Embassy Office Parks REIT · NSE:EMBASSY.RR
Embassy Office Parks REIT — Shareholder Meeting (July 2023)
25 slides from Embassy Office Parks REIT's shareholder meeting presentation, Jul 12, 2023
Slide 1: 5th Annual Unitholders' Meeting
Embassy Office Parks REIT 5th Annual Unitholders’ Meeting July 12, 2023 Hilton at Embassy Manyata, Bangalore 1
Slide 2: FY2023 Highlights
FY2023 Highlights Embassy TechVillage, Bangalore
Slide 3: Delivered on Guidance, Accelerated Growth Investments
5th Annual Unitholders’ Meeting Delivered on Guidance, Accelerated Growth Investments LEASING REDEVELOPMENT DEVELOPMENT Leased 5.1 msf across 100 deals at 16% Launched 1.2 msf redevelopment at Embassy Accelerated 7.9 msf active development at spreads, surpassing annual guidance Manyata at attractive
Slide 4: Strong Leasing Performance
5th Annual Unitholders’ Meeting Strong Leasing Performance Leased a record 5.1 msf across 100 deals at 16% leasing spreads, surpassing annual guidance Highest 100 overall deal activity over 100 Nos. 80 last 7 years Total Deals Signed 61 64 Record leasing 53 49 exceeded 5 48 45 msf FY23 guidance 1.8
Slide 5: Record New Occupiers Added, Primarily GCCs
5th Annual Unitholders’ Meeting Record New Occupiers Added, Primarily GCCs Global Captives continue to set up and expand their India centers, thereby driving leasing. Added 44 new occupiers in FY2023, highest since listing GCC share in FY2023 New Leasing(1) American German Luxury New GCCs Added in P
Slide 6: Focused Growth Investments
5th Annual Unitholders’ Meeting Focused Growth Investments Embassy TechZone – Hudson and Ganges (0.9 msf) Embassy Manyata – M3 Block A (1.0 msf) Delivered in Oct’22 To be delivered in FY2024 Actual Picture Actual Picture Embassy Manyata – L4 Block (0.7 msf) Embassy Manyata – D1/ D2 Redevelopment (1.
Slide 7: Attractive Acquisition in North Bangalore
5th Annual Unitholders’ Meeting Attractive Acquisition in North Bangalore Embassy Business Hub, a campus-style Grade A office property, expands Embassy REIT’s presence in North Bangalore. Attractive acquisition metrics with financing secured at 8.1% debt cost 1.4 msf 93% High Visible Location in Gro
Slide 8: Multiple Global ESG Recognitions
5th Annual Unitholders’ Meeting Multiple Global ESG Recognitions ESG memberships, certifications and performance on global benchmarks reflect commitment to sustainability, transparency and operational excellence Certifications Building ESG Benchmarks CSA Awards Note: (1) USGBC LEED Platinum ‘v4.1 O+
Slide 9: Strong Financial Performance
5th Annual Unitholders’ Meeting Strong Financial Performance FY23 NOI and EBITDA up 11% each year-on-year respectively with NOI and EBITDA margins at 81% and 79% respectively FY2023 FY2022 Variance % Remarks (Cr) (Cr) Revenue from new lease-up at attractive re-leasing spreads Revenue and contractu
Slide 10: Delivering on Distributions
5th Annual Unitholders’ Meeting Delivering on Distributions Consistently distributed 100% payout for 16 quarters, cumulative distributions of over ₹7,800 crores since listing. Tax efficient distributions, with a significant proportion tax free for Unitholders Consistent 100% Distributions Distributi
Slide 11: Forward Outlook and Strategy
Forward Outlook and Strategy FIFC, Mumbai
Slide 12: India: The Office to the World
5th Annual Unitholders’ Meeting India: The Office to the World India office remains a long-term growth opportunity, led by dual structural drivers of cost efficiency and abundant STEM talent offered by India’s gateway cities India’s Dual Structural Advantage Continues GCC additions in India continue
Slide 13: Bangalore Continues to Lead India's Office Resurgence
5th Annual Unitholders’ Meeting Bangalore Continues to Lead India’s Office Resurgence Bangalore continues to be Asia’s leading office market given its strong tech ecosystem. Embassy REIT’s portfolio concentration in Bangalore market remains a key advantage Largest Tech, Start-up and GCC Hub in India
Slide 14: Growth through New Developments
5th Annual Unitholders’ Meeting Growth through New Developments 7.9 msf active development at highly attractive yields with over 90% concentrated in Bangalore, India’s best office market enjoying attractive development economics and strong demand Development Pipeline(1) (msf) Development Status as o
Slide 15: Embedded Rent Growth
5th Annual Unitholders’ Meeting Embedded Rent Growth Secured 14% rent escalations on 8.2 msf and achieved 16% spreads on 1.8 msf renewals. 2.2 msf exits offer significant 25% MTM potential Embedded Rent Escalations of ~15% aids NOI Growth 27% of Leases Expire Between FY2024–27 Area (msf) Area Expiri
Slide 16: Portfolio Expansion through Inorganic Growth
5th Annual Unitholders’ Meeting Portfolio Expansion through Inorganic Growth Acquisition strategy based on our clearly defined criteria of high-quality, large-scale business parks located in the right micro-markets of the top Indian cities 9.2 msf Embassy TechVillage acquired in Dec’20 5 msf Chennai
Slide 17: Deepening Business Moat
5th Annual Unitholders’ Meeting Deepening Business Moat Continued investments in campus infrastructure and amenities deepen business moat and fortify REIT’s properties for the next phase of growth 85k sf Retail Plaza at Embassy Manyata Sports Zone, Central Garden at ETV Perspective Actual picture Pe
Slide 18: Supported by Strong Balance Sheet
5th Annual Unitholders’ Meeting Supported by Strong Balance Sheet Refinanced ₹5,300 Cr debt at 101 bps positive spreads, maintained best-in-class balance sheet with low 28% leverage, attractive 7.2% debt cost and AAA/Stable credit ratings Key Parameters Debt Composition 28% Banks 36% Leverage(1) Mut
Slide 19: Progressing on 3-Year ESG Roadmap
5th Annual Unitholders’ Meeting Progressing on 3-Year ESG Roadmap In-line with our 2040 net zero commitment, 3-year sustainability targets defined and monitored across 19 ESG programs Pillar Metric Target(1) FY2023 Update Status ► Renewable energy consumption share 75% by FY25 52% On track ► Water c
Slide 20: Multiple Embedded Growth Levers
5th Annual Unitholders’ Meeting Multiple Embedded Growth Levers Embassy REIT’s strategy focuses on enhancing NOI and delivering long term total return value for Unitholders, driven by rental growth as well as leased area expansion 4.9 msf Vacant Area lease-up New developments over the next 4 yea
Slide 21: Q&A
Q&A Hilton Hotel Complex, Embassy Manyata
Slide 22: Resolutions
Resolutions Embassy Galaxy, Noida
Slide 23: Resolutions for Unitholders' Approval
5th Annual Unitholders’ Meeting Resolutions for Unitholders’ Approval To consider, approve and adopt the Audited Standalone Financial Statements and Audited Consolidated Financial Statements of Embassy Resolution 1 REIT as at and for the Financial Year ended March 31, 2023 together with the report
Slide 24: Disclaimer
5th Annual Unitholders’ Meeting Disclaimer This presentation is issued by Embassy Office Parks Management Services Private Limited (the “Manager”) in its capacity as the Manager of the Embassy Office Parks REIT (“Embassy REIT”), for general information purposes only, without regards to the specific
Slide 25: Investor Contact
Investor Contact: Website: www.embassyofficeparks.com | Email: ir@embassyofficeparks.com | Office: +91 80 4722 2222
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