Brookfield India Real Estate Trust · NSE:BIRET.RR
Brookfield India Real Estate Trust — Q3 FY2023 Earnings Presentation
43 slides from Brookfield India Real Estate Trust's earnings presentation, Feb 7, 2023
Slide 1: Q3 FY2023 Investor Update
Brookfield India Real Estate Trust Q 3 F Y 2 0 2 3 – I N V E S T O R U P D AT E F E B R U ARY 7 , 2 0 2 3 CANDOR TECHSPACE K1, KOLKATA
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: Brookfield India Real Estate Trust
Brookfield India Real Estate Trust India’s first and only 100% institutionally managed REIT, owning 18.7 MSF of class A office properties Delhi NCR (11.4 MSF) 18.7 MSF 14.3 MSF Gurugram 3.9 0.1 TOTAL AREA OPERATING AREA Noida 5.7 1.6 Total 9.7 1.7 88% Rs 64 PSF 67% EFFECTIVE ECONOMIC IN-PLACE RENT O
Slide 4: High Quality Properties in Gateway Cities
High Quality Properties in Gateway Cities 28% 25% One of the Largest Campus-style Offices in CBD Gurugram Largest Office Campus in Noida CANDOR TECHSPACE, SECTOR 21, GURUGRAM (G2) CANDOR TECHSPACE, SECTOR 135, NOIDA (N2) 4.0 MSF | 29 ACRES 4.5 MSF | 30 ACRES 17% 16% 14% Largest Corporate Facility lo
Slide 5: 9M FY2023 – Scorecard
9M FY2023 – Scorecard We have executed on our stated strategy and have a robust outlook on our business Metric Performance 1 Stable Distribution Rs 15.20 DPU In line with guidance 2 Leasing Success 0.9 MSF + 0.1 MSF of Expansion Options 0.6 MSF of new leasing and 0.3 MSF of renewals 3 Leasing Prospe
Slide 6: Q3 FY2023 | Business Highlights
Q3 FY2023 | Business Highlights We witnessed continued leasing demand with 332,000 SF of gross leasing this quarter • Achieved 241,000 SF of new leasing and 91,000 SF of renewals during the quarter, and signed expansion options of 40,000 SF in N2 332,000 SF 88% Leasing Gross Effective Economic • Ach
Slide 7: Ramp-up of Physical Occupancy…
Ramp-up of Physical Occupancy… 6x improvement in physical occupancy during the year driven by “return-to-office” % PHYSICAL OCCUPANCY 52% 50% 50% 43% 33% 33% COVID-19 3rd wave subsides 26% 21% “Return-to-office” by tech 21% occupiers 16% 9% 8% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22
Slide 8: …is resulting in Consistent Leasing Recovery
…is resulting in Consistent Leasing Recovery Attracting new tenants while existing tenants continue to expand 9M FY2023 LEASING & RENEWALS Rs 77 PSF LTIMindtree AVERAGE RENT ON NEW LEASING(1)(2) GE Oil & Gas 30% 35% 12.4 Yrs. AVERAGE TERM ON NEW LEASING(1) BT E-Serv 949,000 SF 0.9 MSF Accenture NEW
Slide 9: Candor Techspace N2: Performance Update
Candor Techspace N2: Performance Update Achieved strong leasing demand and a sharp improvement in rentals RECENT DELIVERIES (POST - COVID) RECENT LEASING SUCCESS Area Leased (SF) Rent (PSF PM) TOWER 11 TOWER 11A 250,000 Rs 67 68 0.6 MSF 85% 0.2 MSF 100% AREA OCCUPIED(1) AREA COMMITTED(2) 200,000 67
Slide 10: Q3 FY2023 | Financial Highlights
Q3 FY2023 | Financial Highlights 60% increase in operating income versus Q3 FY2022, led by the N2 acquisition Growth vs Millions Q3 FY2023 Q3 FY2022 • Rs 622 million (43.0%) YoY increase Operating Lease o Rs 462 million (32.0%) increase due to addition of N2 to Rs 2,068 43% Rentals (OLR) the REIT an
Slide 11: Q3 FY2023 | Distributions
Q3 FY2023 | Distributions Our distributions are in line with our guidance at Rs 5.00 per unit DISTRIBUTION PER UNIT COMPONENTS Rs 1,675 million DISTRIBUTION (Q3 FY2023) Rs 0.03 , 1% Rs 2.60 , 52% Rs 5.00 DISTRIBUTION PER UNIT (DPU) FEB 15, 2023 RECORD DATE Rs 2.27 , 45% Rs 0.10 , 2% (1) Interest on
Slide 12: Strong Capital Structure
Strong Capital Structure Backed by high quality assets and robust cash flows, our long-duration borrowings maintain a AAA credit rating, attract competitive costs and carry a low refinancing risk 7.95% AAA Stable 32% Rs 1.2B AVERAGE INTEREST RATE(1) CREDIT RATING (CRISIL) NET DEBT TO UNDRAWN COMMITT
Slide 13: Significant Organic Growth Potential
Significant Organic Growth Potential We achieved a 9% growth in the NOI run rate from Q4 FY2022 and have an embedded growth headroom of ~18% NOI GROWTH POTENTIAL (RS MILLIONS) +18% 300 - 350 11,246 - 11,446 +9% 980 - 1,060 350 - 420 774 9,616 8,842 Q4 FY2022 NOI Growth vs Q4 Current NOI Q3 FY2023 Va
Slide 14: Attractive Inorganic Growth Prospects
Attractive Inorganic Growth Prospects Sponsor assets of 6.5 MSF of operating Grade-A properties, which if acquired by the REIT, will further increase scale and operating income One of the largest high quality office campuses in Gurugram Prime office portfolio in a 250-acre integrated township (near
Slide 15: Business & Financial Updates
Business & Financial Updates CANDOR TECHSPACE G2, GURUGRAM
Slide 16: Significantly Complete and Stable Portfolio
Significantly Complete and Stable Portfolio 94% of gross asset value is in operating properties, with an Effective Economic Occupancy of 88% and a long-dated WALE of 6.8 years Area (in MSF) Leased Area Metrics In-place Asset Dev. Area # Office Committed / WALE Asset Operating Total Rent Value(2) Pot
Slide 17: Deep Rooted Tenant Relationships
Deep Rooted Tenant Relationships Technology-led, high credit quality tenant roster, with an established track record of tenant expansion SECTOR DIVERSIFICATION OF TENANTS TOP 10 TENANTS BY LEASED AREA % Leased Growth since Tenant Tenant # Parks Area Mar 15(1) since Others, 9% Telecom, Accenture 3 15
Slide 18: New Leasing and Renewals
New Leasing and Renewals Achieved gross leasing of 332,000 SF during the quarter while progressing on a 2.2 MSF leasing pipeline SELECT NEW LEASES / RENEWALS(1) Tenant / Industry Assets Area (SF) Industry Technology N2 128,000 Rs 70 PSF Xceedance Consulting N1 36,000 AVERAGE RENT ON NEW LEASING(2) L
Slide 19: New Leasing and Renewals (Cont’d.)
New Leasing and Renewals (Cont’d.) Portfolio has a well staggered lease expiry profile and provides an opportunity to capture an attractive mark-to-market spread in the near term KEY HIGHLIGHTS (9M FY2023) LEASE EXPIRY SCHEDULE Area Expiring (MSF) Achieved/Expected Renewals Cumulative Expiry (% of R
Slide 20: Property Income | Walkdown
Property Income | Walkdown MILLIONS Q3 FY2023 Q3 FY2022 KEY DRIVERS • Rs 622 million (43.0%) YoY increase Income from Operating Lease o Rs 462 million (32.0%) increase due to addition of N2 to Rs 2,068 Rs 1,447 Rentals (OLR) the REIT and Rs 159 million (11.0%) primarily due to recent new leasing and
Slide 21: NDCF | Walkdown
NDCF | Walkdown Millions Q1 FY2023 Q2 FY2023 Q3 FY2023 9M FY2023 Income from Operating Lease Rentals Rs 2,034 Rs 2,056 Rs 2,068 Rs 6,159 CAM / Other Revenue 876 980 931 2,787 Revenue from Operations Rs 2,910 Rs 3,036 Rs 2,999 Rs 8,946 CAM / Other Direct Expenses (742) (802) (778) (2,322) Income Supp
Slide 22: NDCF | Walkdown
NDCF | Walkdown Millions Q1 FY2023 Q2 FY2023 Q3 FY2023 9M FY2023 NDCF (SPV Level)(1) Rs 2,161 Rs 1,666 Rs 2,212 Rs 6,039 Interest on Shareholder Debt 860 825 816 2,502 Dividends 22 30 35 87 Repayment of Shareholder Debt 1,196 886 1,195 3,277 Investment of Shareholder Debt in SPV(2) (335) - (280) (61
Slide 23: Summary Balance Sheet
Summary Balance Sheet Our business is well-capitalized, backed by a strong balance sheet MILLIONS DECEMBER 31, 2022 Liabilities and Equity Total Equity Rs 84,683 Borrowings(1) 53,909 Security Deposits 4,987 Other Liabilities 3,659 Total Rs 147,238 Assets Investment Property Rs 134,235 Investment Pro
Slide 24: ESG Updates
ESG Updates CANDOR TECHSPACE N2, NOIDA
Slide 25: Leader in Sustainable Office Development
Leader in Sustainable Office Development Outperformed GRESB global averages across all criteria, scoring 100% in Social and Governance categories(1), reinforcing our ESG credentials 90% 96% Standing Investments Score Development Score(2) 𝟓𝟑ൗ Environment 𝟒𝟗ൗ Environment 𝟔𝟐 Global Average: 40…
Slide 26: Leader in Sustainable Office Development (Cont’d.)
Leader in Sustainable Office Development (Cont’d.) Committed to deliver on our Net Zero target by 2040 Gold Prize EHS award (Brookfield Properties) 2021 National Award - Excellence in Best Sustainable & Green Project of Energy Management (G2) 2021 Sustainability Award the Year (G2) 2021 Brookfield I
Slide 27: 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 GREENHOUSE GAS EMISSIONS (‘000 Mt CO2e)(1) ENERGY CONSUMPTION (MILLION UNITS)(1) Scope 2 Scope 1 17 2 1 1 127 123 99 2 99 85 76 76 62 61 41 FY19 FY20 FY21
Slide 28: Information Supplement
Information Supplement KENSINGTON, POWAI, MUMBAI
Slide 29: Sponsor Group: Brookfield
Sponsor Group: Brookfield $750B+ Total AUM | 30+ Countries | 180,000+ Operating Employees Europe and Middle East $139B London Toronto North America New York $469B Shanghai Dubai Asia Pacific Mumbai $107B Rio De Janeiro Sydney South America Corporate Offices $47B Global scale & large permanent capita
Slide 30: Brookfield: One of the World’s Largest Real Estate Portfolios
Brookfield: One of the World’s Largest Real Estate Portfolios With $260B+ 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 31: 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 50 MSF (including Brookfield India REIT) BROOKFIELD INDIA REAL ESTATE – KEY FACTS OTHER INDIA OFFICE PORTFOLIO (OUTSIDE REIT) $8B 50 MSF ASSETS UN
Slide 32: Detailed Lease Expiry Schedule
Detailed Lease Expiry Schedule % of Gross Rentals In-place rent at Expiry (Rs Year / Asset Area Expiring (‘000 SF) (Asset / Portfolio) PSF)(1) Q4 FY2023E Kensington 177 14% Rs 140 G2 182 6% 81 N1 26 0% - N2 55 2% 54 K1 45 0% - Total 484 5% Rs 103 FY2024E Kensington 882 54% Rs 87 G2 322 10% 86 N1 290
Slide 33: Q3 FY2023: Occupancy Bridge
Q3 FY2023: Occupancy Bridge ASSET SEPTEMBER 30, 2022 DECEMBER 31, 2022 OPERATING LEASED COMMITTED NEW GROSS OPERATING LEASED COMMITTED AREAS IN ‘000 SF RENEWALS AREA AREA OCCUPANCY LEASING EXPIRIES AREA AREA OCCUPANCY Kensington 1,563 1,485 95% - (75) - 1,563 1,411 90% G2 3,917 3,340 85% 9 (58) - 3,
Slide 34: 9M FY2023: Occupancy Bridge
9M FY2023: Occupancy Bridge ASSET MARCH 31, 2022 DECEMBER 31, 2022 OPERATING LEASED COMMITTED NEW GROSS OPERATING LEASED COMMITTED AREAS IN ‘000 SF RENEWALS AREA AREA OCCUPANCY LEASING EXPIRIES AREA AREA OCCUPANCY Kensington 1,558 1,409 90% 74 (133) 60 1,563 1,411 90% G2(1) 3,877 3,232 83% 89 (183)
Slide 35: Q3 FY2023: New leasing & Renewals
Q3 FY2023: 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) Kensington - - - - - - G2 9 - - - 9 - N1 104 65 - - 104 65 N2 128 74 91 58 219 67 K1 - - - - - - Total 241 70 91 58 332 66 35 (1) Rents are given pe
Slide 36: 9M FY2023: New leasing & Renewals
9M FY2023: 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) Kensington 74 132 60 120 135 127 G2 89 80 117 90 205 86 N1 304 63 27 - 331 63 N2 151 72 91 58 242 67 K1 - - 36 48 36 48 Total 619 77 330 82 949 79 3
Slide 37: Property Income | Consolidation Details (Q3 FY2023)
Property Income | Consolidation Details (Q3 FY2023) INCOME FROM REVENUE FROM MILLIONS OPERATING LEASE NET OPERATING INCOME (NOI)(1) OPERATIONS RENTALS (OLR) Q3 FY2023 Q3 FY2022 Q3 FY2023 Q3 FY2022 Q3 FY2023 % OLR Q3 FY2022 % OLR Kensington Rs 432 Rs 399 Rs 466 Rs 430 Rs 397 92% Rs 364 91% G2 607 523
Slide 38: Property Income | Consolidation Details (9M FY2023)
Property Income | Consolidation Details (9M FY2023) INCOME FROM REVENUE FROM MILLIONS OPERATING LEASE NET OPERATING INCOME (NOI)(1) OPERATIONS RENTALS (OLR) 9M FY2023 9M FY2022 9M FY2023 9M FY2022 9M FY2023 % OLR 9M FY2022 % OLR Kensington Rs 1,317 Rs 1,250 Rs 1,425 Rs 1,334 Rs 1,229 93% Rs 1,145 92
Slide 39: Capital Structure and Liquidity
Capital Structure and Liquidity Simple capital structure, low-cost asset level debt and significant debt headroom will continue to be our strengths HEADROOM IN LTV(2)(3) 49% Rs 51.7B Rs 1.2B NET DEBT(1) UNDRAWN COMMITTED FACILITY 32% 7.95% AAA Stable AVERAGE INTEREST RATE(2) CREDIT RATING (CRISIL) B
Slide 40: Ongoing Capex and Upgrades
Ongoing Capex and Upgrades Rs 2.7 billion of capex projects underway across new tower developments and upgrades to existing towers. Capex including interest during construction to be financed through debt ESTIMATED PENDING COSTS ONGOING PROJECTS(1) COMPLETION DATE (MILLIONS) Asset Upgrades/Tenant Im
Slide 41: Research Coverage
Research Coverage RESEARCH HOUSE ANALYST EMAIL ID Ambit Karan Khanna Karan.Khanna@ambit.co Axis Capital Samar Sarda Samar.Sarda@axiscap.in BofA Securities Kunal Tayal Kunal.Tayal@bofa.com Citi Atul Tiwari Atul.Tiwari@citi.com HSBC Bank Puneet Gulati PuneetGulati@hsbc.co.in ICICI Securities Adhidev C
Slide 42: Glossary (1/2)
Glossary (1/2) Gross Asset Value / Asset Value The market value as determined by the Valuer as of September 30, 2022 (Occupied Area + Completed Area under Letters of Intent) Committed Occupancy In % Completed Area Weighted Average Lease Expiry based on area. Calculated assuming tenants exercise all
Slide 43: Glossary (2/2)
Glossary (2/2) Includes the NOI for the Initial Portfolio for the entire financial year and for N2 since its REIT Portfolio NOI acquisition on January 24, 2022 Net distributable cash flows (non-GAAP measure). Please refer to pg. 285-287 of the Offer NDCF Document for calculation methodology Sum of L
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