4Q FY2011/12 1Q FY17/18 Financial Results Presentation Investor Presentation 24 July 2017 ASEAN Stars Conference 2012 1 March 2012 Asia’s First Listed Indian Property Trust Asia’s First Listed Indian Property Trust
Disclaimer This presentation on a- iTrust’s results for the quarter ended 30 June 2017 (“ 1Q FY17/18 ”) should be read in conjunction with a- iTrust’s quarterly results announcement, a copy of which is available on www.sgx.com or www.a- iTrust.com. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, shifts in expected levels of property rental income and occupancy rate, changes in operating expenses (including employee wages, benefits and training, property expenses), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements. All measurements of floor area are defined herein as “Super Built-up Area” or “SBA”, which is the sum of the floor area enclosed within the walls, the area occupied by the walls, and the common areas such as the lobbies, lift shafts, toilets and staircases of that property, and in respect of which rent is payable. The Indian Rupee and Singapore Dollar are defined herein as “INR/₹” and “ SGD/S$ ” respectively. Any discrepancy between individual amounts and total shown in this presentation is due to rounding. 2
Content • Financial review 3 3
1Q FY17/18 results 1Q FY17/18 1Q FY16/17 Variance SGD/INR FX rate 1 46.3 49.3 (6%) • Income from Victor, BlueRidge 2 and Total property income ₹2,162m ₹1,776m 22% aVance 4; and • Positive rental reversions. • Increase due to higher revenue. Net property income ₹1,408m ₹1,164m 21% • Includes realised loss on income hedges of ₹48 million (S$1.0 million) Income available for ₹626m ₹690m (9%) and one-off settlement 2 of ₹32 distribution S$13.5m S$14.0m (3%) million (S$0.7 million). • After retaining 10% of income Income to be distributed S$12.2m S$12.6m (3%) available for distribution. Income to be distributed • DPU would have been 1.37¢ if the 1.31¢ 1.36¢ (4%) (DPU 3 ) one-off settlement 2 is excluded. 1. Average exchange rates for the period. 2. Refers to one-off settlement with a tenant at Park Square, ITPB as part of the on-going initiative to revamp and refresh the tenant mix of the mall. 3. Distribution per unit. 4
Quarterly revenue trend Total Property Income (INR million) Total Property Income (S$ million) 2,400 12% 14% 50.0 CAGR CAGR 2,200 45.0 2,000 40.0 1,800 35.0 1,600 30.0 1,400 25.0 1,200 20.0 1,000 15.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY14/15 FY16/17 FY15/16 FY17/18 FY14/15 FY15/16 FY16/17 FY17/18 5
Quarterly income trend Net Property Income (INR million) Net Property Income (S$ million) 17% 1,600 16% 32.0 CAGR CAGR 30.0 1,400 28.0 26.0 1,200 24.0 22.0 1,000 20.0 18.0 800 16.0 14.0 600 12.0 400 10.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY15/16 FY16/17 FY17/18 FY14/15 FY14/15 FY15/16 FY17/18 FY16/17 6
Quarterly DPU since listing Change since listing DPU 1 (S¢) INR/SGD exchange rate 2 INR depreciation against SGD: -43% 8.00 120 SGD DPU 3 : -2% 7.00 110 6.00 100 5.00 90 4.00 80 3.00 70 2.00 60 1.00 50 0.00 40 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 1Q 2Q 3Q 4Q INR/SGD exchange rate 1. DPU (income available for distribution) refers to 100% of distributable income. 10% of distributable income was retained starting from 1Q FY12/13. 2. Average daily spot INR/SGD exchange rate for the period, pegged to 1 August 2007 using data sourced from Bloomberg. 3. 1Q FY17/18 DPU compared against 1Q FY07/08 DPU. 7
Capital management Currency hedging strategy Funding strategy • The Trustee- Manager’s approach to equity Balance sheet raising is predicated on maintaining a strong • Trustee-Manager does not hedge equity. balance sheet by keeping the Trust’s gearing • ratio at an appropriate level. At least 50% of debt must be denominated in INR. • Trustee-Manager does not borrow INR loans onshore in India as it costs less to hedge SGD Income borrowings to INR-denominated borrowings • Income is repatriated semi-annually from using cross-currency swaps. India to Singapore. • Trustee-Manager locks in the income to Income distribution policy be repatriated by buying forward • contracts on a monthly basis, tying six To distribute at least 90% of its income forward contracts to each semi-annual available for distribution. income repatriation. • a-iTrust retains 10% of its income available for distribution to provide greater flexibility in growing the Trust. 8
Debt expiry profile Hedging ratio Effective borrowings: S$489 million INR: 70% SGD : 30% S$ Million 0.0 156.8 0.0 0.0 98.1 0.0 88.0 85.1 119.8 68.1 0.0 48.8 51.6 61.0 0.0 38.8 12.3 37.0 33.5 30.0 27.0 9.8 10.0 2.5 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 INR Denominated debt Deferred consideration 1 SGD Denominated debt Information as at 30 June 2017. 1. Deferred consideration refers to the remaining purchase consideration pertaining to the acquisition of (1) BlueRidge 2 in Pune and (2) aVance 4 in Hyderabad. 9
Capital structure Indicator As at 30 June 2017 Interest service coverage 3.5 times (EBITDA/Interest expenses) (YTD FY17/18) 96% Percentage of fixed rate debt Gearing: 30% Percentage of unsecured borrowings 100% 6.5% 1 Effective weighted average cost of debt Gearing limit 45% S$445 million Available debt headroom 1. Based on borrowing ratio of 70% in INR and 30% in SGD as at 30 June 2017. 10
Content • Operational review 11 11
India remains a dominant IT/offshoring hub Salary for IT/software engineer, • Fastest growing major economy in the world with developer or programmer 3 GDP growth estimated at 7.2% in 2017 1 US$ (p.a.) Countries India 6,657 • India moving up value chain to offer cutting edge Malaysia 10,766 product development and R&D hubs for global Japan 26,092 tech companies Hong Kong 28,305 Singapore 33,085 • Highly cost competitive environment UK 42,355 • Australia 53,530 Occupancy costs up to 10 times cheaper than US 73,912 other low-cost sourcing destinations 2 1. Source: International Monetary Fund, World Economic Outlook Update, April 2017 2. Source: CBRE South Asia Pvt. Ltd. (Compared to China, Philippines and other Eastern European countries) 3. Source: June 2017 median salary from PayScale (provider of global online compensation data), converted into USD from local currencies using exchange rate from Bloomberg (30 June 2017) 12
Office markets improving Hyderabad (IT Corridor 1 ) Bangalore (Whitefield) 23.7% 4.0 4.0 11.0% 17.5% 10.0% 3.0 3.0 15.5% 12.0% 2.0 2.0 6.0% 6.0% 7.7% 4.7% 1.0 1.0 0.0 0.0 CY 2013 CY 2014 CY 2015 CY 2016 1H 2017 CY 2013 CY 2014 CY 2015 CY 2016 1H 2017 Chennai (OMR) Pune (Hinjewadi) 2.0 4.0 16.9% 14.7% 15.2% 3.0 13.9% 9.0% 7.8% 1.0 2.0 9.9% 7.0% 6.0% 8.9% 1.0 0.0 0.0 CY 2013 CY 2014 CY 2015 CY 2016 1H 2017 CY 2013 CY 2014 CY 2015 CY 2016 1H 2017 Source: CBRE Research Supply (in million sq ft) Net Absorption (in million sq ft) Vacancy (%) 1. Includes Hitec City, Madhapur, Kondapur, Gachibowli and Kavuri Hills. 13
Diversified portfolio Customer Base Portfolio breakdown Total number of tenants 305 Average space per tenant 34,200 sq ft Pune Chennai 13% 24% Largest tenant accounts for Bangalore Hyderabad 35% 6% of the portfolio base rent 28% Floor area 11.5 million sq ft All information as at 30 June 2017. 14
Healthy portfolio occupancy Committed portfolio occupancy: 97% (excluding BlueRidge 2) 92% (including BlueRidge 2) 99% 100% 99% 100% 95% 95% 95% 95% 94% 95% 95% 92% 91% 1% 94% 2 62% 1% 2 61% ITPB ITPC CyberVale The V CyberPearl aVance BlueRidge 2 Committed occupancy Market occupancy of peripheral area 1 a-iTrust occupancy All information as at 30 June 2017. 1. CBRE market report as at 30 June 2017. 2. Includes leases committed as at 12 July 2017. Additional 7.3% of space under advanced discussions. 15
Spread-out lease expiry profile Weighted average lease expiry: Retention rate: Weighted average lease term: 4.2 years 6.4 years 92% 1 Sq ft expiring 5,500,000 50% 46% 5,000,000 45% 4,500,000 40% 4,000,000 35% 3,500,000 30% 3,000,000 25% 2,500,000 21% 20% 2,000,000 13% 15% 1,500,000 10% 10% 10% 1,000,000 5% 500,000 - 0% FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 & Beyond All information as at 30 June 2017. 1. For the period 1 April 2017 to 30 June 2017. 16
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