- CapitaLand India Trust reported 3Q24 operating statistics which were generally in line with expectations. For 9M24, total property income and net property income in S$ terms rose 19% y-o-y and 18% to S$ 204.9mil and S$ 156.6mil respectively. This was ~76% of our full year estimates.
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Interest rates have peaked; valuation uplift anticipated come year-end.
- Gearing remained at 40.1%, with an average debt maturity of 2.5 years. We note that interest costs have dipped 0.3% q-o-q to 6.0% and expected to remain on a downtrend in the coming quarters.
- With the strong growth in cashflows expected through FY24, the manager of CapitaLand India Trust anticipates that year-end valuations will drive gearing towards the ~38% level. This implies possible NAV upside of between 12% - 15% in the medium term.
Operating statistics steady
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- We note a slight dip in occupancy rates at ITPC to 85% from 92% a quarter ago due to a tenant consolidating its space elsewhere. However, while occupancy rate declined, we understand that it was also an opportunity for the manager to market the space at meaningfully higher rents (Rp 90-92psf/mth vs passing rents at Rp 70-75psf/mth), which will contribute positively in the coming quarters, upon backfilling.
Addressing tenant issues.
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