CapitaLand India Trust - OCBC Investment Research 2025-01-28: Mixed Results, Positive Trajectory

• CapitaLand India Trust's total property income and NPI for FY24 increased by 19% and 14% y-o-y, reaching S$277.9m and S$205.6m, respectively. This growth was mainly driven by contributions from several acquisitions and developments completed during FY24.

FY24 DPU was below our expectations due to NPI margin compression.

• - Read this at SGinvestors.io -
• The FY24 CapitaLand India Trust's DPU was below ours and consensus’ estimates, accounting for 96% and 91%, respectively.
• Operational performance remained strong, with occupancy increasing by 1 ppt to 92% and rental reversions ranging from +1% to +9%, except for aVance Hyderabad, which saw a -1% change due to the impact of a rent-free period. Management anticipates this positive trend to continue into FY25.

Further developments on two key divestment plans

• - Read this at SGinvestors.io -
• Management anticipates completing the divestment of CyberPearl and CyberVale by the end of February 2025. CapitaLand India Trust plans to distribute 10-15% of the gains to unitholders over 3-4 semi-annual periods, while the remaining funds may be used to reduce debt. The expected cost savings from financing should offset any loss of income from these assets.

Gearing came down on the back of revaluation gains on assets while the average cost of debt is maintained at 6%.

• Read more at SGinvestors.io.

Donavan Tan OCBC Investment Research | https://www.iocbc.com/ 2025-01-28 SGinvestors.io

---