Brookfield India Real Estate Trust · NSE:BIRET.RR
Brookfield India Real Estate Trust — Q3 FY2025 Earnings Presentation
45 slides from Brookfield India Real Estate Trust's earnings presentation, Jan 30, 2025
Slide 1: Q3 FY2025 Investor Update
Brookfield India Real Estate Trust Appendix - I Q 3 F Y 2 0 2 5 – I N V E S T O R U P D AT E J AN U ARY 3 0 , 2 0 2 5 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: High Quality Properties in Gateway Cities
High Quality Properties in Gateway Cities India’s only 100% institutionally managed office REIT, with strong growth prospects SELECT REIT ASSETS 24.3 MSF OPERATING AREA 17% YoY Delhi NCR 17 87% WORLDMARK DELHI COMMITTED OCCUPANCY 770bps YoY Kolkata Mumbai, 3 Pune 4 3 95% COMMITTED OCCUPANC
Slide 4: Q3 FY2025 Highlights
Q3 FY2025 Highlights Capital Financial Leasing Raising Performance Rs 35 Bn QIP 1.1 MSF Rs 4.90 / unit ~1.5x demand from 2nd consecutive quarter with Distribution ~6.5% QoQ marquee investors 1 MSF+ of gross leasing NDCF of Rs 4.96 / unit (1) ~90% 770bps YoY 17% YoY Allocation to Occupancy grow
Slide 5: Capital Raising
Capital Raising Secured Rs 35 Bn through QIP, creating headroom for inorganic growth opportunities USE OF PROCEEDS ISSUE SIZE Rs 35 Bn LTV(1) DEMAND RECEIVED Rs 50 Bn+ 35% 25% Sep-24 Dec-24 # UNITS ISSUED 127.7 Mn KEY INVESTORS UNITHOLDING PATTERN Others, Brookfield 23% Group, IFC SBI MF ICICI PRU 3
Slide 6: Leasing | Turning the Corner
Leasing | Turning the Corner ~770bps improvement in occupancy over the last 12 months COMMITTED OCCUPANCY(1) (%) 87% 84% 85% 84% 83% 82% 80% Mar-22 Mar-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Work from home Strong return to office Global recession Increased technology / GCC hiring Increasing interest
Slide 7: Leasing | Strong Take-up
Leasing | Strong Take-up Second consecutive quarter with more than 1 MSF of gross leasing LEASING UPDATE – Q3 FY2025(1) New Gross Renewals Leasing Leasing Capgemini General Mills Area 929,000 200,000 1,130,000 Intertrustviteos (SF) SEZ Properties 619,000 108,000 727,000 (SF) RSM Average Rent(1) Rs 9
Slide 8: Leasing | Occupancy Growth in SEZ Properties
Leasing | Occupancy Growth in SEZ Properties Strong demand for our high-quality SEZ properties driving occupancy growth SEZ PROPERTIES OCCUPANCY YoY SEZ PROPERTIES GROSS LEASING – CY2024 (LAST 12 MONTHS) 83% HDFC Bank L&T Hydrocarbon Capgemini Tech Mahindra RSM Concentrix 76% 39% CIOP 2.0 MSF Juni
Slide 9: Leasing | On Track to Achieve Guidance
Leasing | On Track to Achieve Guidance Achieved stated occupancy guidance backed by strong leasing momentum and NPA conversions. We expect the occupancy to reach 88% - 89% by the end of FY2025 LEASED AREA (IN MSF) Committed Occupancy (%) 88% - 89% 87% 0.1 - 0.3 21.3 - 21.5 1.1 21.2 83%
Slide 10: Financial Performance | Distributions
Financial Performance | Distributions Q3 FY2025 - DPU COMPOSITION Rs 5,037 million ADJUSTED NOI (Q3 FY2025)(1) Rs 0.09 , 2% Rs 1.05 , 21% Rs 1.55 , 32% Rs 2,982 million NDCF (Q3 FY2025) Rs 4.90 Rs 2,978 million per unit DISTRIBUTION (Q3 FY2025) Rs 2.21 , 45% February 4, 2025 (2) RECORD DATE In
Slide 11: Financial Performance | Strong Outlook
Financial Performance | Strong Outlook Steady leasing recovery can drive ~16% growth in NOI and ~25% growth in distributions Q3 FY2025 Under Pro-forma Rs Billions Lease up(2) Levers Run Rate Contract(1) (Stabilized) 100% Owned Assets (at 100%) 11.1 0.3 1.6 12.9 Rent growth, contracted escalation
Slide 12: Inorganic Growth Opportunities
Inorganic Growth Opportunities We are in conversations with our Sponsor group to evaluate acquisition opportunities in Bangalore spanning ~9.5 MSF of assets Azure (0.5 MSF) Ecoworld Bangalore (7.5 MSF) Whitefield Portfolio (1.4 MSF) 12
Slide 13: Business Updates
Business Updates DOWNTOWN POWAI, MUMBAI
Slide 14: Significantly Complete and Diversified Portfolio
Significantly Complete and Diversified Portfolio Our portfolio has a Committed Occupancy of 87% and a long-dated WALE of 7.1 Yrs. Economic Operating Leased Committed Occ. WALE In-place Rent Dev. Potential Properties Interest % Area (MSF) Area (MSF) % (Yrs.) (Rs PSF) (MSF) SEZ Properties G2 72% 3.
Slide 15: High-quality Tenant Roster
High-quality Tenant Roster SECTOR DIVERSIFICATION OF TENANTS(1) TOP 10 TENANTS(1) % Gross % Leased Tenant Name Industry Contracted Area Others, Rentals 16% Technology, TCS Technology 7% 8% 25% Oil and gas, 2% Accenture Consulting 5% 7% Real Estate and Infrastructure, Bharti Airtel Telecom 4% 3% 3% H
Slide 16: NPA Conversion Update
NPA Conversion Update Converted 1.4 MSF SEZ area to NPA till date. Additional 0.6 MSF area is under conversion which is further expected to augment leasing in our SEZ properties Downtown In MSF G2 N2 K1 G1 Total Powai (SEZ) SEZ Properties Vacant Area 1.1 0.7 0.1 0.8 0.1 2.7 SEZ Vacant Area 0.6 0.4 -
Slide 17: Lease Expiry Profile
Lease Expiry Profile Portfolio has a well staggered lease expiry profile with only 32% of the contracted rentals due for expiry till FY2028 LEASE EXPIRY SCHEDULE Area Expiring Achieved Renewals KEY HIGHLIGHTS Expected Renewals Cumulative Expiry (% of Rentals) 32% • Of the 0.5 MSF expiries due 0.30 i
Slide 18: ESG | Leader in Sustainable Development
ESG | Leader in Sustainable Development GREEN ENERGY TRANSITION AT WORLDMARK DELHI Strategic green energy sourcing through Reduction of ~4,615 MT carbon Inter State Transmission System emissions annually achieved across 1.5 (ISTS) bilateral arrangement MSF office space at Worldmark Delhi 43% Energy
Slide 19: ESG | Initiatives
ESG | Initiatives Advancing sustainable development by engaging in impactful initiatives that transcend our assets, fostering lasting community growth. • International Renewable Energy Certificate (I-REC) received in November 2024 against common area SOURCING OF RENEWABLE ZERO electricity consumptio
Slide 20: ESG | Progress on Net Zero
ESG | 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 or sooner GREENHOUSE GAS EMISSIONS INTENSITY ENERGY USE INTENSITY (‘000 Tons of CO2/SF ) (UNITS/SF/MONTH) Scope 2 Scope 1 334 4,325 288 102
Slide 21: Financial Updates
Financial Updates WORLDMARK DELHI
Slide 22: Q3 FY2025 | Financial Highlights
Q3 FY2025 | Financial Highlights Growth vs RS MILLIONS Q3 FY2025 Q3 FY2024 Operating Lease • Rs 499 million (12.7%) YoY increase due to recent new Rentals (OLR) Rs 4,426 13% leasing, renewals and escalations achieved offset by expiries • Rs 707 million (13.3%) YoY increase primarily due to: Revenue
Slide 23: Property Income | 9M FY2025 Comparison
Property Income | 9M FY2025 Comparison RS MILLIONS 9M FY2025 9M FY2024 KEY DRIVERS • Rs 4,105 million YoY increase: o Rs 896 million due to same store new leasing and contractual Income from Operating Lease Rs 12,886 Rs 8,781 escalations partly offset by expiries Rentals (OLR) o Rs 3,209 million due
Slide 24: NDCF
NDCF RS MILLIONS Q1 FY2025 Q2 FY2025 Q3 FY2025 9M FY2025 Income from Operating Lease Rentals (OLR) Rs 4,203 Rs 4,257 Rs 4,426 Rs 12,886 CAM / Other Revenue 1,535 1,645 1,589 4,769 Revenue from Operations Rs 5,738 Rs 5,902 Rs 6,015 Rs 17,655 Income Support 349 346 292 987 CAM / Other Direct Expenses
Slide 25: NDCF (Cont'd)
NDCF (Cont’d) RS MILLIONS Q1 FY2025 Q2 FY2025 Q3 FY2025 9M FY2025 NDCF distributed to REIT Rs 2,298 Rs 2,525 Rs 3,199 Rs 8,022 Interest on Shareholder Debt/CCD/NCD 992 1,024 1,103 3,119 Dividends 282 317 749 1,349 Repayment of Shareholder Debt/NCD 1,024 1,184 1,347 3,554 Proceeds from borrowings 1,8
Slide 26: Summary Balance Sheet
Summary Balance Sheet Our business is well-capitalized, backed by a strong balance sheet and Sponsor Group Rs Millions Dec 31, 2024 Total Equity 163,661 Equity 143,899 Non-Controlling Interest 19,762 Liabilities 133,525 Bank Borrowings 105,470 NCD's and CCD's 11,595 Security Deposits 10,092 Other Li
Slide 27: Capital Structure and Liquidity
Capital Structure and Liquidity Backed by high proportion of operating assets and less development, our portfolio maintains a AAA credit rating 24.7% Dual AAA Rating 85% 8.4% LTV EXCLUDING SHAREHOLDER [ICRA]AAA(STABLE) % LOANS LINKED TO REPO RATE AVERAGE INTEREST INSTRUMENTS(1) CRISIL AAA/STABLE QUA
Slide 28: Information Supplement
Information Supplement CANDOR TECHSPACE G1, GURUGRAM
Slide 29: 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 ~29,000 employees across 30+ countries, Brookfield owns, operates and manages one of the world’s largest, highest quality portfolios BROOKFIELD PLACE, NEW YORK CANARY WHARF, LONDON BROOKFIELD PLACE, TORO
Slide 30: Sponsor Assets Pipeline
Sponsor Assets Pipeline Our Sponsor Group owns another 26 MSF across India in complementary markets ECOWORLD, BANGALORE (7.5 MSF) ECOSPACE, BANGALORE (1.6 MSF) MILLENIA, CHENNAI (1.6 MSF) EQUINOX, MUMBAI (1.4 MSF) WATERSTONES, MUMBAI (1.4 MSF) BLUEGRASS, PUNE (1.4 MSF) 30
Slide 31: Leasing Q3 FY2025
Leasing Q3 FY2025 SELECT NEW LEASES / RENEWALS(1) Tenant Assets Area (SF) Capgemini K1 241,000 Rs 95 PSF AVERAGE RENT ON NEW LEASING(2) Teleperformance G1 and N2 125,000 General Mills Downtown Powai 77,000 Intertrustviteos Downtown Powai 62,000 Juniper Green Energy G1 62.000 19% RE-LEASING SPREAD(
Slide 32: Detailed Lease Expiry Schedule
Detailed Lease Expiry Schedule Area Expiring (‘000 SF) % of Gross Rentals (Asset / Portfolio) In-place rent at Expiry (Rs PSF)(1) Year / Asset Q4 FY25E FY26E FY27E FY28E Q4 FY25E FY26E FY27E FY28E Q4 FY25E FY26E FY27E FY28E Downtown Powai 12 327 502 489 - 13% 19% 18% Rs 185 Rs 179 Rs 177 Rs 192 (Com
Slide 33: Portfolio Occupancy: Q2 FY2025 to Q3 FY2025
Portfolio Occupancy: Q2 FY2025 to Q3 FY2025 September 30, 2024 December 31, 2024 Operating Leased Committed Operating Leased Committed ASSET Leasing Expiries Renewed area area occupancy area area occupancy Downtown Powai 4,357 3,962 91% - 166 (123) 113 - 4,367 4,117 94% Commercial / IT Park 2,749 2,
Slide 34: Portfolio Occupancy: Q4 FY2024 to Q3 FY2025
Portfolio Occupancy: Q4 FY2024 to Q3 FY2025 March 31, 2024 December 31, 2024 Operating Leased Committed Operating Leased Committed ASSET Leasing Expiries Renewed area area occupancy area area occupancy Downtown Powai 4,340 3,922 90% - 408 (359) 146 - 4,367 4,117 94% Commercial / IT Park 2,737 2,402
Slide 35: Q3 FY2025: New leasing & Renewals
Q3 FY2025: 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 166 172 113 167 279 170 Commercial / IT 166 172 71 171 238 172 Park SEZ - - 41 159 41 159 G1 228 86 19 - 247 86 G2 23 95 44 - 67 95 N
Slide 36: 9M FY2025: New leasing & Renewals
9M FY2025: 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 408 154 - 146 195 - 554 165 Commercial / IT 312 158 - 105 210 - 417 172 Park SEZ 97 139 - 41 159 - 138 145 G1 435 84 - 21 - - 456 84
Slide 37: Property Income | Q3 FY2025 Comparison
Property Income | Q3 FY2025 Comparison RS MILLIONS Q3 FY2025 Q3 FY2024 KEY DRIVERS • Rs 499 million YoY increase: Income from Operating Lease Rs 4,426 Rs 3,927 o Rs 499 million due to same store new leasing and contractual Rentals (OLR) escalations partly offset by expiries • Rs 208 million YoY incr
Slide 38: Property Income | Consolidation Details (Q3 FY2025)
Property Income | Consolidation Details (Q3 FY2025) INCOME FROM OPERATING REVENUE FROM RS MILLIONS NET OPERATING INCOME(1) LEASE RENTALS (OLR) OPERATIONS Q3 FY2025 Q3 FY2024 Q3 FY2025 Q3 FY2024 Q3 FY2025 % OLR Q3 FY2024 % OLR Downtown Powai Rs 1,902 Rs 1,657 Rs 2,117 Rs 1,814 Rs 1,834 96% Rs 1,529 9
Slide 39: Property Income | Consolidation Details (9M FY2025)
Property Income | Consolidation Details (9M FY2025) INCOME FROM OPERATING REVENUE FROM RS MILLIONS NET OPERATING INCOME(1) LEASE RENTALS (OLR) OPERATIONS 9M FY2025 9M FY2024 9M FY2025 9M FY2024 9M FY2025 % OLR 9M FY2024 % OLR Downtown Powai Rs 5,590 Rs 2,858 Rs 6,214 Rs 3,135 Rs 5,399 97% Rs 2,681 9
Slide 40: Ongoing Capex
Ongoing Capex Rs 3.6 billion of capex projects underway across key developments and upgrades, which will primarily be debt funded ESTIMATED PENDING COSTS KEY ONGOING PROJECTS ASSETS COMPLETION (MILLIONS) Mixed - use development K1 Q1 FY2027 Rs 2,087 Denotification cost G1, G2, N2 Q4 FY2025 305 Crisi
Slide 41: Capital Structure and Liquidity
Capital Structure and Liquidity Backed by high proportion of operating assets and less development, our portfolio maintains a AAA credit rating GROSS DEBT SUMMARY (2) REIT Shareholder (1) Borrowings Cost of debt (3) (Rs Billions) Debt / NCD REIT 6.7 8.3% - Downtown Powai 10.2 8.3% 13.6 (SEZ) Downtow
Slide 42: Holding Structure
Holding Structure TRUSTEE MANAGER (2) Axis Trustee Brookprop Management Services Limited Services Private Limited 50% 100% Airtel Center Holding Company 50% Rostrum Realty Private Limited(1) 100% Pavilion Mall 100% 100% 100% 100% 100% 50% 50% 50% 50% 100% 100% 100% OPERATIONAL ASSET SPV ASSET SPV SE
Slide 43: Research Coverage
Research Coverage RESEARCH HOUSE ANALYST EMAIL ID Ambit Karan Khanna Karan.Khanna@ambit.co Avendus Girish Choudhary Girish.C@avendusspark.com Axis Capital Samar Sarda Samar.Sarda@axiscap.in BofA Securities Kunal Tayal Kunal.Tayal@bofa.com Citi Rajiv Berlia Rajiv.Berlia@citi.com CLSA Kunal Lakhan Kun
Slide 44: Glossary
Glossary Net Operating Income (Excluding North Commercial Portfolio) + Income Support received for Adjusted NOI G1 and N2 Bharti Group Bharti Enterprises Limited and its affiliates BIRET / Brookfield India REIT Brookfield India Real Estate Trust Brookfield Group / Sponsor Group Brookfield Corporatio
Slide 45: Glossary (Cont'd)
Glossary (Cont’d) K1 Candor TechSpace K1 (Candor TechSpace, New Town, Kolkata) Kairos Kairos Properties Private Limited Kensington Kensington, Powai Refers to the potential change in base rent between new leases signed at market rates and Mark-to-market (MTM) Headroom / Spread leases expiring at in-
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