Brookfield India Real Estate Trust · NSE:BIRET.RR
Brookfield India Real Estate Trust — Q4 FY2024 Earnings Presentation
44 slides from Brookfield India Real Estate Trust's earnings presentation, May 15, 2024
Slide 1: Brookfield India Real Estate Trust Q4 FY2024 Investor Update
Brookfield India Real Estate Trust Q 4 F Y 2 0 2 4 – I N V E S T O R U P D AT E M AY 1 5 , 2 0 2 4 DOWNTOWN POWAI, MUMBAI
Slide 2: Disclaimer
Disclaimer By reading this presentation (the “Presentation”), you agree to be bound by the following limitations: This Presentation is for information purposes only without regard to specific objectives, financial situations or needs of any particular person, and should not be disclosed, reproduced,
Slide 3: High Quality Properties in Gateway Cities
High Quality Properties in Gateway Cities India’s only 100% institutionally managed office REIT SELECT ASSETS 20.9 MSF OPERATING AREA 87% Gurugram (7.6 MSF) Noida (5.8 MSF) CANDOR TECHSPACE G1, GURUGRAM EFFECTIVE ECONOMIC OCCUPANCY(1) Kolkata (3.2 MSF) Rs 84 PSF Mumbai IN-PLACE RENT P
Slide 4: FY2024 Highlights
FY2024 Highlights We continue to deliver on our stated strategies Distributions Leasing Acquisitions Rs 9.50 / unit 3.0 MSF(2) 47% Distribution to unitholders Highest new leasing of Increase in operating in H2 FY2024(1) 1.9 MSF since IPO with a area primarily due to re-leasing spread of 16% comple
Slide 5: Financial Update
Financial Update Q4 FY2024 - DPU COMPOSITION Rs 4,171 million Rs 0.06 , 1% DISTRIBUTION (H2 FY2024)(1) Rs 9,143 million Rs 4.75 ADJUSTED NOI (H2 FY2024)(1) per unit Rs 2.51 , 53% Rs 2.18 , 46% Rs 292 B Interest on Shareholder Loan (3) GROSS ASSET VALUE(2) Repayment of Shareholder Loan(4) Interest
Slide 6: Leasing Update (1/2)
Leasing Update (1/2) Achieved highest new leasing since IPO LEASING - FY2024 (MSF)(1) GROSS LEASING - FY2024(1) CRISIL Tech Mahindra Deloitte New Leasing Renewals Gross Leasing 15% A Leading Indian 32% Bank 2.9 Pine Labs 2.7 2.8 L&T NEC 2.8 MSF Hydrocarbon 1.1 0.9 1.5 Accenture 52% 1.1 1.8 1.9 MSF
Slide 7: Leasing Update (2/2)
Leasing Update (2/2) Achieved ~40% of the new leasing guidance of 2.0 - 2.4 MSF (till FY2025) HIGHEST NEW LEASING SINCE IPO – Q4 FY2024 (MSF)(1) MARQUEE TENANTS New Gross Renewals Leasing Leasing A Leading L&T Tech Indian Bank Hydrocarbon Mahindra Area 909 55 964 (KSF) Brookfield Concentrix Te
Slide 8: SEZ Conversion Update
SEZ Conversion Update Conversion of SEZ spaces to give further impetus to leasing momentum SEZ AREA CONVERSION Downtown In MSF G2 N2 K1 G1 Total Powai (SEZ) Operating Area 3.9 3.8 3.2 3.7 1.6 16.2 Vacant Area 1.0 0.9 0.4 1.1 0.1 3.4 Area Applied for Conversion 0.2 0.2 0.6 0.2(1) - 1.2 In-principle A
Slide 9: NOI Growth Potential
NOI Growth Potential Significant embedded growth headroom of 16% through lease up of vacant areas which will flow through to the distributions NOI GROWTH POTENTIAL (RS MILLIONS) Income from recent lease up/MTM will surpass the N2 Rs 260 - 270 Rs 21,300 - 21,500 income support Rs 2,000 - 2,10
Slide 10: Scaling through Acquisitions
Scaling through Acquisitions Embarked upon transformative acquisitions to achieve scale and diversification COMPLETED ACQUISITIONS PROPOSED ACQUISITION Candor TechSpace G1 Downtown Powai (Commercial / IT Park) North Commercial Portfolio Candor Downtown Powai North Commercial TechSpace G1 (Commercial
Slide 11: Proposed Acquisition | North Commercial Portfolio
Proposed Acquisition | North Commercial Portfolio 50% stake(1) in dominant Grade A properties being acquired from the Bharti Group KEY PORTFOLIO METRICS ACQUISITION PRICE Rs 60,000 Million Worldmark Delhi(2) OPERATING (1.5 MSF) AREA 3.3 MSF 62% of GAV Iconic asset in OCCUPANCY 91% Delhi’s airport
Slide 12: Proposed Acquisition | Preferential Issue
Proposed Acquisition | Preferential Issue The consideration to Bharti Group will be discharged through a preferential issue(1) at Rs 300 per unit, leading to 8.53% Pro-forma stake in Brookfield India REIT PREFERENTIAL ISSUE TERMS POST-ISSUE UNITHOLDING ISSUE SIZE Rs 12,279 Million 40.16% ISSUE PRICE
Slide 13: Proposed Acquisition | Increased Scale and Diversification
Proposed Acquisition | Increased Scale and Diversification The acquisition will increase Consolidated GAV by 22% and Economic Occupancy by 50 bps At IPO CURRENT PRO-FORMA (Mar-21) PORTFOLIO PORTFOLIO CONSOLIDATED GAV Rs 115 B Rs 292 B Rs 357 B LTV(1) 18.1% 34.3% 35.6% OPERATING AREA 10.3 MSF 20.9 MS
Slide 14: Business Updates
Business Updates CANDOR TECHSPACE G1, GURUGRAM
Slide 15: Significantly Complete and Stable Portfolio
Significantly Complete and Stable Portfolio 96% of gross asset value is in operating properties, with an Effective Economic Occupancy of 87% and a long-dated WALE of 7.6 Yrs. Area (in MSF) Leased Area Metrics Dev. Area # Office Committed / WALE In-place Rent Asset Value(4) Asset Operating Total
Slide 16: High-quality Tenant Roster
High-quality Tenant Roster SECTOR DIVERSIFICATION OF TENANTS(1) TOP 10 TENANTS(1) % Gross % Leased Tenant Name Industry Contracted Others, 17% Technology, 29% Area Rentals TCS Technology 9% 10% Accenture Consulting 8% 9% FMCG, 2% Retail, 3% Cognizant Technology 5% 8% Telecom, 3% Capgemini Technology
Slide 17: Lease Expiry Profile
Lease Expiry Profile Portfolio has a well staggered lease expiry profile with only 34% of the contracted rentals due for expiry in the next 4 years LEASE EXPIRY SCHEDULE Area Expiring Achieved Renewals KEY HIGHLIGHTS Expected Renewals Cumulative Expiry (% of Rentals) • Renewed 0.8 MSF at a 2.4 34% s
Slide 18: Key ESG Initiatives
Key ESG Initiatives Empowering communities through key impact programs, transcending our asset boundaries, to build a more sustainable future POWAI 3rd edition of Powai Run was organized in partnership with 7,500+ RUN the Rotary Club of Mumbai Lakers on January 7, 2024 PARTICIPANTS NATIONAL ROAD SAF
Slide 19: Progress on Net Zero
Progress on Net Zero We are actively tracking our emissions and are closely working with all our stakeholders to achieve a Net Zero carbon future by 2040 GREENHOUSE GAS EMISSIONS (‘000 Mt CO2e) ENERGY CONSUMPTION (MILLION UNITS) Scope 2 Scope 1 7 84 2 1 1 228 57 2 183 168 44 45 134 128 36 FY20 FY21
Slide 20: Financial Updates
Financial Updates CANDOR TECHSPACE N2, NOIDA
Slide 21: Q4 FY2024 | Financial Highlights
Q4 FY2024 | Financial Highlights Growth vs Millions Q4 FY2024 Q3 FY2024 Operating Lease • Rs 121 million (3.1%) QoQ increase due to recent new Rentals (OLR) Rs 4,048 3% leasing, renewals and escalations achieved • Rs 51 million (1.0%) QoQ increase: o Rs 121 million (2.3%) due to improvement in OLR R
Slide 22: Property Income
Property Income MILLIONS FY2024 FY2023 KEY DRIVERS • Rs 4,561 million (55.2%) YoY increase: Income from Operating Lease o Rs 82 million (1.0%) due to same store new leasing and Rs 12,829 Rs 8,268 contractual escalations offset by expiries Rentals (OLR) o Rs 4,479 million (54.2%) due recent acquisiti
Slide 23: Property Income
Property Income MILLIONS Q4 FY2024 Q4 FY2023 KEY DRIVERS • Rs 1,939 million (91.9%) YoY increase: Income from Operating Lease o Rs 30 million (1.4%) due to same store new leasing and Rs 4,048 Rs 2,109 contractual escalations Rentals (OLR) o Rs 1,909 million (90.5%) due to recent acquisitions • Rs 39
Slide 24: NDCF (1/2)
NDCF (1/2) INR Million Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 FY2024 Income from Operating Lease Rentals (OLR) Rs 2,113 Rs 2,741 Rs 3,927 Rs 4,048 Rs 12,829 CAM / Other Revenue 1,028 1,256 1,381 1,311 4,976 Revenue from Operations Rs 3,141 Rs 3,997 Rs 5,308 Rs 5,359 Rs 17,805 Income Support 178 514
Slide 25: NDCF (2/2)
NDCF (2/2) INR Million Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 FY2024 NDCF (SPV Level) for the REIT(1) Rs 2,213 Rs 2,048 Rs 2,172 Rs 2,696 Rs 9,129 Interest on Shareholder Debt/CCD/NCD 800 1,013 1,018 995 3,826 Repayment of Shareholder Debt/NCD 1,465 1,359 1,091 1,685 5,600 Proceeds from commercial
Slide 26: Summary Balance Sheet
Summary Balance Sheet Our business is well-capitalized, backed by a strong balance sheet Millions March 31, 2024 Total Equity 122,613 Equity 102,558 Non-Controlling Interest 20,055 Liabilities 133,508 Bank Borrowings 100,644 Commercial Paper 7,285 NCD's and CCD's 12,140 Security Deposits 9,073 Other
Slide 27: Capital Structure and Liquidity
Capital Structure and Liquidity Backed by high proportion of operating assets and less development, our portfolio maintains a AAA credit rating Rs 104 B Dual AAA Rating NET EXTERNAL [ICRA]AAA(STABLE) DEBT MATURITY PROFILE DEBT(1) CRISIL AAA/NEGATIVE (% of OUTSTANDING DEBT) 76% 9 Yrs. 34.3% AVERAGE
Slide 28: Information Supplement
Information Supplement CANDOR TECHSPACE K1, KOLKATA
Slide 29: Brookfield: One of the World's Largest Real Estate Portfolios
Brookfield: One of the World’s Largest Real Estate Portfolios With ~$276B in real estate AUM and ~30,000 employees across 30+ countries, Brookfield owns, operates and manages one of the world’s largest, highest quality portfolios BROOKFIELD PLACE, NEW YORK POTSDAMER PLATZ, BERLIN BROOKFIELD PLACE, T
Slide 30: Brookfield's Real Estate Footprint in India
Brookfield’s Real Estate Footprint in India Brookfield is one of the largest real estate investors in India with a high-quality office portfolio spanning 54 MSF (including Brookfield India REIT) BROOKFIELD INDIA REAL ESTATE – KEY FACTS OTHER INDIA OFFICE PORTFOLIO (OUTSIDE REIT) $8.7B 54 MSF ASSET
Slide 31: Robust Inorganic Growth Pipeline
Robust Inorganic Growth Pipeline Pro-forma for the announced acquisition, our portfolio will grow to over 29 MSF, with our Sponsor Group continuing to own another 25 MSF across India Pavilion Mall (Ludhiana) Worldmark Gurugram, Airtel Centre Area (in MSF) G1, G2 N1, N2 (Gurugram) (Noida) (Gurugra
Slide 32: Leasing Q4 FY2024
Leasing Q4 FY2024 SELECT NEW LEASES / RENEWALS(1) Tenant Assets Area (SF) A Leading Indian Bank K1 326,000 Rs 85 PSF L&T Hydrocarbon Downtown Powai (SEZ) 121,000 AVERAGE RENT ON NEW LEASING(2) Tech Mahindra K1 107,000 Concentrix K1 81,000 Teleperformance G1 64,000 Brookfield GCC Downtown Powai 56,
Slide 33: Detailed Lease Expiry Schedule
Detailed Lease Expiry Schedule % of Gross Rentals In-place rent at Expiry Year / Asset Area Expiring (‘000 SF) (Asset / Portfolio) (Rs PSF)(1) FY2025E Downtown Powai (Commercial / IT Park) 357 17% Rs 187 Downtown Powai (SEZ) 41 4% 152 G1 57 2% 100 G2 147 5% 108 N1 319 14% 45 N2 86 3% 77 K1 9 - - Tot
Slide 34: Portfolio Occupancy: Q4 FY2023 to Q4 FY2024
Portfolio Occupancy: Q4 FY2023 to Q4 FY2024 March 31, 2023 March 31, 2024 Operating Leased Committed Operating Leased Committed ASSET Leasing Expiries Renewed area area occupancy area area occupancy Downtown Powai 4,217 3,729 88% - 454 (752) 490 - 4,340 3,922 90% Commercial / IT Park 2,655 2,371 89%
Slide 35: Portfolio Occupancy: Q3 FY2024 to Q4 FY2024
Portfolio Occupancy: Q3 FY2024 to Q4 FY2024 December 31, 2023 March 31, 2024 Operating Leased Committed Operating Leased Committed ASSET Leasing Expiries Renewed area area occupancy area area occupancy Downtown Powai 4,253 3,800 89% - 222 (115) 15 - 4,340 3,922 90% Commercial / IT Park 2,661 2,402 9
Slide 36: FY2024: New leasing & Renewals
FY2024: New leasing & Renewals ASSET NEW LEASING RENEWALS GROSS LEASING AREAS IN ‘000 SF AREA RENT PSF PM(1) AREA RENT PSF PM(1) AREA RENT PSF PM(1) Downtown Powai 454 160 - 490 186 - 944 174 Commercial / IT Park 168 190 - 490 186 - 658 187 SEZ 286 143 - - - - 286 143 G1 117 90 - 112 83 - 229 87 G2(
Slide 37: Q4 FY2024: New leasing & Renewals
Q4 FY2024: New leasing & Renewals ASSET NEW LEASING RENEWALS GROSS LEASING AREAS IN ‘000 SF AREA RENT PSF PM(1) AREA RENT PSF PM(1) AREA RENT PSF PM(1) Downtown Powai 222 167 15 191 237 168 Commercial / IT Park 101 195 15 191 116 195 SEZ 121 143 - - 121 143 G1 64 89 3 - 66 89 G2 - - 2 - 3 - N1 54 69
Slide 38: Property Income | Consolidation Details (FY2024)
Property Income | Consolidation Details (FY2024) INCOME FROM OPERATING REVENUE FROM MILLIONS NET OPERATING INCOME(1) LEASE RENTALS (OLR) OPERATIONS FY2024 FY2023 FY2024 FY2023 FY2024 % OLR FY2023 % OLR Downtown Powai Rs 4,633 Rs 1,752 Rs 5,074 Rs 1,893 Rs 4,375 94% Rs 1,636 93% Commercial / IT Park
Slide 39: Property Income | Consolidation Details (Q4 FY2024)
Property Income | Consolidation Details (Q4 FY2024) INCOME FROM OPERATING REVENUE FROM MILLIONS NET OPERATING INCOME(1) LEASE RENTALS (OLR) OPERATIONS Q4 FY2024 Q4 FY2023 Q4 FY2024 Q4 FY2023 Q4 FY2024 % OLR Q4 FY2023 % OLR Downtown Powai Rs 1,775 Rs 435 Rs 1,939 Rs 468 Rs 1,693 95% Rs 406 93% Commer
Slide 40: Ongoing Capex
Ongoing Capex Rs 4.2 billion of capex projects underway across new tower developments and upgrades to existing towers, which will primarily be debt funded ESTIMATED COMPLETION PENDING COSTS ONGOING PROJECTS DESCRIPTION DATE (MILLIONS) Downtown Powai 818 SEZ • Asset Upgrades Q1 FY2025 11 Commercial
Slide 41: Holding Structure
Holding Structure TRUSTEE MANAGER Axis Trustee Services Brookprop Management Limited Services Private Limited 100% 100% 100% 100% 100% 50% 50% 50% 50% OPERATIONAL ASSET SPV SERVICE ASSET SPV ASSET SPV ASSET SPV ASSET SPV ASSET SPV PROVIDER Candor Kolkata Shantiniketan Seaview Candor Gurgaon One Hi-T
Slide 42: Research Coverage
Research Coverage RESEARCH HOUSE ANALYST EMAIL ID Ambit Karan Khanna Karan.Khanna@ambit.co Avendus Girish Choudhary Girish.C@avendusspark.com Axis Capital Samar Sarda Samar.Sarda@axiscap.in BofA Securities Kunal Tayal Kunal.Tayal@bofa.com Citi Rajiv Berlia Rajiv.Berlia@citi.com CLSA Kunal Lakhan Kun
Slide 43: Glossary (1/2)
Glossary (1/2) BIRET / Brookfield India REIT Brookfield India Real Estate Trust Gross Asset Value / Asset Value The market value as determined by the Valuer as of March 31, 2024 (Occupied Area + Completed Area under Letters of Intent) Committed Occupancy In % Completed Area Weighted Average Lease Ex
Slide 44: Glossary (2/2)
Glossary (2/2) Net distributable cash flows (non-GAAP measure). Please refer to pg. 285-287 of the Offer NDCF Document for calculation methodology Sum of Leased Areas and any eligible areas under any income Effective Economic Occupancy support arrangement (excluding Leased Areas) In % Operating Area
Brookfield India Real Estate Trust — Q4 FY2024 Earnings Presentation on 6ix