4Q FY2011/12 3Q FY18/19 Financial Results Presentation Investor Presentation 24 January 2019 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 31 December 2018 (“ 3Q FY18/19 ”) 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
3Q FY18/19 results • Income from BlueRidge 2, Atria and 3Q FY18/19 3Q FY17/18 Variance Arshiya warehouses; • positive rental reversions; and SGD/INR FX rate 1 52.5 47.8 9.8% • partly offset by lower utilities income with phasing out of Dedicated Power ₹2,361m ₹2,221m 6% Total property income Plant (“DPP”) in ITPB. S$44.9m S$46.5m (3%) • Increase due to higher revenue; and ₹1,779m ₹1,556m 14% • lower utilities expenses with the Net property income S$33.9m S$32.6m 4% phasing out of DPP in ITPB. • Mainly due to net property income Income available for ₹1,239m ₹812m 53% growth and interest income from distribution S$23.6m S$17.0m 39% investments in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2; and • one-off tax benefit arising from the ₹1,115m ₹731m 53% Income to be distributed S$21.2m S$15.3m 39% merger of the legal entities of The V and BlueRidge 2. Income to be distributed ₹1.07 ₹0.79 37% • After retaining 10% of income (DPU 2 ) 2.05¢ 1.64¢ 25% available for distribution. • Includes 97.4 million units issued Weighted average number of 1,037,821 934,372 11% units (‘000) pursuant to February 2018 private placement. 1. Average exchange rates for the period. 2. Distribution per unit. 4
YTD FY18/19 results • Income from BlueRidge 2, Atria and Arshiya warehouses; YTD FY18/19 YTD FY17/18 Variance • positive rental reversions; and SGD/INR FX rate 1 • partly offset by lower utilities income 51.3 47.1 9.0% with phasing out of Dedicated Power ₹6,930m ₹6,507m 7% Plant (“DPP”) in ITPB. Total property income S$134.7m S$138.2m (3%) • Increase due to higher revenue; • lower utilities expenses with the phasing ₹5,159m ₹4,456m 16% out of DPP in ITPB; and Net property income S$100.4m S$94.6m 6% • partly offset by one-off provision for water supply and sanitary connection charges in ITPB. Income available for ₹3,334m ₹2,175m 53% distribution S$64.9m S$46.2m 41% • Mainly due to net property income growth and interest income from investments in AURUM IT SEZ, aVance 5 & ₹3,001m ₹1,957m 53% Income to be distributed 6 and aVance A1 & A2; and S$58.4m S$41.5m 41% • one-off tax benefit arising from the merger of the legal entities of The V and BlueRidge 2. Income to be distributed ₹2.89 ₹2.10 38% (DPU 2 ) 5.63¢ 4.45¢ 27% • After retaining 10% of income available for distribution. Weighted average number of • Includes 97.4 million units issued 1,036,361 933,221 11% units (‘000) pursuant to February 2018 private placement. 1. Average exchange rates for the period. 2. Distribution per unit. 5
Quarterly revenue trend Total Property Income (INR million) Total Property Income (S$ million) 6% 10% CAGR 55.0 2,600 CAGR 50.0 2,400 45.0 2,200 40.0 2,000 35.0 1,800 30.0 1,600 25.0 1,400 1,200 20.0 1,000 15.0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1 1 FY17/18 FY18/19 FY17/18 FY18/19 FY15/16 FY16/17 FY15/16 FY16/17 1. Growth in total property income was partly offset by lower utilities income with the phasing out of Dedicated Power Plant in ITPB. 6
Quarterly income trend Net Property Income (INR million) Net Property Income (S$ million) 11% 15% 2,000 40.0 CAGR CAGR 1,800 35.0 1,600 30.0 1,400 25.0 1,200 1,000 20.0 800 15.0 600 10.0 400 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY17/18 FY18/19 FY17/18 FY18/19 FY15/16 FY16/17 FY15/16 FY16/17 7
Quarterly DPU since listing Change since listing INR/SGD exchange rate 2 DPU 1 (S ¢) INR depreciation against SGD: -48% (Indexed) 120 SGD DPU 3 : +52% 8.00 110 7.00 100 6.00 90 5.00 80 4.00 70 3.00 60 2.00 50 1.00 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 FY18/19 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. 3Q FY18/19 DPU compared against 3Q FY07/08 DPU. 8
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 and derivatives. India to Singapore. • Trustee-Manager locks in the income to Income distribution policy be repatriated by buying forward • To distribute at least 90% of its income contracts on a monthly basis. available for distribution. • a-iTrust retains 10% of its income available for distribution to provide greater flexibility in growing the Trust. 9
Debt maturity profile Hedging ratio Effective borrowings: S$690 million INR: 62% SGD : 38% S$ Million 0.0 213.7 0.0 142.8 116.5 170.9 0.0 0.0 1.0 91.3 80.6 105.8 0.0 115.5 45.5 61.3 47.1 35.5 42.8 37.0 33.5 30.0 10.0 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 INR Denominated debt Deferred consideration 1 SGD Denominated debt Information as at 31 December 2018. 1. Deferred consideration refers to the remaining purchase consideration pertaining to the acquisition of BlueRidge 2 in Pune. 10
Capital structure Indicator As at 31 December 2018 Interest service coverage 4.1 times (EBITDA/Interest expenses) (YTD FY18/19) Percentage of fixed rate debt 80% Percentage of unsecured borrowings 100% Gearing: 33% Effective weighted average cost of debt 1 6.0% Gearing limit 45% Available debt headroom S$451 million 1. Based on borrowing ratio of 62% in INR and 38% in SGD as at 31 December 2018. 11
Content • Operational review 12 12
Office markets healthy Hyderabad (IT Corridor I 1 ) Bangalore (Whitefield) 4.0 4.0 18.1% 17.5% 15.5% 3.0 3.0 12.0% 12.0% 8.9% 2.0 2.0 7.2% 6.2% 5.7% 1.0 1.0 3.0% 0.0 0.0 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 Chennai (OMR) Pune (Hinjewadi) 2.0 3.0 9.0% 7.0% 7.8% 15.2% 2.0 13.9% 9.9% 1.0 8.6% 3.3% 3.3% 1.0 6.0% 0.0 0.0 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 Supply (in million sq ft) Gross Absorption (in million sq ft) Vacancy (%) Source: CBRE Research 1. Includes Hitec City and Madhapur. 13
Diversified portfolio Portfolio breakdown Customer Base Mumbai Total number of tenants 341 7% Chennai Average space per tenant 35,700 sq ft Pune 22% 12% Largest tenant accounts for 7% of the portfolio base rent Hyderabad Bangalore 32% 27% Floor area 12.6 million sq ft All information as at 31 December 2018. 14
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