CapitaLand India Trust Management Pte. Ltd., the Trustee-Manager of CapitaLand India Trust (â€œCLINTâ€ or the â€œTrustâ€), reported the results of CLINT for the first half ended 30 June 2023 (â€œ1H FY 2023â€). Total property income and net property income grew by 7% and 3% respectively year-on-year in Singapore dollar terms, while DPU for 1H FY 2023 was 3.36 Singapore cents per unit.
Mr Sanjeev Dasgupta, Chief Executive Officer said, â€œWe are pleased to announce that CLINTâ€™s property income grew mainly due to higher portfolio occupancy which improved from 92% from the start of the year to 94% as at 30 June 2023. Our DPU is however lower year-on-year at 3.36 Singapore cents for 1H FY 2023 due to an enlarged unit base after the successful preferential offering in July 2023, higher finance costs and depreciation of the INR against the Singapore Dollar. Excluding the impact of the preferential offering, the INR DPU is ?2.31 per unit which is lower by 3% on a year-on-year basis, while SGD DPU fell by 12% year-on-year to 3.76 Singapore cents due to SGD/INR currency movements.
We grew our portfolio leasable area significantly by 24% since the start of the year with the addition of Block A in International Tech Park Hyderabad (â€œITPHâ€) and acquisition of International Tech Park Pune â€“ Hinjawadi (â€œITPP-Hâ€). We believe these additions to our portfolio will provide steady returns to our unitholders.â€
Financial Performance (1H FY 2023 vs 1H FY 2022)
In Indian Rupee terms, 1H FY 2023 total property income increased by 18% to ?6.8 billion. This was mainly attributable to higher portfolio occupancy and income from Arshiya Warehouse 7 acquired in March 2022, Industrial Facility in Mahindra World City acquired in May 2022, Block A in ITPH which was completed in January 2023 and ITPP-H which was acquired in May 2023.
Total property expenses increased by 38% to ?1.5 billion mainly due to higher operational and maintenance expenses, property management fees and property taxes from existing and newly acquired properties.
As a result, 1H FY 2023 net property income increased by 13% to ?5.3 billion while DPU decreased by 13% to ?2.07. In Singapore Dollar terms, 1H FY 2023 DPU decreased by 22% to 3.36 Singapore cents per unit mainly due to higher finance costs and an enlarged unit base from the addition of units from preferential offering.
Portfolio Performance and Capital Management
CLINTâ€™s portfolio occupancy was 94% as at 30 June 2023, including options and rights of first refusal in Block A, ITPH. During 1H FY 2023, Block A in ITPH and ITPP-H were added to the completed assets portfolio with both achieving 100% committed occupancy6. The Trustâ€™s assets under management increased from S$2.5 billion as at 31 December 2022 to S$2.7 billion as at 30 June 2023.
As at 30 June 2023, CLINTâ€™s gearing ratio was 40%. Gearing was 33% after cash and cash equivalents of S$169 million and net proceeds from the preferential offering were considered. The Trust has debt headroom of S$684 million , and undrawn committed and uncommitted facilities of S$185 million . Total borrowings were 73% effectively on a fixed-interest rate basis and 60% were hedged into Indian Rupees.
The Trust has commenced development of another multi-tenanted building (â€œMTB 6â€) in International Tech Park Bangalore (â€œITPBâ€), which is expected to add 0.8 million sq ft in leasable area. The construction is expected to complete in the second half of 2024.
Two of the Trustâ€™s data centres (Navi Mumbai and ITPH) have commenced development, with the data centre in Chennai expected to commence in the second half of 2023. A fourth data centre in ITPB is also planned.
Construction activities for existing projects, including the Trustâ€™s committed forward purchase pipeline, are progressing well. With the additions of Block A in ITPH and ITPP-H, CLINTâ€™s portfolio leasable area stood at 19.2 million sq ft as at 30 June 2023, up from 15.5 million sq ft at the start of the year. Further, CLINT has total development potential of 7.0 million sq ft.