Saturday, October 27, 2012

Stock News: a-iTrust maintains steady earnings growth

Decent set of results from AIT. Nothing spectacular, with earnings largely eroded by exchange rate movements and tax expenses. On the flip side, a stronger SGD does mean that AIT would be able to make better use of it's recent private placement to make further acquisitions to take advantage of the weak INR currency. At the current dividend payout, I'm expecting slightly above 6% dividend yield per annum. While not outstanding, I think it is still acceptable.
a-iTrust achieved total property income of INR 1,406 million in 2Q FY12/13, an increase of 18% over the same period last year.  The increase was driven by higher income contribution from Park Square, Zenith and Voyager (collectively the  “recently completed buildings”) and the aVance Business Hub (“aVance”) buildings which were acquired in February this year.  2Q
FY12/13  net property income  grew  19% year-on-year to INR  839 million. The  2Q FY12/13 income available for distribution  rose  by a lower 2% rate to INR 458 million, dampened by higher  finance costs and  tax expenses.  With 10% of the income available for distribution retained in this quarter, 2Q FY12/13 income to be distributed at INR 412 million was 8% lower than that of  the same quarter last year. The income retained will be used to support investments to grow the trust.
In Singapore Dollar terms, a-iTrust’s 2Q FY12/13 financial performance was moderated by the strong Singapore Dollar, which appreciated by 16% against the Indian Rupee during the course of the year. a-iTrust registered total property income and net property income growth of 2% in 2Q FY12/13 over last year in Singapore dollar terms. Compared to the same quarter last year, 2Q FY12/13 income available for distribution and income to be distributed was 12% and 21% lower respectively as a result of unfavourable currency translations and higher tax expenses.
Source: AIT 

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