Brookfield India Real Estate Trust · NSE:BIRET.RR
Brookfield India Real Estate Trust — Q1 FY2025 Earnings Presentation
40 slides from Brookfield India Real Estate Trust's earnings presentation, Aug 7, 2024
Slide 1: Brookfield India Real Estate Trust Q1 FY2025 Investor Update
Brookfield India Real Estate Trust Q 1 F Y 2 0 2 5 – I N V E S T O R U P D AT E AU G U S T 0 7 , 2 0 2 4 WORLDMARK DELHI
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 24.2 MSF OPERATING AREA Delhi NCR 17 88% WORLDMARK DELHI EFFECTIVE ECONOMIC OCCUPANCY(1) Kolkata Mumbai, 3 Pune 4 Rs 94 PSF 3 IN-PLACE RENT PER DOWNT
Slide 4: Q1 FY2025 Business Highlights
Q1 FY2025 Business Highlights 1 2 3 Strong Inorganic Organic FY2025 Growth Growth Outlook 4
Slide 5: Inorganic Growth
1 Inorganic Growth Acquired dominant grade A properties in Delhi-NCR, designed and built to high specifications Completed the acquisition on June 21, 2024 Worldmark Delhi Added 3.3 MSF of commercial assets Issued 40.93 Mn units at Rs 300 per unit (18.5% premium to floor price(1)) Airtel Center Wolrd
Slide 6: Inorganic Growth (Cont'd)
1 Inorganic Growth (Cont’d) Highly accretive acquisition with 17% higher incremental NDCF NAV ACCRETION (1) NDCF ACCRETION(1)(2) Rs per unit Rs per unit / quarter 370 Rs 369 5.3 5.2 360 5.2 5.1 350 5.0 4.9 Rs 336 340 Rs 333 +0.9% 4.8 330 4.7 4.6 4.5 4.5 320 4.5 +1.4% 4.4 310 4.3 4.2 300 4.1 290 4
Slide 7: Organic Growth
2 Organic Growth COMMITTED OCCUPANCY(1) (%) Committed Occupancy: ~170 bps QoQ 3rd consecutive quarter of growth in committed occupancy 84% 82% 80% 80% NPA Conversions in SEZ Assets 0.6 MSF in K1 successfully converted and leased(2) at 18% higher than in-place rents. Another 0.9 MSF under Q2 FY24 Q
Slide 8: Organic Growth (Cont'd) - Leasing Update
2 Organic Growth (Cont’d) LEASING UPDATE - Q1 FY2025 (MSF)(1) MARQUEE TENANTS New Gross Renewals Leasing Leasing Area 196 46 242 Mercer (KSF) Average Rent(1) Infraprime Rs 111 Rs 265 Rs 135 Haworth (PSF) Logistics Average Term(1) Interise Project Parametric 8.6 6.2 8.2 (Yrs.) Management
Slide 9: Organic Growth (Cont'd) - NOI Growth Potential
2 Organic Growth (Cont’d) Embedded growth headroom of over Rs 2,500 million in Adjusted NOI through lease up of vacant areas which will flow through to the distributions NOI GROWTH POTENTIAL (RS MILLIONS) 770 - 800 27,050 - 27,150 1,800 - 1,870 24,081 392 Current Adj. NOI Contracted Lea
Slide 10: Strong FY2025 Outlook | Q1 Financial Highlights
3 Strong FY2025 Outlook | Q1 Financial Highlights Q1 FY2025 - DPU COMPOSITION Rs 4,203 million OPERATING LEASE RENTALS ( Q1 FY2025) Rs 0.51 , 11% Rs 0.07 , 2% Rs 4,748 million Rs 1.79 , 40% ADJUSTED NOI (Q1 FY2025)(1) Rs 4.50 Rs 2,160 million per unit DISTRIBUTION (Q1 FY2025)(2) Rs 2.13 , 47% Au
Slide 11: Strong FY2025 Outlook | Guidance
3 Strong FY2025 Outlook | Guidance LEASED AREA (IN MSF) 87 - 89% Strong Leasing Guidance: 1.5 - 2.0 MSF Backed by a robust pipeline of 3.0 MSF Expected FY2025 exit occupancy of 87 - 89% 83%(1) 21.0 - 21.4 1.5 - 2.0 20.1 (0.6) Low Net Expiry Load in FY2025: 0.6 MSF With 16%(2) mark-to-market pote
Slide 12: Business Updates
Business Updates CANDOR TECHSPACE K1, KOLKATA
Slide 13: Significantly Complete and Stable Portfolio
Significantly Complete and Stable Portfolio Our portfolio has an Effective Economic Occupancy of 88% and a long-dated WALE of 7.1 Yrs. Economic Operating Leased Committed / WALE In-place Rent Dev. Properties Interest % GLA Area Econ. Occ. %(2) (Yrs.) (Rs PSF) Potential SEZ Properties G2 72% 3.9 3
Slide 14: High-quality Tenant Roster
High-quality Tenant Roster SECTOR DIVERSIFICATION OF TENANTS(1) TOP 10 TENANTS(1) % Gross Others, % Leased Tenant Name Industry Contracted 14% Area Technology, Rentals 24% Oil and gas, TCS Technology 8% 8% 3% Real Estate and Accenture Consulting 6% 8% Infrastructure, 3% Cognizant Technology 4% 6% He
Slide 15: Lease Expiry Profile
Lease Expiry Profile Portfolio has a well staggered lease expiry profile with only 38% of the contracted rentals due for expiry in the next 4 years LEASE EXPIRY SCHEDULE Area Expiring Achieved Renewals KEY HIGHLIGHTS Expected Renewals Cumulative Expiry (% of Rentals) 38% 0.40 • Of the 1.2 MSF expiri
Slide 16: NPA Conversion in SEZ Properties
NPA Conversion in SEZ Properties Completed conversion of 0.6 MSF in K1 and applied for conversion of 0.5 MSF in G1 SEZ AREA CONVERSION Downtown In MSF G2 N2 K1 G1 Total Powai (SEZ) Operating Area 3.9 3.8 3.2 3.7 1.6 16.2 Area Applied for Conversion 0.2 0.2 0.6 0.5 - 1.5 In-principle Approvals 0.2 0.
Slide 17: Key ESG Initiatives
Key ESG Initiatives Recognized for our best-in-class sustainability efforts IGBC GREEN BUILDING BRITISH SAFETY COUNCIL GREEN ENERGY TRANSITION AT PLATINUM RATING INTERNATIONAL SAFETY AWARD NOIDA CAMPUSES The mixed-use development project at Candor TechSpace K1 received the 40% of tenant energy requi
Slide 18: Key ESG Initiatives (Cont'd)
Key ESG Initiatives (Cont’d) Empowering communities through key impact programs, transcending our asset boundaries, to build a more sustainable future 6 MANAGEMENT • Occupants across assets were awarded CONTEST ASSETS WASTE for their outstanding contribution in waste segregation and safe disposal on
Slide 19: 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) ENERGY CONSUMPTION (MILLION UNITS) Scope 2 Scope 1 7 7 94 262 247 2 2 224 5 3 208 65 156 158 50 53 48 38 F
Slide 20: Financial Updates
Financial Updates DOWNTOWN POWAI, MUMBAI
Slide 21: Q1 FY2025 | Financial Highlights
Q1 FY2025 | Financial Highlights Growth vs Millions Q1 FY2025 Q4 FY2024 Operating Lease • Rs 155 million (3.8%) QoQ increase due to recent new Rentals (OLR) Rs 4,203 4% leasing, renewals and escalations achieved offset by expiries • Rs 379 million (7.1%) QoQ increase: Revenue Rs 5,738 7% o Rs 155 mi
Slide 22: Property Income
Property Income MILLIONS Q1 FY2025 Q1 FY2024 KEY DRIVERS • Rs 2,089 million (98.9%) YoY increase: o Rs 207 million (9.8%) due to same store new leasing and Income from Operating Lease Rs 4,203 Rs 2,113 contractual escalations also offset by expiries Rentals (OLR) o Rs 1,883 million (89.1%) due to ac
Slide 23: NDCF
NDCF Rs Million Q1 FY2025 Rs Million Q1 FY2025 Income from Operating Lease Rentals (OLR) Rs 4,203 REIT Level Receipts Rs 2,298 CAM / Other Revenue 1,535 Interest on Shareholder Debt/CCD/NCD 992 Revenue from Operations Rs 5,738 Dividends (3) 282 Income Support 349 Repayment of Shareholder Debt/NCD 1,
Slide 24: Summary Balance Sheet
Summary Balance Sheet Our business is well-capitalized, backed by a strong balance sheet and Sponsor Group Millions June 30, 2024 Total Equity 133,180 Equity 113,253 Non-Controlling Interest 19,927 Liabilities 135,377 Bank Borrowings 99,888 Commercial Paper 9,315 NCD's and CCD's 11,902 Security Depo
Slide 25: 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 35.9% Dual AAA Rating 86% 8.3% LTV EXCLUDING SHAREHOLDER [ICRA]AAA(STABLE) % LOANS LINKED TO REPO RATE AVERAGE INTEREST INSTRUMENTS(1) CRISIL AAA/NEGATIVE Q
Slide 26: Information Supplement
Information Supplement CANDOR TECHSPACE G1, GURUGRAM
Slide 27: Brookfield: One of the World's Largest Real Estate Portfolios
Brookfield: One of the World’s Largest Real Estate Portfolios With ~$267B 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 IFC, SEOUL BROOKFIELD PLACE, TORONTO ICD BR
Slide 28: Robust Inorganic Growth Pipeline
Robust Inorganic Growth Pipeline Our Sponsor Group owns another 26 MSF across India in complimentary markets 25.7 MSF 16.3 MSF 9.4 MSF TOTAL AREA OPERATING AREA FUTURE DEV. Mumbai Pune ECOWORLD, BENGALURU Hyderabad(1) Chennai Bangalore Sponsor Group Assets MILLENIA BUSINESS PARK, CHENNAI EQUINOX,
Slide 29: Leasing Q1 FY2025
Leasing Q1 FY2025 SELECT NEW LEASES / RENEWALS(1) Tenant Assets Area (SF) Amdocs G2 37,000 Rs 111 PSF AVERAGE RENT ON NEW LEASING(2) Landis N1 29,000 Mercer N2 25,000 M&G Global Services Downtown Powai 18,000 Parametric Technology Worldmark Gurugram 14,000 19% Infraprime Logistics Worldmark Guru
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) FY2025E Downtown Powai (Commercial / IT Park) 365 16% Rs 182 Downtown Powai (SEZ) 41 3% 152 G1 29 - - G2 73 1% 96 N1 294 12% 45 N2 108 4% 73 K1 7 - - Worldma
Slide 31: Detailed Lease Expiry Schedule (Cont'd)
Detailed Lease Expiry Schedule (Cont’d) % of Gross Rentals In-place rent at Expiry Year / Asset Area Expiring (‘000 SF) (Asset / Portfolio) (Rs PSF)(1) FY2027E Downtown Powai (Commercial / IT Park) 577 23% Rs 175 Downtown Powai (SEZ) 17 1% 152 G1 211 9% 97 G2 32 1% 94 N1 25 1% 56 N2 92 3% 66 K1 495
Slide 32: Portfolio Occupancy: Q4 FY2024 to Q1 FY2025
Portfolio Occupancy: Q4 FY2024 to Q1 FY2025 March 31, 2024 June 30, 2024 Operating Leased Committed Operating Leased Committed ASSET Leasing Expiries Renewed area area occupancy area area occupancy Downtown Powai 4,340 3,922 90% - 28 (21) 21 - 4,343 3,950 91% Commercial / IT Park 2,737 2,402 88% - 2
Slide 33: Q1 FY2025: New leasing & Renewals
Q1 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 28 198 21 282 49 238 Commercial / IT Park 28 198 21 282 49 238 SEZ - - - - - - G1 - - - - - - G2 37 102 6 - 42 102 N1 38 67 2 - 40 67
Slide 34: Property Income | Consolidation Details (Q1 FY2025)
Property Income | Consolidation Details (Q1 FY2025) INCOME FROM OPERATING REVENUE FROM (1) MILLIONS NET OPERATING INCOME LEASE RENTALS (OLR) OPERATIONS Q1 FY2025 Q1 FY2024 Q1 FY2025 Q1 FY2024 Q1 FY2025 % OLR Q1 FY2024 % OLR Downtown Powai Rs 1,866 Rs 415 Rs 2,044 Rs 446 Rs 1,773 95% Rs 383 92% Comme
Slide 35: Ongoing Capex
Ongoing Capex Rs 4.8 billion of capex projects underway across key developments and upgrades, which will primarily be debt funded ESTIMATED COMPLETION PENDING COSTS KEY ONGOING PROJECTS ASSETS DATE (MILLIONS) Mixed - use development K1 Q4 FY2026 Rs 2,428 Denotification cost G1, G2, N2 Q3 FY2025 1
Slide 36: 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 Borrowings Cost of debt (Billions)(1) Debt / NCD(3) REIT 9.3 7.7% - Downtown Powai (SEZ) 10.2 8.3% 4.0 Downtown Powa
Slide 37: 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 38: 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 39: Glossary (1/2)
Glossary (1/2) BIRET / Brookfield India REIT Brookfield India Real Estate Trust Gross Asset Value / Asset Value The market value as determined by the Valuer as of March 31, 2024 (Occupied Area + Completed Area under Letters of Intent) Committed Occupancy In % Completed Area Weighted Average Lease Ex
Slide 40: 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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