CapitaLand India Trust's 1H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Total property income, NPI, income available for distribution and DPU have improved YoY due to higher rentals from existing properties and contributions from properties acquired in 2023 and 2024.

Rental Reversion

In 1H, 5 properties achieved positive rental reversion while 2 properties experienced negative rental reversion.

Acquisition

In March, CLINT acquired aVance II in Pune. The acquisition of Building Q2 at Aurum Q Parc was completed in July.

Pipeline (3rd Party Forward Purchase)

For this year and next year, construction for aVance A1 is expected to be completed in 2H 2024, while Gardencity Project I and Casa Grande - OpenHub Chennai Phase 1 are expected to be completed in 2025.

Development

There are 6 development projects underway, including four data centers, MTB6, and FTWZ. CapitaLand DC ITPB is expected to commence construction in 1Q 2025. The construction for MTB6 and FTWZ is expected to be completed this year.

Related Parties Shareholding

The REIT manager holds a relatively high proportion of shares.

Lease Profile

All income is received in INR. WALE is short but lease maturity is well spread. Additionally, most properties are freehold. 

Debt Profile

Debt maturity is well spread, however, the cost of debt is high.

Diversification Profile

The portfolio is diversified in terms of geography but concentrated in terms of properties and tenants.

Key Financial Metrics

Property yield and operating distribution proportion are relatively high. However, management fees are relatively high compared to operating distributable income.

DPU Breakdown

• TTM Distribution Breakdown:
• 79.4% from Operation
• 10.8% from Management Fees Paid in Units
• 9.8% being Retained

Trends (Up to 10 Years)

• Uptrend: DPU from Operation, NAV per Unit, Operating Distributable Income Margin
• Flat: Operating Distribution Proportion
• Downtrend: Committed Occupancy, Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital

Price Range & Relative Valuation Metrics

• Dividend Yield - Average for 1y, 3y, 5y & 10y
• P/NAV - Average for 1y; Below -1SD for 3y, 5y & 10y

Author's Opinion

Compared to the previous half-year, performance has improved significantly due to higher rental income from existing properties and income from IF2, IF3, MWC, and aVance II, Pune, acquired between December 2023 to March 2024. Regarding debt, 8.5% of debt matures this year, and 5.9% matures next year.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.