CapitaLand India Trust - OCBC Investment 2024-07-30: Steady Growth Plans With Strong Economic Backdrop

• CapitaLand India Trust (SGX:CY6U)'s 1H24 total property income and net property income (NPI) rose by 23% and 21% y-o-y to S$136.1m and S$103.5m, respectively. This was primarily driven by contributions from acquisitions and developments.

1H24 DPU exceeded expectations.

• - Read this at SGinvestors.io -
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• CapitaLand India Trust was also assigned its first-time Long-term Issuer Default Rating of “BBB-” with a stable outlook by Fitch Ratings, which can potentially help to reduce cost of borrowings.

Strong leasing demand continues.

• Overall committed occupancy rose by 2 ppt to 93% q-o-q. This was attributed to q-o-q improvement at aVance Hyderabad from 75% to 95% and Building Q1 from 70% to 87% offset by a slight reduction of committed occupancy from some of its properties.
• Rental reversions remained healthy at mid-high single digits, with the exception of aVance Hyderabad and aVance I, Pune due to leasing incentives provided. Management continues to be optimistic in future rental reversions on the back of strong absorption of offices from foreign multinational companies that have started significant expansion plans in India.
• Management also guided that it is in advanced discussion to fully lease the first phase of its Navi Mumbai data centre and targets to complete this development by 1H25.

Capital management for their growth seems more certain.

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Donavan Tan OCBC Investment Research | https://www.iocbc.com/ 2024-07-30 SGinvestors.io

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