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REITs investment & personal finance


Monday, May 09, 2022

Ascendas India Trust Review @ 9 May 2022

Basic Profile & Key Statistics
  • Main Sector(s): Office & Logistics
  • Country(s) with Assets: India
  • No. of Properties (exclude development/associate/fund): 9

Performance Highlight

Total property income and NPI have increased yoy mainly due to contribution from aVance 6 in Hyderabad and Building Q1, Aurum Q Parc which were acquired in 2021. 

Rental Reversion
Rental reversion is positive for ITPB, ITPC, CyberVale, ITPH and aVance Pune, but negative for Cyber Pearl.

Acquisition
In March end, AIT completed the acquisition of the Phase 2 Warehouse at the Arshiya Free Trade Warehousing Zone. 

Pipeline
There are 3 developments expected to be completed by 1H 2022. Whereas for Aurum Q Parc Building Q2, the occupancy certificate is received and AIT expects to complete the acquisition in 3Q 2023.

Related Parties Shareholding

  • REIT sponsor's shareholding: Below median for more than 10%
  • REIT manager's shareholding: Above median for more than 20%
  • Directors of REIT manager's shareholding: Below median for more than 10%

Lease Profile

  • Occupancy: Below median for more than 5%
  • All income received in India Rupee
  • WALE: Below median for more than 10%
  • Highest lease expiry within 5 years: Above median for more than 20%; Falls in 2026 and beyond, without breakdown
  • Weighted average land lease expiry: Most of the properties are freehold

Debt Profile

  • Gearing ratio: ± 10% from median
  • Cost of debt: Above median for more than 20%
  • Fixed rate debt %: ± 10% from median
  • Unsecured debt %: 100% Unsecured Debt
  • WADM: Below median for more than 10%
  • Highest debt maturity within 5 years: ± 10% from median; Falls in 2022
  • Interest coverage ratio: Below median for more than 10%

Diversification Profile

  • Top geographical contribution: Below median for more than 20%
  • Top property contribution: Above median for more than 20%
  • Top 5 properties' contribution: Above median for more than 20%
  • Top tenant contribution: Above median for more than 10% 
  • Top 10 tenants' contribution: Above median for more than 10%

Key Financial Metrics

  • Property yield: Above median for more than 20%
  • Management fees over distribution: Above median for more than 20%; $5.32 distribution for every dollar paid 
  • Distribution on capital: ± 10% from median
  • Distribution margin: ± 10% from median

Trends

  • Uptrend: DPU, NAV per Unit, Distribution Margin
  • Flat: Interest Coverage Ratio
  • Slight Downtrend: Distribution on Capital
  • Downtrend: Property Yield

Relative Valuation

  • P/NAV: Below -1SD for 1y, 3y & 5y
  • Dividend Yield: Above +2SD for 1y; Above average for 3y & 5y

Author's Opinion

 Favorable Less Favorable
Diversified SectorLow REIT Sponsor's Shareholding
High REIT Manager's ShareholdingLow Directors of REIT Manager's Shareholding
Mostly Freehold PropertiesLow Occupancy
100% Unsecured DebtAll income in India Rupee
Low Top Geographical ContributionShort WALE
High Property YieldHigh Cost of Debt
DPU UptrendShort WADM
NAV per Unit UptrendLow Interest Coverage Ratio
Distribution Margin UptrendHigh Top Property & Top 5 Properties Contributions
 High Top Tenant & Top 10 Tenants Contributions
 Non-Competitive Management Fees
 Property Yield Downtrend

The performance has improved mainly due to the acquisition in November 2021. The physical park population has increased ranging from 15-30% as compared to 11% across all parks and the manager expects leasing activity to pick up this year. Coupled with the recent acquisition of Phase 2 Warehouse at Arshiya, AIT performance is expected to improve moving forward.


You could also refer below for more information:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and Detail of Singapore REIT

REIT Analysis - List of previous REIT analysis posts


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*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.

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