Ascendas India Trust net property income hurt by SGD appreciation

Gains in Indian rupee became losses.

Ascendas Property Fund Trustee Pte Ltd, the Trustee-Manager of Ascendas India Trust (a-iTrust), reported the results of a-iTrust for the full year ended 31 March 2013 (FY12/13), with total property income and net property income growing by 13% in Indian rupee (INR) terms, driven by an increase in the size of the Trust’s portfolio.

Income available for distribution rose 7% from the previous year to INR 1,896 million, in spite of an accounting adjustment for withholding taxes which reduced income by INR 89 million. The accounting adjustment relates to the expensing of withholding tax credits on interest income received from fully compulsorily convertible debentures.

In Singapore dollar terms, the FY12/13 income available for distribution was lower by 6% as a result of unfavourable currency movements and accounting adjustment. The Singapore Dollar had appreciated on average by 14% against the Indian Rupee in FY12/13 compared to FY11/13. The FY12/13 distribution per unit (“DPU”) declined to 4.65¢ as 10% of income was retained to fund capital expenditures. Excluding the accounting adjustment, the FY12/13 DPU would have been 4.85¢.

During the quarter, a-iTrust drew down S$41 million of loans to fund its investment in aVance 3, an IT building in Hyderabad. Gearing2 was 22% in March 2013 as a result. At the current gearing level, the Trust has additional debt capacity of S$235 million before reaching the 40% gearing mark.

The Trust maintained strong leasing momentum with 1.2 million sq ft of leases concluded during the period between 1 April 2012 and 31 March 2013. Tenant retention rate remained healthy at 77%. The portfolio had an occupancy level of 96% as at 31 March 2013. a-iTrust has a well-diversified portfolio with over 330 office and retail tenants. Tenant concentration risks remain low as the top ten tenants contributed 31% of portfolio base rent, with the single largest tenant accounting for 5% of the portfolio base rent.

Chief Executive Officer of the Trustee-Manager, Mr Jonathan Yap said, “We are focused on several initiatives to grow the Trust in the coming year. Aviator, our new 601,360 sq ft IT building in Bangalore, is about 43% constructed, and is scheduled to be completed by December 2013. Next, we invested INR 1,750 million in aVance 3, which is expected to be fully constructed by June this year. We intend to acquire the 690,520 sq ft property upon its completion, subject to the vendor meeting pre-agreed conditions. Lastly, we remain on the lookout for attractive acquisition opportunities, either from our sponsor Ascendas Group or from the market. With a conservative gearing level of 22%, we are well placed to pursue accretive opportunities to deliver higher returns for Unitholders.”