Mindspace Business Parks Reit · NSE:MINDSPACE.RR
Mindspace Business Parks Reit — H1 FY2021 Earnings Presentation
43 slides from Mindspace Business Parks Reit's earnings presentation, Nov 11, 2020
Slide 1: Q2 & H1 FY 2021 Results Presentation
Mindspace Business Parks REIT Q2 & H1 FY 2021 Results Presentation 11 November 2020 mindspacereit.com 1
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation (“Presentation”) is made, or by reading the Presentation materials, you agree to be bound by the following limitations: This Presentation (a) is for information purposes only without regards to specific objectives, financial situations or n
Slide 3: Table of Contents
Table of Contents Key Highlights 04 COVID 19 Preparedness 09 Portfolio Overview 12 Projects Update 21 Financial Update 28 Price Performance & Unitholding 31 Market Overview 34 Annexures 39 Note: 1. All operating and financial data in the Presentation is as of 30 September 2020, unless otherwise stat
Slide 4: Key Highlights
Key Highlights mindspacereit.com 4
Slide 5: Performance for H1 FY 2021
Performance for H1 FY 2021 Leasing • Gross Leasing of 1.0 msf at an average rent of INR 70 psf/month • Collections of more than 99% of Gross Contracted Rentals(1)(2) • Re-leasing spread(3) of 33.1% on 0.6 msf Re-leased during half year • Same Store Committed Occupancy of 94.7% (Sep 20 vs Sep 19, on
Slide 6: Quality Portfolio with Attractive In-Place Rent Backed by Strong Tenant Base
Quality Portfolio with Attractive In-Place Rent Backed by Strong Tenant Base 1.04 msf leases signed across 17 tenants in H1 despite Covid-19 disruptions, includes 0.48 msf of new leases around Market Rent and 0.56 msf(1) Re-leased at 33.1% Re-leasing spread 1.04 msf INR 70 psf/month 33.1% Gross Leas
Slide 7: Delivered Sustainable Financial Performance
Delivered Sustainable Financial Performance Performance driven by pro-active lease and revenue management, cost efficiencies and operating parks with high standards of health and safety Revenue from Key points: NOI Operations(1) (INR Mn) (INR Mn) • NOI growth from Q1 FY 2021 to Q2 FY 2021: 4.6% Q1 F
Slide 8: De-risked Portfolio with 94% Completed Assets
De-risked Portfolio with 94% Completed Assets Statement of Net Assets at Fair Value: Movement of NAV (INR Mn) (INR p.u.) Sr. No Particulars 30 Sep 2020 A Fair Value of Real Estate Assets (1) 240,080 6.71 B Other Assets at Book Value 9,290 5.61 C Other Liabilities at Book Value 48,685 338.41 D Net As
Slide 9: COVID Preparedness
COVID 19 Preparedness mindspacereit.com 9
Slide 10: Strong Commitment to Provide a Safe Working Environment for Our Tenants
Strong Commitment to Provide a Safe Working Environment for Our Tenants British Safety Council’s COVID 19 Assurance Statement - Testimony to Our Efforts Awarded on the basis of 5 6 operational parameters Ensured the parks and buildings are kept operational 24X7 Over night stay arrangements for selec
Slide 11: Mindspace's Assurance to Return to Work Safely
Mindspace’s Assurance to Return to Work Safely Comprehensive set of protocols in response to Covid 19 A B C D E Social Distancing Screening and Disinfection and Containment & Advance Technology Monitoring Sanitization Emergency Measures and Prevention • Working with optimized staff • Usage of Aarogy
Slide 12: Portfolio Overview
Portfolio Overview mindspacereit.com 12
Slide 13: Portfolio Overview
Portfolio Overview Mindspace REIT is one of the largest Grade-A office portfolios in India 29.5 msf INR 54.4 psf Total Leasable Area(1) In-place Rent 94.7% 88.9% Same Store Committed Occupancy Committed Occupancy (Sep 20 vs Sep 19) Mumbai Pune (16.9%) 16.9% (2) 5.6 years Region (41.1%) Mark to Marke
Slide 14: Five Integrated Business Parks
Five Integrated Business Parks Mindspace Madhapur Mindspace Airoli East Hyderabad | 10.6 msf Mumbai Region | 6.8 msf Completed Area: 10.0 msf; Committed Occupancy: 95.3% Completed Area: 4.7 msf; Committed Occupancy: 96.5% Mindspace Airoli West Gera Commerzone Kharadi Commerzone Yerwada Mumbai Region
Slide 15: Five Quality Independent Office Assets
Five Quality Independent Office Assets Commerzone Porur Paradigm, Mindspace Malad Chennai | 0.8 msf (1) Mumbai Region | 0.7 msf Completed Area: 0.8 msf; Completed in Jun 20 Completed Area: 0.7 msf; Committed Occupancy: 93.8% The Square, BKC The Square, Nagar Road Mindspace Pocharam Mumbai Region | 0
Slide 16: Marquee Tenant Base
Marquee Tenant Base Leading MNCs and Fortune 500 companies across sectors Technology Financial Services Diversified Technology Financial Services Diversified Accenture Wipro Fiserv Barclays Amazon Qualcomm Facebook Verizon UBS BNY Mellon Worley Parson Here Solutions Bank of America Schlumberger 83.8
Slide 17: Diversified Portfolio of Marquee Tenants
Diversified Portfolio of Marquee Tenants Top 10 tenants contributing 40.7% of Gross Contracted Rentals Diversified tenant mix across sectors Top 10 tenants Gross Contracted Rentals contribution (40.7%) (1) % split by Gross Contracted Rentals (1) % of total Gross Contracted Rentals # of parks Others
Slide 18: Well Spread Lease Expiry Profile with Significant MTM Potential
Well Spread Lease Expiry Profile with Significant MTM Potential Active discussions on with existing and new tenants for Re-leasing / renewal Tenant uncertainty over future lease commitments Track record of achieving Re-leasing spread likely to persist for few quarters across parks Area expiry – YoY
Slide 19: Ability to Attract New Tenants along with Continued Tenant Retention
Ability to Attract New Tenants along with Continued Tenant Retention 8.6 msf leased since April 17, including 3.5 msf at 29.6% Re-leasing spread New Area leased Existing Area Re-leased / Vacant Area leasing % split by area (1) % split by area (2) (3) New Tenants 16.3% Existing Tenants 5.1 msf 39.7%
Slide 20: Focus On Sustainability and Safety
Focus On Sustainability and Safety Sustainable Development High Safety and Quality Standards First real estate entity from India “Most Environment- 2019 2020 to join the EV100 initiative Friendly Commercial Awarded Five Star COVID 19 Assurance Committed to transitioning to Space (WEST ZONE)”
Slide 21: Projects Update
Projects Update mindspacereit.com 21
Slide 22: Construction Activity back on Track after a Brief Pause
Construction Activity back on Track after a Brief Pause Under-construction assets to contribute to NOI growth Development Pipeline msf Resumed construction activity for 1.7 msf ongoing 1.8 msf on campus development projects to be completed by FY 2022 Workforce strength gradually increasing and stand
Slide 23: Development Progress
Development Progress Hyderabad Mumbai Region Pune Mindspace Madhapur (B22) Mindspace Airoli, West (B9) Commerzone Kharadi (B5) Leasable area: 0.1 msf Leasable area: 1.0 msf Leasable area: 0.7 msf Status: RCC completed, Finishes Status: RCC & Façade WIP Status: 1st office floor shuttering
Slide 24: Mindspace Airoli East, Mumbai Region - Upgrade (1/2)
Mindspace Airoli East, Mumbai Region - Upgrade (1/2) Re-energising the park with building and infra upgrades Revamping the Re-energised Renovation of Pedestrian Lightings & Refurbished building’s lobbies Entrance connection Signages Hardscape & exterior façade Gate under the Landscape podium Before
Slide 25: Mindspace Airoli East, Mumbai Region - Upgrade (2/2)
Mindspace Airoli East, Mumbai Region - Upgrade (2/2) Utilising Covid-19 downtime efficiently to create a “WOW” factor Re-energised Lobbies Refurbished Hardscape & Landscape Attractive Aesthetics Vibrant Walkways mindspacereit.com 25
Slide 26: Mindspace Madhapur, Hyderabad - Upgrade (1/2)
Mindspace Madhapur, Hyderabad - Upgrade (1/2) Integrated “Business Ecosystem” with various on-site facilities and amenities Revamping the Board Walk for Renovation of Refurbished Vantage Re-energised building’s seamless Entrance Food Court Cafe Streetscape exterior façade connectivity Gate Current S
Slide 27: Mindspace Madhapur, Hyderabad - Upgrade (2/2)
Mindspace Madhapur, Hyderabad - Upgrade (2/2) Current Status Final Intent Elevated Boardwalks for Ease of Movement Perspective Well Spread F&B Spaces across the Park Perspective mindspacereit.com 27
Slide 28: Financial Highlights
Financial Highlights mindspacereit.com 28
Slide 29: Financial Performance – H1 FY 2021
Financial Performance – H1 FY 2021 Stable NOI growth driven by effective cost and revenue management Revenue from Operations (INR Mn) NOI (INR Mn) Assets Q1 FY 2021 Q2 FY 2021 H1 FY 2021 Q1 FY 2021 Q2 FY 2021 H1 FY 2021 Mindspace Airoli (E) 900 887 1,787 717 703 1,420 Mindspace Airoli (W) 508 484 99
Slide 30: Healthy Balance Sheet to Aid Growth
Healthy Balance Sheet to Aid Growth Debt strategy to embed a blend of short term and long-term debt with a mix of instruments 13.6% INR 5.3 Bn CRISIL : CCR AAA/Stable(1) INR 33 Bn Net Debt to Undrawn Committed ICRA : ICRA AAA (Stable)(1) Market Value(2) Net Debt Facilities Composition of debt(3) Red
Slide 31: Price Performance and Unitholding
Price Performance and Unitholding mindspacereit.com 31
Slide 32: Stable Price Performance
Stable Price Performance (1) Price movement of Mindspace REIT since listing 115 110 105 (Nifty Realty: +1.9%) (Nifty: +0.3%) 100 (Mindspace REIT: +0.2%) 95 07-Aug-20 16-Aug-20 25-Aug-20 03-Sep-20 12-Sep-20 21-Sep-20 30-Sep-20 Mindspace REIT Nifty 50 Nifty Realty Offer Price INR 275 p.u. Price at lis
Slide 33: Unitholding Summary & Use of Proceeds
Unitholding Summary & Use of Proceeds Unit-holder Pattern as on 30 September 2020 Use of Proceeds AIFs Issue Related General Corporate Bodies 1.5% NIIs Expenses Purposes Corporates 0.4% INR 282 Mn INR 27 Mn 0.0% Cash held for Preference future Share utilization Foreign acquisition INR 57 Mn Portfoli
Slide 34: Market Overview
Market Overview mindspacereit.com 34
Slide 35: Market Update: Mumbai Region
Market Update: Mumbai Region Grade-A Office Stock September 2020 Highlights Worli-Lower Thane Parel 10.3% 10.7% Others Fresh leasing expected to be sluggish in near term 17.9% Supply estimated to be delayed by 2- 4 quarters Andheri and Infra initiatives delayed by Covid 19 Powai Stock Trans
Slide 36: Market Update: Hyderabad
Market Update: Hyderabad Grade-A Office Stock September 2020 Supply, net absorption and vacancy trend analysis Micro-Markets(1): Madhapur 8.0 7.4 7.5 7.0% 6.5% Madhapur 7.0 6.0% 69.7% 6.0 4.7% 5.0% 5.0 4.5 Others 3.8 4.0 Stock 4.0% 3.7 3.5% 3.6 3.0% 4.0 2.6% 63.7 msf 3.0 3.0% Peripheral East 1.5 2.0
Slide 37: Market Update: Pune
Market Update: Pune Grade-A Office Stock September 2020 Supply, net absorption and vacancy trend analysis Micro-Market: SBD East Others 11.5% 3.0 7.0% 2.6 2.5 5.9% 2.4 6.0% PBD West 2.0 23.0% 5.0% 2.0 1.5 1.5 3.5% 1.3 4.0% 3.6% Stock 1.5 2.3% 1.1 54.6 msf 3.0% 1.0 0.9 2.0% (1) SBD West SBD East 0.5
Slide 38: Market Update: Chennai
Market Update: Chennai Grade-A Office Stock September 2020 Supply, net absorption and vacancy trend analysis Micro-Market: South-West Others 1.0 8.0% 21.1% 0.9 7.1% 0.9 0.8 7.0% (1) 0.8 South-West 6.0% 23.4% 0.7 0.6 0.5 4.2% 5.0% 4.7% 0.6 0.4 0.4 0.5 4.0% Stock 0.4 51.0 msf 2.1% 3.0% 0.3 0.3 2.0% 0.
Slide 39: Annexures
Annexures mindspacereit.com 39
Slide 40: REIT Structure
REIT Structure Mindspace REIT Structure Investment Manager Trust Trustee K Raheja Corp Mindspace Business Axis Trustee Services Investment Managers Parks REIT Limited LLP SPV: K Raheja IT SPV: Avacado SPV: Mindspace SPV: KRC SPV: Horizonview SPV: Intime SPV: Sundew SPV: Gigaplex Park (Hyderabad) Pro
Slide 41: Portfolio Summary
Portfolio Summary 23.9 msf of Completed area with Committed Occupancy of 88.9% & WALE of 5.6 years Total Leasable Completed Committed In-place Market Occupancy WALE Asset Area Area Occupancy Rent Value (%) (years) (msf) (msf) (%) (INR psf) (INR Mn) Mindspace Airoli East 6.8 4.7 96.5% 96.5% 4.3 49.7
Slide 42: ROFO Assets To Add Further Scale And Growth
ROFO Assets To Add Further Scale And Growth Strong pipeline spread across Mumbai Region, Chennai and Hyderabad Mumbai Region | 5.0 msf 3 currently Mindspace Juinagar identified assets Status: • Completed: 0.8 msf(1) • UC: 0.2 msf • Future Development: 4.0 msf Current Perspective Perspective 8.6 msf
Slide 43: Key Definitions
Key Definitions Asset SPVs Collectively, Avacado, Gigaplex, Horizonview, Intime, KRIT, KRC Infra, MBPPL and Sundew Occupied Area + Committed Area Committed Occupancy (%) Completed Area Committed Area Completed Area which is unoccupied but for which letter of intent/ agreement to lease have been sign
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