CAPITALAND India Trust : CY6U 0%’s (Clint) distribution per unit (DPU) fell 22 per cent to S$0.0336 for its first half ended Jun 30, from S$0.0428 in the same period a year earlier.

This was mainly due to higher finance costs, the depreciation of the Indian rupee against the Singapore dollar and an enlarged unit base from a preferential offering in July, the manager said on Monday (Jul 31).

In India rupee terms, DPU was 2.07 rupees, down 13.4 per cent from 2.39 rupees in the previous corresponding period. Excluding the impact of the preferential offering, DPU would have been 2.31 rupees per unit, which is 3.3 per cent lower year on year.

Total property income was 18 per cent higher on the year to 6.8 billion rupees (S$110 million) from 5.8 billion rupees. The trust had higher portfolio occupancy and income contribution from three properties in Panvel, Chennai and Pune, as well as income from Block A in International Tech Park Hyderabad (ITPH), which was completed in January. (*see amendment note)

Property expenses, however, climbed 38 per cent to 1.5 billion rupees from 1.1 billion rupees in the same period the previous year. This brought net property income to 5.3 billion rupees, up 13 per cent from 4.6 billion rupees.

The manager attributed the rise in property expenses to an increase in operational and maintenance expenses, property management fees and property taxes from existing and newly acquired properties.

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The income available for distribution fell 2 per cent to three billion rupees from 3.1 billion rupees. In Singapore dollar terms, income available declined 11 per cent to S$48.9 million from S$55.1 million.

The Singapore dollar had appreciated against the Indian rupee by around 10 per cent during the period, the manager said.

After the manager retained 10 per cent of the income available to provide the Reit with a “greater flexibility to grow”, the income to be distributed stands at 2.7 billion rupees. This was 2 per cent lower than the 2.8 billion rupees recorded in the previous corresponding period.

The distribution will be paid out on Aug 30, after the record date on Aug 22.

Clint’s portfolio occupancy stood at 94 per cent as at Jun 30, including options and rights of first refusal in Block A of ITPH.

Sanjeev Dasgupta, chief executive of CapitaLand India Trust Management, said with the addition of Block A of ITPH and the acquisition of International Tech Park Pune – Hinjawadi, the trust grew its portfolio leasable area significantly by 24 per cent since the start of the year.

“We believe these additions to our portfolio will provide steady returns to our unitholders,” Dasgupta said.

The trust’s aggregate leverage stood at 40 per cent as at Jun 30, with a debt headroom of S$684 million based on the regulatory gearing limit of 50 per cent. After taking into account S$169 million in cash and cash equivalents, and the net proceeds from the preferential offering, gearing was 33 per cent.

The trust also has undrawn committed and uncommitted facilities of S$185 million, which does not include available facilities after debt repayment from the preferential offering net proceeds, the manager said.

Clint’s units were trading 2.6 per cent or S$0.03 lower at S$1.13 as at 2.35 pm on Monday.

*Amendment note: A previous version of this story incorrectly stated that the three properties were acquired in March and May. The article has been amended to reflect this change.