Ascendas India Trust 4 th Annual General Meeting 23 June 2011 Asia s First Listed Indian Property Trust 0
Agenda Overview FY 2010/11 Performance Focus Areas 1
Agenda Overview FY 2010/11 Performance Focus Areas 2
Portfolio CyberPearl, Hyderabad avance Business Hub, Hyderabad (Conditional acquisition) INDIA The V, Hyderabad Hyderabad International Tech Park Bangalore Bangalore Chennai International Tech Park Chennai 3
International Tech Park Bangalore (ITPB) Park Statistics Site area: 69 acres/ 27.9 ha Operating buildings: 2.2 mm sq ft Owned SBA Proposed Development: 535,000 sq ft SBA SBA - Super Built-up Area, which is the basis for leasing transactions. Land Available for Development: 23 acres or 2.5 million sq ft SBA (based on plot ratio of 2.5) Park Population: 27,000 people 4
International Tech Park Chennai (ITPC) Park Statistics Site area: 15 acres / 6.1 ha Operating Buildings: 2.0 mm sq ft Owned SBA Park Population: 22,000 people SBA - Super Built-up Area, which is the basis for leasing transactions. 5
CyberPearl, Hyderabad Park Statistics Site area: 6 acres / 2.4 ha Operating Buildings: 0.4 mm sq ft Owned SBA Park Population: 5,000 people SBA - Super Built-up Area, which is the basis for leasing transactions. 6
The V, Hyderabad Park Statistics Site area: 19 acres / 7.7 ha Operating Buildings: 1.3 mm sq ft Owned SBA Park Population: 12,000 people SBA - Super Built-up Area, which is the basis for leasing transactions. 7
Structure of Ascendas India Trust Unitholders Holding of units Distributions 100% ownership & shareholder s loan a-itrust Dividends, principal repayment of shareholder s loan Trustee s fee & management fees Acts on behalf of unitholders/ management services Ascendas 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) Ownership of ordinary shares & compulsorily convertible preference shares ( CCPS ) Dividends on ordinary shares & CCPS, & proceeds from share buyback Singapore 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) India Ownership Net property income The Properties ITPB ITPC Cyber Pearl The V Provides property management services Property management fees Ascendas Services (India) Private Limited (the property manager) 1 ITPB is 7.2% owned by Karnataka State Government & ITPC is 11.0% owned by Tamil Nadu State Government respectively 8
REIT-like characteristics enhance stability of distributions Permissible Investment Adherence to safeguarding provisions on allowable investments under Property Fund Guidelines Distributable income Minimum 90% to be distributed Gearing 35% of deposited property ( 60.0% with credit rating) Tax-free distributions Distribution exempt from Singapore tax a-itrust will possess key safeguarding provisions while retaining upside potential through 20% development limit 9
Agenda Overview FY 2010/11 Performance Focus Areas 10
FY 2010/11 Highlights Development completion Newly completed in December 2010 2 developments in the parks Additional 1.2 mil sq ft Zenith (ITPC) Multi-Tenanted Office Building Tenancy commitment level as at 21 June 2011 60% Tenants undertaking fitout work on premises 737,000 sq ft 1 1 Super Built-up Area, which is the basis for leasing transactions. 11
FY 2010/11 Highlights Development completion Newly completed in December 2010 2 developments in the parks Additional 1.2 mil sq ft Park Square (ITPB) Retail Mall Tenancy commitment level as at 21 June 2011 73% Tenants undertaking fitout work on premises Soft opening expected in 2Q/3Q FY2011/2012 450,000 sq ft 1 1 Super Built-up Area, which is the basis for leasing transactions. 12
FY 2010/11 Highlights Total property income Total Property income for FY 2010/11 rose 1% (+4% in Indian Rupee terms) over previous FY S$ million S$ million Increased due to higher operations and maintenance income, from the increase in energy billing S$ and car park income million in ITPB. 13
FY 2010/11 Highlights Net property income Net Property income for FY 2010/11 lower compared to last FY S$ million S$ million Decreased due to higher property expenses from the December 2010 completion of Zenith and Park S$ Square, for which income million contribution has yet to fully stablise, and hikes in electricity tariff and cost of fuel. 14
FY 2010/11 Highlights Distribution per Unit DPU for FY 2010/11 lower compared to last FY Decreased due to lower NPI and a marginal loss realised on financial S$ cents 8.00 7.54 7.55 derivatives, compared to a gain last year. 6.00 6.09 6.58 4.00 2.00 0.00 FY 2007/2008 FY 2008/2009 FY 2009/2010 FY 2010/2011 15
Strong Leasing Activities Area (Sqft) Leasing activities from 1 April 2010 to 31 March 2011 2,500,000 2,336,500 2,000,000 1,500,000 1,637,000 63% Retention 1,512,000 Leases for New Buildings Forward Leasing on Existing Portfolio 3 725,000 99,500 1,000,000 500,000 0 Expired / Terminated Leases 1,029,000 Renewed Leases 483,000 New Leases 483,000 Renewed & New Leases for existing portfolio 1,029,000 725,000 Voyager 210,500 2 Park Square 274,000 1 Zenith Leases for New Buildings 240,500 1 Leases Concluded 1 Includes committed leases for which security deposits had been collected but possession of unit had not taken place. Additional commitments had been signed for Zenith and Park Square after 31 March 2011. 2 Represents pre-commitments. Voyager is expected to be completed in June 2011. Additional commitments had been signed for Voyager after 31 March 2011. 3 Signed leases which have yet to commence. 1,512,000 16
High & Stable Occupancy 99% 97% 93% 97% 100% 97% 73% 2 63% 60% 60% 2 33% 61% a-itrust Occupancy Market Occupancy of Peripheral Area 1 New Buildings ITPB (excl. Park Square ITPC (excl. Zenith) The V CyberPearl Zenith (ITPC) Park Square (ITPB) Portfolio Weighted Average Occupancy as at 31 March 2011 was 97% 3 1 Jones Lang LaSalle Market Report as at 31 March 2011. 2 Includes committed leases for which security deposits had been collected but possession of unit had not taken place. Additional commitments had been signed for Zenith and Park Square after 31 March 2011, resulting in commitment levels of 60% and 73% respectively as at 21 June 2011. 3 Excludes Park Square & Zenith, which have recently been completed in December 2010. 17
Staggered Lease Expiries Sq ft expiring Portfolio Lease Expiry Profile 1 28.6% 1,500,000 25.3% 18.4% 1,000,000 11.9% 500,000 8.9% 6.9% - FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 & Beyond Weighted Average Lease Term 4.1 yrs as at 31 March 2011 1 Includes leases in Park Square (ITPB) & Zenith (ITPC) for which possession of units have taken place. 18
Diversification Geographical Diversification of Properties Strong Tenant Base Operating Buildings of a-itrust Total Number of Tenants 266 Bangalore 38% Hyderabad 29% Average space per tenant 18,209 sq. ft. Chennai 33% Total Owned SBA = 5.9 million sq. ft. 31 March 2011 Largest tenant takes up about 4.7% of the portfolio base rent Notes: The statistics in this slide include leases in Park Square (ITPB) & Zenith (ITPC) for which possession of units have taken place. SBA - Super Built-up Area, which is the basis for leasing transactions. 19
Low Single Tenant Risk Portfolio - Top Ten Tenants in Alphabetical Order Affiliated Computer Services of India Pvt. Ltd. Applied Materials India Pvt. Ltd. Bally Technologies India Pvt. Ltd. Cognizant Technology Solution (India) Pvt. Ltd. General Motors India Pvt. Ltd. inautix Technologies India Pvt. Ltd. Merrill Lynch (India) Technology Services Paprikaas Interactive Services Pvt. Ltd. Tata Consultancy Services Ltd. ZapApp / First Indian Corporation / First Advantage / First American (India) Top 10 Tenants collectively accounted for about 31% 1 of the portfolio base rent 1 Includes leases in Park Square (ITPB) & Zenith (ITPC) for which possession of units have taken place. 20
Tenant Mix Management Tenant core business by base rental 1 Retail, 2.3% F&B, 1.5% Maritime, 0.4% Automobile, 4.3% Hospitaliity, 0.4% Advertising, 0.7% R&D, 3.8% Pharmaceutical & Healthcare, 5.1% Banking & Financials, 14.9% Corporate Services, 7.4% IT & Software Development, Application & Support, 38.2% Electronic, SemiConductor & Engineering, 6.2% Telecommuications & Network, 5.8% Graphic & Gaming Design, 9.1% 31 March 2011 1 Includes leases in Park Square (ITPB) & Zenith (ITPC) for which possession of units have taken place. IT - Information Technology; R&D: Research & Development; F&B Food & Beverage 21
Tenant Mix Management Tenant activity by base rental 1 IT/ITES 13.4% ITES 12.9% Others 2.0% Retail & F&B 3.9% R&D 5.5% IT 62.2% 31 March 2011 1 Includes leases in Park Square (ITPB) & Zenith (ITPC) for which possession of units have taken place. IT - Information Technology; ITES - IT-Enabled Services; R&D: Research & Development; F&B Food & Beverage 22
Tenant Mix Management Tenant country of origin by base rental 1 Singapore Netherland 2.2% 0.8% UK 5.0% Germany 3.7% Japan 0.5% Australia 0.4% France 1.8% Others 1.1% India 2 16.4% US 68.1% 31 March 2011 1 Includes leases in Park Square (ITPB) & Zenith (ITPC) for which possession of units have taken place. 2 Comprises Indian companies with operations within India and/or offshore. 23
Tenant Mix Management Tenant company structure by base rental 1 India Based Company 1 11.3% MNC 2 88.7% 31 March 2011 1 Comprises Indian companies with operations within India only. 2 Multi-national corporations, including Indian companies with operations within India & offshore. 24
Work Live Play at the Parks ITPB Healthy Lifestyle & Sports Meet 2011 25
Work Live Play at the Parks Celebration of Colours at ITPC 26
Work Live Play at the Parks ITPB Grand Jigsaw Challenge 27
Work Live Play at the Parks ITPB Talentz Day 28
FY 2010/11 Financial Indicators Indicator As at 31 March 2011 Interest Service Coverage (EBITDA 1 /Interest Expenses 2 ) 4.0 (FY 10/11) Total Borrowings / Asset Value (Gearing) 18.3% 3 Secured Borrowings / Asset Value 11.4% 3 Effective Weighted Average Cost of Debt (Net of tax shield benefits) 5.6% 1 Earnings before Interest, Tax, Depreciation and Amortisation. 2 Includes Capitalised Interest. 3 Excludes Minority Interests. 29
Debt Maturity Profile 31 March 2011 FY11/12 15 FY12/13 10 60 FY13/14 10 25 FY14/15 10 FY15/16 5 25 0 10 20 30 40 50 60 70 S$ Million INR Loan 1,2 SGD Loan 1 As at 31 March 2011 1 Excludes Minority Interests. 2 Of this, S$5 million was originally floating-rate JPY-denominated borrowings for which the Group has entered into a cross-currency swap to exchange into fixed-rate INR obligations. 30
Yield Comparison with Singapore Indicators Yield (%) 10.0% 8.0% 6.9% 1 7.0% 2 5.8% 3 5.9% 4 a-itrust s full-year distribution yield (31 March 2011) is 1.1% - 6.5% above various indicators. a- itrust targets to grow its income organically, through development & acquisition. 6.0% 4.0% 2.5% 2.7% 2.5% 2.0% 1.2% 0.4% 0.0% a-itrust Wtd Avg S-Reit Yield 10-yr S pore Govt Bond 5 5-yr S pore Govt Bond 5 STI Stocks 6 CPF Ordinary Account 7 1 Distribution yield based on full-year DPU of 6.58 cents for FY 10/11 at closing price of S$0.955 per unit as at 31 March 2011. 2 Distribution yield based on full-year DPU of 6.58 cents for FY 10/11 at closing price of S$0.935 per unit as at 21 June 2011. 3 Average 12-month dividend yield of SGX listed Reits as at 31 March 2011. 4 Average 12-month dividend yield of SGX listed Reits as at 21 June 2011. 5 As at 31 March 2011. 6 Average 12-month dividend yield of SGX listed stocks under Straits Times Index as at 31 March 2011. 7 Prevailing CPF Ordinary Account saving rate. 8 As at March 2011. 12-mth (S$) Fixed Deposit 8 Source: MAS, CPF, Bloomberg 31
Yield Comparison with India Indicators Yield (%) 10.0% 8.0% a-itrust s full-year distribution yield (31 March 2011), which is post-tax, is 0.6% - 0.7% above relevant post-witholding tax indicators. Total return for Government Bonds is further affected by tax on any capital gains realised upon sale of securities of 10%-40% (depending on investor type and holding period). a-itrust targets to grow its income organically, through development & acquisition. 6.9% 1 7.0% 2 7.9% 6.3% 7.8% 6.2% 6.0% 4.0% 2.0% 0.0% a-itrust India 10-yr Govt Bond Yield (Pre-Tax) 3 India 10-yr Govt Bond Yield (Post-Witholding Tax) 3,4 India 10-yr Govt Bond Coupon Rate (Pre-Tax) 3 India 10-yr Govt Bond Coupon Rate (Post-Witholding Tax) 3,4 1 Distribution yield based on full-year DPU of 6.58 cents for FY 10/11 at closing price of S$0.955 per unit as at 31 March 2011. 2 Distribution yield based on full-year DPU of 6.58 cents for FY 10/11 at closing price of S$0.935 per unit as at 21 June 2011. 3 As at 31 March 2011. 4 Reflects the post witholding tax, interest on securities of 20.6% for investments in Government of India securities by registered foreign institutional investors. Source: National Stock Exchange of India 32
Trading Price (Indexed) 180 160 140 120 100 a-itrust a-itrust FTSE ST REIT Index FTSE ST Real Estate Index FTSE ST Small Cap Index Straits Times Index FTSE ST All Share Index Bombay SE Realty Index Sensex Index Dow Jones Index 80 60 40 20 0 IPO Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Mar 11 Data Source: Bloomberg 33
Agenda Overview FY 2010/11 Performance Focus Areas 34
External Proposed Development Operating Growth Strategy (Includes the conditional acquisition of avance Business Hub) Income- Producing Buildings Total Owned SBA 1 of 5.9 mm sq ft (including Zenith and Park Square, which completed in December 2010) Ongoing Developments Upcoming SBA 1 of 0.5 mil sq ft in FY11/12 (Voyager) Land Available for Development Potential SBA 1 of 2.5 mil sq ft Acquisitions Acquisition of Operating Buildings (SBA 1 of 0.4 mil sq ft) Acquisition of Vendor s Future Buildings (SBA 1 of 1.8 mil sq ft) Unique 3-Pronged Acquisition Strategy 1 Super Built-up Area (SBA) is the basis for leasing transactions. 35
Development In progress, expected to be completed mid 2011 Additional 0.5 mil sq ft Voyager (ITPB) Multi-Tenanted Office Building Tenancy pre-commitment level as at 21 June 2011 68% First building within the Special Economic Zone (SEZ) of ITPB Expected completion in June 2011 New (ITPB) Multi-Tenanted Office Building Voyager (535,000 sq ft) 540,000 sq ft development Finalising design, and procuring approval and construction contract Expected completion in end 2013 Within the SEZ of ITPB All areas being Super Built-up Area, which is the basis for leasing transactions. 36
Development Further development in ITPB additional 2.5 million sq. ft. Completed master plan to develop balance 2.5 million sq ft of space (including the new 540,000 sq ft building being planned), mainly within SEZ Park Square (Retail ) Taj Vivanta (Hotel) Construction of a second 20MW power plant is being planned to cater for future space and population growth in ITPB Existing Income- Producing Space SEZ New Multi-Tenanted SEZ Voyager (Multi- Tenanted SEZ) Temporary Incubation Space 37
Acquisition 3 pronged acquisition strategy Acquisition from the market Trustee-Manager continues to actively pursue opportunities a-itrust has substantial debt capacity before reaching its voluntary gearing limits 1 Flexibility to fund acquisition or development of additional space using debt or equity 1 Voluntary gearing limits stipulated in the trust deed. Business trusts have no gearing limit under the Business Trust Act. 38
Substantial Debt Headroom Available Debt Capacity to 35% & 60% Leverage as at 31 March 2011 S$ Million 1,000 900 800 700 600 500 400 300 200 100 60% Cap About S$370 mil Debt Capacity 35% Cap About S$150 mil Debt Capacity Current Gearing 18% 0 Total Debt 1 Total Assets 1 Available Debt Capacity 1 Excludes Minority Interests. 39
Proposed Acquisition in Hyderabad On 23 February 2011, a-itrust announced that it will conditionally acquire a portfolio of up to 5 buildings of an IT/ITES 1 Special Economic Zone ( SEZ ) in Hyderabad, India Upon completion of the acquisition, 2 completed and 100% occupied buildings (0.43 m sq ft) will be immediately acquired The Property will be rebranded avance Business Hub following completion of the acquisition INDIA Hyderabad 1 IT - Information Technology; ITES - IT-Enabled Services. 40
avance Business Hub, Hyderabad (Conditional acquisition) (3) (1) (5) (2) (7) (4) (1) (6) Not part of acquisition (8) (9) (2) Park Statistics Site area: 25.7 acres / 10.4 ha Immediate acquisition of 2 operating and fully-occupied buildings: 0.43 mm sq ft Owned SBA SBA - Super Built-up Area, which is the basis for leasing transactions. Expected acquisition of 3 future buildings: 1.75 mm sq ft SBA Potential acquisition of 4 landowners buildings from right of first refusal: 1.16 mm sq ft SBA 41
Proposed Acquisition in Hyderabad Key benefits of the acquisition of avance Business Hub: Well-located along the IT hub of in Madhapur and Gachibowli in Hyderabad, one of India s high-growth IT/ITES 1 centres Enhance portfolio size and add SEZ space to product offering Improve portfolio tenant and lease profile Expected accretion to DPU of 0.16 Singapore Cents 2 If the acquisition is funded fully by debt, gearing would increase to: 22% if including 2 Operating Buildings 33% if including 2 Operating Buildings and 3 Vendor s Future Buildings (assuming buildings not re-valued upon completion) 1 IT - Information Technology; ITES - IT-Enabled Services. 2 Assuming that a-itrust had purchased, held and operated the 2 Operating Buildings for the nine months ended 31 December 2010, and the acquisition is 100% debt funded. The accretion amount is based on annualising the 9 months effect. 42
Acquisition 3 pronged acquisition strategy Right of First Refusal Ascendas Land International Pte Ltd ALI owns CyberVale, an IT SEZ in Chennai, and a development project in Pune, International Tech Park Pune (ITPP) Cybervale, Chennai CyberVale comprises 535,000 sq ft of income producing space & 4.4 acres of land (which can be developed into a 280,000 sq ft building) ITPP is a proposed 2.5 million sq ft development International Tech Park Pune 43
Acquisition 3 pronged acquisition strategy Right of First Refusal Ascendas India Development Trust AIDT focuses on integrated real estate development & has committed equity of S$500 mil & target investment size of S$1 billion About 10 mil sq ft of business space development potential in key cities such as Gurgaon, Chennai & Coimbatore This ROFR represents a strong acquisition pipeline for a-itrust once AIDT progressively completes the development of space Ascendas OneHub Gurgaon 44
Hedging Strategy To manage currency fluctuation on the distribution to Unitholders, the Trustee-Manager had put in place forward contracts to hedge a substantial portion of the forecast repatriation from India to Singapore The hedging instruments deployed comprised plain vanilla currency forward contracts, which are agreements with banks where, on agreed dates, Trustee-Manager will deliver an agreed amount of INR in exchange for SGD The Trustee-Manager does not intend to take speculative position on the currency market & had, as a matter of policy, continued to hedge at least 6 months prior to the planned repatriation date 45
FY 2010/11 Highlights Distribution per Unit On average, DPU would have been lower if repatriation was not hedged S$ cents 8.00 7.54 7.55 7.03 7.18 6.58 6.68 6.92 6.09 6.09 6.00 4.00 Actual DPU DPU without hedging 2.00 DPU without hedging and excluding Park Square & Zenith 0.00 FY 2007/2008 FY 2008/2009 FY 2009/2010 FY 2010/2011 46
India Investment Case Attractive India s investment scenario remains attractive: - Country with fourth largest economy by purchasing power parity - India GDP grew 8.5% for the year ended 31 March 2011. The Government has forecast GDP growth to be around 8% in FY2011/12 - Large population, being 28% of Asia s population According to NASSCOM, in FY2010/11: IT-BPO exports revenues to grow by 13-15%: India offshoring to achieve 13% CAGR 1 through FY2020 Market size to continue increasing as new sectors (eg. healthcare) & regions (eg. Europe) adopt offshoring IT-BPO domestic revenues to grow by 16-17%: Consumption power from expanding middle income class expected to grow 12 times by 2025 (Mckinsey Global Institute) Government IT spend to increase from INR 150 billion in 2009 to INR 250 billion by 2011 IT-BPO domestic headcount is expected to increase by 200,000 this year, bringing direct employment to 2.5 million 1 CAGR Compounded Annual Growth Rate. 47
India Investment Case Attractive India remained a leader in the outsourcing industry because of skilled labour, positive business environment & low cost. Salary for IT / software engineers / developer / programmer Countries Local Currency US Dollar (p.a.) India 347,026 7,783 Malaysia 42,064 13,904 China 128,776 19,666 Hong Kong 206,708 26,573 Singapore 42,499 33,716 Japan 4,058,895 48,826 UK 29,552 47,366 Australia 63,175 65,249 US 66,189 66,189 Source : PayScale (provider of global online compensation data), April 2011. 48
a-itrust Portfolio Well Positioned Despite challenging conditions, a-itrust has achieved : - High portfolio occupancy rate of 97% 1, despite having 33.2% 2 of leases expired over FY 10/11 - Approximately 2.3 million sq ft 3 of space leased / renewed during FY 10/11 - Strong Total Property Income Portfolio continues to be well positioned to serve target market of MNCs, with ideal quality space & service Low single client exposure Substantial gearing capacity, hence allowing flexibility to fund growth through debt or equity, whichever more commercially sensible 1 Excludes Park Square (ITPB) & Zenith (ITPC), which have recently been completed in December 2010. 2 Based on the portfolio size of 4.8 million sq ft as at 31 March 2010, which had since increased to 5.9 million sq ft as at 31 March 2011. 3 Includes forward renewals, committed leases in Park Square (ITPB) & Zenith (ITPC) for which security deposits had been collected, and signed pre-commitments in Voyager (ITPB). 49
Completed Area (million sq ft) a-itrust Portfolio Growth Potential 7 6 Expected in FY11/12 (0.54m sq ft Voyager + 0.43m sq ft avance) 6.9 1.0 5 4 3 5.9 5.9 2 3.6 1 0 At listing 1.1 Added in FY07/08 0.1 Added in FY08/09 1.2 Added in FY10/11 As at 31 March 2011 Expected by 31 March 2012 50
THANK YOU Ascendas Property Fund Trustee Pte Ltd (Trustee-Manager of a-itrust) www.a-itrust.com 51
About Ascendas Group Ascendas is Asia s premier provider of business space solutions with a significant presence in the region. Ascendas develops, manages & markets IT Parks, industrial parks (manufacturing, logistics & distribution centres), business parks, science parks, hi-tech facilities, office & retail space. Among its flagships are the Singapore Science Park, International Tech Park Bangalore, Ascendas-Xinsu in Suzhou & Dalian-Ascendas IT Park. More than 1,800 of the world s leading companies, many in the Fortune 500 list, have made Ascendas properties their preferred address in Asia. Ascendas is also a leading real estate fund management player focused on the management of public-listed property trusts & private real estate funds, investing in a diverse range of industrial & commercial real estate properties across Asia. Listed on the main board of Singapore Exchange Securities Trading Limited are Ascendas Real Estate Investment Trust (A-REIT), Singapore s first business space trust, & Ascendas India Trust (a-itrust), Asia s first Indian property trust. The Ascendas Group also manages a range of private real estate funds which invest in business space in India, China, South Korea & ASEAN. All the funds are supported by Ascendas strong fund management & real estate expertise, & are testament to its commitment to each of its markets. www.ascendas.com 52