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10 Key Highlights From Ascendas India Trust’s FY17/18 Financial Results

Listed in 2007, Ascendas India Trust (SGX:CY6U) is the first Indian property trust in Asia. It invests primarily in real estate used as business space in India and currently has a portfolio of seven IT parks and six operating warehouses located in important cities such as Bangalore, Chennai and Mumbai. Here are 10 main takeaways from its FY17/18 (financial year ended on 31 March 2018) results.

1. For the fourth quarter of the year, total property income grew 12% to S$49.3 million from S$44.2 million. Net property income increased 15% to S$33.5 million from S$29.0 million. Income available for distribution rose by 14% to S$18.1 million from S$15.9 million. More importantly for unitholders, the trust managed to grow its distribution per unit (DPU) for the quarter by 8% to 1.65 cents from 1.54 cents.

2. The strong quarter was largely due to positive rental reversions and additional income from newly developed and acquired assets.

3. On a full-year basis, total property income grew 20% to S$188.2 million from S$156.7 million. Likewise, net property income increased 23% to S$128.1 million from S$104.2 million, while income available for distribution rose 9% to S$57.8 million from S$52.9 million. Full-year DPU was 6.1 Singapore cents, a 7% increase from the previous year.

4. Once again, the strong set of results for the full financial year was because of positive rental reversions and income contribution from new properties. It was, however, offset by a 2.1% decline in the Indian rupee against the Singapore dollar and a larger unit base, following a private placement in February this year.

5. Below is a table showing the trust’s property line up, year-on-year valuation changes and capitalisation rate:

Source: Ascendas India Trust FY17/18 earnings presentation slides

From the table above, we can see that the trust’s portfolio grew 20.6% in value in Singapore dollars over the year, including the acquisition of Arshiya warehouses in Mumbai. Excluding this, the portfolio increased by 10.5%. Net asset value increased to S$0.90 from S$0.81 a year ago.

6. In February 2018, the trust raised S$100 million through a private placement to repay some of its loans. Consequently, it ended with a gearing ratio of 26.4%, down from 35.1% before the private placement.

7. The private placement was priced at S$1.027, a 7% discount to the adjusted volume weighted average price and on par with the trust’s net asset value at that time.

8. The trust has 86% of its borrowings on a fixed rate, with weighted average cost of debt at 6.3% and interest cover at 3.6 times. It currently has an additional S$649 million in debt headroom before hitting the 45% regulatory gearing limit.

9. Below is a chart showing the trust’s portfolio breakdown during the year.

Source: Ascendas India Trust FY17/18 earnings presentation slides

10. The portfolio committed occupancy stood at a healthy 95%, with a weighted average lease expiry of 4.5 years. Retention rate of tenants for the year was 72%.

As at the time of writing, units in Ascendas India Trust exchanged hands at S$1.05 per piece. This translates to a price-to-book ratio of 1.17 and a distribution yield of 5.75%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Jeremy Chia doesn’t own shares in any companies mentioned.