4Q FY2011/12 1Q FY18/19 Financial Results Presentation Investor Presentation 25 July 2018 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 2018 (“ 1Q 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
Awards Singapore Corporate Awards (“SCA”) 2018 → Winner of “Gold Award” for Best Investor Relations (REITs & Business Trusts Category) About the award SCA is one of the most prestigious awards in Singapore’s corporate calendar that recognises and honours Singapore- listed companies which have helped to raise Singapore’s corporate governance and corporate disclosure standards. SCA is jointly organised by the Institute of Singapore Chartered Accountants, Singapore Institute of Directors and The Business Times, supported by the Accounting and Corporate Regulatory Authority and the Singapore Exchange. The Best Investor Relations award aims to recognise companies that embody the spirit of good corporate governance and corporate transparency by adopting and implementing best practices in investor relations. 3
Content • Financial review 4 4
1Q FY18/19 results 1Q FY18/19 1Q FY17/18 Variance • Income from BlueRidge 2, Atria and Arshiya warehouses; SGD/INR FX rate 1 50.2 46.3 8.4% • Positive rental reversions; and • Partly offset by lower utilities income 6% ₹2,254m ₹2,134m with phasing out of Dedicated Power Total property income S$44.9m S$46.1m (3%) Plant (“DPP”) in ITPB. • Increase due to higher revenue and 20% ₹1,684m ₹1,408m Net property income lower utilities expenses with the S$33.6m S$30.4m 10% phasing out of DPP in ITPB. • Mainly due to net property income Income available for ₹925m ₹626m 48% growth and interest income from distribution S$18.4m S$13.5m 36% investments in AURUM IT SEZ and aVance 5 & 6. ₹833m ₹564m 48% Income to be distributed • After retaining 10% of income S$16.6m S$12.2m 36% available for distribution. Income to be distributed ₹0.80 ₹0.60 33% (DPU 2 ) 1.60¢ 1.31¢ 23% 1. Average exchange rates for the period. 2. Distribution per unit. 5
Quarterly revenue trend Total Property Income (INR million) Total Property Income (S$ million) 10% 12% 2,600 55.0 CAGR CAGR 2,400 50.0 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 1 1 FY15/16 FY16/17 FY17/18 FY18/19 FY16/17 FY17/18 FY18/19 FY15/16 1. The drop in total property income was mainly due to 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) 15% 18% CAGR CAGR 35.0 1,800 1,600 30.0 1,400 25.0 1,200 1,000 20.0 800 15.0 600 400 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 FY18/19 FY15/16 FY16/17 FY17/18 FY18/19 7
Quarterly DPU since listing Change since listing INR/SGD exchange rate 2 DPU 1 (S¢) INR depreciation against SGD: -47% (Indexed) SGD DPU 3 : +21% 120 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 FY1819 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. 1Q FY18/19 DPU compared against 1Q 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. India to Singapore. • Trustee-Manager locks in the income to Income distribution policy be repatriated by buying forward • contracts on a monthly basis. To distribute at least 90% of its income available for distribution. • a-iTrust retains 10% of its income available for distribution to provide greater flexibility in growing the Trust. 9
Capital structure Indicator As at 30 June 2018 Interest service coverage 4.1 times (EBITDA/Interest expenses) (YTD FY18/19) 73% 1 Percentage of fixed rate debt Percentage of unsecured borrowings 100% Gearing: 31% Effective weighted average cost of debt 2 5.5% 1 Gearing limit 45% Available debt headroom S$523 million 1. The lower percentage of fixed rate debt and effective weighted average cost of debt, from 4Q FY17/18 of 86% and 6.3% respectively, is on account of S$125 million in unhedged short-term revolving facilities that were drawn down in 1Q FY18/19 to fund investments into AURUM IT SEZ and aVance 5 & 6. These short-term loans are expected to be re-financed with long-term committed facilities and hedged accordingly in 2Q FY18/19. 2. Based on borrowing ratio of 51% in INR and 49% in SGD as at 30 June 2018. 10
Debt maturity profile Hedging ratio Effective borrowings: S$637 million INR: 51% SGD : 49% S$ Million • S$125 million in short-term revolving facilities were drawn down in 1Q FY18/19 to fund investments into AURUM IT SEZ and aVance 5 & 6. 214.5 • These short-term loans are expected to be re-financed with long-term 1.8 committed facilities and hedged accordingly in 2Q FY18/19. 39.3 0.0 143.2 0.0 0.0 91.7 173.5 81.0 106.2 0.0 61.6 45.1 61.7 47.5 18.6 35.1 43.0 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 30 June 2018. 1. Deferred consideration refers to the remaining purchase consideration pertaining to the acquisition of (1) BlueRidge 2 in Pune and (2) Arshiya warehouses in Panvel. 11
Content • Operational review 12 12
Office markets improving Hyderabad (IT Corridor I 1 ) Bangalore (Whitefield) 4.0 4.0 18.1% 17.5% 15.5% 16% 3.0 3.0 12.0% 12.0% 11% 2.0 2.0 7.2% 6.8% 6.2% 4.9% 6% 1.0 1.0 3.0% 0.0 0.0 1% CY 2014 CY 2015 CY 2016 CY 2017 2Q 2018 CY 2014 CY 2015 CY 2016 CY 2017 2Q 2018 Chennai (OMR) Pune (Hinjewadi) 3.0 2.0 9.0% 15.2% 7.0% 7.8% 11.5% 2.0 13.9% 9.9% 8.6% 1.0 3.3% 3.1% 1.0 0.0 0.0 CY 2014 CY 2015 CY 2016 CY 2017 2Q 2018 CY 2014 CY 2015 CY 2016 CY 2017 2Q 2018 Source: CBRE Research Supply (in million sq ft) Net Absorption (in million sq ft) Vacancy (%) 1. Includes Hitec City and Madhapur. 13
Diversified portfolio Portfolio breakdown Customer Base Mumbai Total number of tenants 326 7% Chennai Average space per tenant 36,300 sq ft Pune 22% 12% Largest tenant accounts for 7% of the portfolio base rent Hyderabad Bangalore 32% 27% 1 Floor area 12.6 million sq ft All information as at 30 June 2018. 1. There is a slight reduction in floor area due to the planned demolition of Auriga building (0.2m sq ft) in The V as part of the redevelopment. 14
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