Mindspace Business Parks Reit · NSE:MINDSPACE.RR
Mindspace Business Parks Reit — Non-Deal Roadshow (June 2024)
42 slides from Mindspace Business Parks Reit's roadshow presentation, June 2024
Slide 1: Retail Investor Meet
Retail Investor Meet June 2024 mindspacereit.com 1
Slide 2: Overview of REIT
01 Overview of REIT mindspacereit.com 2
Slide 3: How does a REIT work?
How does a REIT work? REITs is an investment vehicle that allows investors to own an interest in income-producing real estate Distribution from underlying assets Investment Capital Offices Investment Capital Distribution & REIT Investment Capital Price Appreciation Investors Malls Investment Capital
Slide 4: REITs around the World
REITs around the World The timeline of REIT launches in major economies over the years. • South Korea • Singapore • Japan • Hong kong • Thailand • Germany • UK Establishment • India of REIT in US Australia Malaysia • Philippines 1960 1961-1980 1981-1999 2000-2021 ~$2 940 trillion Globally listed REI
Slide 5: REITs: A Key Component of Global Listed RE
REITs: A Key Component of Global Listed RE Globally, around 60% of the listed real estate value is attributable to REITs vs 12% in India Listed Real Estate Market Cap Contributed by REITs (%) 2.4% 6.8% 2.3% Journey of REITs in India 16.7% has just begun 1.5% 99% 95% 93% $10 bn 2.4% 69% 45% 0.3% 29%
Slide 6: Snapshot of Indian REITs
Snapshot of Indian REITs The Indian REIT market continues to evolve since the listing of the first REIT in April 2019 4 115+ msf(1) Listed REITs in India Across India’s top commercial & Retail Markets 86,000+ cr INR 25,900+ cr Market Capitalization Total equity raise since Listing INR 140,000+ cr 2.
Slide 7: Why Invest in Indian REIT?
Why Invest in Indian REIT? Professional Management Liquidity Corporate governance Participation in Easy entry and exit in real Strong governance professionally managed real estate sector through stock framework & disclosure assets market without restrictions requirements Regular Income generation Gr
Slide 8: How one can invest in Indian REIT?
How one can invest in Indian REIT? Any investor with a demat account can invest in Indian REIT units which are freely traded on the Indian stock exchanges • NSE Listed On • BSE • Domestic Eligible • Foreign Investors • Retail • Institutional An investor can buy or sell even a single unit through dem
Slide 9: Taxation for Investors
Taxation for Investors Income earned by Unit holder Dividend Interest Income Return of Capital Withholding Tax: ✓Exempt(1) Reduced from Non-Resident – 5% Acquisition price Others 10% Capital gains (2) Noit e m ns:1) d sThpearecisen ro ef ui rtt.hce rot m a x o n d i v i d e n d s i n t h e h an ds o
Slide 10: Attractive Post Tax Yield Coupled with Capital Appreciation
Attractive Post Tax Yield Coupled with Capital Appreciation REITs play a key role in the overall asset allocation strategy as they are a ‘total-return’ product offering attractive post-tax distribution yields along with long-term capital appreciation potential Tax rate(5) 34.3% Last 5 - Years Annual
Slide 11: Mindspace REIT Delivered Attractive Total Return Since Listing
Mindspace REIT Delivered Attractive Total Return Since Listing INR per unit Capital Distribution Total Appreciation Yield Return 6.5% 5.9% 12.4% 70.4 66.3 345 66.3 Capital Distribution 275 70.4 appreciation per unit since since listing listing Aug-20 Mar-24 Notes: m i n dSource: s p aCompany c e r e
Slide 12: Mindspace REIT
02 Mindspace REIT mindspacereit.com 12
Slide 13: Sponsored by One Of India's Leading Real Estate Group
Sponsored by One Of India’s Leading Real Estate Group Over 6 decades of experience across Residential, Office, Malls & Hotels Office Hospitality Malls Residential Retail Leasable Area >50 msf (1) 3,300+ (2) operational 4 operational malls Developed residential Operates 230+ retail hotel keys project
Slide 14: Mindspace Business Parks REIT Portfolio Overview
Mindspace Business Parks REIT Portfolio Overview One of the largest Grade-A office portfolios in India 33.2 msf INR c. 29,900 cr INR 20,174 cr INR 1,896 cr Total Leasable Area (1) AUM (3) Market capitalization(2) NOI FY 2024(4) Presence in 4 out of top 6 Indian office markets o Sponsored by K Raheja
Slide 15: Delivered Robust Performance Since Listing
Delivered Robust Performance Since Listing Cumulative distribution of INR 66.3 p.u. since listing 20.7% c.15 msf (1) Releasing Spread on Gross Leasing 10.6 msf INR 39.3 Bn 12.4 % Total distribution(3) Annualized returns(7) 2.3 msf 7.8 % p.a.p.m. Delivered New Cost of Debt as on 31 Developments Mar 2
Slide 16: Key Strategic initiatives and Sustainability achievements
Key Strategic initiatives and Sustainability achievements Consolidating ownership Initiated Redevelopment through acquisition of c.3.0 msf c. 0.24 msf Leasable area acquired in Commerzone Porur c. 42 ksf Acquisition in Commerzone Demolition through Yerwada ‘Implosion technology’ 1st Received 9 Briti
Slide 17: Diversified Portfolio of Marquee Tenants
Diversified Portfolio of Marquee Tenants Top 10 tenants contributing 28.1% (Mar 24) Diversified tenant mix across sectors Top 10 tenants Gross Contracted Rentals contribution (28.1%) (1) (1) % split by Gross Contracted Rentals % of total Gross Contracted Rentals # of parks L&T 4.2% 2 Manufacturing &
Slide 18: Upward shift in the value chain for Tech services in India
Upward shift in the value chain for Tech services in India Early 2000s • Activities were limited to BPO functions • Leveraging talent pool to cultivate R&D capabilities 2005-12 • Transformative shift towards becoming GCC 2013 • Focus on new age Technologies like AI, Machine learning, Blockchain onwa
Slide 19: Our Debt Philosophy
Our Debt Philosophy We have Strategically Adopted a Balanced Approach to Financial Leverage Lowest LTV amongst Peers in Office REIT 21.1 % INR 916 cr Diversified debt Book with a mix of debentures Net Debt to Undrawn Committed and bank borrowings(1) Market Value (2) Facilities OD Debenture 1.6% 55.6
Slide 20: Unitholding Pattern as on 31 March 2024
Unitholding Pattern as on 31 March 2024 Unitholding Summary INR 20,482 Cr 36.5% Market Cap(1) % Free- float 593 Mn units Unitholding Pattern (Market Cap : INR 205 Bn) (1) MF NIIs AIF 0.9% 10.9% 0.5% Insurance 1.7% NPS Sponsors & Sponsor Public 0.2% Group (Others) DIIs 3.2% Total 63.5% 36.5% Unithold
Slide 21: Five Integrated Business Parks (1/5)
Five Integrated Business Parks (1/5) Mindspace Madhapur, Hyderabad 13.1 msf ~ 96.4% Leasable area Committed Occupancy Data m i n das s pofa31 c eMar r e i2024 t.com 21
Slide 22: Five Integrated Business Parks (2/5)
Five Integrated Business Parks (2/5) Mindspace (1)Airoli East, Mumbai Region 13.1 msf 6.4 msf 82.2% Leasable area Committed Occupancy Data m i n das s pofa31 c eMar r e i2024 t.com 22
Slide 23: Five Integrated Business Parks (3/5)
Five Integrated Business Parks (3/5) 6.4 msf (1)(1)Airoli West, Mumbai Region Mindspace 13.1 msf 5.3 msf 80.0% Leasable Area Committed Occupancy Data m i n das s pofa31 c eMar r e i2024 t.com 23
Slide 24: Five Integrated Business Parks (4/5)
Five Integrated Business Parks (4/5) 6.4 msf (1)(1) Kharadi, Pune Commerzone 13.1msf 5.2 msf (1) 2.9 msf 100% Leasable Area Committed Occupancy Data m i n das s pofa31 c eMar r e i2024 t.com 24
Slide 25: Five Integrated Business Parks (5/5)
Five Integrated Business Parks (5/5) Commerzone (1) Yerawada, Pune 2.9 msf (1) 6.4 msfmsf (1)(1) 13.1 5.2 msf 1.7 msf 97.6% Leasable Area Committed Occupancy Data m i n das s pofa31 c eMar r e i2024 t.com 25
Slide 26: Quality Independent Office Assets (1/2)
Quality Independent Office Assets (1/2) Mindspace Malad, Mumbai Commerzone Porur, Chennai 0.8 msf 99.6% 1.1 msf 84.0% Leasable Area Committed Leasable Area Committed Occupancy Occupancy Note: m i n dTotal s p a Leasable c e r e i t . cArea o m for these assets comprises only Asset SPVs’ share of the
Slide 27: Quality Independent Office Assets (2/2)
Quality Independent Office Assets (2/2) The Square, BKC, Mumbai The Square, Nagar Road, Pune 0.1 msf 100% 0.8 msf 100% Leasable Area Committed Leasable Area Committed Occupancy Occupancy Note: m i n dTotal s p a Leasable c e r e i t . cArea o m for these assets comprises only Asset SPVs’ share of th
Slide 28: Energized Landscape for Business Excellence
Energized Landscape for Business Excellence mindspacereit.com 28
Slide 29: Infusing modern design elements to elevate entry experience
Infusing modern design elements to elevate entry experience Tailoring common areas to meet the evolving preferences of tenants mindspacereit.com 29
Slide 30: Attracting Millennial Workforce of India
Attracting Millennial Workforce of India Amenities and high safety standards within our parks make us the partner of choice for occupiers Landscaped podiums Amphitheatre & lobby areas Club house and play area Biophilic landscaped gardens mindspacereit.com 30
Slide 31: Mindspace REIT Growth Drivers
03 Mindspace REIT Growth Drivers mindspacereit.com 31
Slide 32: Organic NOI Growth and Divestment of Pocharam
Embedded opportunities within Portfolio to drive NOI and Occupancy growth Focused execution and leveraging growth levers to drive NOI growth • Lease up of vacant Area (ex. Pocharam): 2.4 msf • ~80% Of Vacancy is in SEZ area • Strong leasing evidenced for converted ~9.3 Organic NOI spaces Growth msf
Slide 33: Organic development to drive the next phase of growth
Organic development to drive the next phase of growth ~4.4 msf area under development completing over next 3-4 years Commerzone Kharadi, Pune Mindspace Airoli East, Mumbai Mindspace Airoli West, Mumbai Building 4 (~1.0 msf) Highstreet (~0.05 msf) Building 8- Data center (~0.3 msf) Mindspace Madhapur
Slide 34: Unlocking value through strategic redevelopment initiatives
Unlocking value & fostering growth through strategic redevelopment initiatives Re-development – Building 1 Building 1 Building 8 0.8 msf 3.6x c.3 msf m iNote: ndspa Images c e r e i t shown . c o m are Perspectives 34
Slide 35: Modern and Sustainable workplaces attracting occupiers
Modern and Sustainable workplaces attracting occupiers High Quality Portfolio with 6 out of 9 parks(1) achieving >95% committed occupancy levels 100% 100% 100% 98.0% 96.4% 96.1% Gera The Square The Square Mindspace Mindspace Commerzone Commerzone Nagar Road BKC Malad Madhapur Yerwada Kharadi Pune Q4
Slide 36: Inorganic growth through ROFO assets
Inorganic growth through ROFO assets Commerzone Raidurg The Square BKC 98 Hyderabad Mumbai Continuous sponsor pipeline (~15 msf potential) Two assets already offered 1.8 msf 0.15 msf Leased to Qualcomm Leased to BFSI tenant In addition to sponsor assets, third party inorganic opportunities being exp
Slide 37: Value Creation via ESG
04 Value Creation via ESG mindspacereit.com 37
Slide 38: Our Commitment to Build an ESG Centric Ecosystem
Our Commitment to Build an ESG Centric Ecosystem India’s first real estate entity to Signatory of EV100 Initiative Visit to Vipla Foundation sponsoring join RE100 initiative meals through the year Durgam Cheruvu Lake Establishing a school with a capacity Great place to work Makeover, Hyderabad of 40
Slide 39: Tenant Engagement Initiatives, Designed to Build Camaraderie
Tenant Engagement Initiatives, Designed to Build Camaraderie OPEN AIR MOVIE POWERTALKS – VVS MINDSPACE PREMIER 1 SCREENING 2 LAXMAN 3 RAVI GUPTA LIVE 4 LEAGUE Over 1,30,000 employees across 7 of our business parks attended the events mindspacereit.com 39
Slide 40: Tenant Engagement Initiatives, Designed to Build Camaraderie
Tenant Engagement Initiatives, Designed to Build Camaraderie MOVIE SCREENING MOVIE SCREENING VVS LAXMAN VVS LAXMAN RAVI GUPTA LIVE RAVI GUPTA LIVE MINDSPACE PREMIER LEAGUE MINDSPACE PREMIER LEAGUE MINDSPACE PREMIER LEAGUE mindspacereit.com 40
Slide 41: 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 42: Thank You
Thank You Investor Relations Enquiries: Nitin Garewal (Finance & Investor Relations) Email id: ir@mindspacereit.com mindspacereit.com 42
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