REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Wednesday, November 09, 2022

CapitaLand India Trust Review @ 9 November 2022

Basic Profile & Key Statistics
  • Main Sector(s): Office & Logistics
  • Country(s) with Assets: India
  • No. of Properties (exclude development/associate/fund): 11

Key Indicators

Performance Highlight

For 3Q, total property income and NPI improved yoy mainly due to contribution from Building Q1, Arshiya Warehouse 7 and Industrial Facility in Mahindra World City which were acquired between March 2021 to May 2022. 

Rental Reversion

Besides ITPB, ITPC and aVance Hyderabad, rental reversion is positive for other properties.

BlueRidge 3 Phase 1 received OC in 3Q 2022, while construction completion of aVance 5 is expected to be by this year end. 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: Above median for more than 20%

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: Below median for more than 10%
  • Highest debt maturity within 5 years: Below median for more than 10%; 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: ± 10% from median
  • 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
  • Slight Downtrend: Interest Coverage Ratio
  • Downtrend: Occupancy, Property Yield, Distribution on Capital

Relative Valuation

  • Current 52 Weeks Range: 26.7%
  • P/NAV: Below average for 1y; Below -1SD for 3y & 5y
  • Dividend Yield: Above average for 1y; Above +1SD for 3y & 5y

Author's Opinion

 Favorable Less Favorable
Diversified SectorLow Occupancy
High REIT Manager's ShareholdingAll income received in India Rupee
High Directors of REIT Manager's ShareholdingHigh Cost of Debt
Mostly Freehold PropertiesShort WADM
100% Unsecured DebtLow Interest Coverage Ratio
Well Spread Debt MaturityHigh Top Property & Top 5 Properties Contributions
Low Top Geographical ContributionHigh Top 10 Tenants Contribution
High Property YieldNon Competitive Management Fees
DPU UptrendOccupancy Downtrend
NAV per Unit UptrendProperty Yield Downtrend
Distribution Margin UptrendDistribution on Capital Downtrend

Total property income is similar to the previous quarter, however, NPI is declined by around 4% due to higher property expenses. With the full half-yearly contribution from Building Q1 at Aurum Q Parc and Arshiya Warehouse 7, the 2H performance is expected to be better, however, the unfavorable SGD/INR FX might have an impact on the performance.

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.


  1. Nice analysis, this really helps to paint a clearer picture about this REIT.
    Just a quick question, in your opinion why is there an decrease in the occupancy rate? Maybe you can help to shed some light as well?

    1. Thanks for your compliment. The occupancy been dropping since 2Q 2020, which is around COVID-19 period. It is only until recent 2Q 2022 the occupancy start showing improvement.