OCBC Investment Research Private Limited

25 April 2025

CapitaLand India Trust (CLINT): Eyeing Growth in India’s Thriving Economy

Investment Thesis: CLINT – A Strategic Play on India’s Growth

CapitaLand India Trust (CLINT) is a pioneering property trust in Asia, focusing on India’s burgeoning Information Technology (IT) sector. With 11 IT park clusters across major cities like Mumbai, Hyderabad, Bangalore, and Chennai, CLINT has diversified into logistics, industrials, and data centers (DC). CLINT distinguishes itself through an aggressive acquisition strategy, utilizing forward purchases to secure strategically located assets, positioning itself to benefit from India’s rapid economic expansion driven by e-commerce, data localization, and digital payments [[1]]. The relaxation of the Special Economic Zones (SEZ) Act further reduces occupancy risk for its existing SEZ properties [[2]].

1Q25 Performance: Strong Growth Backed by Solid Operations

• CLINT’s total property income and net property income (NPI) increased by 12% year-on-year (YoY) in 1Q25, driven by strong operating performance [[1]].
• Total property income reached SGD74.6m, and NPI was SGD55.1m, representing 22.5% of full-year forecasts [[1]].
• Committed occupancy remained stable at 92%, including options and rights of first refusal [[1]].
• Portfolio enjoyed +9% rental reversion over the past 12 months, particularly in Bangalore and Chennai [[2]].

Divestment and Acquisition Updates

• The divestment of CyberVale and CyberPearl is delayed until May 2025 due to ongoing market volatility [[1]].
• A new forward purchase agreement was entered to acquire an office project at Nagawara, Outer Ring Road, Bangalore (MAIA) [[2]].

Financial Overview and Key Metrics

Security Information:

• Ticker (Refinitiv / Bloomberg): CAPC.SI / CLINT SP [[1]]
• Market Cap (SGD b): 1.3 [[1]]
• Daily Turnover (SGD m): 2.8 [[1]]
• Free Float: 99% [[1]]
• Shares Outstanding (m): 1,344 [[1]]
• Top Shareholder: Temasek Holdings Pte. Ltd. (25.4%) [[1]]

Financial Summary (SGD m):

Key Ratios:

Source: Refinitiv, Internal estimates [[1]]

Impact of Forward Purchase Agreement (MAIA)

• CLINT will provide SGD156.4m in funding over four years, starting in 2H25, for the MAIA project [[2]].
• The acquisition, expected in 2H28, is estimated to cost SGD233.6m [[2]].
• The acquisition would have increased FY24 DPU by 1.8% to 6.96 Singapore cents on a pro forma basis [[2]].

Revised Fair Value Estimate: SGD1.23

• The fair value (FV) estimate has been reduced to SGD1.23 [[1]].
• Factors include a steeper depreciation of INR vs SGD, increased cost of equity input (from 9.38% to 9.8%), and a lower terminal growth rate assumption (reduced by 25bps to 2.5%) [[2]].
• FY25 and FY26 DPU forecasts are lowered by 3.6% and 4.9%, respectively [[2]].
• Despite the adjustment, a BUY rating is maintained [[2]].

ESG Performance

• CLINT’s ESG rating was maintained in Dec 2024 [[2]].
• CLINT leads peers in green building initiatives, including green leases to promote sustainable property use [[2]].
• 79.5% of its total portfolio area was certified to green building standards in FY23, surpassing the industry average of 47% [[3]].
• CLINT outperforms peers in staff management practices and has a majority-independent board [[3]].

Potential Catalysts

• Developments on DC partial divestment [[3]]
• Stronger-than-expected outsourcing demand [[3]]
• Increasing tenant pick up through denotification of SEZ space [[3]]

Key Investment Risks

• Forward purchases failing to meet pre-agreed building specifications and inability of sellers to repay loans [[3]]
• Delays in DC development and divestment plans [[3]]
• Unexpected appreciation of SGD over INR [[3]]

Valuation Analysis

Source: Refinitiv [[3]]

Company Overview

CapitaLand India Trust, listed on the Singapore Stock Exchange since Aug 2007, is the first Indian property trust in Asia. CLINT focuses on investing in income-producing commercial real estate in India. As of 31 Dec 2024, CLINT’s portfolio includes 11 IT parks, four data centre developments, and three logistics and industrial facilities in India, with a total completed floor area of 19.6msqf valued at SGD3.4b [[4]]. CLINT is managed by CapitaLand India Trust Management Pte. Ltd., a wholly owned subsidiary of CapitaLand Investment [[4]].

FY24 Base Rents Breakdown by City (India):

• Hyderabad: 27% [[4]]
• Bangalore: 27% [[4]]
• Chennai: 18% [[4]]
• Pune: 20% [[4]]
• Mumbai: 8% [[4]]

FY24 Base Rents Breakdown by Tenant Sector:

• Technology & Software Dev: 61% [[4]]
• Others: 8% [[4]]
• Electronics, Semiconductor & Engineering: 11% [[4]]
• Automobile: 6% [[4]]
• Banking & Financial Services: 7% [[4]]
• Design, Gaming and Media: 3% [[4]]

Net Property Income (SGD m) & Distribution per unit (S cents):

Net Property Income (SGD m):

• FY2018: 128 [[4]]
• FY2019: 136 [[4]]
• FY2020: 148 [[4]]
• FY2021: 156 [[4]]
• FY2022: 167 [[4]]
• FY2023: 180 [[4]]
• FY2024: 206 [[4]]

Distribution per unit (S cents):

• FY2018: 6.10 [[4]]
• FY2019: 7.33 [[4]]
• FY2020: 8.83 [[4]]
• FY2021: 7.80 [[4]]
• FY2022: 8.19 [[4]]
• FY2023: 6.45 [[4]]
• FY2024: 6.84 [[4]]

Company Financials

Income Statement (In Millions of SGD except Per Share):

Profitability Ratios:

Additional:

Credit Ratios:

Source: Refinitiv [[5]]