CapitaLand India Trust reports 2HFY2023 DPU of 3.09 cents, 21% lower y-o-y

Total property income for the 2HFY2023 stood at INR7.58 billion ($122.3 million), 23% higher y-o-y

The manager of CapitaLand India Trust Cy6u (CLINT) CY6U has reported a distribution per unit (DPU) of 3.09 cents for its 2HFY2023 ended Dec 31, 2023, 21% lower than the DPU of 3.91 cents in the same period the year before.

DPU for the FY2023 also decreased 21% y-o-y to 6.45 cents from FY2022’s 8.19 cents. The lower DPU is mainly attributed to an enlarged unit base following the preferential offering in July 2023, higher finance costs and the appreciation of the Singdollar against the Indian Rupee (INR).

In INR terms, total property income for the 2HFY2023 stood at INR7.58 billion ($122.3 million), 23% higher y-o-y, leading to a total property income of INR14.4 billion for the full year. 

This was mainly due to income contributions from Arshiya Warehouse 7 acquired in March 2022; Industrial Facility 1 at Mahindra World City, Chennai (IF1) acquired in May 2022; Block A in International Tech Park Hyderabad (ITPH) which was completed in January 2023; International Tech Park Pune – Hinjawadi (ITPP-H) which was acquired in May 2023; and higher rental income of existing properties compared to the same period last year.

For the full-year period, total property expenses increased by 35% to INR3.3 billion mainly due to higher operations and maintenance expenses and property management fees from existing and newly acquired properties.

As a result, FY2023 net property income increased by 17% to INR11.0 billion. 

CLINT achieved a committed portfolio occupancy of 93% as at Dec 31, 2023, a 1 percentage point increase compared to the year before. Meanwhile, the trust’s net asset value (NAV) per unit as at the same date increased by 5% y-o-y to $1.16. 

As at Dec 31, 2023, CLINT’s gearing ratio was 35.8% on a loan-to-value basis.

The manager’s CEO Sanjeev Dasgupta says the trust’s operating performance in FY2023 was driven by its acquisitions of quality assets to build a resilient and diversified portfolio. “CLINT’s net assets increased by S$263 million or 19% from a year ago due to our new acquisitions and uplift in valuation. Despite the elevated interest rate environment, our weighted average cost of debt remained unchanged at 6.3% in both 1HFY2023 and 2HFY2023.”

“In FY2024, we anticipate the full-year income from Block A, ITPH as well as 100% leased Industrial Facility 2 and 3 at Mahindra World City, Chennai (IF2 and IF3), to contribute to CLINT’s overall growth,” he adds.

Units in CLINT closed 1 cent lower or 0.93% down at $1.07 on Jan 29.