. This is partially offset by lower utilities and carpark income as most tenants telecommuted in FY2020. Total property expenses decreased by 7% to ₹2.3 billion largely from reduced operations, maintenance and utilities expenses, partly offset by higher allowance for expected credit loss. These factors resulted in net property income increasing by 3% to ₹7.9 billion. DPU at 8.83 S₵ grew at 8% in year-on-year terms.
Portfolio performance & Capital management
As at 31 December 2020, a-iTrust’s committed portfolio occupancy remained healthy at 94%. The Trust’s portfolio valuation remained stable at S$2.1 billion as development gains and fair value gains from higher portfolio rent of some properties were negated by the effects of the weaker Indian Rupee.
a-iTrust has a robust balance sheet to fulfil all its financial and operational obligations. The Trust has a low gearing ratio of 30% and ample total debt headroom of S$1,079 million10 as at 31 December 2020. Cash and undrawn committed facilities totalled S$136 million. 86% of the Trust’s total borrowings were effectively on a fixed-interest rate basis. 63% of these total borrowings were hedged into Indian Rupees.
Growth Initiatives
Construction of the Endeavour building, a 0.7 million square feet multi-tenanted building in International Tech Park Bangalore, has been completed and occupancy certification has been obtained in the second half of 2020 (“2H2020”). The building is fully pre-leased to a leading IT Services company.
In 2H2020, approval for revised building height was received for the redevelopment at International Tech Park Hyderabad (“ITPH”), increasing potential leasable area by a further 0.7 million square feet. The complete rejuvenation of ITPH will happen in phases over the next seven to ten years. Construction of Phase 1 of ITPH redevelopment of 1.4 million square feet is in progress and is expected to be completed by the second half of 2022.
Construction activities for existing projects, including those in the Trust’s committed forward purchase pipeline, have resumed from the earlier pandemic related disruptions and are in progress. As at 31 December 2020, a-iTrust has 13.8 million square feet of completed portfolio area and total development potential of 7.7 million square feet.
Notes:
1 a-iTrust financial year end has changed from 31 March to 31 December as announced on 19 July 2019. Calendar Year 2019 (“CY2019”) refers to the 12-month period from 1 January 2019 to 31 December 2019 and is used solely for comparative purposes only.
2 FY2020 is compared against the corresponding 12-month period from 1 January 2019 to 31 December 2019.
3 Distribution per unit (income to be distributed) in Singapore Dollar terms.
4 Average exchange rates used in the income statement.
5 The Singapore Dollar appreciated by 3.9% against the Indian Rupee.
6 The Singapore Dollar appreciated by 3.7% against the Indian Rupee.
7 The Indian Government abolished the DDT policy with effect from 1 April 2020.
8 Figure for 4Q 2020 billings collection status as at 15 January 2021.
9 Excludes Mariner building in ITPH which is being vacated for redevelopment and includes the newly completed Endeavour building in ITPB, which has been 100% committed. Endeavour was previously known as MTB 5.
10 Based on the revised regulatory gearing limit of 50%.