Financial Results for the Third Financial Quarter Ended 31 December 2009

Financials Archive

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Summary of Results - 3Q FY 09/10

Consolidated Income Statement (3Q FY 09/10 vs 3Q FY 08/09)

Consolidated Balance Sheet (Group)

Commentary

India's GDP grew 7.9% in the quarter ended 30 September 2009, faster than the rate of 6.1% in the previous quarter. Services continued to be the key growth driver, expanding by 9.3%, followed by 8.3% for Industry and 0.9% for Agriculture.

Office real estate sector

According to Cushman and Wakefield ("C&W"), the office space absorption for 2009 was 26 million sq ft in the major Indian cities, which was 29% lower than last year. Bangalore witnessed the highest space take up in the country (5.7 million sf), while Hyderabad and Kolkata each saw the highest growth in absorption (105% over last year).

a-iTrust's properties are located in Bangalore, Chennai and Hyderabad. C&W forecast a revival in demand for space in 2010 and a stable rental rate outlook for Bangalore, Chennai and Hyderabad.

IT sector

Business Monitor International ("BMI") projected that the total size of the Indian IT market will increase from US$ 14.1 billion in 2009 to S$ 23.8 billion by 2013, registering a growth of 69%. The IT services segment is projected to increase from US$ 5.1 billion in 2009 to US$ 9.3 billion in 2013 (83%).

According to BMI, major IT services vendors reported a reduction in project cancellations by 2Q 2009, as clients began to anticipate a recovery in the global and US economies. However, pricesensitive clients continued to demand for reduction in fees. While India continues to dominate the global offshoring market, spending on IT services is also growing rapidly in domestic sectors such as banks and financial services, telecoms, government and education.

Outlook

After contracting in 2009, the world economy is expected to stage a mild recovery with growth of 2.4% in 2010, according to a recent forecast by United Nations. While the crisis has abated, recovery is uneven and led by developing Asia. China's and India's economies are expected to grow at 8.8% and 6.5% respectively in 2010. However, the global market may remain volatile.

The performance of a-iTrust will continue to be influenced by our tenants? business performance and outlook, and conditions in the local real estate market. a-iTrust's net property income continued to grow despite the global downturn, because of the resilient demand for its properties and cost management. While the economic recovery remains fragile, we will focus on what we can control - enhancing the competitive edge of our properties, strengthening relationships with our tenants, maintaining cost discipline, and seeking opportunities to invest in future growth.