Ascendas India Trust Logo
Ascendas India Trust Banner

Email This Printer Friendly Financial Highlights


Summary of Results

Summary

 

Consolidated Income Statement

 

Statement of Comprehensive Income

 

Consolidated Balance Sheet (Group)

 

Review of performance

FY17/18 vs FY16/17

Total property income for the full year increased by 18% to INR8.9 billion. This was mainly due to incremental property income of INR1,156 million from:

  • Victor, which was leased out in phases after development was completed in June 2016;
  • BlueRidge 2, which was acquired in February 2017;
  • aVance 4, which was acquired in April 2017;
  • Atria at The V, which was completed in September 2017;
  • Arshiya Warehouses, which were acquired in February 2018; and
  • positive rental reversions.

In SGD terms, total property income increased by 20% to S$188.2 million. The SGD depreciated by about 2% against the INR over the same period last year.

Total property expenses increased by 12% to INR2.9 billion (S$60.1 million), mainly due to additional property expenses arising from new properties.

As a result, net property income for FY17/18 grew by 21% to INR6.1 billion. In SGD terms, net property income grew by 23% to S$128.1 million.

Finance costs increased by INR164 million (12%) or S$4.1 million (14%) mainly due to an increase in borrowing levels. Total loans increased due to additional loans taken to invest in BlueRidge 2, aVance 4 and the development of Atria.

Interest income decreased by INR449 million (66%) or S$9.1 million (65%) mainly due to lower interest income pertaining to BlueRidge 2 and aVance 4 debentures, which was treated as inter-company income after acquisition, and hence, was eliminated on consolidation. Cash reserves were also used to partially fund the acquisitions thereby lowering the interest income.

Realised gain on derivative financial instruments for FY17/18 of INR58 million (S$1.2 million) arose from the refinancing of a SGD-denominated loan that has been hedged into INR, offset by losses on settlement of foreign exchange forward contracts entered into to hedge income repatriated from India to Singapore.

Realised exchange loss for FY17/18 of INR87 million (S$1.8 million) arose mainly from settlement of a SGD-denominated loan facility. Realised exchange gain or loss is recognised when borrowings that are denominated in currencies other than the INR are settled. This is offset by realised gains from revaluation of cash balances not denominated in INR.

Ordinary profit before tax increased by 7% to INR4.1 billion. In SGD terms, ordinary profit before tax increased by 9% to S$85.3 million.

Fair value gain on investment properties increased by 153% to INR10.5 billion (S$211.8 million) mainly due to compression of capitalisation rates, higher rents and the completion of Atria. In SGD terms, fair value gain on investment properties increased by 140%.

Income tax expenses increased by INR3.2 billion (S$64.6 million) mainly due to:

  • increase of INR2.0 billion (S$38.7 million) in deferred income tax liability on capital gains due to fair value revaluation of investment properties;
  • one-off non-cash write back of Minimum Alternate Tax ("MAT") credits10 of INR561 million (S$12.0 million) in the previous year due to a change in Indian tax regulations where MAT credits could be carried forward for an additional 5 years;
  • one-off recognition of MAT credits of INR366 million (S$7.8 million) at ITPC in the previous year due to tax exemption benefits obtained; and
  • higher net property income.

Distribution adjustments:

  • Current income tax expenses at INR1.1 billion (S$23.1 million).
  • Trustee-manager fees to be paid in units at INR290 million (S$6.1 million). The Trustee-manager has elected to receive 50% of its base fee and performance fee in units and 50% in cash; hence 50% of the fees are added back to the income available for distribution.
  • Income due to non-controlling interests of INR245 million (S$5.2 million) is deducted from income available for distribution.

Income available for distribution for FY17/18 increased by 8% to INR3.1 billion. In SGD terms, income available for distribution increased by 9% to S$64.2 million.

Income available for distribution per unit for FY17/18 was INR3.23, or 6.78 S₵. DPU was INR2.91 or 6.10 S₵ after retaining 10% of income available for distribution.

 

4Q FY17/18 vs 4Q FY16/17

Total property income for the quarter ended 31 March 2018 ("4Q FY17/18") increased by 15% to INR2.4 billion due to:

  • income from Victor, which was leased out in phases after development was completed in June 2016;
  • income from BlueRidge 2, which was acquired in February 2017;
  • income from aVance 4, which was acquired in April 2017;
  • income from Atria at The V, which was completed in September 2017;
  • Arshiya Warehouses, which were acquired in February 2018; and
  • positive rental reversions.

In SGD terms, total property income increased by 12% to S$49.3 million. The SGD appreciated by about 3% against the INR over the same period last year.

Total property expenses for 4Q FY17/18 increased by 8% to INR774 million (S$15.9 million) mainly due to property expenses from new properties, offset by lower utilities expenses.

Net property income for 4Q FY17/18 increased by 19% to INR1.6 billion due to the above factors. In SGD terms, net property income grew by 15% to S$33.5 million.

Finance costs increased by INR48 million (14%) to INR397 million (S$8.1 million) mainly due to increase in borrowing levels. Total loans increased by 13% from S$453.0 million in 4Q FY16/17 to S$512.5 million in 4Q FY17/18 on loans taken for acquisition of BlueRidge 2, aVance 4 and the development of Atria.

Interest income decreased by INR35 million (31%) or S$0.8 million (33%) mainly due to lower interest income pertaining to BlueRidge 2 and aVance 4 debentures, which was treated as inter-company income after acquisition, and hence, was eliminated on consolidation.

Realised gain on derivative financial instruments for 4Q FY17/18 of INR9 million (S$0.2 million) arose from the settlement of foreign exchange forward contracts entered into to hedge income repatriated from India to Singapore.

Realised exchange loss for 4Q FY17/18 of INR10 million (S$0.2 million) arose mainly from settlement of SGD-denominated loan facilities. Realised exchange gain or loss is recognised when borrowings that are denominated in currencies other than the INR are settled. This is offset by realised gains from revaluation of cash balances not denominated in INR during the quarter.

As a result, ordinary profit before tax was INR1.1 billion in 4Q FY17/18, an increase of 16% as compared to INR966 million in 4Q FY16/17. In SGD terms, ordinary profit before tax increased by 12% to S$22.8 million.

Unrealised exchange loss for 4Q FY17/18 of INR307 million (S$6.3 million) relates mainly to the revaluation of SGD-denominated loans.

Fair value gain on investment properties increased by 149% to INR10.3 billion (S$208.0 million) mainly due to compression of capitalisation rates, higher rents and the completion of Atria. In SGD terms, fair value gain on investment properties increased by 136%.

Income tax expenses increased by INR3.1 billion (S$62.5 million) mainly due to:

  • increase of INR2.0 billion (S$38.7 million) in deferred income tax liability on capital gains due to fair value revaluation of investment properties;
  • one-off non-cash write back of Minimum Alternate Tax ("MAT") credits of INR561 million (S$12.0 million) in the previous year due to a change in Indian tax regulations where MAT credits could be carried forward for an additional 5 years;
  • one-off recognition of MAT credits of INR366 million (S$7.8 million) at ITPC in the previous year due to tax exemption benefits obtained; and
  • higher current income tax from higher net property income.

Distribution adjustments:

  • Current income tax expense of INR294 million (S$6.0 million).
  • Trustee-manager fees to be paid in units at INR81 million (S$1.7 million). The Trustee-manager has elected to receive 50% of its base fee and performance fee in units and 50% in cash; hence 50% of the fees are added back to the income available for distribution.
  • Income due to non-controlling interests of INR62 million (S$1.3 million) is deducted from income available for distribution.

Income available for distribution for 4Q FY17/18 increased by 18% to INR888 million, mainly due to higher ordinary profit before tax. In SGD terms, income available for distribution increased by 14% to S$18.1 million.

Income available for distribution per unit for 4Q FY17/18 was INR0.90, or 1.84 S₵. DPU was INR0.81 or 1.65 S₵ after retaining 10% of income available for distribution. This amounts to an increase of 12% over 4Q FY16/17 in INR terms and 8% in SGD terms.

 

4Q FY17/18 vs 3Q FY17/18

Total property income for 4Q FY17/18 increased by 8% to INR2.4 billion (S$49.3 million) on account of incremental contributions from Arshiya Warehouses and Atria, and positive rental reversions.

Total property expenses for 4Q FY17/18 increased by 16% to INR774 million (S$15.9 million) on account of:

  • increase of INR62 million (S$1.3 million) in ad-hoc operation and maintenance expenses across the properties; and
  • increase in property tax provisions of INR22 million (S$0.5 million) at BlueRidge 2 due to an increase in property tax rates.

As a result, net property income for 4Q FY17/18 increased by 5% to INR1.6 billion. In SGD terms, net property income increased by 3% to S$33.5 million.

Income available for distribution increased by 9% to INR888 million, mainly due to higher net property income. In SGD terms, income available for distribution increased by 6% to S$18.1 million.

Notes
  1. MAT credit is the difference between MAT and corporate tax. MAT credit is recognised as deferred tax asset when it is assessed that the MAT credit paid in the past may be used to offset higher corporate tax payable over future periods. Conversely, MAT credits are written off when it is expected that it cannot be utilised in future.

 

Commentary

Based on the market research report by CBRE South Asia Pvt Ltd ("CBRE") for the quarter ended 31 March 2018, some of the key highlights (compared to quarter ended 31 December 2017) include:

Bangalore

  • In Whitefield (the micro-market where ITPB is located), vacancy rates dropped marginally to 6.9%, from 7.2% last quarter, while rental values climbed approximately 7-8% on a q-o-q basis. CBRE expects rental values to increase over the next few quarters due to sustained demand.

Chennai

  • In Old Mahabalipuram Road ("OMR", the micro-market where ITPC is located), vacancy rates dropped marginally to 3.2%, from 3.3% last quarter, while rental values climbed 6.3% on a q-o-q basis. CBRE expects rental values to increase further in the coming quarters due to limited supply in this micro-market. In Grand Southern Trunk ("GST", the micro-market where CyberVale is located), rental values remained stable despite an increase in vacancy rates from 4.8% to 6.2% on a q-o-q basis. CBRE expects rental values in GST to increase slightly by the end of the year.

Hyderabad

  • In IT Corridor I12 (the district where The V, CyberPearl and aVance are located), rents climbed approximately 3-4% on a q-o-q basis, in tandem with a drop in vacancy rates to 4.4%, from 6% last quarter. With sustained demand for space, CBRE expects rental values in IT Corridor I to improve in the coming quarters.

Pune

  • The performance of a-iTrust is influenced by its tenants’ business performance and outlook, condition of each city’s real estate market and global economic conditions. a-iTrust will continue to focus on enhancing the competitiveness of its properties to distinguish itself from competitors, while maintaining financial discipline, and seeking growth opportunities.

The performance of a-iTrust is influenced by its tenants' business performance and outlook, condition of each city's real estate market and global economic conditions. Besides investing in quality IT parks, a-iTrust is seeking opportunities to expand into the fast-growing logistics sector by acquiring investment-grade warehouses. The Indian logistics sector is supported by healthy growth in the Indian economy and other favourable macro factors, including Goods and Services Tax reform and rapid growth in e-commerce. a-iTrust will continue to focus on enhancing the competitiveness of its properties to distinguish itself from competitors, while maintaining financial discipline, and seeking growth opportunities.

Notes
  1. Includes Hitec City and Madhapur.