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Financial Highlights

Summary of Results

Summary

 

Consolidated Income Statement

 

Statement of Comprehensive Income

 

Consolidated Balance Sheet (Group)

 

Review of performance

3Q FY18/19 vs 3Q FY17/18

Total property income for the quarter ended 31 December 2018 (“3Q FY18/19”) increased by ₹140 million (6%) to ₹2.4 billion. This was mainly due to income contribution of ₹288 million (S$5.5 million) from:

partially offset by lower utilities income of ₹146 million (S$2.8 million) with the phasing out of the DPP in ITPB.

In SGD terms, total property income decreased by 3% to S$44.9 million. The SGD appreciated by about 10% against the INR over the same period last year.

Total property expenses for 3Q FY18/19 decreased by 12% to ₹582 million (S$11.1 million) mainly due to lower utilities expenses with the phasing out of the DPP in ITPB, partially offset by higher property management fees on the account of the new properties.

Net property income for 3Q FY18/19 increased by 14% to ₹1.8 billion due to the above factors. In SGD terms, net property income grew by 4% to S$33.9 million.

Trustee-manager's fees increased by ₹32 million (22%) to ₹176 million (S$3.4 million), in line with higher net property income and portfolio value as of 31 December 2018.

Finance costs increased by ₹115 million (29%) to ₹508 million (S$9.7 million) mainly due to an increase in borrowing levels for investments in:

Interest income increased by ₹371 million (S$7.0 million) mainly due to interest income pertaining to AURUM Debentures, aVance Debentures 1 and aVance Debentures 2.

Realised gain on derivative financial instruments for 3Q FY18/19 of ₹328 million (S$6.1 million) arose mainly from the refinancing of SGD-denominated loans that have been hedged into INR, offset by losses from the settlement of foreign exchange forward contracts entered into to hedge income repatriated from India to Singapore.

Realised exchange loss for 3Q FY18/19 of ₹458 million (S$8.5 million) arose mainly from settlement of SGD-denominated loan. Realised exchange gain or loss is recognised when borrowings that are denominated in currencies other than the INR are settled.

As a result, ordinary profit before tax was ₹1.4 billion in 3Q FY18/19, an increase of 27% as compared to ₹1.1 billion in 3Q FY17/18. In SGD terms, ordinary profit before tax increased by 15% to S$26.1 million.

Unrealised exchange gain for 3Q FY18/19 of ₹777 million (S$14.8 million) relates mainly to the revaluation of SGD-denominated loans.

Income tax expenses increased by ₹215 million (S$3.5 million) mainly due to higher current income tax of ₹111 million from higher net property income and interest income; higher deferred tax liabilities of ₹284 million from newly acquired assets and merger of VITP Private Limited and Flagship Developers Private Limited (“VITP’s merger”); and partially offset by current tax benefit of ₹170 million arising from VITP’s merger.

Distribution adjustments:

Income available for distribution for 3Q FY18/19 increased by 53% to ₹1.2 billion, mainly due to increased net property income and higher interest income from investments in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2 via construction funding. In SGD terms, income available for distribution increased by 39% to S$23.6 million.

Income available for distribution per unit for 3Q FY18/19 was ₹1.19 or 2.28 S₵. DPU was ₹1.07 or 2.05 S₵ after retaining 10% of income available for distribution. This amounts to an increase of 36% over 3Q FY17/18 in INR terms and 25% in SGD terms.

 

YTD FY18/19 vs YTD FY17/18

Total property income for the 9 months ended 31 December 2018 (“YTD FY18/19”) increased by ₹423 million (7%) to ₹6.9 billion. This was mainly due to income contribution of ₹856 million (S$16.9 million) from:

partially offset by lower utilities income of ₹467 million (S$9.2 million) with the phasing out of the DPP in ITPB.

In SGD terms, total property income decreased by 3% to S$134.7 million. The SGD appreciated by about 9% against the INR over the same period last year.

Total property expenses for YTD FY18/19 decreased by 14% to ₹1.8 billion (S$34.3 million) mainly due to lower utilities expenses with the phasing out of the DPP in ITPB and a one-off gain from the scrap sale of the DPP, partially offset by higher property management fees on account of the new properties; and one-off provision for water supply and sanitary connection charges in ITPB.

Net property income for YTD FY18/19 grew by 16% to ₹5.2 billion. In SGD terms, net property income grew by 6% to S$100.4 million.

Trustee-manager’s fees increased by ₹97 million (23%) to ₹525 million (S$10.2 million), in line with higher net property income and portfolio value as of 31 December 2018.

Finance costs increased by ₹219 million (19%) to ₹1.4 billion (S$26.8 million) mainly due to an increase in borrowing levels. Total borrowings increased due to additional loans taken to invest in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2 via construction funding.

Interest income increased by ₹869 million (S$16.7 million) mainly due to interest income pertaining to AURUM Debentures, aVance Debentures 1 and aVance Debentures 2.

Realised gain on derivative financial instruments for YTD FY18/19 of ₹436 million (S$8.3 million) arose mainly from the refinancing of SGD-denominated loans that have been hedged into INR.

Realised exchange loss for YTD FY1819 arose mainly from the refinancing of SGDdenominated loan facilities. Realised exchange gain or loss is recognised when SGDdenominated borrowings are settled.

Ordinary profit before tax increased by 28% to ₹3.8 billion. In SGD terms, ordinary profit before tax increased by 18% to S$74.0 million.

Distribution adjustments:

Income available for distribution for YTD FY18/19 increased by 53% to ₹3.3 billion. In SGD terms, income available for distribution increased by 41% to S$64.9 million.

Income available for distribution per unit for YTD FY18/19 was ₹3.21 or 6.26 S₵. DPU was ₹2.89 or 5.63 S₵ after retaining 10% of income available for distribution. This amounts to an increase of 38% over YTD FY17/18 in INR terms and 27% in SGD terms.

3Q FY18/19 vs 2Q FY18/19

Total property income for 3Q FY18/19 remained stable at ₹2.4 billion (S$44.9 million).

Total property expenses for 3Q FY18/19 decreased by 6% to ₹582 million (S$11.1 million) mainly due to higher other property operating expenses in the last quarter resulting from one-off provision for water supply and sanitary connection charges in ITPB partially offset by a one-off gain from the scrap sale of the DPP.

As a result, net property income for 3Q FY18/19 increased by 5% to ₹1.8 billion. In SGD terms, net property income increased by 3% to S$33.9 million.

Income available for distribution for 3Q FY18/19 increased by 5% to ₹1.2 billion. In SGD terms, income available for distribution increased by 3% to S$23.6 million.

 

Commentary

Based on the market research report by CBRE South Asia Pvt Ltd (“CBRE”) for the quarter ended 31 December 2018, some of the key highlights (compared to quarter ended 30 September 2018) include:

Bangalore

Chennai

Hyderabad

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.

Notes
  1. Includes Hitec City and Madhapur.