Financial Highlights

Summary of Results

Consolidated Income Statement

Statement of Comprehensive Income

Consolidated Balance Sheet (Group)

Review of performance

1H FY 2023 vs 1H FY 2022

Total property income increased by ₹1.0 billion (18%) to ₹6.8 billion mainly due to:

• higher portfolio occupancy;
• income from Arshiya Warehouse 7 which was acquired in March 2022;
• income from Industrial Facility in Mahindra World City (“MWC”) which was acquired in May 2022;
• income from Block A, ITPH which was completed in January 2023; and
• income from ITPP-H which was acquired in May 2023.

In SGD terms, total property income increased by 7% to S$110.5 million. SGD appreciated by about 10% against the INR over the same period last year.

Total property expenses increased by 38% to ₹1.5 billion (S$24.9 million) mainly due to higher operational and maintenance expenses, property management fees and property taxes from existing and newly acquired properties.

As a result, net property income increased by 13% to ₹5.3 billion (S$85.6 million).

Trustee-manager's fees increased by ₹38 million (7%) to ₹550 million (S$8.9 million), which is in-line with higher net property income and portfolio value as of 30 June 2023.

Other operating expenses increased by ₹70 million (68%) to ₹174 million (S$2.8 million) mainly due to higher other trust and CSR expenses in 1H FY 2023.

Finance costs increased by ₹810 million (49%) to ₹2.4 billion (S$39.8 million) mainly due to increase in borrowings and interest rates.

Interest income increased by ₹403 million (28%) to ₹1.8 billion (S$30 million) mainly due to higher interest income from fixed deposits and investments in BlueRidge 3, GardenCity, Casa Grande Phase 2 and aVance SEZ 2.

Net exchange differences and fair value on derivative financial instruments - realised of ₹1.0 billion (S$16.8 million) arose mainly from settlement of SGD-denominated loans. Realised exchange gain or loss is recognised when borrowings that are denominated in currencies other than the INR are settled together with the settlement of JPY Medium term notes, partially offset by foreign exchange forward contracts entered by the Group to hedge the foreign exchange exposure arising from the income repatriation from India to Singapore.

As a result, ordinary profit before tax was ₹2.9 billion in 1H FY 2023, a decrease of 13% as compared to ₹3.3 billion in 1H FY 2022. In SGD terms, ordinary profit before tax decreased by 21% to S$47.2 million.

Income tax expenses increased by ₹248 million (16%) to ₹1.4 billion (S$23.1 million) in line with higher NPI.

Distribution adjustments:

• Income tax expenses of ₹1.0 billion (S$16.9 million).
• Trustee-Manager’s fees of ₹268 million (S$4.4 million) to be paid in units. The Trustee-Manager has elected to receive 50% of its base fee and performance fee in units and 50% in cash; hence 50% of the fees are added back to the income available for distribution.
• Realised loss on settlement of loans of ₹1.0 billion (S$17.0 million) was added back for distribution purpose. This pertains to refinancing of SGD-denominated loans that have not been hedged into INR. Exchange gain/loss is recognised when borrowings that are denominated in currencies other than the INR are revalued. The exchange gain/loss is realised when the borrowing matures, is prepaid, or swapped to INR denomination.
• Income due to non-controlling interests of ₹206 million (S$3.4 million) is deducted from income available for distribution.

Income available for distribution decreased by 2% to ₹3.0 billion, mainly due to higher net finance costs, higher current income tax expense, partially offset by higher NPI and higher net realised DFI and exchange gain. In SGD terms, income available for distribution decreased by 11% to S$48.9 million.

Income available for distribution per unit was ₹2.29 or 3.73 S₵. DPU was ₹2.07 or 3.36 S₵ after retaining 10% of income available for distribution, representing an decrease of 13% and 22% in INR and SGD terms respectively. If the dilution effect of the preferential offering is removed, the decrease in income available for distribution was 3% in INR terms and 12% in SGD terms.

1H FY 2023 vs 2H FY 2022

Total property income for 1H FY 2023 increased by 11% to ₹6.8 billion (S$110.5 million) mainly due to the additional income contribution from Block A, ITPH and ITPP-H which were completed or acquired in January 2023 and May 2023 respectively; together with the higher occupancy in 1H FY 2023.

Total property expenses for 1H FY 2023 increased by 12% to ₹1.5 billion (S$24.9 million) mainly due to higher operations & maintenance expenses, property management fees and property taxes during the period.

As a result, net property income for 1H FY 2023 increased by 10% to ₹5.3 billion. In SGD terms, net property income increased by 3% to S$85.6 million.

Income available for distribution for 1H FY 2023 increased by 4% to ₹3.0 billion, mainly due to higher NPI partially offset by higher current tax in line with increased NPI and higher net financial cost in 1H FY 2023. In SGD terms, income available for distribution decreased by 3% to S$48.9 million.

Income available for distribution per unit for 1H FY 2023 was ₹2.29 or 3.73 S₵. DPU was ₹2.07 or 3.36 S₵, after retaining 10% of income available for distribution. This represents a decrease of 8% and 14% in INR and SGD terms respectively when compared to 2H FY 2022. If the dilution effect of the preferential offering is removed, the income available for distribution increased by 3% in INR terms. In SGD terms, the income available for distribution decreased by 14%. SGD appreciated by about 10% against the INR during the period.

Commentary

Based on the market research report by CBRE South Asia Pvt Ltd (“CBRE”) for the period ended 30 June 2023, some of the key highlights (compared to period ended 31 December 2022) include:

Bangalore

• In Whitefield (the micro-market where ITPB is located), vacancy increased to 17.8%, from 15.4% as of 31 December 2022, due to new supply and limited take up. Average rents slightly increased in non-SEZ sectors, while it remained stable in SEZ sectors. CBRE expects rents to increase in the coming quarters for select quality supply.

Chennai

• In Old Mahabalipuram Road (the micro-market where ITPC is located), vacancy decreased to 15.5%, from 18.2% as of 31 December 2022, due to leasing activities and limited new supply. Rental values remained stable in non-SEZ sectors. CBRE expects rental values to remain stable in the coming quarters.
• In Grand Southern Trunk (the micro-market where CyberVale is located), vacancy increased to 45.2%, from 37.6% as of 31 December 2022, due to new supply with limited take-up. Rents remained stable. CBRE expects rental values to remain stable in the coming quarters.

Hyderabad

• In IT Corridor I¹⁴ (the micro-market where ITPH, CyberPearl and aVance Hyderabad are located), vacancy decreased to 14.8%, from 15.9% as of 31 December 2022, mainly due to significant leasing activities and limited new supply. Rents remained stable over the same period. CBRE expects rents in IT Corridor I to remain stable in the coming quarters.

Pune

• In Hinjawadi (the micro-market where aVance Pune is located), vacancy decreased to 32.0%, from 33.1% as of 31 December 2022, due to leasing activities and limited new supply. Rents remained stable over the same period. CBRE expects rents in Hinjawadi to remain stable in the coming quarters.

Mumbai

• In Navi Mumbai (the micro-market where Aurum Q1 is located), vacancy decreased to 30.4%, from 32.3% as of 31 December 2022, due to significant leasing activity with limited supply addition. Rents remained stable across SEZ sectors. CBRE expects rents to improve in the coming quarters.

The performance of CLINT is influenced by its tenants’ business performance and outlook, condition of each city’s real estate market and global economic conditions. CLINT will continue to focus on enhancing the competitiveness of its properties to distinguish itself from competitors, while maintaining financial discipline, and seeking growth opportunities.