CapitaLand India Trust - OCBC Investment 2024-10-25: Data Centre Development On The Horizon

• CapitaLand India Trust’s 9M24 total property income and NPI rose by 19% and 18% y-o-y to S$204.9m and S$156.6m, respectively. Both total property income and NPI account for ~72% of our forecast.

3Q24 results rose on the back of acquisitions

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• Portfolio occupancy dipped by 2 percentage points (ppt) to 94% when excluding newly acquired properties, due to some tenant non-renewals. Nonetheless, management remains confident in their ability to re-lease these spaces given the strong demand.
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Strong leasing demand from the IT/ITES segment

• CapitaLand India Trust recorded positive reversions for ITPB (8%), ITPC (6%), Cybervale (8%), ITPH (4%), and CyberPearl (5%), while it reported negative reversions for aVance Hyderabad (-1%) and aVance I, Pune (-1%), primarily due to rent-free periods.
• We expect continued resilience and growth in India's office market due to several factors:
  1. the sustained rate easing cycle in the US driving capital deployment in India,
  2. the ongoing inflow of global capability centres (GCCs), and
  3. a robust domestic economy fuelling growth in domestic firms, leading to increased space take-up.

Termination of the master agreement for 7 warehouses

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Donavan Tan OCBC Investment Research | https://www.iocbc.com/ 2024-10-25 SGinvestors.io

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