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REITs investing & personal finance

Thursday, August 18, 2022

Ascendas India Trust Review @ 18 August 2022

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

Key Indicators

Performance Highlight

Total property income, NPI, income available for distribution and DPU increased yoy mainly due to income from aVance 6 at aVance Hyderabad, Building Q1 at Aurum Q Parc, Arshiya Warehouse 7, Industrial Facility in Mahindra World City, Chennai which were acquired between March 2021 to May 2022. 

Rental Reversion
Besides ITPC and ITPH, rental reversion is positive for other properties.

In 1H 2022, AIT completed the acquisition of Arshiya Warehouse 7 in March and Casa Grande – Phase 1 in May.

The construction completion of aVance 5 and BlueRidge 3 Phase 1 has been delayed to 2H 2022. For Aurum Q Parc Building Q2 which has received the occupancy certificate, 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: ± 10% from median

Lease Profile

  • Occupancy: Below median for more than 5%
  • All income received in India Rupee
  • WALE: ± 10% from median
  • 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%
  • WADM: ± 10% from median
  • Highest debt maturity within 5 years: ± 10% from median; Falls in 2026
  • 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%; $5.10 distribution for every dollar paid 
  • Distribution on capital: ± 10% from median
  • Distribution margin: ± 10% from median


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

Relative Valuation

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

Author's Opinion

 Favorable Less Favorable
Diversified SectorLow Occupancy
High REIT Manager's ShareholdingAll income received in India Rupee
Mostly Freehold PropertiesHigh Cost of Debt
100% Unsecured DebtLow Interest Coverage Ratio
Low Top Geographical ContributionHigh Top Property & Top 5 Properties Contributions
High Property YieldHigh Top Tenant & Top 10 Tenants Contributions
DPU UptrendNon-Competitive Management Fees
NAV per Unit UptrendOccupancy Downtrend
Distribution Margin UptrendProperty Yield Downtrend
 Distribution on Capital Downtrend

Performance has improved as compared to the previous quarter due to full quarter contribution from Building Q1 at Aurum Q Parc and Arshiya Warehouse 7. The next half-yearly performance would be improved due to the 3 properties acquired in 1H 2022, however, the unfavorable SGD/INR FX in recent months should be a thing to take note of.

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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