CapitaLand India Trust - DBS Research 2023-10-27: Jumping Start The Acquisition Journey

• CapitaLand India Trust (SGX:CY6U) released its 3QFY23 operating update with shows continued strength across its portfolio. In INR terms, 3Q23 revenues and net property income came in ~23% and ~22% higher y-o-y driven by the contribution from ITPH Block A and ITPP-H at INR 3,752m and INR 3,041m respectively.
• - Read this at SGinvestors.io -
• Due to the depreciation of the INR:S$ exchange rate by ~10% to 61.5, underlying revenue in S$ terms continued to grow but at a slower 13-14% (3QFY23) and 6- 9% (9M23).

Balance sheet robust post recap.

• CapitaLand India Trust's gearing declined to ~37% on the back of a recent balance sheet recapitalisation exercise vs 40% a quarter ago. The balance sheet has strengthened for the REIT to undertake acquisition and development activities.
• - Read this at SGinvestors.io -
• Looking ahead, we expect costs to inch higher as the manager looks to term out its debt on a longer-term basis (current weighted average debt expiry (WADE) of 2.0 years). We have priced in an interest rate increase of ~50 bps to 6.7% in our estimates starting in FY24F.

Mixed occupancy performance but likely transitory.

• Read more at SGinvestors.io.

Derek TAN DBS Group Research | Dale LAI DBS Research | https://www.dbs.com/insightsdirect/ 2023-10-27 SGinvestors.io

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