CapitaLand India Trust Announces Tax-Exempt Distribution for H2 2024
CapitaLand India Trust (“CLINT”) has announced a tax-exempt distribution of 3.20 Singapore cents per unit for the period spanning 1 July 2024 to 31 December 2024. This declaration could be of significant interest to unitholders as it reflects consistent returns and underscores the trust’s financial health and operational stability.
Key Distribution Details
- Distribution Period: 1 July 2024 to 31 December 2024
- Distribution Amount: 3.20 Singapore cents per unit
- Ex-Distribution Date: 9.00 am, 18 February 2025
- Record Date: 5.00 pm, 19 February 2025
- Payment Date: 27 February 2025
Unitholders whose securities accounts with The Central Depository (Pte) Limited are credited with CLINT units as of the Record Date will be entitled to receive the distribution on the Payment Date. Importantly, this distribution is tax-exempt for all unitholders, irrespective of nationality, corporate identity, or tax residence status. However, unitholders are not entitled to any tax credits for taxes paid by the Trustee-Manager, CapitaLand India Trust Management Pte. Ltd. (“CLINTMPL”).
Distribution Policy and Financial Health
CLINT’s distributable income primarily originates from the operations of its Venture Capital Undertakings (VCUs) in India, including the leasing of completed properties and property-related services. The income is calculated after deducting expenses incurred at both the VCU level and the Singapore Special Purpose Vehicle (SPV) level. Non-cash items, such as unrealized gains or losses on foreign exchange and fair value adjustments, are excluded from the distributable income.
CLINT has committed to distributing at least 90% of its distributable income, with the precise distribution level determined at the Trustee-Manager’s discretion. Distributions are made in Singapore dollars.
Directors Confident in Financial Position
The Board of Directors of CLINTMPL has expressed confidence in the trust’s financial stability. They have stated that, following the distribution, CLINT will maintain sufficient resources to meet its liabilities as they come due. This assurance could positively influence unitholder confidence and potentially impact the trust’s market valuation.
Documents Available for Inspection
Unitholders can inspect the Directors’ Responsibility Statement and the distribution policy during normal business hours at CLINTMPL’s office, located at 168 Robinson Road, #30-01 Capital Tower, Singapore 068912.
Implications for Investors
This announcement may be perceived as a strong signal of CLINT’s stable performance and commitment to delivering value to its unitholders. The tax-exempt nature of the distribution and the robust financial position of the trust could attract additional investor interest. Consequently, this development has the potential to influence CLINT’s unit price positively in the near term.
By Order of the Board
Manohar Khiatani, Chairman
Gauri Shankar Nagabhushanam, Director
Dated: 27 January 2025
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own due diligence or consult with professional advisors before making investment decisions.
