- The coming three years (FY25F – 27F) will be pivotal for CapitaLand India Trust as it completes ongoing developments, boosting its DPU prospects by 6-18%.
- We have raised our estimates to reflect the latest development updates and completion of its datacenters currently under development.
Entering a defining phase of accelerating growth.
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- Current CapitaLand India Trust's share price is trading at < 0.8x P/B. With FY25F – 27F DPU CAGR of 14%, yield is projected to grow from ~ 8.5% to over 9%. In our estimates, we have also assumed an annual 3% depreciation in the INR-S$ exchange rate compared to flat previously.
Growth drivers
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- income contribution from MTB-6, a 0.8m sqft fully-leased building, which was completed in Dec’24; and
- robust rental reversions of 6-8% across its IT parks in Bangalore, Hyderabad, Chennai and Pune.
- Additionally, its forward purchase contracts, with ongoing developments of close to ~6.0mil sqft of space and valued at INR 45bn (S$ 809mil), provide medium-term growth potential. This is in addition to significant development capacity at Bangalore (ITPB) and Hyderabad (ITPH), with over 2.3 mn sqft of space at each site, totally 4.6mil sqft.
- Together with its ongoing developments, CapitaLand India Trust is projected to deliver up to a 56% jump in overall GFA (full potential).
What are CapitaLand India Trust’s data centres worth?
Extracting value within its portfolio.
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