Mindspace Business Parks Reit · NSE:MINDSPACE.RR

Mindspace Business Parks Reit — Q4 FY2025 Earnings Presentation

63 slides from Mindspace Business Parks Reit's earnings presentation, Apr 30, 2025

  1. Slide 1: Q4 FY25 Investor Presentation

    Q4 FY25 Investor Presentation 30th April 2025

  2. 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

  3. Slide 3: Table of Contents

    Table of Contents Key Highlights 3 Key Highlights 3 01 Project Updates 10 Project Updates 10 02 Financial Update 12 Financial Update 12 03 Our Markets 18 Our Markets 18 04 Our Franchise Portfolio 26 Our Franchise & Portfolio 26 05 Re-energizing Parks 37 Re-energizing Parks 37 06 Value creation via E

  4. Slide 4: Key Highlights

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  5. Slide 5: Solid Performance fueled by Sustained Demand for Grade-A Assets

    Solid Performance fueled by Sustained Demand for Grade-A Assets 2.8 msf 7.6 msf (1) (2) Gross Leasing Q4 FY25(1) Gross Leasing FY25(2) Highest since listing Highest since listing 93% msf 1.5 msf (3) Committed Occupancy Pre-Leased to GCC Sequentially up 1.5% Entire Building under re-development at Ma

  6. Slide 6: Strong Operating Performance helps deliver robust financial performance

    Strong Operating Performance helps deliver robust financial performance INR 5,398 Mn INR 3,923 Mn INR 366.5 Bn (Q4 FY24- INR 4,768 mn) (Q4 FY24- INR 2,829 mn) (H1 FY25- 313.5Bn) Q4FY25 NOI Q4FY25 Distribution Gross Asset Value Up 13.2% Y-o-Y Up 38.7% Y-o-Y Up 16.9% v/s Sep-24 INR 20,616Mn INR 13,121

  7. Slide 7: Concluded 1st ROFO acquisition: Commerzone Raidurg

    Concluded 1st ROFO acquisition: Commerzone Raidurg – Marquee Asset at Strategic Location c.2.80 msf Total Leasable Area(1) c.1.82 msf Sustain’s(2) Area 100% Committed Occupancy on Sustain’s area c. 12 years WALE 15% Rent escalation every 3 Years; 1st escalation in Jan’ 26(3) c.7 ksf of retail space

  8. Slide 8: Delivered Strong Operational performance

    Delivered Strong Operational performance Key Operating Indicators Q4 FY25 FY25 Gross Leasing 2.8 msf (1) 7.6 msf (2) Re-leased Area 0.5 msf 1.9 msf New and Vacant Area Leased 0.7 msf 2.2 msf Pre-lease 1.5 msf 3.6 msf Re-leasing Spread(1) 17.4 % 22.8 % on 1.1 msf on 3.6 msf Average Rent for Area Leas

  9. Slide 9: Modern and Sustainable workplaces attracting occupiers

    Modern and Sustainable workplaces attracting occupiers High Quality Portfolio with 7 out of 10 parks(1) achieving an average of c.98% committed occupancy levels 100% 100% 100% 100% 100% 98.5% 97.2% Gera The Square The Square Commerzone Commerzone Mindspace Mindspace Commerzone Nagar Road BKC Porur R

  10. Slide 10: FY25 – Healthy re-leasing spread of 22.8%

    FY25 – Healthy re-leasing spread of 22.8(1)% ~73% re-leased out of 3.2 msf expiries in FY25 Overview of Lease Expiry and Re-leasing spread FY25 Average 3.2 msf Re-leasing Spread(2) 21.4% (Since listing) 1.1 msf 2.1 msf Retained Exited Average Annual 3.0 msf Lease expiry in last 4 Years 1.2 msf Re-le

  11. Slide 11: Project Updates

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  12. Slide 12: Gearing for Demand Resurgence

    Gearing for Demand Resurgence Hyderabad Hyderabad Hyderabad Mindspace Madhapur Mindspace Madhapur Mindspace Madhapur (Experience center) (B1, Re-development) (B8, Re-development) ▪ Leasable area: 0.13 msf ▪ Leasable area: 1.5 msf ▪ Leasable area: 1.6 msf ▪ Status: Structure completed. Club ID & ▪ St

  13. Slide 13: Financial Update

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  14. Slide 14: Financial Performance Supported by Rising Organic Cash Flows

    Financial Performance Supported by Rising Organic Cash Flows Key Financial Indicators Q4 FY25 (Y-o-Y) FY25 (Y-o-Y) Figures in INR Mn Revenue from Operations(1)(2) 6,780 14.0% 25,627 9.6% Net Operating Income(1)(2) 5,398 13.2% 20,616 8.9% Distribution 3,923 38.7% 13,121 15.5% DPU 6.44 p.u 35.0% 21.95

  15. Slide 15: NDCF Build-up Q4 FY25

    NDCF Build-up Q4 FY25 Particulars (INR Mn) Q4 FY25 (1) Revenue from Operations 6,780 Property Taxes & Insurance (389) Income Support pertaining to Sustain (5) 9 Other Direct Operating Expenses (1,003) Net Operating Income (NOI) 5,398 Property Management Fees (161) Net Other Expenses (98) EBITDA(1) 5

  16. Slide 16: NDCF Build-up FY25

    NDCF Build-up FY25 Particulars (INR Mn) FY25 Revenue from Operations(1) 25,627 Property Taxes & Insurance (979) Income Support pertaining to Sustain (5) 9 Other Direct Operating Expenses (4,041) Net Operating Income (NOI) 20,616 Property Management Fees (609) Net Other Expenses (490) EBITDA(1) 19,51

  17. Slide 17: Delivered Healthy Distribution with Potential Organic Growth

    Delivered Healthy Distribution with Potential Organic Growth Distribution Overview FY25 FY25 Q4 FY25 Distribution Distribution Repayment of SPV Debt, 8.78 , 40.0% INR 13,121 Mn INR 3,923 Mn DPU DPU ₹21.95 p.u. Interest, 0.97 , 4.4% INR 21.95 p.u. INR 6.44 p.u. Dividend, 12.10 , 55.1% Yield Other Inc

  18. Slide 18: Low Leverage Offers Balance Sheet Headroom for Future Growth

    Low Leverage Offers Balance Sheet Headroom for Future Growth INR 88,976Mn 24.3% INR 4,870Mn 8.15%* 4.5x 3.5x Net Debt to Undrawn Committed Cost of Debt Interest Coverage Net Debt (1) Net Debt to EBITDA(2) Market Value (1) Facilities (p.a.) Ratio(3) Diversified debt Book with a mix of debentures Weig

  19. Slide 19: Our Markets

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  20. Slide 20: Indian Office Sector: Riding the Winds of Favorable Trends

    Indian Office Sector: Riding the Winds of Favorable Trends Emerging trends Rising GCC Return to in India’s Office Domestic landscape Office Market Occupiers c. 13 msf c. 35% c. 45% 75%-85% Net absorption in % contribution of % share in overall Net Physical Occupancy Q1CY2025(1) GCCs in office absorp

  21. Slide 21: GCCs: India a preferred destination

    GCCs: India a preferred destination c. 50% 74.3 1.9 Mn c. 85% msf % share of India in Total space leased GCC employees in Lower average global GCC by GCCs since India(1) salary of engineers market(1) 2022-Q1 CY2025(1) viz-a-viz developed countries(1) GCC Growth forecast 300 Factors driving GCC leasi

  22. Slide 22: Hyderabad – Second largest Tech hub of India

    Hyderabad – Second largest Tech hub of India Progressive government policies and Infrastructure growth are key market drivers Hyderabad’s GCC Landscape 9.5 ~2.9 msf 350+ 16% Lakh Tech workforce in Telangana Leasing activity in Q1 CY2025 GCCs in Hyderabad(1) Hyderabad’s share of all driven by Hyderab

  23. Slide 23: Madhapur as the preferred office market in Hyderabad

    Madhapur as the preferred office market drives highest absorption in Hyderabad 90+ 2nd 77 msf 67% Rs psf (in Size) 56% share of City’s Share of net absorption since Highest rentals amongst all Largest micro market across office stock(1) CY 2019(1) micro markets India (1) 1. (1) (1)i n m Source: d s

  24. Slide 24: Mumbai Region - Infrastructure projects driving office demand

    Mumbai Region - Infrastructure projects upgrades driving office demand uptick Navi Mumbai – A Preferred Location with Accessible Talent 136 msf top 3 1.4 msf Ranked amongst in terms of overall quality of living in India 3 Ranked rd , 2nd time in a row, in cleanliness index(1) in India Completed Stoc

  25. Slide 25: Pune - Thriving Office Market with Excellent Social Infrastructure

    Pune - Thriving Office Market with Excellent Social Infrastructure SBD East Micro Market(1) 86 msf ~3.4 msf 47 msf 56% Completed Stock as on Avg. annual net absorption Q1 CY2025( (1) since CY 2019 (1) 54% share of City’s Share of net absorption office stock(1) since CY 2019(1) 85-90 Pune Airport cap

  26. Slide 26: Chennai - One of the key growth markets

    Chennai - One of the key growth markets South-West Micro Market(1) 78 msf ~3.3 25 msf 33% msf Completed Stock as on Average annual net 27% share of City’s Share of net absorption Q1 CY2025(2) absorption since 2019(2) office stock(1) since 2019 (1) Highest ever net leasing in Chennai in CY2023 6.6 Ch

  27. Slide 27: Our Franchise & Portfolio

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  28. Slide 28: Sponsored by One Of India's Leading Real Estate Group

    Sponsored by One Of India’s Leading Real Estate Group Over 6 Decades Pan India INR 472Bn (5) of experience Market Capitalization presence of 3 listed entities Office Hospitality Malls Residential Retail Developed residential Operates 280+ retail Leasable Area >55 msf (1) c.4,200+ (2) keys 7 malls (3

  29. Slide 29: Mindspace REIT's Presence in Key Office Markets

    Mindspace REIT’s Presence in 4 Key Office Markets Located strategically in established office micro-markets Mumbai Hyderabad Region 14.4 msf 16.1 msf 37.1 msf Total Leasable Area Presence in Presence in Malad-Goregaon Madhapur and micro-market Navi Mumbai IT Corridor markets Mumbai ` Pune Hyderabad

  30. Slide 30: Delivered Robust Performance

    Delivered Robust Performance Cumulative distribution of INR 88.3 p.u. since listing c. 23.4 msf (1) 21.4 % Re-leasing Spread on Gross Leasing 14.3 msf INR 52.4 Bn 13.3 % Total distribution(2) Annualized returns(3) 3.7 msf 8.15 % p.a.p.m. Delivered New Cost of Debt as on 31 Developments Mar 25(4) 6.1

  31. Slide 31: High Quality Office portfolio in Prime Locations (1/5)

    High Quality Office portfolio in Prime Locations (1/5) Mindspace Madhapur, Hyderabad 13.7 msf Leasable Area 9.9 msf Completed Area 97.2% Committed Occupancy Commerzone Raidurg, Hyderabad 1.8 msf Leasable Area 1.8 msf Completed Area 100.0% Committed Occupancy Data m i n das s pofa 31-Mar-25 cereit.co

  32. Slide 32: High Quality Office portfolio in Prime Locations (2/5)

    High Quality Office portfolio in Prime Locations (2/5) Commerzone Kharadi, Pune 3.0 msf Leasable Area 3.0 msf Completed Area 100.0% Committed Occupancy Commerzone Yerwada, Pune 1.7 msf Leasable Area 1.7 msf Completed Area 94.2% Committed Occupancy mData i n d as s pofa c 31-Mar-25 ereit.com 32 Note:

  33. Slide 33: High Quality Office portfolio in Prime Locations (3/5)

    High Quality Office portfolio in Prime Locations (3/5) The Square Nagar Road, Pune 0.8 msf Leasable Area 0.8 msf Completed Area 100.0% Committed Occupancy Commerzone Porur, Chennai 1.1 msf Leasable Area 1.1 msf Completed Area 100.0% Committed Occupancy Data m i n das s pofa 31-Mar-25 cereit.com 33

  34. Slide 34: High Quality Office portfolio in Prime Locations (4/5)

    High Quality Office portfolio in Prime Locations (4/5) Mindspace Airoli East, Navi Mumbai 7.2 msf Leasable Area 4.9 msf Completed Area 78.8% Committed Occupancy Mindspace Airoli West, Navi Mumbai 6.4 msf Leasable Area 5.3 msf Completed Area 87.6% Committed Occupancy Data m i n das s pofa 31-Mar-25 c

  35. Slide 35: High Quality Office portfolio in Prime Locations (5/5)

    High Quality Office portfolio in Prime Locations (5/5) Mindspace Malad, Mumbai 0.8 msf Leasable Area 0.8 msf Completed Area 98.5% Committed Occupancy The Square BKC, Mumbai 0.1 msf Leasable Area 0.1 msf Completed Area 100.0% Committed Occupancy mData i n d as s pofa c 31-Mar-25 ereit.com 35

  36. Slide 36: Diversified Portfolio of Marquee Tenants

    Diversified Portfolio of Marquee Tenants Top 10 tenants contributing 33.0% (Mar-25) vs. 30.0% (Dec-24) Diversified tenant mix across sectors Top 10 tenants Gross Contracted Rentals contribution (33.0%) (1) (1) % split by Gross Contracted Rentals % of total Gross Contracted Rentals # of parks GCC- 12

  37. Slide 37: Marquee Tenant Base

    Marquee Tenant Base Leading MNCs and Fortune 500 companies across sectors Technology Technology Financial Services Financial Services Diversified Diversified Accenture Wipro Barclays BNY Mellon Smartworks Verizon Cognizant Atos India UBS Fiserv Allstate Hitachi energy Qualcomm Highradius NCR Princet

  38. Slide 38: Re-energizing Parks

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  39. Slide 39: Dynamic Environment, Vibrant Workspaces

    Dynamic Environment, Vibrant Workspaces mindspacereit.com 39

  40. Slide 40: Energized Landscape for Business Excellence

    Energized Landscape for Business Excellence mindspacereit.com 40

  41. Slide 41: Infusing modern design elements to elevate experience

    Infusing modern design elements to elevate experience Tailoring common areas to meet the evolving preferences of tenants mindspacereit.com 41

  42. Slide 42: Experience Center: An Inclusive Ecosystem

    Experience Center: An Inclusive Ecosystem for all Lifestyle & Business Needs Enhancing the Mindspace offering with a modern club facility with top notch amenities c. 130 ksf Exclusive and premium space Perspective Offers enriching entertainment, sports, lifestyle, recreation and dining experiences m

  43. Slide 43: Curated mix of amenities enhancing work place experience

    Curated mix of amenities enhancing work place experience Badminton | Squash | Indoor-Outdoor Cafes Bar and Lounge Tennis Yoga | Meditation | Aerobic State of the art gym facility Half Olympic Size Lap Pool Rooms mindspacereit.com 43

  44. Slide 44: SOCIALising at Vantage Café in the Park

    SOCIALising at Vantage Café in the Park The first-ever SOCIAL in One of the largest SOCIAL Hyderabad OUTLETS in the country mindspacereit.com 44

  45. Slide 45: Tenant Engagement Initiatives

    Tenant Engagement Initiatives, Designed to Build Camaraderie Mindspace REIT ECORun Over 75,000+ Runners, 2 Marathons across 2 cities; Mumbai and Hyderabad mindspacereit.com 45

  46. Slide 46: Value creation via ESG

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  47. Slide 47: ESG - Key Highlights

    ESG - Key Highlights Scope 1+2 emission 40.2% 55,295 Renewable energy mix tCO2e for FY25(1) (32.2% reduction from FY20 baseline) 13,43,724 KL 23.1% of material Water Recycled sourced using sustainable sourcing INR18.5 Bn (2) INR 6.5 Bn of Cumulative Green / Sustainability linked Bond Sustainability

  48. Slide 48: Key Achievements and Awards

    Key Achievements and Awards Mindspace REIT: Real Estate Excellence • Received the coveted title of ‘Global Listed Sector Leader-Office Development Benchmark’by GRESB, for the 2nd consecutive year • Received 5 star rating by GRESB for 3rd consecutive year, along with Green Star • Secured a prestigiou

  49. Slide 49: Focus On High Corporate Governance Standards

    Focus On High Corporate Governance Standards Strong governance framework complemented by partnership with leading institutional investors Mindspace REIT: Top-Notch Standards Nine Member Board / Independent • 55.6% independent directors on the Board Chairman • Manager can be removed with 60% approval

  50. Slide 50: Shareholding Pattern

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  51. Slide 51: Unitholding Pattern as on 31 Mar 2025

    Unitholding Pattern as on 31 Mar 2025 Unitholding Summary INR 22,829 Cr 35.6% Market Cap(1) % Free- float 609 Mn units Unitholding Pattern (Market Cap : INR 228 Bn) (1) AIF MF NIIs 0.5% 5.2% 9.8% Insurance 3.7% DIIs Sponsors & Sponsor Public 3.0% Group (3) (Others) Total 64.4% 35.6% FIIs Unitholders

  52. Slide 52: Annexure

    09 Annexure

  53. Slide 53: Stable NOI Growth Driven by Effective Cost and Revenue Management

    Stable NOI Growth Driven by Effective Cost and Revenue Management Revenue from Operations (INR Mn)(1) NOI (INR Mn)(1) % of NOI Assets Q4 FY25 Q4 FY24 FY25 Q4 FY25 Q4 FY24 FY25 Q4 FY25 Mindspace Airoli (E) 1,050 981 4,045 671 730 2,921 12% Mindspace Airoli (W) 1,136 874 4,063 816 641 2,987 15% Mindsp

  54. Slide 54: Structure of Mindspace REIT

    Structure of Mindspace REIT Unitholders Investment In Distribution Mindspace REIT Investment Manager Trust Trustee K Raheja Corp Investment Mindspace Business Parks REIT Axis Trustee Services Limited Managers Private Limited(1) SPV: K Raheja SPV: Avocado SPV: SPV: KRC SPV: SPV: Gigaplex SPV: Sustain

  55. Slide 55: Portfolio Summary

    Portfolio Summary 30.0 msf of Completed area with WALE of 7.4 years and MTM potential of 13.4%(1) Total Committed WALE on Leasable Completed UC/Future Occupancy In-place Rent Asset Occupancy area Area Area (msf) Area (msf) (%) (INR psf) (%) (years) (msf) Mindspace Airoli East 7.2 4.9 2.3 71.8% 78.8%

  56. Slide 56: Breakup of Lease Expiry Profile

    Breakup of Lease Expiry Profile FY26 FY27 FY28 % of Asset Gross Rent at Area % of Gross Rent at Area % of Gross Rent at Area Expiring Contrac Expiry Expiring Contracted Expiry Expiring Contracted Expiry (msf) ted (INR psf) (msf) Rentals (INR psf) (msf) Rentals (INR psf) Rentals Mindspace Airoli East

  57. Slide 57: Key Financial Metrics

    Key Financial Metrics Delivered consistent growth on key financial metrics Revenue (INR bn) (1,3) NOI (INR bn) (1,3) 6.8 6.0 6.4 6.0 6.2 6.2 5.4 6.0 5.9 5.5 5.2 0.12 4.9 4.8 5.0 5.0 5.0 0.12 (1) (0.09)(1) 4.8 5.9 5.6 4.5 4.8 4.7 4.5 4.0 3.5 3.0 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25

  58. Slide 58: Balance Sheet as on 31-Mar-25

    Balance Sheet as on 31-Mar-25 Balance Sheet (INR Mn)(1) Mar-25 Dec-24 Notes 1. All numbers are prior to minority Sources of Funds adjustment Total Equity 1,48,106 1,44,285 Sub-Total 2. Other Liabilities primarily include 1,48,106 1,44,285 Trade Payables, Capital Liabilities Creditors, Retention Mone

  59. Slide 59: Debt Maturity Schedule as on 31-Mar-25

    Debt Maturity Schedule as on 31-Mar-25 Interest Wt. Avg. Principal Repayment Description Fixed/ Undrawn Principal Total Facility Rate Maturity (INR Mn) Floating Facility O/S FY31 & (p.a.p.m) (Years) FY26 FY27 FY28 FY29 FY30 Total Beyond At REIT Level NCD (Tranche 4) Fixed 5,000 - 5,000 7.9% 2.3 - -

  60. Slide 60: De-risked Portfolio with ~91.8% Completed Assets

    De-risked Portfolio with ~91.8% Completed Assets Project wise Market Value breakup (1) Completed Assets form 91.8% of the Market Completed U/C & Future Dev. Total Value % of Total Asset Value(2) (INR Mn) (INR Mn) (INR Mn) (%) Mindspace Airoli East 46,240 3,749 49,989 13.6% Mindspace Airoli West 51,7

  61. Slide 61: Research Houses Covering Mindspace REIT

    15 Research Houses Covering Mindspace REIT Research House Analyst Email Id Ambit Capital Karan Khanna karan.khanna@ambit.co Avendus Spark Girish Choudhary girish.c@avendusspark.com Axis Capital Pritesh Sheth pritesh.sheth@axiscap.in Bank of America Kunal Tayal kunal.tayal@bofa.com CITI Research Raji

  62. Slide 62: Key Definitions

    Key Definitions Asset SPVs Collectively, Avacado, Gigaplex, Horizonview, Intime, KRIT, KRC Infra, MBPPL, Sustain 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

  63. Slide 63: Thank You

    Thank You

Mindspace Business Parks REIT — Q4 FY2025 Earnings Presentation on 6ix