CapLand India T    Last:1.01   -

AREIT India

Waulau,  Kabouter run road, in spite of good results. Sold almost 900 lots at average $1.395

 

Why no one interested in this mighty India stock
 

Ascendas India Trust' s Q3 net property income rises 8%

BUSINESS park landlord Ascendas India Trust posted an 8 per cent increase in net property income to S$39.9 million for the third quarter ended Sep 30, 2021.

Total property income rose 4 per cent to S$48.9 million after income contribution from the Anchor Annex building in Bangalore and the aVance 6 building in Hyderabad. Both are in the trust' s portfolio of tech parks. 

This was, however, offset by lower occupancy and lower utilities and carpark income due to the impact of Covid-19.

Portfolio weighted average lease expiry was 3.9 years as at end-Sep, with committed portfolio occupancy of 89 per cent.

The manager has leased and renewed 2.2 million square feet of leasable area across the portfolio for the year to Sep 30. 

Leasing discussions restarted after India was hit by the second wave of Covid-19 infections in March. As the pandemic situation improves, the manager expects leasing activity to pick up further in early 2022.

The manager said in a business update on Wednesday (Oct 27): " The IT services companies have seen strong customer demand arising from Covid-19, and are hiring large numbers of new employees and fresh IT graduates in particular. We remain confident in the long-term resilience of our IT parks asset class and growth in logistics/industrial/data centres."  

The trust' s gearing was 35 per cent as at end-September, with available debt headroom of S$892 million. Cash and equivalents stood at S$164 million.

Ascendas India Trust has a portfolio of seven tech parks in the cities of Bengaluru, Chennai, Hyderabad and Pune, and a logistics park in Panvel, near Mumbai.

 

 

Industrial S-REITs remain ' choice sector' top picks being A-REIT, FLCT and MLT

Industrial Singapore REITs (S-REITs) are now the plays for the " new economy" , write DBS Group Research analysts Dale Lai and Derek Tan in a sector report on Sept 23.

" Investors have often baulked at the industrial S-REITs' tight yields of [around] 5.7% (4.5% for large caps) but we believe that this premium is justified," say the analysts.

" With the sector' s earnings resilience proven during the Covid-19 recession and with economies re-opening, we believe that sector remains on a firm footing to deliver decent growth of more than 3% compound annual growth rate (CAGR) over FY2021-FY2023," they add.

In the report, Lai and Tan suggest that investors invest alongside structural growth trends within the new economy assets of logistics, data centres and business parks.

The mix, say Lai and Tan, will deliver both growth and capital upside.

Industrial REITs have been actively growing their portfolios in recent years, with over $6.7 billion announced and completed year-to-date (y-t-d), which now contribute close to 90% of assets.

During the onset of the Covid-19 pandemic in March 2020, yield spreads between large-cap and mid-cap industrial REITs peaked at 4.0%.

Since then, the sub-sector have mostly outperformed other sectors, with it being " the most defensive and least impacted by the pandemic" .

The way Lai and Tan see it, industrial REITs will deliver strong growth momentum from FY2022 onwards.

However, returns are looking " increasingly compressed" with competition from funds.

" In the past 10 years, we have seen dividend yields of industrial S-REITs compressing steadily. Between the beginning of 2011 and now, the most significant yield compression was experienced at the end of FY2017. In the first six years of the last decade, industrial S-REITs have been trading at an average yield of [around] 7.2%," note the analysts.

To this end, REITs' sponsors' pipeline and the ability to kick-start greenfield or brownfield developments will be an advantage to any REIT going forward.

" In our estimation, large-cap REITs have a potential pipeline of more than $7.8 billion they could tap on in the near future. Mid-cap REITs have a significantly smaller potential pipeline of $2.6 billion in realisable pipeline they could tap on. In our opinion, this is likely the key reason for the premium valuations of the large-cap industrial REITs," say the analysts.

Among the S-REITs, Lai and Tan have indicated their preference for Ascendas REIT (A-REIT), Frasers Logistics & Commercial Trust (FLCT) and Mapletree Logistics Trust (MLT).

" In the large-cap REITs space, we prefer FLCT and MLT for their growth potential and access to high-quality new economy assets that are increasingly becoming harder to come by," they write.

" We also like A-REIT for its diversified exposure to new economy asset plays, coupled with its attractive yields," they add.

To them, these REITs have a " continued access to pipelines that can potentially grow their assets under management (AUM) by 13% to 40%" .

" [Their] redevelopments to rejuvenate some of their ageing assets will offer added upside to net asset values (NAVs)," they write.

Selected mid-cap industrial REITs such as Ascendas India Trust, ARA LOGOS Logistics Trust (ALLT) and ESR-REIT could also benefit from their sponsors' pipeline with a lower cost of capital.

Ascendas India Trust has recently invested into a data centre development - deemed a " new economy asset class" - in Mumbai.

" With a surge in demand for data centre space globally, Ascendas India Trust' s entry into the data centre asset class at this opportune time will enable it to grow its portfolio quickly," write the analysts.

ALLT is another trust that could see " exponential growth" in its portfolio following its share price rally at the start of 2021.

" LOGOS has also been quick in demonstrating its commitment to ALLT since taking over as the REIT' s new Sponsor. Having addressed concerns of a lack of acquisition pipeline ALLT faced previously, we believe that it could be another mid-cap REIT to benefit from robust portfolio growth going forward," say Lai and Tan.

Finally, ESR-REIT' s improved share price, in addition to its sponsor' s remaining stake in the Australian property fund, could " pave the way for more accretive pipeline acquisitions in the future" .

" Moreover, with its sponsor being one of the largest logistics and industrial developers and fund managers in the region, this could provide ESR-REIT with a multitude of pipeline acquisitions in the future," say the analysts.

Among the mid-caps, Lai and Tan say they prefer ALLT and ESR-REIT " for their access to new economy assets from sponsor pipelines" .

Furthermore, both REITs have been included into the FTSE EPRA NAREIT Developed Asia Index on Sept 20, which could be a catalyst to support their " much-improved share prices" .

" With the improvement in their respective weighted average cost of capital (WACC), we believe that conditions are conducive for both REITs to embark on further accretive acquisitions to rival those of their large-cap peers. Moreover, any acquisitions will have an incrementally significant impact to their earnings given their smaller AUM," say Lai and Tan.

 

 

In broad terms, Trusts are classified as REITS, and generally when analysts present outlook and comments, they talk of the two as a group.To me, the difference is that in terms of ownership and operations, Trusts can have a wider field of business operations other than just restricted to real estate businesses. 

 

Only hold 3 out of these 10 REITs lol
Wait a minute, 2 because... Ascendas India is not a REIT, it is a business trust...!
Er.... So what is the 10th S-Reit?

 

Lobster      ( Date: 31-Aug-2021 23:38) Posted: 10 S-Reits yielding long-term annualised returns  based on 10 YEAR Annualised Total Returns  (%) Mapletree Industrial Trust   10 Yrs ATR =   16.7 % Mapletree Logistics Trust    10 Yrs ATR =  16 % Mapletree Commercial Trust.  10 Yrs ATR =    15.8% ParkwayLife Reit   10 Yrs ATR =  15% Aims Apac Reit  10 Yrs ATR =  12.9% Ascendas India Trust  10 Yrs ATR =  11.8% Frasers Centrepoint Trust.  10 Yrs ATR =  10.8% Ascendas Reit.    10 Yrs ATR =  10.4% Ara Logos Logistics Trust      10 Yrs ATR =  8.0% ESR-Reit.   10 Yrs ATR =    7.9%

 

10 S-Reits yielding long-term annualised returns  based on 10 YEAR Annualised Total Returns  (%)
Mapletree Industrial Trust   10 Yrs ATR =   16.7 %
Mapletree Logistics Trust    10 Yrs ATR =  16 %
Mapletree Commercial Trust.  10 Yrs ATR =    15.8%
ParkwayLife Reit   10 Yrs ATR =  15%
Aims Apac Reit  10 Yrs ATR =  12.9%
Ascendas India Trust  10 Yrs ATR =  11.8%
Frasers Centrepoint Trust.  10 Yrs ATR =  10.8%
Ascendas Reit.    10 Yrs ATR =  10.4%
Ara Logos Logistics Trust      10 Yrs ATR =  8.0%
ESR-Reit.   10 Yrs ATR =    7.9%



 

 

I am surprised nobody posted these

10 S-Reits yielding long-term annualised returns

THE 10 best performing S-Reits and property trusts with over a 10-year listing history have averaged 12.5 per cent in 10-year annualised total returns. On an absolute basis across the 10-year period, these 10 trusts have generated total returns averaging 240 per cent as Reits continue to be an asset class of choice for the longer horizon.

Comparatively, the 10 have also outperformed major Asia-Pacific Reit markets which have yielded 10.3 per cent in average total returns for the same period.

Of the 10, the top five trusts Mapletree Industrial Trust  Mapletree Ind Tr: ME8U -0.68%  , Mapletree Logistics Trust  Mapletree Log Tr: M44U -0.98%  , Mapletree Commercial Trust  Mapletree Com Tr: N2IU -2.4%  , ParkwayLife Reit  ParkwayLife Reit: C2PU -1.22%  and Aims Apac Reit  AIMS APAC Reit: O5RU -0.64%  , were also among Asia-Pacific' s 20 best performing Reits with a longer trading history.

Three of these are S-Reits sponsored by Mapletree Investments, which owns and manages over S$66 billion of data centre, industrial, lodging, logistics, mixed-use, multifamily, office, residential and retail properties.

Mapletree Industrial Trust (MINT) listed in October 2010 with an initial investment portfolio of 70 Singapore industrial properties valued at S$2.1 billion including business parks, flatted factories, stack-up/ramp-up buildings and light industrial buildings.
Today, the trust has tripled in portfolio with assets under management of S$6.7 billion across 114 properties in Singapore and North America. In terms of asset mix, MINT has also diversified with acquisitions into high-tech buildings and data centres making up 20.9 per cent and 39.8 per cent respectively. Its latest acquisition of 29 data centres in the United States makes it one of the largest owners of data centres among Asia-Pacific Reits.

Mapletree Logistics Trust (MLT) was one of the first Mapletree Group S-Reits to be listed in July 2005 and was the first Asia-focused logistics Reit. Its portfolio of properties has swelled from 15 properties worth S$422 million to 163 properties worth S$10.7 billion across nine countries in the Asia-Pacific.

MLT now has a diversified tenant base of 752 customers with close to 75 per cent of its portfolio serving consumer-related sectors.

Mapletree Commercial Trust (MCT) listed in April 2011 with three properties located in Singapore valued at S$2.8 billion. Its enlarged portfolio value has since trebled and comprises five Singapore properties worth S$8.7 billion.

ParkwayLife Reit (PLife) listed in August 2007 with just three properties in Singapore - Mount Elizabeth Hospital, Gleneagles Hospital and East Shore Hospital with a combined value of S$775 million. Fourteen years on, it has almost trebled its portfolio value at S$1.99 billion across 53 properties in Singapore, Japan and Malaysia and considers itself to be one of the largest listed healthcare Reits in Asia.

PLife recently completed its third strategic recycling initiative with a divestment of a non-core asset and acquired two nursing homes in Japan, increasing its geographical coverage and further diversification of age-care tenants.

Some may remember Aims Apac Reit as MacarthurCook Industrial Reit which listed in April 2007 with a portfolio of 12 industrial properties in Singapore valued at S$316 million.

The Reit has since rebranded itself in 2019 and has grown over five times in size with a portfolio value of S$1.7 billion across 28 properties in Singapore and Australia.

Its tenant base of 188 tenants has also diversified across the years, and include resilient sectors such as logistics and warehouses, bio-medical and life science, telecommunications and data centre operators accounting for seven out of its top 10 tenants. SGX RES

 

 

 

S-Reits' recent acquisitions further entrench diversity

In the first seven months of 2021, S-Reits have announced asset acquisitions exceeding S$7.5 billion in total purchase consideration.

Several acquisitions announced during the period were in assets such as data centres, logistic warehouses, and office buildings.

In addition, the majority of acquisitions that were announced were outside of Singapore, further entrenching Singapore' s position as a global Reit hub - over 80 per cent of S-Reits' portfolios have assets that are internationally diverse.

Recent S-Reit acquisitions that were announced in the month of July totalled S$323 million in purchase consideration and were by Ascendas India Trust, Keppel DC Reit, Keppel Pacific Oak US Reit and Mapletree Logistics Trust.

Three out of four were overseas acquisitions and two out of four were data-centre-related acquisitions.

Ascendas India Trust announced on July 5 that it will invest an estimated S$217 million to develop and operate Phase 1 of its first fully-fitted data centre campus in Airoli, a growing data centre hub in Navi Mumbai, in India.

As such, it has announced that it will acquire a 6.6-acre greenfield site for the development which will comprise two buildings. The first building will have a built-up area of about 325,000 sq ft and is scheduled to be ready by Q2 2024.

The trust will be developing its first data centre campus with its sponsor CapitaLand and believes that its foray into the data centre sector in India will diversify its portfolio into an attractive and highly scaleable asset class.

With the acquisition and development of Phase 1 of the data centre campus, the Trust' s portfolio size is expected to increase by 1.2 per cent from the approximately 24.9 million sq ft to 25.2 million sq ft.

 

 

Ascendas India Trust H1 DPU down 9% to 4.20 Singapore cents, as exchange rate proves a drag

Business park landlord Ascendas India Trust will make a distribution per unit (DPU) of 4.20 Singapore cents for the first six months, the manager said on Wednesday.

The payout was lower by 9 per cent on the previous year' s DPU of 4.64 cents, no thanks to a weaker rupee and a one-off reversal of a dividend distribution tax provision.

Distributable income shrank by 8.8 per cent to S$53.8 million for the six months to June 30, going by financial statements released after the market close.

Net property income grew by 5.2 per cent to S$77.3 million amid lower property expenses, even as total property income dropped by 3.6 per cent to S$95.4 million, on the back of unfavourable currency exchange.

In rupee terms, net property income rose by 10.1 per cent, while total property income inched higher by 0.9 per cent, on revenue contributions from a building that was completed last November and another asset acquired in March this year.

Noting that occupancy fell four percentage points in the half-year, Sanjeev Dasgupta, chief executive of the manager, said in a statement that " the leasing environment remains challenging" .

Portfolio weighted average lease expiry was 3.5 years as at end-June, with committed portfolio occupancy of 90 per cent. The manager blamed a year-on-year decrease in occupancy, as well as utilities and car park income, on the Covid-19 pandemic.

Still, the manager told unitholders that construction work for its ongoing projects have improved since end-June, on the relaxation of Covid-19 restrictions.

The trust aims to nearly double completed portfolio area from 14.4 million square feet (sq ft) to 25.2 million sq ft in " the next few years" , including its committed pipeline.

Mr Dasgupta added: " We have added new economy asset classes such as data centres and industrial into our committed growth pipeline to improve portfolio resilience."

Under the trust' s asset diversification plans, business park space will go from 94 per cent of existing portfolio to a 92 per cent share, while logistics assets will go from 6 per cent to 5 per cent. Industrial area will make up 2 per cent, and data centres, 1 per cent.

Ascendas India Trust has a portfolio of seven tech parks in the cities of Bengaluru, Chennai, Hyderabad and Pune, and a logistics park in Panvel, near Mumbai.

Units closed flat at S$1.45 on Wednesday, before the results were released.

 

 

4.2 cents dpu. Not bad. 
actually crazy dividends, consider the Covid situation there

 

 

Ascendas India Trust to invest 12b rupees in first phase of India data centre campus

Ascendas India Trust (a-iTrust) is investing 12 billion rupees (S$216.6 million) to develop and operate the first of two buildings planned for its inaugural data centre campus in Navi Mumbai, India.

In a press statement on Monday, the trustee-manager said the upcoming data centre will be one of the largest data centre campuses in Airoli. The campus will host customers such as global technology giants, cloud service providers and large domestic enterprise clients, it added.

Acquisition of the 6.6 acre (2.7 hectare) greenfield site from third-party vendors is expected to complete by Q3 of 2021. According to the trustee-manager, the site is situated in a prime location along Thane-Belapur Road and easily accessible from Mumbai city via the Eastern Express Highway.

The site will be developed in phases into a fully fitted data centre campus comprising two buildings with a total potential built-up area of up to 575,000 square feet (sq ft) and 90 megawatts of power.

The first building or phase one of the project is scheduled to be ready by Q2 of 2024. It will have a built-up area of about 325,000 sq ft.

Upon completion of both buildings, the data centre campus will have an overall capacity to host about 8,500 racks and operate at an efficient power usage effectiveness ratio of 1.4.

a-iTrust' s trustee-manager said it plans to adopt sustainable design principles and green building standards for the campus to include features such as intelligent energy management systems, solar panels and waterless cooling systems.

" Developing our first data centre campus with support from our sponsor, CapitaLand, will allow us to leverage the CapitaLand group' s data centre expertise and give us complete control over the design and quality of the data centre," said Sanjeev Dasgupta, chief executive of the trustee-manager.

" We look to improve our portfolio resilience through diversification into new economy asset classes such as data centres and life sciences. As we grow further, we will continue to be prudent in our capital management and nimble in seizing investment opportunities, to maximise unitholders' returns."

Units of a-iTrust closed on Friday up S$0.03 or 2.1 per cent at S$1.44.

 

 

covid and lock down situation will result in reduced revenue for the next 2 quarters atleast.

 

 

Wow, more mergers and acquisitions by Capitaland ?

CapitaLand and its Reits halted pending announcement
MON, MAR 22, 2021 - 9:05 AM

ON Monday morning before the market opened, CapitaLand, CapitaLand Integrated Commercial Trust, CapitaLand China Trust, Ascott Residence Trust, and Ascendas India Trust all requested trading halts, pending the release of an announcement by CapitaLand.

https://www.businesstimes.com.sg/companies-markets/capitaland-and-its-reits-halted-pending-announcement

 

 

The biggest thorn in this REIT is the SGDINR exchange rate. It has been ever-weakening for the Indian Rupee vs the SGD.

 

q to add fr growth n div....vaccine is here liao....just nice, use endowment $$ which matured tdy.....bank fd too low.... 

 

accumulate fr coming soon final div.....

 

buy fr long............

Lailai888      ( Date: 28-Jul-2020 18:03) Posted: Remarkable set of numbers.  Probably one of the best in recent announcements.  DPU for 1H 2020 is up 24% compared to last yr 1H2019.