INDIABULLS PROPERTIES INVESTMENT TRUST (a business trust … · 2013-02-14 · INDIABULLS...

INDIABULLS PROPERTIES INVESTMENT TRUST

(a business trust registered under the Business Trusts Act, Chapter 31A of Singapore)

(Reg. No: 2008001)

FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT FOR THE THIRD QUARTER

ENDED 31 DECEMBER 2012

1(a)(i) Consolidated Income Statement for the third quarter ended 31 December 2012

Particulars Note Group Group

1 October 2012 to

31 December 2012

1 October 2011 to

31 December 2011

S$'000 S$'000

Property income

Base rent (a) 22,681 21,493

Operations and maintenance income (b) 2,445 2,153

Car park income (c) 396 251

Other income (d) 94 91

Total income 25,616 23,988

Property expenses

Employees compensation (e) (55) (76)

Advertisement (f) (483) (908)

Operating maintenance and security (g) (3,406) (2,882)

Legal and professional fees (h) (915) (754)

Other direct costs

(i) (2,381) (2,723)

Total property expenses (7,240) (7,343)

Net property income 18,376 16,645

Finance costs (j) (14,557) (13,097)

Trust expenses

Trustee fee (k) (120) (127)

Management fee – Base (l) (1,506) (1,616)

Management fee – Performance (l) (735) (666)

Other trust operating expenses (69) (157)

Unrealised exchange gain (m) 808 2,000

Profit before tax 2,197 2,982

Income tax - -

Profit for the period 2,197 2,982

INDIABULLS PROPERTIES INVESTMENT TRUST ANNOUNCEMENT OF RESULTS FOR THE THIRD QUARTER ENDED 31 DECEMBER 2012

2

Notes:

(a) Indiabulls Properties Investment Trust (“IPIT” or the “Trust”) earned rental income of S$22.7

million for the quarter ended 31 December 2012 as compared to rental income of S$21.5 million for

the quarter ended 31 December 2011.

In accordance with the applicable accounting policies and method as stated at note 3.3 (a) “Base rent

and amenities income” on page 88 of IPIT’s Annual Report for the financial year ended

31 March 2012 (the “IPIT 2012 AR”),which states:

“Incentives for lessees to enter into lease agreements are spread evenly over the lease term, even if

the payments are not made on such a basis. The lease term is the non-cancellable period of the lease

together with any further term for which the tenant has the option to continue the lease, where, at the

inception of the lease, the directors of the Trustee-Manager (“Directors”) are reasonably certain that

the tenant will exercise that option.”

In the financial quarter ended 31 December 2012, an amount of S$0.02 million is included (quarter

ended 31 December 2011:S$2.7 million included) in the calculation of base rent on account of this

treatment, and hence, is adjusted in the distributable income disclosed in the “Distribution

Statement” in section 1(a)(iii) below as the cash of S$0.2 million (quarter ended 31 December

2011:S$2.7 million) was not received by IPIT.

(b) Operations and maintenance income is the income arising from charges to tenants and is recognised

in the period in which services are rendered.

(c) Car park income is recognised in the period in which the services are rendered.

(d) Other income consists of costs reimbursed in relation to employee compensation as stated in note (e)

below along with certain other miscellaneous income.

(e) Employee compensation relates primarily to the costs incurred under the services agreement relating

to the engagement of investment advisory and asset management services. The salaries of, and other

costs incurred by, the asset management and investment advisory personnel, employed by Indiabulls

Properties Private Limited (“IPPL”) and Indiabulls Real Estate Company Private Limited

(“IRECPL”) are reimbursed by the Trustee-Manager, from its own account and is included under

“Other income” (see note (d) above) in the consolidated income statement of IPIT and its

subsidiaries (the “IPIT Group”).

(f) Advertisement cost is in relation to the advertisement and marketing of the properties in the IPIT

Group’s portfolio. Please note that while the properties are still being actively marketed, this expense

may have significant variance quarter on quarter.

(g) Operating maintenance and security expenses relate to charges incurred for the maintenance and

upkeep of the properties in the IPIT Group’s portfolio. These costs are recovered from tenants of the

properties in the IPIT Group’s portfolio in respect of the area occupied. These expenses are also

incurred in respect of the vacant area. The properties are still being actively marketed and leased out,

and hence, these expenses are not necessarily expected to move in proportion to the base rent.


3

(h) In accordance with the disclosure in the prospectus of IPIT dated 2 June 2008 (the “Prospectus”) and

as stated in the Property Management Agreements1,Indiabulls Real Estate Limited (“IBREL”), in its

capacity as the property manager of the properties in IPIT’s portfolio (the “Property Manager”) is

entitled to :

lease management fees of S$246,000 (quarter ended 31 December 2011:S$231,000). The fees

relate to 1.0% of the Gross Revenue2 of the Trust Property (as defined in the Business Trusts Act,

Chapter 31A of Singapore);

property management fees of S$492,000 (quarter ended 31 December 2011:S$462,000). The fees

relate to 2.0% of the Gross Revenue of the Trust Property; and

There are also miscellaneous expenses of S$177,000 (not paid to the property manager) in relation

to other professional fees that are not part of the fees above.

(i) In the quarter ended 31 December 2012, other direct costs amounting to S$1.63 million are in

relation to the general management services including contract management services, financial and

accounting services, corporate secretarial services, human resources and administrative services,

corporate communications etc. The remaining amount mainly includes expenses in relation to the

site security and maintenance, electricity and water expenses, rates and taxes, printing and

stationery, insurance, administration fees for foreign subsidiaries of IPIT and depreciation.

(j) In accordance with the applicable accounting policies and method as stated at note 3.20 “Borrowing

costs” on page 103 of IPIT 2012 AR:

“Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily

takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the

cost of the respective assets. All other borrowing costs are expensed in the income statement in the

period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs

in connection with the borrowing of funds”.

Accordingly, finance cost is capitalised from the commencement of the development work until the

date of completion. Subsequent to the date of completion of the development work on a tower, the

borrowing costs in relation thereto are expensed in the income statement in the period in which they

occur. Borrowings costs are incurred in relation to the specific borrowings and general

borrowings. Specific borrowings are the borrowings with specified end-use defined as per the loan

terms and are accordingly identified with the asset. The general borrowings have been identified

with the assets in reference to their usage based on the funds allocation and the allocation is similar

to the basis used in the audited financial statements for the year ended 31 March 2012.

IAS 23 ”Borrowing Costs” also states that “an entity shall suspend capitalisation of borrowing costs

during extended periods in which it suspends active development of a qualifying asset”. Hence

interest expense for such period has been recognized in the Consolidated Income Statement.

1“Property Management Agreements” refer to the property management agreement entered into between IPPL and the Property Manager (as defined herein) on 7

May 2008 and the property management agreement entered into between IRECPL and the Property Manager on 7 May 2008, for the management of the

operations and maintenance of the properties in IPIT’s portfolio.

2“Gross Revenue” has the meaning assigned to it in the Prospectus.


4

(k) Under the trust deed dated 7 May 2008 constituting IPIT (as amended) (the “Trust Deed”), the

Trustee-Manager is entitled to a trustee fee in cash of up to 0.02% per annum of the value of the

Trust Property.

(l) In accordance with the disclosure in the Prospectus, the Trustee-Manager is entitled to the (i) base

component of the management fee (the “Base Fee”) and (ii) the performance component of the

management fee (the “Performance Fee” and together with the Base Fee, the “Management Fee”)

payable to the Trustee-Manager under the Trust Deed. The fees have been calculated on the basis of

the provisions of the Trust Deed as summarised on page 18 of the Prospectus. The Base Fee is

0.25% per annum of the aggregate value of IPIT’s Trust Property. The Performance Fee is 4.0% per

annum of IPIT’s net property income. The Trustee-Manager has elected to receive the 100% of

Management Fee in cash for the financial quarter ended 31 December 2012.

(m) The functional currency of the Trust is Indian Rupees (“INR”) and the presentation currency is

Singapore Dollar (“S$” or “SGD”). In accordance with the applicable accounting policies and

method as stated on page 89 of IPIT 2012 AR, note 3.4 “Foreign currency translation”:

“Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the

date of the transaction. Monetary assets and liabilities denominated in foreign currencies are

retranslated at the foreign exchange rate ruling at the reporting date. All differences are taken to the

profit or loss.”

The unrealised exchange gain is primarily in respect of the restatement of the monetary asset

denominated in foreign currencies and retranslated at the foreign exchange rate as at 31 December

2012 compared with the foreign exchange rate as at 30 September 2012. This is non-cash exchange

loss and is accordingly adjusted in the distributable income disclosed in the “Distribution Statement”

in section 1(a) (iii).


5

1(a) (ii) Statement of Comprehensive Income

Group

1 October 2012 to

31 December 2012

S$'000

Group

1 October 2011 to

31 December 2011

S$'000

Profit for the period

2,197

2,982

Translation difference arising from

conversion of functional currency into

presentation currency (S$) (see note

below)

(63,511) (134,544)

Total comprehensive income for the

period attributable to unitholders of IPIT

(“Unitholders”)

(61,314) (131,562)

Note:

The movement under the caption “Translation difference arising from conversion of functional currency into

presentation currency” disclosed in the “Statement of Comprehensive Income” above is non-cash and purely

in respect of the translation differences due to the movement in the conversion rates of the underlying

currencies. The above treatment is consistent with the accounting policies as disclosed in note 3.4 (Foreign

currency translation) to the audited financial statements on page 89 of the IPIT 2012 AR:

“The consolidated financial statements are presented in Singapore dollar (“S$” or “SGD”), which is the

Trust’s presentation currency, as the financial statements are meant primarily for users in Singapore. The

functional currency of the Trust is Indian Rupees (“INR”).

Each entity in the Group determines its own functional currency and items included in the financial statements

of each entity are measured using that functional currency. Transactions in foreign currencies are initially

recorded at the functional currency rate ruling at the date of the transaction. Monetary assets and liabilities

denominated in foreign currencies are retranslated at the foreign exchange rate of exchange ruling at the

balance sheet date. All differences are taken to the profit or loss.

Non monetary items that are measured in terms of historical cost in a foreign currency are translated using the

exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a

foreign currency are translated using the exchange rates at the date when the fair value was determined.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying

amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign

operation and translated at the closing rate.


6

1(a)(ii) Statement of Comprehensive Income (cont’d)

The functional currency of the Group’s significant foreign subsidiaries, Indiabulls Properties Private Limited

(“IPPL”) and Indiabulls Real Estate Company Private Limited (“IRECPL”) is INR. As at the reporting date,

the assets and liabilities of IPPL and IRECPL and of all the other Group entities (none of which has the

currency of a hyperinflationary economy) that have a functional currency different from the presentation

currency are translated into the presentation currency of the Trust (S$) at the rate of exchange ruling at the

balance sheet date and their income statements are translated at exchange rates at the date of the transactions

or a rate that approximates the exchange rates at the dates of the transaction. The exchange differences

arising on the translation are taken directly to a separate component of equity. On disposal of a foreign

entity, the deferred cumulative amount recognised in equity relating to that particular foreign operation is

recognised in the income statement.”

1(a)(iii) Distribution Statement Group

1 October 2012 to

31 December 2012

S$'000

Group

1 October 2011 to

31 December 2011

S$'000

Profit for the period

2,197

2,982

Distribution adjustments (see Note1) (1,867) (3,768)

Total unitholders distribution3 330 (786)

Note :1

Distribution adjustments comprise

the items below:

Fit-out rental income (see note (a) of

Consolidated Income Statement)

(26) (2,729)

Marketing commission4 (1,069) (1,352)

Management fee in units (see note (l)

of Consolidated Income Statement)

- 2,282

Depreciation 36 31

Unrealised exchange gain

(see note (m) of Consolidated Income

Statement)

(808) (2,000)

Net effect of distribution

adjustments

(1,867) (3,768)

3 Under the Trust Deed, distributions shall be paid on a semi-annual basis for the six-month period ending 31 March and 30 September of

each year.

4 As per the Property Management Agreement, the Property Manager is entitled to commission for new tenancies, renewal of existing tenants,

leasing of additional space by existing tenants of the Trust Property. This is a cash expense for the Trust but as per the applicable

accounting policies this is included in the carrying cost of the investment properties and hence not included in the consolidated income

statement. Accordingly, the marketing commission has been disclosed as the distribution adjustment.


7

1(b) (i) Statement of Financial Position (for the IPIT Group) as at 31 December 2012

Note

Group Group

31 December 2012 31 March 2012

S$'000 S$’000

ASSETS

Non-current assets

Plant and equipment (a) 19,080 21,227

Investment properties (b) (l) 1,405,803 1,539,801

Total non-current assets 1,424,883 1,561,028

Current assets

Cash and cash equivalents

Pledged fixed deposits

See section 1 (c) 22,401

33

28,743

794

Available- for- sale investments (c) 22 -

Prepayments (d) 152,572 185,582

Trade and other receivables (e) 21,236 22,165

Other current assets (f) 15,898 19,360

Development properties (held-for-sale) (g) (l) 1,005,844 1,050,380

Total current assets 1,218,006 1,307,024

Total assets 2,642,889 2,868,052

LIABILITIES

Current liabilities

Interest bearing loans and borrowings See section 1(b) (ii) 57,034 133,069

Trade and other payables (h) 35,800 36,036

Total current liabilities 92,834 169,105

Non-current liabilities

Interest bearing loans and borrowings See section 1(b) (ii) 501,635 460,363

Trade and other payables (i) 48,396 46,651

Other non-financial liability (j) 141,112 147,269

Deferred tax liabilities (k) 346,295 381,379

Total non-current liabilities 1,037,438 1,035,662

Total liabilities 1,130,272 1,204,767

NET ASSETS 1,512,617 1,663,285

UNITHOLDERS' FUNDS

Unitholders' funds 1,512,617 1,663,285


8

Notes:

(a) The plant and equipment consist of the plant and machinery and construction equipment and other

site-related costs.

(b) Investment properties comprise completed properties and properties under construction held to earn

rentals or for capital appreciation or both.

(c) Available-for-sale investments are investments in money market funds with daily liquidity that can

be readily converted into cash. As part of liquidity management and to ensure that idle cash achieve

high returns while retaining liquidity, IPIT, like most other corporations, invests in money market

funds on a short term basis. As part of managing liquidity in an efficient manner, the Trust routinely

invests and redeems such investments at various points in time. Please also refer to the Consolidated

Cash Flow Statement in section 1(c) of this announcement.

(d) Prepayments relate primarily to construction-related advances paid out to various vendors for

construction-related work and material supplies. Upon completion of the identified construction

work or use of the material supplies that the advances relate to, the prepayments are transferred to

development properties (held-for-sale) and investment properties.

(e) Trade and other receivables consist of trade debtors i.e. receivables from tenants in respect of base

rent (and fit out rental income), other ancillary services and taxes thereon, advance for expenses,

deposits paid for the electricity and water connections at project site etc.

(f) Other current assets significantly represent the input service tax recoverable. According to the

indirect tax regime in India, input tax paid on construction services is available to be offset against

the output tax liability when the revenue is earned.

(g) Development properties (held-for-sale) comprise properties being constructed for sale in the

ordinary course of business, rather than to be held for rental or capital appreciation, measured at the

lower of cost and net realisable value.

(h) Trade and other payables (current) consist mainly of payables in respect of construction related

costs. This also includes taxes, statutory dues, advance for rent and other expenses payable in the

ordinary course of business.

(i) Trade and other payables (non-current) represent cash inflows received from tenants for the leasing

of space in the properties in the IPIT Group’s portfolio.

(j) Other non-financial liability relates to advance payments made for the IPIT Group’s residential

projects by interested buyers.

(k) Deferred tax is provided using the liability method on temporary differences at the balance sheet

date between the tax bases of assets and liabilities and their carrying amounts for financial reporting

purposes.


9

(l) Please note that, without considering the translation difference arising from the conversion of the

INR into the SGD, the addition to development and investment properties is S$60 million during the

period from 1 April 2012 to 31 December 2012.

In the Consolidated Balance Sheet as at 31 December 2012, there is a net decrease in development

and investment properties from 31 March 2012 of S$178 million. The net increase of S$60 million to

development and investment properties during the period from 1 April 2012 to 31 December 2012

has been offset by the depreciation of the INR against the SGD by 9.20% during the period resulting

in the net decrease in development and investment properties of S$178 million as at 31 December

2012 compared to the balances as at 31 March 2012. Please also refer to the note in section 1(a)(ii)

of this announcement.

1(b) (ii) Aggregate amount of IPIT Group’s borrowings

As at 31 December 2012 As at 31 March 2012

Repayable in

one year or less

Repayable after

one year

Repayable in

one year or less

Repayable after

one year

S$’000 S$’000 S$’000 S$’000

Secured borrowings

- Term loan

57,034 501,635 133,069 460,363

As at 31 December 2012, IPIT Group’s borrowings are secured by registered indenture of mortgage deed on

properties in IPIT’s portfolio and also receivables on investment properties.

Gearing as at 31 December 2012 was 23.69% of the value of IPIT’s Trust Property. Borrowings were

S$558.66 million, and cash and cash equivalents were S$22.40 million. IPIT has additional borrowing capacity of

S$267 million or S$856 million (before its gearing reaches 35% or as the case may be 60% respectively5) to fund

future development or acquisition of projects. The gearing ratio or additional borrowing capacity of IPIT is based on

the gearing or borrowing capacity allowed under the voluntary adoption by IPIT of the Property Funds Appendix.

5 IPIT has voluntarily adopted and incorporated in the Trust Deed that for the period commencing from 31 March 2010 and for so long as

property funds are subject to borrowing limits under Appendix 6 of the Code on Collective Investment Schemes issued by the Monetary

Authority of Singapore in relation to real estate investment trusts (the “Property Funds Appendix”), the Aggregate Leverage (as defined in

the Property Fund Appendix) of the Trust shall not exceed 35% (or such higher percentage limit as may be permitted under the Property

Funds Appendix) (the “Primary Permitted Gearing Limit”) of the value of the IPIT’s Trust Property provided that the Aggregate Leverage of

the Trust may exceed the Primary Permitted Gearing Limit of up to a maximum of 60% (or such higher percentage limit as may be permitted

under the Property Funds Appendix) of the value of IPIT’s Trust Property only if a credit rating of the property fund from Fitch Inc.,

Moody’s or Standard and Poor’s is obtained and disclosed to the public. The Trust shall continue to maintain and disclose a credit rating so

long as its Aggregate Leverage exceeds the Primary Permitted Gearing Limit.


10

1(b) (iii) Statement of Financial Position (for the Trust) as at 31 December 2012

Trust

31 December 2012 31 March 2012

S$'000 S$’000

ASSETS

Non-current asset

Investment in subsidiaries 1,419,842 1,563,678

Total non-current asset 1,419,842 1,563,678

Current assets

Cash and cash equivalents 770 23,726

Prepayments 76 46

Trade and other receivables 18,554 996

Total current assets 19,400 24,768

Total assets 1,439,242 1,588,446

LIABILITY

Current liability

Trade and other payables 2,510 281

Total current liability 2,510 281

Total Liability 2,510 281

NET ASSETS 1,436,732 1,588,165

UNITHOLDERS' FUNDS

Unitholders' funds 1,436,732 1,588,165


11

1(c) Consolidated Statement of Cash Flows for the financial year ended 31 December 2012

Group Group

Note

1 October 2012 to 31

December 2012

1 October 2011 to 31

December 2011

S$'000 S$'000

Operating activities

Profit before tax for the period 2,197 2,982

Adjustments for:

Finance costs 14,557 13,097

Interest income (28) (23)

Management fee -base payable in units in IPIT (“Units”) - 1,616

Management fee-performance payable in Units - 666

Fit-out rental income (26) (2,729)

Unrealised exchange gain

Depreciation

Currency alignment

(808)

36

(44)

(2,000)

-

(196)

Operating cash flow before changes in working capital 15,884 13,413

Changes in working capital:

(Increase)/decrease in prepayments (21,710) 12,566

Decrease /( Increase) in other current assets and trade

and other receivables

2,283 (2,152)

Increase in trade and other payables and other non-

financial liability

7,505 35,383

Total changes in working capital (11,922) 45,797

Cash flow generated in operation 3,962 59,210

Finance costs

Income tax

(14,557)

(209)

(13,097)

(333)

Net cash flow (used)/generated in operating activities (10,804) 45,780

Investing activities

Additions to plant and equipment (119) (3,604)

Additions to investment properties and development

properties

(25,120) (32,632)

Purchase of available-for-sale investments (a) (59,463) (223,413)

Sale of available-for-sale investments

Interest income received

Dividend income received

(a) 59,464

13

15

218,694

140

32

Net cash flow used in investing activities (25,210) (40,783)


12

Financing activities

Distribution to unitholders (484) -

Proceeds from interest bearing loans and borrowings

Repayment of interest bearing loans and borrowings

69,152

(34,357)

99,247

(109,048)

Payment of fixed deposits pledged with a bank - (21)

Redemption of fixed deposits pledged with a bank - 163

Net cash flow generated / (used) from financing activities 34,311 (9,659)

Net decrease in cash and cash equivalents (1,703) (4,662)

Cash and cash equivalents at the beginning of the period 24,275 33,189

Effect of exchange rate change on cash and cash equivalents (171) (506)

Cash and cash equivalents at end of period (b) 22,401 28,021

Notes:

(a) The S$59.46 million of purchase and S$59.46 million sale of the available-for-sale investments is the

cumulative effect of investments and redemption of these instruments for the quarter ended 31 December 2012.

The “available-for-sale investments” are investments in money market funds with daily liquidity that can be

readily converted into cash. As part of managing liquidity in an efficient manner, the Trust routinely invests and

redeems such investments at various points in time. The average daily balance during the quarter was only

S$.90 million. The investments was made in liquid mutual funds which invest a large portion of its assets in

liquid, cash and near cash instruments with low credit risk and duration risk. Ordinarily, these investments can

be redeemed or sold on any given business day. As part of liquidity management and ensuring that idle cash

achieves high return while retaining liquidity, IPIT, like most other corporations, invests in money market

funds on a short term basis. In our opinion, it is prudent for the Trust to generate positive return in this manner

with minimal level of risks while ensuring high liquidity. As per applicable accounting standards, sale and

purchase of “available-for-sale investments” should be disclosed as a separate line item on gross basis.

(b) The IPIT Group’s cash and cash equivalents was S$22.40 million as at 31 December 2012. The cash and

cash equivalents include restricted cash of S$1.4 million. In addition to the cash and cash equivalents, the IPIT

Group had fixed deposit of S$0.03 million pledged with a bank to avail of non fund-based credit.


13

1(d)(i) Consolidated Statement of Changes in Unitholders’ Funds (Group)

< -- Attributable to Unitholders of the Trust -->

Units in

issue

Units to be

issued

Foreign currency

translation

reserve

Accumulated

losses

Total

S$'000 S$'000 S$'000 S$'000 S$'000

Balance as at 1 October 2012 3,095,115 - (622,612) (898,088) 1,574,415

Profit for the period - - - 2,197 2,197

Foreign currency translation - - (63,511) - (63,511)

Total comprehensive income for

the period

- - (63,511) 2,197 (61,314)

Issue of Units - - - - -

Management Fee payable in Units - - - - -

Distribution to unitholders - - - (484) (484)

Balance as at 31 December 2012 3,095,115 - (686,123) (896,375) 1,512,617


Units in

issue

Units to be

issued

Foreign currency

translation

reserve

Accumulated

losses

Total

S$'000 S$'000 S$'000 S$'000 S$'000

Balance as at 1 October 2011 3,087,862 2,163 (406,612) (904,541) 1,778,872

Profit for the period - - - 2,982 2,982



the period

- - (134,544) 2,982 (131,562)

Issue of Units 2,163 (2,163) - - -

Management Fee payable in Units - 2,282 - - 2,282

Balance as at 31 December 2011 3,090,025 2,282 (541,156) (901,559) 1,649,592


14

Statement of changes in Unitholders’ Funds (Trust)


Units in

issue

Units to

be issued

Foreign currency

translation

reserve

Accumulated

losses

Total

S$'000 S$'000 S$'000 S$'000 S$'000

Balance as at 1 October 2012 3,095,115 - (608,853) (987,023) 1,499,239

Loss for the period - - - (1,609) (1,609)



the period

- - (60,414) (1,609) (62,023)

Issue of Units - - - - -

Management Fee payable in Units - - - - -

Distribution to unitholders - - - (484) (484)

Balance as at 31 December 2012 3,095,115 - (669,267) (989,116) 1,436,732

Statement of changes in Unitholders’ Funds (Trust)

<- Attributable to Unitholders of the Trust -->

Units in

issue

Units to be

issued

Foreign currency

translation reserve

Accumulated

losses

Total

S$'000 S$'000 S$'000 S$'000 S$'000

Balance as at 1 October 2011 3,087,862 2,163 (402,022) (979,371) 1,708,632

Loss for the period - - - (474) (474)



the period

- - (129,108) (474) (129,582)

Issue of Units 2,163 (2,163) - - -

Management Fee payable in Units - 2,282 - - 2,282

Balance as at 31 December 2011 3,090,025 2,282 (531,130) (979,845) 1,581,332


15

1(d) (ii) Details of any changes in the issued and issuable Units (Trust)

31 December 2012 31 December 2011

in ’000 in ‘000

Number of issued Units at beginning of financial period 3,697,198 3,645,371

Issue of new Units:

- Management fee paid in Units - 15,241

Number of issued Units at end of financial period 3,697,198 3,660,612

- Management fee payable in Units - 15,094

Number of issued and issuable Units at end of financial period 3,697,198 3,675,706

2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or

practice.

The figures have not been audited or reviewed by the auditors.

3. Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or

emphasis of a matter).

Not applicable.

4. Whether the same accounting policies and methods of computation as in the issuer’s most recently

audited annual financial statements have been applied.

Except as disclosed in note 5 below, the IPIT Group has applied the same accounting policies and methods of

computation in the financial statements for the current reporting period compared with the audited financial

statements for the financial year ended 31 March 2012.

5. If there are any changes in the accounting policies and methods of computation, including any required

by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

IPIT Group adopted the following new and revised International Financial Reporting Standards (IFRS) that

are mandatory for financial periods on or after 1 April 2012. The adoption of these new / revised IFRS, as

outlined below, did not result in any significant impact on the financial statements of the IPIT Group.

Amendments to IFRS 1 - Severe Hyperinflation and Removal of Fixed Dates for First-time

Adopters (effective for annual periods beginning on or after 1 July 2011)

The amendment proposes guidance on how an entity should resume presenting financial statements in

accordance with IFRS after a period when the entity was unable to comply with IFRS because its functional

currency was subject to severe hyperinflation.


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Amendments to IFRS 7 Disclosures - Transfers of Financial Assets (effective for annual periods

beginning on or after 1 July 2011).

The amended IFRS 7 helps user of financial statements evaluate the risk exposures relating to transfers of

financial assets and the effect of those risks on an entity's financial position. It will also promote transparency

in the reporting of transfer transactions, particularly those that involve securitisation of financial assets.

Amendments to IAS 12 Deferred Tax - Recovery of Underlying Assets (effective for annual periods

beginning on or after 1 January 2012).

The amended IAS 12 has introduced a rebuttable presumption that an investment property measured at fair

value is recovered entirely by sale.

6. Earnings per Unit / Distribution per Unit (“DPU”) for the financial period (Group)

Earnings per unit

1 October 2012 to

31 December 2012

1 October 2011 to

31 December 2011

Weighted average number of Unit for the period

(in ’000)

3,697,198 3,656,138

Profit per Unit in cents (basic and diluted) 0.06 0.08

7. Net asset value (“NAV”) per Unit based on Units issued at the end of the period

31 December 2012

31 March 2012

Net asset value per Unit (cents) (Group) 40.91 45.25

NAV per Unit (cents) (Trust) 38.86 43.21

8. Review of performance

IPIT earned S$22.7 million of rental income in the quarter ended 31 December 2012 from the commercial

component of the properties comprising Towers 1 and 2 of One Indiabulls Centre and Towers 1, 2 and 3 of

Indiabulls Finance Centre which are fully operational (pending certain finishing works in certain parts of

Indiabulls Finance Centre). Net property income for the quarter ended 31 December 2012 was S$18.3 million

compared with S$16.6 million for the quarter ended 31 December 2011. The total area that has been leased

out at the properties is approximately 2.3 million sq ft at an average rental of approximately Rs. 148 per sq ft

per month. At One Indiabulls Centre, the construction of the residual commercial space (in addition to Towers

1 and 2 which have already been completed and are fully operational) is being currently carried out. In

continuation to our efforts of working out a solution for development of Indiabulls Sky Forest and Sky Suites,

we have worked with our architects and regulatory consultants to figure out certain feasible options to

maximize the project FSI/saleable area under the proposed regulatory changes. On the basis of the advice that

we have received from our consultants, it seems that there may be alterations in the final areas (though, given

the information, we cannot quantify it as yet). We propose to start the development of Indiabulls Sky Forest

and Sky Suites after receiving regulatory approvals under the new regulatory regime.


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9. Variance between the forecast and actual numbers

No forecast has been disclosed.

10. A commentary at the date of the announcement of the significant trends and competitive conditions of

the industry in which the group operates and any known factors or events that may affect the group in

the next reporting period and the next 12 months.

As per Cushman & Wakefield Market Beat Mumbai Office Report, Q4 2012

6

Economic Overview

The Indian economy has underperformed for most of the year due to a variety of reasons ranging from poor

industrial production, reduced consumer demand, exchange rate fluctuations and globally subdued economic

conditions. According to the recent data given by the Ministry of Statistics and Program Implementation,

India’s Gross Domestic Product (GDP) grew by 5.3% during the third quarter of 2012 as compared to 6.7%

during the same period last year. However, in recent times, the economy has shown some positive trends

thereby bringing the confidence levels up. The manufacturing sector has bounced back and witnessed a

growth of 9.6% in October 2012 as compared to September 2012 when it registered a negative growth rate of

1.5%. The government has lowered its GDP growth forecasts to 5.7-5.9%, down from its initial estimate of

7.6% for the financial year 2012 to 2013. Meanwhile, in its latest monetary policy review in early December,

RBI has kept the key policy rates unchanged in order to bring down the inflation level. However, it did

indicate that there may some cuts in the rates in the first quarter of 2013 to boost growth.

The Grade A rental rates as of Q4 2012 are:

Market/ Sub-market Wtd. Avg All Classes Rental

Q4 2012 Q3 2012

INR INR

/sq.ft. /sq.ft.

/month /month

CBD 224.83 220.41

SBD 200.32 200.32

Worli 180.30 180.30

LowerParel 125.21 120.39

AndheriKurla 80.24 80.24

6Source: Cushman & Wakefield Market Beat Mumbai Office Report, Q4 2012Cushman & Wakefield (India) Pvt. Ltd. has not provided its

consent, to the inclusion of the information extracted from the relevant report published by it and therefore is not liable for such information.

While the Trustee-Manager has taken reasonable actions to ensure that the information from the relevant report published by Cushman &

Wakefield (India) Pvt. Ltd. is reproduced in its proper form and context, and that the information is extracted accurately and fairly from such

report, the Trustee-Manager or any other party have not conducted an independent review of the information contained in such report nor

verified the accuracy of the contents of the relevant information


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Powai 85.11 85.11

Malad / Goregaon 75.35 75.35

Vashi 57.22 55.20

Thane Belapur Rd 35.30 35.30

Thane 35.15 35.15

*Reflect weighted average, warm shell asking rental rates that includes core facility, high-side air conditioning and 100% power back-up

Outlook

Fresh supply of 2.2 msf is expected to be completed during the first quarter of 2013. The large quantum of

supply expected in the coming year is likely to exert downward pressure on rentals. The SBD is expected to

buck this trend as preference of the location remains high. Increasingly, another trend is also witnessed where

landlords have shown more flexibility in increasing the rent-free period rather than negotiating on lease

rentals. Landlords are also insisting on a lock-in commitment of at least three years from new tenants.

Also, with the share of commercial developments being low in the upcoming supply, an increase in rentals can

be expected for the segment.

Residential market

As per Cushman & Wakefield Market Beat Mumbai Residential Report, Q4 20127.

Healthy New Launches In Suburban And Peripheral Mumbai

Developers in Mumbai have launched a number of projects during the long festive season. Suburban

locations like Borivali, Kandivali and Dahisar witnessed a number of launches in the high-end segment.

The micro-markets of Central and Far North Mumbai also witnessed significant launches in the form of

slum rehabilitation projects. Demand for residential units was relatively high during the quarter with a

number of end-users and investors executing transactions during the festive season.

Healthy Growth In Capital Values For 2012

With minimal projects under construction presently, the micro markets of South, Central, North and

North-East witnessed growth in high-end capital values for the fourth quarter of the year. New launches

quoted higher capital values the micro-markets of Central and Far North. High inflationary pressure and

resulting high input costs have led to the spike in capital values during the year. The rental markets have

witnessed a demand-supply equilibrium resulting in stable rental values across all micro-markets except

for Northern Mumbai micro markets which witnessed 7% quarter-on-quarter increase on account of

availability of quality supply.

7Source: Cushman & Wakefield Market Beat Mumbai Residential Report, Q4 2012. Cushman & Wakefield (India) Pvt. Ltd. has not provided

its consent, to the inclusion of the information extracted from the relevant report published by it and therefore is not liable for such information.

While the Trustee-Manager has taken reasonable actions to ensure that the information from the relevant report published by Cushman &

Wakefield (India) Pvt. Ltd. is reproduced in its proper form and context, and that the information is extracted accurately and fairly from such

report, the Trustee-Manager or any other party have not conducted an independent review of the information contained in such report nor

verified the accuracy of the contents of the relevant information


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Outlook

As a result of the high input costs, developers are not expected to go in for any reduction in prices in the

upcoming quarters. With capital values currently at high levels and demand subdued, no further increase

is expected in the near term. Both capital and rental values are expected to remain stable in the forth

coming quarter.

CAPITAL VALUES AS OF Q4 2012

Location Achievable Price

INR/sq.ft

% Change from

(Local Currency)

Short Term

Outlook

3 mth ago 1 yr ago

High-End Segment

South 48,000-70,000 7% 7%

South Central 46,000-78,000 3% 3%

Central 34,000-58,000 5% 7%

North 28,000-40,000 13% 21%

Far North 12,500-18,000 2% 11%

North East 14,000-22,000 24% 29%

Mid-End Segment

South 35,000-45,000 0% 14%

South Central 43,000-52,000 0% 10%

Central 22,000-37,000 4% 13%

North 18,000-27,000 0% 10%

Far North 10,000-14,000 0% 9%

North East 8,000-12,500 0% 27%

Legend

Market Rising Market Stable Market Falling

Note:

Key to Locations:

South: Colaba, Cuffe Parade, Nariman Point, Churchgate, etc.

South Central: Altamount Road, Carmichael Road, Malabar Hill, Napeansea Road, Breach Candy, Pedder Road, etc.

Central: Worli, Prabhadevi, Lower Parel / Parel

North: Bandra (W), Khar (W), Santacruz (W), Juhu, etc.

Far North: Andheri (W), Malad, Goregaon, etc.

North-East: Powai

The continued global financial and sovereign crises makes the trustee-manager cautious on the global and

Indian economic and real estate outlook thereby affecting the residential property sales as also office rentals.

We continue to focus on marketing the completed space subject to market conditions.


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11. Distributions

(a) Current Financial Period

Any distribution declared for the current financial period?

No

(b) Corresponding Period of the Immediately Preceding Financial Year

Any distribution declared for the corresponding period of the immediate preceding financial period?

No

12. If no dividend has been declared/recommended, a statement to that effect.

No distribution has been declared /recommended for the third financial quarter ended 31 December 2012.

13. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such

transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to

that effect.

There is no interested person transactions mandate obtained.


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14. Directors’ confirmation pursuant to rule 705 (5) of the Listing Manual

The Board of Directors has confirmed that, to the best of its knowledge, nothing has come to its attention

which may render these interim financial results to be false or misleading in any material aspect.

This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance,

outcomes and results may differ materially from those expressed in forward looking statements as a result of a number

of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general

industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar

developments, shifts in expected levels of property rental income, changes in operating expenses, including employee

wages, benefits and training, property expenses and governmental and public policy changes and the continued

availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to

place undue reliance on these forward looking statements, which are based on current view of management on future

events.

BY ORDER OF THE BOARD

INDIABULLS PROPERTY MANAGEMENT TRUSTEE PTE. LTD.

(COMPANY REGISTRATION NO. 200720456G)

(AS TRUSTEE-MANAGER OF INDIABULLS PROPERTIES INVESTMENT TRUST)

Lynn Wan Tiew Leng

Company Secretary

14 February 2013

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