Brookfield India Real Estate Trust · NSE:BIRET.RR
Brookfield India Real Estate Trust — Q2 FY2024 Earnings Presentation
43 slides from Brookfield India Real Estate Trust's earnings presentation, Nov 6, 2023
Slide 1: Q2 FY2024 Investor Update
Brookfield India Real Estate Trust Q 2 F Y 2 0 2 4 – I N V E S T O R U P D AT E NOVEMBER 6, 2023 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: Brookfield India Real Estate Trust
Brookfield India Real Estate Trust India’s first 100% institutionally managed REIT, owning 25.3 MSF of class A office properties Gurugram Noida (7.4 MSF) 25.3 MSF 20.7 MSF (7.9 MSF) 7.6 0.2(3) 5.8 1.6 TOTAL AREA OPERATING AREA 34% 24% 88% Rs 82 PSF EFFECTIVE ECONOMIC IN-PLACE RENT OCCUPA
Slide 4: High Quality Properties in Gateway Cities
High Quality Properties in Gateway Cities Acquired Downtown Powai (non-SEZ) and Candor TechSpace G1 in Q2 FY2024 34% 18% 16% Prime office portfolio in a 250-acre integrated township One of the largest campus-style offices in SBD Gurugram One of the largest campus-style offices in CBD Gurugram
Slide 5: Strong Return to Work
Strong Return to Work ~9x improvement in physical occupancy since January 2022 driven by “return-to-office” % PHYSICAL OCCUPANCY 71% 69% 67% 66% 64% 64% 60% 59% 55% 54% 52% 52% 45% 33% 32% 32% 22% 22% 16% 8% 9% May-22 May-23 Jan-22 Mar-22 Feb-22 Jun-22 Sep-22 Jan-23 Mar-23 Feb-23 Jun-23 Sep-23 Aug-2
Slide 6: Leasing Success
Leasing Success Our existing tenants have a strong preference for our high-quality assets, evidenced by the fact that 85% of the leasing comprises expansion and renewal demand from existing tenants H1 FY2024 GROSS LEASING BREAKDOWN Rs 94 PSF AVERAGE RENT ON GROSS LEASING(1)(2) Cole Palmer Teleperf
Slide 7: Leasing Success | SEZ Assets
Leasing Success | SEZ Assets Our SEZ assets continue to attract and retain marquee tenants, and significantly outperformed the historical average leasing in Q2 FY2024 SEZ - NEW LEASING (Q2 FY2024)(1) ATTRACTED / RETAINED MARQUEE TENANTS SINCE IPO 220,000 SF 14% Attracted New Tenants EXPANSION BY EXI
Slide 8: Leasing Success | SEZ Assets (Cont’d.)
Leasing Success | SEZ Assets (Cont’d.) Marquee tenants operating their global capability centers from our assets expanded their footprints in Q2 FY2024 RECENT TENANT EXPANSIONS (AREAS IN SF) (1) EUI (G2) (G2) (G2) 196,000 183,000 101,000 174,000 64,000 138,000 Jun-23 Sep-23 Jun-23 Sep-23 Jun-23 Sep-
Slide 9: Significant Growth Potential
Significant Growth Potential We have a significant embedded growth headroom of 14% NOI GROWTH POTENTIAL (RS MILLIONS) Rs 20,574 - 20,794 Rs 1,670 - 1,850 Rs 320 - 360 Rs 459 Rs 18,125 (3) (4) Current Adj. NOI Run H1 FY2024 Lease up NOI Vacant Area Lease Up Margin Expansion Stabili
Slide 10: Leader in Sustainable Office Development
Leader in Sustainable Office Development Achieved a 5-star GRESB rating for the second time in a row and ranked #1 in Asia for “Management Score” 90/100 98/100 Standing Investments score(1) Development score(1)(2) 𝟓𝟑ൗ Environment 𝟒𝟗ൗ Environment 𝟔𝟐 Global Average: 41 𝟓𝟏 Global Average: 40…
Slide 11: Leader in Sustainable Office Development (Cont’d.)
Leader in Sustainable Office Development (Cont’d.) Awarded the prestigious Sword of Honour for several of our assets by the British Safety Council for our efforts on health, safety and well-being 5 Assets awarded Sword of Honour • The British Safety Council’s Sword of Honour award is bestowed upon o
Slide 12: Business Updates
Business Updates CANDOR TECHSPACE G1, GURUGRAM
Slide 13: Q2 FY2024 | Business Highlights
Q2 FY2024 | Business Highlights Achieved gross leasing of 0.5 MSF this quarter • Leased 476,000(1) SF across our assets, with 37% of the area being leased to GCCs • 318,000(1) SF leased in our SEZ assets, with 220,000 SF of expansion demand from existing tenants 0.5 MSF 19% • Leased 158,000 SF in ou
Slide 14: New Leasing and Renewals
New Leasing and Renewals Achieved gross leasing of 0.5 MSF during the quarter while progressing on a 2.2 MSF leasing pipeline SELECT NEW LEASES / RENEWALS(1) Tenant Assets Area (SF) LTIMindtree N1 87,000 Teleperformance N2 82,000 L&T Hydrocarbon Downtown Powai (SEZ) 72,000 Rs 112 PSF AVERAGE RENT
Slide 15: Significantly Complete and Stable Portfolio
Significantly Complete and Stable Portfolio 95% of gross asset value is in operating properties, with an Effective Economic Occupancy of 88% and a long-dated WALE of 7.4 Yrs. Area (in MSF) Leased Area Metrics Dev. Area # Office Committed / WALE In-place Rent Asset Value(3) Asset Operating Poten
Slide 16: Deep Rooted Tenant Relationships
Deep Rooted Tenant Relationships High-quality tenant roster diversified across multiple industry sectors SECTOR DIVERSIFICATION OF TENANTS(1) TOP 10 TENANTS(1) % Gross % Leased Technology, 30% Tenant Name Industry Contracted Area Others, 18% Rentals Accenture Consulting 9% 10% TCS Technology 9% 10%
Slide 17: Lease Expiry Profile
Lease Expiry Profile 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 LEASE EXPIRY SCHEDULE • Renewed 0.2 MSF at a Area Expiring Achieved/Expected Renewals Cumulative Expiry (% of Rentals) s
Slide 18: Financial Updates
Financial Updates CANDOR TECHSPACE K1, KOLKATA
Slide 19: Q2 FY2024 | Financial Highlights
Q2 FY2024 | Financial Highlights 33% increase in operating income and 74% increase in Gross Asset Value versus Q2 FY2023 Growth vs Q2 FY2024 Q2 FY2023 • Rs 685 million (33.3%) YoY increase: Operating Lease o Rs (40) million (-1.9%) due to same store expiries Rentals (OLR) Rs 2,741 33% (Rs Million) o
Slide 20: Q2 FY2024 | Distributions
Q2 FY2024 | Distributions Rs 1,932 million DISTRIBUTION PER UNIT COMPONENTS DISTRIBUTION (Q2 FY2024) Rs 0.19 , 4% Rs 4.40 DISTRIBUTION PER UNIT (DPU)(1) Generated NDCF of Rs 5.03 per unit from the Pre-acquisition SPVs without considering the impact of dilution from the units issued at QIP and the pr
Slide 21: NDCF | Walkdown
NDCF | Walkdown Millions Q1 FY2024 Q2 FY2024 H1 FY2024 Income from Operating Lease Rentals (OLR) Rs 2,113 Rs 2,741 Rs 4,854 CAM / Other Revenue 1,028 1,256 2,284 Revenue from Operations Rs 3,141 Rs 3,997 Rs 7,138 CAM / Other Direct Expenses (866) (1,044) (1,910) Income Support 178 514 691 Adjusted N
Slide 22: NDCF | Walkdown
NDCF | Walkdown Millions Q1 FY2024 Q2 FY2024 H1 FY2024 NDCF (SPV Level)(1) Rs 2,213 Rs 2,048 Rs 4,261 Interest on Shareholder Debt/CCD/NCD 800 1,013 1,813 Dividends - - - Repayment of Shareholder Debt/NCD 1,465 1,359 2,824 Investment of Shareholder Debt in SPV (600) (510) (1,110) REIT Expenses (Net
Slide 23: Summary Balance Sheet
Summary Balance Sheet Our business is well-capitalized, backed by a strong balance sheet Millions September 30, 2023 Total Equity 126,377 Equity 106,113 Non-Controlling Interest 20,264 Liabilities 133,272 Bank Borrowings 99,343 Commercial Paper 7,009 NCD's and CCD's 12,476 Security Deposits 9,079 Ot
Slide 24: Capital Structure and Liquidity
Capital Structure and Liquidity 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 KEY METRICS DEBT MATURITY PROFILE (% of OUTSTANDING DEBT) Rs 114.5 B AAA/Negative 76% NET DEBT(1)
Slide 25: Information Supplement
Information Supplement CANDOR TECHSPACE N2, NOIDA
Slide 26: Brookfield: One of the World’s Largest Real Estate Portfolios
Brookfield: One of the World’s Largest Real Estate Portfolios With ~$272B 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 27: 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) $8.5B 54 MSF ASSET
Slide 28: Robust Growth Pipeline
Robust Growth Pipeline We have access to our Sponsor Group’s assets of 29 MSF across India in key gateway cities G2 Delhi N1, N2 Area (in MSF) (Gurugram) NCR (Noida) Total Operating Future Dev. G1 (Gurugram) Current Portfolio 25.3 20.7 4.6 Other Brookfield Assets 28.6 19.6 9.0 Mumbai (under ROFO)
Slide 29: 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)(1)(2)(3) ENERGY CONSUMPTION (MILLION UNITS)(1)(3) Scope 2 Scope 1 3 68 5 1 1 178 45 2 137 36 36 103 95 87
Slide 30: 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) H2 FY2024E Downtown Powai (non-SEZ) 393 16% Rs 148 Downtown Powai (SEZ) - - - G1 84 3% 84 G2 126 5% 88 N1 122 5% 50 N2 23 - 58 K1 327 14% 50 Total 1,076 7% R
Slide 31: Q2 FY2024: Occupancy Bridge
Q2 FY2024: Occupancy Bridge June 30, 2023 September 30,2023 Operating Leased Committed Operating Leased Committed ASSET Leasing Expiries Renewed area area occupancy area area occupancy Downtown Powai 4,218 3,606 85% 129 (55) 20 4,242 3,701 87% Non-SEZ 2,656 2,372 89% 43 (55) 20 2,661 2,380 89% SEZ 1
Slide 32: H1 FY2024: Occupancy Bridge
H1 FY2024: Occupancy Bridge March 31, 2023 September 30,2023 Operating Leased Committed Operating Leased Committed ASSET Leasing Expiries Renewed area area occupancy area area occupancy Downtown Powai 4,217 3,729 88% 133 (182) 20 4,242 3,701 87% Non-SEZ 2,655 2,371 89% 47 (58) 20 2,661 2,380 89% SEZ
Slide 33: Q2 FY2024: New leasing & Renewals
Q2 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 129 149 20 297 150 169 Non-SEZ 43 165 20 297 63 208 SEZ 86 141 - - 86 141 G1 - - 36 - 36 - G2 59 102 - - 59 102 N1 94 69 - - 95 69 N2
Slide 34: H1 FY2024: New leasing & Renewals
H1 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 133 150 - 20 297 - 153 169 Non-SEZ 47 166 - 20 297 - 67 206 SEZ 86 141 - - - - 86 141 G1 - - - 36 - - 36 - G2 97 98 - - - - 97 98 N1
Slide 35: Property Income | Walkdown
Property Income | Walkdown MILLIONS Q2 FY2024 Q2 FY2023 KEY DRIVERS • Rs 685 million (33.3%) YoY increase: Income from Operating Lease o Rs (40) million (-1.9%) due to same store expiries Rs 2,741 Rs 2,056 Rentals (OLR) o Rs 724 million (35.2%) due to addition of Downtown Powai (non-SEZ) and G1 • Rs
Slide 36: Property Income | Walkdown
Property Income | Walkdown MILLIONS H1 FY2024 H1 FY2023 KEY DRIVERS • Rs 764 million (18.7%) YoY increase: Income from Operating Lease o Rs 40 million (1.0%) due to new leasing Rs 4,854 Rs 4,091 Rentals (OLR) o Rs 724 million (17.7%) due to addition of Downtown Powai (non-SEZ) and G1 • Rs 428 millio
Slide 37: Property Income | Consolidation Details (Q2 FY2024)
Property Income | Consolidation Details (Q2 FY2024) INCOME FROM OPERATING REVENUE FROM MILLIONS NET OPEARTING INCOME(1) LEASE RENTALS (OLR) OPERATIONS Q2 FY2024 Q2 FY2023 Q2 FY2024 Q2 FY2023 Q2 FY2024 % OLR Q2 FY2023 % OLR Downtown Powai Rs 787 Rs 447 Rs 875 Rs 482 Rs 770 98% Rs 420 94% Non-SEZ 435
Slide 38: Property Income | Consolidation Details (H1 FY2024)
Property Income | Consolidation Details (H1 FY2024) INCOME FROM OPERATING REVENUE FROM MILLIONS NET OPEARTING INCOME(1) LEASE RENTALS (OLR) OPERATIONS H1 FY2024 H1 FY2023 H1 FY2024 H1 FY2023 H1 FY2024 % OLR H1 FY2023 % OLR Downtown Powai Rs 1,201 Rs 885 Rs 1,321 Rs 959 Rs 1,153 96% Rs 833 94% Non-SE
Slide 39: Ongoing Capex and Upgrades
Ongoing Capex and Upgrades Rs 4.5 billion of capex projects underway across new tower developments and upgrades to existing towers. Capex including interest during construction to be financed through debt (1) ESTIMATED COMPLETION PENDING COSTS ONGOING PROJECTS DATE (MILLIONS) Asset Upgrades/Tenant
Slide 40: 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 Kairos Property Candor
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 CLSA Kunal Lakhan Kunal.Lakhan@clsa.com HSBC Bank Puneet Gulati PuneetGula
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, 2023 (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) 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
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