Brookfield India Real Estate Trust · NSE:BIRET.RR
Brookfield India Real Estate Trust — Q1 FY2022 Earnings Presentation
33 slides from Brookfield India Real Estate Trust's earnings presentation, Aug 10, 2021
Slide 1: Q1 FY2022 Investor Update
Brookfield India Real Estate Trust Q 1 F Y 2 0 2 2 – I N V E S T O R U P D AT E AUGUST 10, 2021 CANDOR TECHSPACE G2, GURUGRAM
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: India's first and only 100% institutionally managed REIT
Brookfield India Real Estate Trust India’s first and only 100% institutionally managed REIT 14.0 MSF 10.3 MSF TOTAL AREA COMPLETED AREA Gurugram (4.0 MSF) Noida (2.8 MSF) 3.9 0.1 1.9 0.9 18% 38% 22% 4 89% Kolkata (5.7 MSF) OFFICE PARKS IN SAME-STORE OCCUPANCY(1) 3.1 2.7 GATEWAY MARKETS 22% Mumbai (1
Slide 4: Strong inorganic growth pipeline through Identified Assets and ROFO Properties
Brookfield India Real Estate Trust (Cont’d.) Strong inorganic growth pipeline through Identified Assets and ROFO Properties within the Brookfield Group IDENTIFIED ASSETS ROFO(1) PROPERTIES Gurugram (3.7 MSF) Noida (4.5 MSF) 8.3 MSF 6.7 MSF 3.7 0.1 3.6 0.9 LEASABLE AREA LEASABLE AREA Rs 86B Rs 104B G
Slide 5: High Quality Properties in Gateway Cities
High Quality Properties in Gateway Cities Our assets were operational during the lockdown, enabling our occupiers to run business- critical operations Mumbai’s only Private SEZ located in Powai (a walk-to-work modern township) Largest Office SEZ in CBD Gurugram KENSINGTON, POWAI, MUMBAI CANDOR TECHS
Slide 6: Strong Back to Office Trends
Strong Back to Office Trends We are seeing employees ‘return to office’ across the Brookfield Group’s office portfolio across region. We expect India to follow suit as large technology companies are rapidly vaccinating their employees in India. PHYSICAL ATTENDANCE (JUNE 30, 2021) (1) TECHNOLOGY MNCs
Slide 7: At the Forefront of Recovery
At the Forefront of Recovery With our fundamentals intact, we believe our assets will be at the forefront of the post pandemic recovery OPERATIONAL STABILITY INSTITUTIONAL QUALITY • Significantly Complete Portfolio • 100% institutionally managed • Deep Rooted Tenant Relationships • Brookfield Group
Slide 8: Q1 FY2022 Business Highlights
Q1 FY2022 Business Highlights Our performance continued to be resilient, ending the quarter at 89% Same-store Occupancy(1) and robust collections • Collections of operating lease rentals remained robust at ~99% ~99% ~6% Collections Operating Lease Avg Escalation on 0.7 • 6% average escalation on 0.7
Slide 9: Q1 FY22 | Financial Highlights
Q1 FY22 | Financial Highlights We delivered income growth, driven by occupier retention and proactive revenue management OPERATING LEASE RENTALS NET OPERATING INCOME GROSS DEBT (1) Rs 1,616 Million Rs 1,696 Million 18.6% LTV 7.3% YOY increase 3.8% YOY increase with significant headroom in borrowing
Slide 10: Q1 FY22 | Distributions
Q1 FY22 | Distributions We are distributing Rs 6.00 per unit (93% of NDCF) for the period till Q1 FY22 Rs 1,945 Million Rs 6.42 NDCF NDCF PER UNIT DISTRIBUTION PER UNIT COMPONENTS Rs 0.98 , 16% Rs 0.45 , 8% Rs 1,817 Million Rs 6.00 DISTRIBUTION DISTRIBUTION PER UNIT (1) Rs 4.57 , 76% Interest Divide
Slide 11: Candor Techspace N2 | Recent Leasing Success
Candor Techspace N2 | Recent Leasing Success Our identified pipeline asset in Noida has received significant leasing traction and has further ongoing advanced discussions. The recent relocation of Samsung is a case in point on the value proposition of grade A institutional properties AT IPO CURRENT
Slide 12: Vaccination Drives Across Our Properties
Vaccination Drives Across Our Properties Consistent with our commitment to health & safety of our tenants, we have vaccinated our employees, tenants and front-line workers across our properties 100% 32,000 60+ BUSINESS PARKS PEOPLE VACCINATED (1) VACCINATION CAMPS OPERATIONAL ORGANIZED (1) (1) Inclu
Slide 13: Business Updates
Business Updates KENSINGTON, POWAI, MUMBAI
Slide 14: Significantly Complete and Stable Portfolio
Significantly Complete and Stable Portfolio 93% of gross asset value is in operating properties, which are 89% occupied on a same-store basis(1) with a long-dated WALE of 6.3 years Area ( in MSF) Leased Area Metrics In-place Asset Dev. Area # Office Same-store WALE Asset Operating Total Rent Value(3
Slide 15: Deep Rooted Tenant Relationships
Deep Rooted Tenant Relationships Technology-led, high credit quality tenant roster, with an established track record of tenant expansion SECTOR DIVERSIFICATION OF TENANTS TOP 10 TENANTS BY LEASED AREA % Leased Growth since Tenant # Parks Area Mar′15(1) Others, 9% Healthcare, 2% Technology, 51% TCS 2
Slide 16: New Leasing and Renewals
New Leasing and Renewals Gross leasing of 169,000 SF during the quarter with a robust near-term pipeline; Our deep tenant relationships have made us the ‘landlord of choice’ in our markets SIGNED LEASES / RENEWALS SUPERIOR OCCUPANCY VIS-A-VIS MICRO-MARKETS %(1) Tenant / Industry Industry Assets / Ar
Slide 17: New Leasing and Renewals (Cont'd.)
New Leasing and Renewals (Cont’d.) Portfolio has a well staggered lease expiry profile and provides an opportunity to capture an attractive mark-to-market spread KEY HIGHLIGHTS LEASE EXPIRY SCHEDULE Area Expiring (MSF) Renewed Cumulative Expiry (% of Rentals) • Expiries: 228,000 SF area vacated duri
Slide 18: Financial Updates
Financial Updates CANDOR TECHSPACE K1, KOLKATA
Slide 19: Summary Balance Sheet
Summary Balance Sheet Our business is well-capitalized, backed by a strong balance sheet MILLIONS JUNE 30, 2021 Liabilities and Equity Total Equity Rs 82,754 Borrowings(1) 21,168 Security Deposits 3,695 Other Liabilities 2,220 Total Rs 109,837 Assets Investment Property Rs 99,771 Investment Property
Slide 20: Capital Structure and Liquidity
Capital Structure and Liquidity Low leverage, long interest only period and undrawn credit lines provide us with ample liquidity. We are also evaluating the available 50bps+ headroom in borrowing costs HEADROOM IN BORROWING COSTS Rs 21.4B Rs 2.6B GROSS DEBT UNDRAWN COMMITTED FACILITY 7.15% 6.45% 4.7
Slide 21: Inorganic Growth Pipeline
Inorganic Growth Pipeline CANDOR CANDOR TECHSPACE TECHSPACE G2, GURUGRAM N1, NOIDA
Slide 22: Brookfield Group's Footprint in India
Brookfield Group’s Footprint in India Brookfield owns a 100% interest in a high quality pan-India office portfolio spanning 33 MSF in total area and 24 MSF of operating area CANDOR G1, GURUGRAM POWAI DISTRICT, MUMBAI ECOWORLD, BANGALORE CANDOR N2, NOIDA EQUINOX, MUMBAI ECOSPACE, BANGALORE CATEGORY I
Slide 23: Identified Assets Update
Identified Assets Update During the quarter, 673,000 SF of new area was delivered, along with 458,000 SF of new leasing ON JUNE 30, 2021 G1 N2 ASSET VALUE BY STATUS (% OPERATING) Operating Area (MSF) 3.7 3.6 Mar 31, 2021(3) Area Leased (MSF) 2.6 3.0 Committed Occupancy 70% 82% 91% Same-store Occupan
Slide 24: Appendix
Appendix CANDOR TECHSPACE G2, GURUGRAM
Slide 25: Detailed Lease Expiry Schedule
Detailed Lease Expiry Schedule Year / Asset Area Expiring (‘000 SF) % of Gross Rentals(1) In-place rent at Expiry (INR PSF)(1) 9M FY22E Kensington - - - G2 561 18% 90 N1 32 3% 44 K1 272 10% 43 Total – REIT 865 11% Rs 73 FY23E Kensington 373 33% Rs 104 G2 90 3% 90 N1 15 2% - K1 106 3% 50 Total – REIT
Slide 26: Ongoing Capex and Upgrades
Ongoing Capex and Upgrades Rs 2,764M of capex projects underway across new tower developments and upgrades to existing towers. Capex including interest during construction to be financed through debt ESTIMATED PENDING COSTS ONGOING PROJECTS COMPLETION DATE (MILLIONS) Asset Upgrades/Tenant Improvemen
Slide 27: Property Income | Walkdown
Property Income | Walkdown MILLIONS Q1 FY22 Q1 FY21 KEY DRIVERS Income from Operating Lease • Rs 109 million / 7.3% YOY increase primarily driven by Rs 1,616 Rs 1,507 contractual escalations Rentals (OLR) • Rs 56 million / 8.1% YOY decrease primarily due to mid-year termination of CIOP’s operating s
Slide 28: Property Income | Consolidation Details
Property Income | Consolidation Details INCOME FROM REVENUE FROM MILLIONS OPERATING LEASE NET OPERATING INCOME (NOI)(1) OPERATIONS RENTALS (OLR) Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 % OLR Q1 FY21 % OLR Kensington Rs 435 Rs 350 Rs 463 Rs 387 Rs 402 92% Rs 324 92% G2 632 637 889 925 675 107% 690 10
Slide 29: NDCF | Walkdown
NDCF | Walkdown Millions Income from Operating Lease Rentals Rs 2,559 CAM / Other Revenue 941 Revenue from Operations 3,500 CAM / Other Direct Expenses (787) NOI Rs 2,713 Property Management Fees (53) Net Other Expenses (1,199) EBITDA Rs 1,461 Cash Taxes (Net of Refund) 470 Working Capital and Ind-A
Slide 30: Indebtedness, Structure and Unitholding
Indebtedness, Structure and Unitholding TOP 5 UNITHOLDERS (JUNE 30, 2021) UNITHOLDING PATTERN JUNE 30, 2021 UNIT HOLDER(1) % Non- HDFC Balanced Advantage Fund 5.1% institutions, 16% SBI Life Insurance 3.8% Tata AIG General Insurance 2.6% HDFC Life Insurance 1.7% Sponsor Prusik Asian Equity Income Fu
Slide 31: Research Coverage
Research Coverage RESEARCH HOUSE ANALYST EMAIL ID Bank of America Kunal Tayal Kunal.Tayal@bofa.com HSBC Bank Puneet Gulati PuneetGulati@hsbc.co.in ICICI Securities Adhidev Chattopadhyay Adhidev.Chattopadhyay@icicisecurities.com IIFL Mohit Agarwal Mohit.Agrawal@iiflcap.com JM Financial Manish Agrawal
Slide 32: Glossary (1/2)
Glossary (1/2) Gross Asset Value / Asset Value The market value as determined by the Valuer as of March 31, 2021 (Occupied Area + Completed Area under Letters of Intent) Committed Occupancy In % Completed Area Represents Committed Occupancy for areas where the occupancy certificate was received on S
Slide 33: Glossary (2/2)
Glossary (2/2) Revenue from leasing of premises including Warm Shell rent, fit-out rent and car parking Operating Lease Rentals (OLR) Income Net Operating Income calculated by subtracting Direct Operating Expenses from Revenue Net Operating Income (NOI) from Operations Net distributable cash flows (
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