CapitaLand India Trust Q3 net property income down 8% on rupee weakness
Total property income is flat in rupee terms, but falls 10% in Singdollar terms amid currency depreciation
[SINGAPORE] CapitaLand India Trust’s (Clint) net property income (NPI) fell 8 per cent to S$53.8 million for the third quarter ended Sep 30 as the rupee weakened against the Singapore dollar.
Total property income declined 10 per cent to S$68.8 million, from S$76 million previously. In rupee terms, NPI was up 2 per cent, while total property income was flat.
The manager attributed the higher NPI in rupee terms to higher income from existing properties and lower property expenses, which was partially offset by the absence of income from CyberPearl and CyberVale following their divestments.
However, the depreciation of the Indian rupee against the Singdollar weighed on reported income.
For the nine months ended Sep 30, total property income dropped 8 per cent to S$206.4 million while NPI fell 6 per cent to S$161.3 million. In rupee terms, they were up 2 per cent and 4 per cent, respectively.
Portfolio occupancy stood at 91 per cent as at end-September, and its weighted average lease expiry was three years. The trust also recorded positive rental reversions of 23 per cent over the trailing 12 months.
Its gearing ratio stood at 38.2 per cent, up from 38 per cent in the previous quarter, and net gearing rose to 36.6 per cent from 35.9 per cent as at Jun 30.
The trust’s average cost of debt increased quarter on quarter to 5.7 per cent from 5.6 per cent, with about 70.8 per cent of borrowings on fixed interest rates.
The manager noted that the development of the office tower MTB 7 at International Tech Park Bangalore, which has secured a 100 per cent lease commitment from a Fortune 500 company, remained on track for completion in Q3 2027.
Meanwhile, CapitaLand Data Centre Chennai, with a gross power capacity of 53 megawatts, is expected to be completed in the fourth quarter of 2026.
Units of Clint closed up S$0.005 or 0.6 per cent on Tuesday at S$0.875.
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