3q fy 2008/09 financial results...

1

3Q FY 2008/09

Financial Results

Presentation

29 January 2009

Singapore’s First Listed Indian Property Trust

2

Disclaimers

This presentation focuses on results for the financial quarter ended 31

December 2008 (“3Q FY 2008/09”). This shall be read in conjunction with

a-iTrust‟s announcement of results for the quarter in the SGXNet

announcement, either from www.sgx.com or www.a-itrust.com .

This presentation may contain forward-looking statements that involve risks and uncertainties. Actual

future performance, outcomes and results may differ materially from those expressed in forward-

looking statements as a result of a number of risks, uncertainties and assumptions. Representative

examples of these factors include (without limitation) general industry and economic conditions,

interest rate trends, cost of capital and capital availability, competition from other developments or

companies, shifts in expected levels of property rental income and occupancy rate, changes in

operating expenses (including employee wages, benefits and training, property expenses),

governmental and public policy changes and the continued availability of financing in the amounts

and the terms necessary to support future business. Investors are cautioned not to place undue

reliance on these forward-looking statements, which are based on the Trustee-Manager’s current

view on future events.

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3

• Overview

• Financial Results

• Growth Strategies

• Financial Indicators

Agenda

4

• Overview




Agenda

5

Key Highlights

3Q FY 08/09 DPU of 2.02 Singapore cents, being:

- 35% above same period last year

- 11% above last quarter

YTD 3Q FY 08/09 distribution reflects annualised yield of:

- 15.9% over the closing price of S$0.46 on 31 December 2008

- 14.6% over the closing price of S$0.50 on 28 January 2009

YTD 3Q FY 08/09 DPU of 5.49 Singapore cents, 23% above

same period last year

Net Asset Value was S$711 million or S$0.94 per unit as at 31

December 2008

6

Key Highlights

For first nine months of FY 08/09, 1.2 million sq ft of space was

leased or renewed, posting a strong retention rate of 86%

As at 31 December 2008, portfolio occupancy increased to 99%,

outperforming market occupancy rates of 77% to 95% for micro

markets* where the portfolio‟s properties are located

Current gearing at 7% (loan to value), hence substantial debt

capacity to fund future development space / acquisition

* Source : Jones Lang LaSalle Property Consultants Pvt. Ltd.

Less than 6% of space is due for renewal till end of the financial

year and less than 13% in the next financial year

7

• Overview




Agenda

8

Financial Results –3Q FY08/09 vs 3Q FY07/08

3Q FY08/09

(S$ „000)

3Q FY07/08

(S$ „000)

Variance

(%)

Reasons

Total

Property

Income

28,793 26,970 7% • Income from completed buildings, Vega & Crest

• Higher rental rates

• One time income of S$ 2.7 million for provision of extra

power by TCS‟s built-to-suit building amortized over 36

months from Sep 08

Net

Property

Income

17,046 15,707 9% • Increased maintenance expenses due to larger

portfolio

• Fallen oil price leading to lower utilities expenses

despite the larger portfolio

Net Profit

after tax

12,299 33,772 (60%) • Lower finance cost

• No fair value gains on investment property this 3Q

compared to S$39.7 million gains in 3Q last year,

arising from revaluation of Vega. The fair value gains

have no impact on DPU

• S$6.4 million fair value gains on derivatives this 3Q, of

which $3.3 million realized from settling forward

contracts (entered into to hedge currency volatility)

DPU

(Singapore

cents)

2.02 1.50 35% • As a result of the above

9

1Q FY08/09

1 April to 31 December 2008

1.65 ¢ per unit

Distributions are paid on semi-annual basis, for the six-month periods ending

31 March and 30 September of each year

Period

1.82 ¢ per unit

Distribution per Unit

23% increase

over same

period last FY

2Q FY08/09

YTD 3Q FY0809 5.49 ¢ per unit

11% increase q-o-q

35% increase y-o-y2.02 ¢ per unit3Q FY08/09

4.45 ¢ per unitYTD 3Q FY07/08

10

• Overview




Agenda

11

Pro

pose

d D

evelo

pm

ent

Mar 07

Total Owned SBA of 4.8 mm sq ftOperating

Buildings

Upcoming SBA of 1.5

mm sq ft

Proposed

Developments

Land Available

for

Development

Potential SBA of

2.7 mm sq ft

Unique three-pronged acquisition

strategy

Exte

rnal

Acquisitions

Org

anic

4.2 mm sq. ft.

= 89% of current

operating

buildings

Growth Strategy

12

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Organic Growth1.25 mil sq ft leased from 1 April to 31 December 2008

86%

Retention

Renewed

Leases

New

Leases

Renewed & New

Leases

Leases Concluded

Over The Year

Forward

Leasing*

Area (Sqft)

751,000

460,000

142,000

* Include signed leases which have not commenced

Expired

Leases

647,500

647,500

1,107,500

1,249,500

460,000

1,107,500

13

Organic Growth - Stability

Portfolio Weighted Average Occupancy as at 31 December 2008 is 99%

100% 98%1 98% 100%

Maintaining High Occupancy Rates

ITPB ITPC The V CyberPearl

1 Includes retail space. Occupancy rate for office space in ITPC is 100%

a-iTrust Occupancy

Market

Occupancy of

Peripheral Area2

2 Jones Lang LaSalle Market Report as at 31 December 08

77%82%

95% 95%

14

-

500,000

1,000,000

1,500,000

2,000,000

Organic Growth - Lease Expiry Profile

5.8%

12.8%

33.8%

Financial

Year 2009

Financial

Year 2010

Portfolio Lease Expiry Profile

Financial

Year 2011

Financial

Year 2012

Financial Year

2014 & Beyond

21.0%

14.9%

Sq ft expiring

11.7%

Weighted Average Lease Term – 3.9 yrs as at 31 December 2008

Financial

Year 2013

15

Hyderabad35.5%

Chennai27.0%

Bangalore37.5%

Organic Growth - Stability

Geographical Diversification of Properties

Total Owned SBA = 4.8 million sq. ft.

Strong Tenant Base

Total Number of Tenants

Average space

per tenant

No single tenant takes up

more than 4%

of the portfolio base rent

246

18,856 sq. ft.

As at 31 December 2008

Operating Buildings of a-iTrust

16

Affiliated Computer Services of India Pvt. Ltd.

Applied Materials India Pvt. Ltd.

Cognizant Technology Solution (India) Pvt. Ltd.

General Motors India Pvt. Ltd.

iNautix Technologies India Pvt. Ltd.

Invensys Development Center India Pvt. Ltd.

Merrill Lynch (India) Technology Services

Paprikaas Interactive Services Pvt. Ltd.

Pfizer Pharmaceutical India Pvt. Ltd.

ZapApp / First Indian Corporation / First Advantage

Top 10 Tenants collectively accounted for about 29% of the portfolio base rent

Portfolio - Top Ten Tenants in Alphabetical Order

Portfolio Top 10 Tenants

17

IT63.0%

R&D4.8%

F&B0.9%

Others5.1%

ITES17.1%

IT/ITES9.2%

Organic Growth - Tenant Development

30 September 2008

Tenant sector by base rental

IT62.9%

R&D5.5%

F&B1.1%

Others3.7%

ITES16.8%

IT/ITES10.0%

31 December 2008

18

MNC90.6%

India Based Company

9.4%

US68.1%

India14.9%

Germany4.3%

UK5.3%

Japan0.6%

Netherland1.2%

Singapore1.1%

Finland1.0% France

1.5%Others2.0%

Organic Growth - Tenant Development

31 December 2008

Tenants‟ country of origin & company structure by base rental

19

Work Live Play at the Parks

Ascendas Connect ‘ 08

Sankranti Celebration

20

Work Live Play at the Parks

Christmas Extravaganza

Interface 2008

21

New Hotel in ITPB – Vivanta by Taj

Vivanta by Taj opened in ITPB, targeting at cosmopolitan customers

Developed and managed by Taj Hotels group, which leases land from ITPL

Enhances ITPB’s amenities and position as premier IT Park

22

Development

3 property development in the parks – additional 1.5 mil sq ft

BTS for Avestha Gengraine

Technologies (ITPB)Retail Mall (ITPB)

Zenith

3rd building (ITPC)

450,000 sq ft SBA mall 294,000 sq ft SBA 742,000 sq ft SBA

• Final authority approval

has been obtained

• Excavation works started

in early January 2009

• Expected completion in 2nd

half of 2010

• Construction in progress

• Expected completion in early

2010

• Fully pre-leased

• Site has been barricaded

• Construction will commence

upon receipt of balance

deposit from tenant

Funding of S$140 million loan at SOR + 70 basis points organised.

Citibank 6 months SOR as of 9 January 2009 was 1.6%

23

Development

Further development in ITPB – additional 2.7 million sq. ft.

• Completed master plan to

develop balance 2.7 million

sq ft of space as SEZ

• Building approval

submission for a 536,000

sq ft multi-tenanted

building in progress

Existing Income-

producing space

Hotel

Amenities / Future

developments

SEZ

Proposed BTS Proposed Retail Mall

24

Acquisition

CyberVale in Chennai, an IT SEZ comprising a proposed 1.1M sq ft of SBA

over 4 buildings over 18.5 acres of land

Right of First Refusal – Ascendas Land International Pte Ltd

3 pronged acquisition strategy

Building 1

SBA (sq. ft.)

Building 2

Building 3

Building 4

250,000

280,000

285,000

280,000

Completed and fully leased

BTS for MindTree Consulting

(completed) *

Land available for development

Pre – committed to a single tenant

and construction in progress

* 99-year lease CyberVale represents an opportunity for a-iTrust to acquire

535,000 sq ft of space and 4.4 acres of land for development

25

Acquisition

9.7 mil sq ft of business space development potential in key cities such

as Gurgaon, Pune and Coimbatore

Right of First Refusal – Ascendas India Development Trust


AIDT focuses on integrated real estate development and has committed

equity of S$500 mil & target investment size of S$1 billion

This ROFR represents a strong acquisition pipeline for a-iTrust once

AIDT progressively completes the development of space

AIDT finalising further investments & will announce at appropriate stage

26

Acquisition

a-iTrust has substantial debt capacity before reaching its voluntary

gearing limits*

Acquisition from the market


Trustee-Manager pursuing opportunities

* Voluntary gearing limits stipulated in the trust deed. Business trusts have no gearing limit under the

Business Trust Act.

Preference is to fund third-party properties acquisition or development

beyond the said 1.5 mil sq ft of additional space within the portfolio via

debt

27

Agenda

• Overview




28

0

100

200

300

400

500

600

700

800

900

1,000

Substantial Debt Headroom

S$ Million

Available Debt Capacity to 35% & 60% Leverage as at 31 December 08

Total Debt * Total Assets * Available Debt Capacity

* Exclude Minority Interests

35% Cap About S$260 mil

Debt Capacity

60% Cap About S$480 mil

Debt Capacity

Current

Gearing 7%

29

Hedging Strategy

To manage currency volatility on the distribution to Unitholders, the Trustee-

Manager had put in place forward contracts to hedge a substantial portion

of the forecast repatriation from India to Singapore for FY 08/09 and 1H FY

09/10 distributions

The Trustee-Manager does not intend to take speculative position on the

currency market and had, as a matter of policy, continued to hedge at least

a year prior to the planned repatriation date

The rates hedged for distribution for 2H FY0809 is Rs 28.81 to S$ 1

30

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Delivering Attractive Yield

Yield (%)

a-iTrust

15.90%1 /

14.60%%2

Source: CEIC, CPF, IBES

2.05% 1.40%

4.08% 4.00%

2.50%

0.70%

10-yr

S‟pore

Govt Bond4

5-yr

S‟pore

Govt Bond4

12-mth (S$)

Fixed

Deposit4

SGX

Stocks5

SGX

Property

Counters6

CPF

Ordinary

Account7

1 Annualised yield based on DPU 5.49 cents for YTD 3Q FY0809 and at closing price of S$0.46 per unit as at 31 December 2008

2 Annualised yield based on YTD 3Q FY08/09 DPU and closing price of S$0.50 per unit as at 28 January 2009

3 IBES Estimates, Bloomberg as at 30 December 2008

4 As at December 2008

5 Average 12 months dividend yield of total stocks listed in SGX, as at November 2008

6 Average 12 months dividend yield of all SGX listed property counters inclusive of REITs, as at November 2008

7 Prevailing CPF Ordinary Account saving rate

a-iTrust’s annualised yield (31 December 2008) is

3.70% – 15.20% above various indicators.

a-iTrust is targeted to grow its income organically,

through development and acquisition.

Wtd Avg

S-Reit Yield3

12.20%

31

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Delivering Attractive Yield

Yield (%)

a-iTrust

15.90%1 /

14.60%%2

Source: Bloomberg

5.61%

4.45%

8.24%

6.54%

India 10-yr Govt

Bond Yield

(Pre-Tax)

1 Annualised yield based on DPU 5.49 cents for YTD 3Q FY0809 and at closing price of S$0.46 per unit as at 31 December 2008

2 Annualised yield based on YTD 3Q FY08/09 DPU and closing price of S$0.50 per unit as at 28 January 2009

3 Reflects the post tax, interest on securities of 20.6% for investments in Government of India securities by registered foreign

institutional investors

a-iTrust’s annualised yield (31 December 2008) is

7.66% – 11.45% above various indicators.

a-iTrust is targeted to grow its income organically,

through development and acquisition.

India 10-yr Govt

Bond Yield

(Post-Tax) 3

India 10-yr Govt

Bond Coupon Rate

(Pre-Tax)

India 10-yr Govt

Bond Coupon Rate

(Post-Tax) 3

32

0

20

40

60

80

100

120

140

160

180a-iTrust

Property Index

STI Index

All Share Index

REITs Index

Sensex Index

Dow Jones Index

Bombay SE Realty Index

Trading Price (Indexed)

a-iTrust

IPO Sep 07 Dec 07 Mar 08 Jun 08

Data Source: Bloomberg

Oct 08 Dec 08

33

0

25

50

75

100

125

150

175

200

225

250a-iTrust

Indiabulls Real Estate Ltd

DLF Ltd

Unitech Ltd

HDIL

Ishaan Property Trust

Hirco Property Trust

Indiabulls Properties Investment Trust

Trading Price vs Equities (Indexed)

a-iTrust

IPO Sep 07 Dec 07 Mar 08 Jun 08

Data Source: Bloomberg

Oct 08 Dec 08

34

10,000

12,000

14,000

16,000

18,000 17,046

3Q

20,000

22,000

24,000

26,000

28,000

30,00028,793 *

3Q

Maintain Stable Performance

Net Property IncomeTotal Property Income

S$‟000

1Q 2Q 3Q

23,220

25,290

26,97015,710

15,370

13,340

S$‟000

27,233

4Q

16,116

FY 2007 / 08

16,03028,641

1Q

FY 2008 / 09

* Total Property Income in SGD terms was about 3% lower as compared to last quarter due to strengthening of SGD against INR

and functional currency of a-iTrust being INR. In INR term, total property income would been 1% higher. The exchange rates are

hedged for the distribution for 2H FY 08/09.

15,691

2Q 1Q 2Q 3Q 4Q 1Q 2Q

29,820

35

1.20

1.40

1.60

1.80

2.00

2.202.020

DPU Growth

S$cents

3Q

1.640

1.5001.475*

4Q

FY 2007 / 08

1Q

FY 2008 / 09

* DPU for first and second quarters last year were reported together, post listing of a-iTrust. DPU for both quarters

was 2.95 cents. For illustrative purposes, has the DPU been equal for both quarters, ie 1.475 cents.

1.475*

1.650

1Q 2Q

1.820

2Q 3Q

36

Putting things in perspective

Challenging Market :

- General global economic slowdown may affect the

demand for real estate space in India

- Indian IT services sector remains attractive, as more

companies from developed countries may outsource their IT

needs to India, where it offers considerable cost savings

- Current credit crunch has constrained new supply of space

Despite the weak market conditions, as at 31 December 2008

a-iTrust has achieved :

- High portfolio occupancy rate of 99%

- 1.2 million sq ft of space renewed and leased for the first

9 months of the financial year

- Retention rate of 86%

37

Putting things in perspective

Portfolio well positioned to serve target market of MNCs, with

the properties‟ quality space and service

Stable Income stream:

- Low single client exposure

- Less than 6% of space due for renewal in this financial year,

and less than 13% in the next year

Healthy balance sheet to leverage on growth from:

- Developing land within portfolio

- Acquisition opportunities through Rights of First Refusal and

from the market

38

Moving Forward

The Trustee-Manager will continue to focus on enhancing

the operating earnings of its assets, optimising its capital

structure and growing its portfolio through development

and acquisition.

The Trustee-Manager is confident of meeting the DPU

forecast of 6.85 Singapore cents for FY 2008 / 2009

provided in the listing prospectus, barring any unforeseen

circumstances.

39

Ascendas Property Fund Trustee Pte Ltd

(Trustee-Manager of a-iTrust)

www.a-itrust.com

THANK YOU




40

International Tech Park Bangalore

Park Statistics

Site area: 69 acres

Operating buildings: 1.8 mm

sq ft Owned SBA

Proposed Development:

744,000 sq ft SBA

Land Available for Development:

24 acres or 2.7 million sq ft SBA (based on

max. plot ratio of 2.5)

Park Population: 24,000 people

41

International Tech Park Chennai

Park Statistics

Site area: 15 acres

Operating Buildings: 1,258,000 sq ft

Owned SBA

Proposed Development: Up to 742,000 sq ft

SBA


42

CyberPearl

Park Statistics

Site area: 6 acres

Operating Buildings: 431,000 sq

ft Owned SBA


43

The V

Park Statistics

Site area: 19 acres

Operating Buildings: 1,288,000 sq ft

Owned SBA


44

Structure of Ascendas India Trust

Unitholders

a-iTrustAscendas Property Fund Trustee Pte. Ltd.

(the Trustee-Manager), a wholly-owned subsidiary

of Ascendas Pte Ltd

Ascendas Property Fund (India) Pte. Ltd.

(the Singapore SPV)

The VCUs

Information Technology Park Limited (92.8% ownership)1

Ascendas Information Technology Park Chennai Ltd. (89.0% ownership)1

Cyber Pearl Information Technology Park Private Limited (100.0% ownership)

VITP Private Limited (100.0% ownership)

Ascendas Property

Management Services

(India) Private Limited

(the property manager)

Holding of units Distributions

Trustee’s fee and management fees

Acts on behalf of unitholders/

management services

100% ownership and

shareholder’s loan

Dividends, principal

repayment

of shareholder’s loan

Ownership of ordinary

shares, compulsorily convertible preference shares

(“CCPS”) and shareholder’s loans

Dividends on ordinary shares and CCPS, interest

income, principal repayment of shareholder’s loans

and proceeds from share buyback

The Properties

ITPB

ITPC

Cyber Pearl

The VProperty management fees

Provides property

management services

Ownership4 Net property income

Singapore

India

1 ITPB is 7.2% owned by Karnataka State Government and ITPC is 11.0% owned by Tamil Nadu State Government respectively

45

REIT-like characteristics enhance stability of distributions

a-iTrust will possess key safeguarding provisions while retaining

upside potential through 20% development limit

Adherence to safeguarding

provisions on allowable investments

under Property Fund Guidelines

Permissible

Investment

100% distributions to 31 March 2009

and ≥ 90% thereafter

Distributable

income

≤ 35% of deposited property

(≤ 60.0% with credit rating)Gearing

Distribution exempt from Singapore taxTax-free

distributions

3q fy 2008/09 financial results...

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