Mindspace Business Parks Reit · NSE:MINDSPACE.RR
Mindspace Business Parks Reit — Non-Deal Roadshow (March 2024)
42 slides from Mindspace Business Parks Reit's roadshow presentation, Mar 21, 2024
Slide 1: Retail Investor Meet
Retail Investor Meet Indore | 21st March 2024 mindspacereit.com 1
Slide 2: Overview of REIT
01 Overview of REIT mindspacereit.com 2
Slide 3: How does a REIT work?
How does a REIT work? REITs is an investment vehicle that allows investors to own an interest in income-producing real estate Distribution from underlying assets Investment Capital Offices Investment Capital Distribution & REIT Investment Capital Price Appreciation Investors Malls Investment Capital
Slide 4: REITs around the World
REITs around the World The timeline of REIT launches in major economies over the years. • South Korea • Singapore • Japan • Hong kong • Thailand • Germany • UK Establishment • India of REIT in US Australia Malaysia • Philippines 1960 1961-1980 1981-1999 2000-2021 ~$2 893 trillion Globally listed REI
Slide 5: REITs: A Key Component of Global Listed RE
REITs: A Key Component of Global Listed RE Globally, around 60% of the listed real estate value is attributable to REITs vs 14% in India Listed Real Estate Market Cap Contributed by REITs (%) 2.6% 6.1% 2.4% Journey of REITs in India 17.7% has just begun 1.8% 99% 95% 93% 2.4% $10 bn 68% 50% 0.3% 33%
Slide 6: Snapshot of Indian REITs
Snapshot of Indian REITs The Indian REIT market continues to evolve since the listing of the first REIT in April 2019 4 110+ msf(1) Listed REITs in India Across India’s top commercial & Retail Markets 85,000+ cr INR 25,500+ cr Market Capitalization Total equity raise since Listing INR 130,000+ cr 2
Slide 7: Why Invest in Indian REIT?
Why Invest in Indian REIT? Professional Management Liquidity Corporate governance Participation in Easy entry and exit in real Strong governance professionally managed real estate sector through stock framework & disclosure assets market without restrictions requirements Regular Income generation Gr
Slide 8: How one can invest in Indian REIT?
How one can invest in Indian REIT? Any investor with a demat account can invest in Indian REIT units which are freely traded on the Indian stock exchanges • NSE Listed On • BSE • Domestic Eligible • Foreign Investors • Retail • Institutional An investor can buy or sell even a single unit through dem
Slide 9: Taxation for Investors
Taxation for Investors Income earned by Unit holder Dividend Interest Income Return of Capital Withholding Tax: ✓Exempt(1) Reduced from Non-Resident – 5% Acquisition price Others 10% Capital gains (2) Noit e m ns:1) d sThpearecisen ro ef ui rtt.hce rot m a x o n d i v i d e n d s i n t h e h an ds o
Slide 10: Attractive Post Tax Yield Coupled with Capital Appreciation
Attractive Post Tax Yield Coupled with Capital Appreciation REITs play a key role in the overall asset allocation strategy as they are a ‘total-return’ product offering attractive post-tax distribution yields along with long-term capital appreciation potential Tax rate(5) 34.3% Last 5 - Years Annual
Slide 11: Mindspace REIT
02 Mindspace REIT mindspacereit.com 11
Slide 12: Sponsored by One Of India's Leading Real Estate Group
Sponsored by One Of India’s Leading Real Estate Group Over 6 decades of experience across Residential, Office, Malls & Hotels Office Hospitality Malls Residential Retail Leasable Area >50 msf (1) 3,300+ (2) operational 4 operational malls Developed residential Operates 230+ retail hotel keys project
Slide 13: Mindspace Business Parks REIT Portfolio Overview
Mindspace Business Parks REIT Portfolio Overview One of the largest Grade-A office portfolios in India 33.1 msf INR 28,700 cr INR 20,341 cr INR 1,710 cr Total Leasable Area (1) AUM (3) Market capitalization(2) NOI FY 2023(4) Presence in 4 out of top 6 Indian office markets o Sponsored by K Raheja Co
Slide 14: Delivered Robust Performance since Listing
Delivered Robust Performance since Listing Cumulatively distributed INR 61.5 p.u. since listing, with more than 90% being tax-free 13 msf 21.9 % 2.3 msf 7.0% CAGR Gross Leasing (1) Re-leasing Spread Delivered New In-place rent on 8.7 msf Developments INR 3,650 cr 12.3 % 21 % 7.8 % p.a. Weighted Aver
Slide 15: Diversified Portfolio of Marquee Tenants
Diversified Portfolio of Marquee Tenants Top 10 tenants contributing 29.7% (Dec 23) Diversified tenant mix across sectors Top 10 tenants Gross Contracted Rentals contribution (29.7%) (1) (1) % split by Gross Contracted Rentals % of total Gross Contracted Rentals # of parks Accenture 4.6% 2 Manufactu
Slide 16: Upward shift in the value chain for Tech services in India
Upward shift in the value chain for Tech services in India Early 2000s • Activities were limited to BPO functions • Leveraging talent pool to cultivate R&D capabilities 2005-12 • Transformative shift towards becoming GCC 2013 • Focus on new age Technologies like AI, Machine learning, Blockchain onwa
Slide 17: Our Debt Philosophy
Our Debt Philosophy We have Strategically Adopted a Balanced Approach to Financial Leverage Lowest LTV amongst Peers in Office REIT 21.0 % INR 807 cr Diversified debt Book with a mix of debentures Net Debt to Undrawn Committed and bank borrowings(1) Market Value (2) Facilities OD Debenture 4.6% 52.8
Slide 18: Unitholding Pattern as on 31 December 2023
Unitholding Pattern as on 31 December 2023 Unitholding Summary INR 20,341 Cr 36.5% Market Cap(1) % Free- float Unitholding Pattern 593 Mn units MF NIIs AIF 0.6% 10.9% 0.5% Insurance 1.5% NPS Sponsors & Sponsor Public 0.2% Group (Others) DIIs 3.3% Total 63.5% 36.5% Unitholders 58,764 FIIs 19.7% Spons
Slide 19: Five Integrated Business Parks (1/5)
Five Integrated Business Parks (1/5) Mindspace Madhapur, Hyderabad ~ 13.1 msf (1) ~ 95% Leasable area Committed Occupancy Note: m i n dData s p a case of r e31 i t .Dec com2023 19 (1) Leasable Area includes 9.6 msf Completed Area, 3.1 msf Under-construction Area and 0.5 msf Future Development Area
Slide 20: Five Integrated Business Parks (2/5)
Five Integrated Business Parks (2/5) Mindspace (1)Airoli East, Mumbai Region 13.1 msf ~ 6.4 msf ~ 80.4% Leasable area(1) Committed Occupancy Note: m i n dData s p a case of r e31 i t .Dec com2023 20 (1) Leasable Area includes 4.7 msf Completed Area, 0.05 msf Under-construction Area and 1.6 msf Futur
Slide 21: Five Integrated Business Parks (3/5)
Five Integrated Business Parks (3/5) 6.4 msf (1)(1)Airoli West, Mumbai Region Mindspace 13.1 msf ~5.2 msf (1) ~ 72.6% Leasable Area Committed Occupancy Note: m i n dData s p a case of r e31 i t .Dec com2023 21 (1) Leasable Area includes 4.9 msf Completed Area, 0.3 msf Under-construction Area
Slide 22: Five Integrated Business Parks (4/5)
Five Integrated Business Parks (4/5) 6.4 msf (1)(1) Kharadi, Pune Commerzone 13.1msf 5.2 msf (1) ~2.9 msf (1) ~ 100% Leasable Area Committed Occupancy Note: m i n dData s p a case of r e31 i t .Dec com2023 22 (1) Leasable Area includes 1.9 msf Completed Area, 1.0 msf Under-construction Area
Slide 23: Five Integrated Business Parks (5/5)
Five Integrated Business Parks (5/5) Commerzone (1) Yerawada, Pune 2.9 msf (1) 6.4 msfmsf (1)(1) 13.1 5.2 msf ~1.7 msf (1) ~ 96.1% Leasable Area Committed Occupancy Note: m i n dData s p a case of r e31 i t .Dec com2023 23 (1) Leasable Area includes 1.7 msf Completed Area
Slide 24: Quality Independent Office Assets (1/2)
Quality Independent Office Assets (1/2) Mindspace Malad, Mumbai Commerzone Porur, Chennai 0.8 msf 98% 1.1 msf 80.1% Leasable Area Committed Leasable Area Committed Occupancy Occupancy Note: m i n dAbove s p a c eareas r e i t include . c o m Under-Construction Area and Future Development Area 24 1.
Slide 25: Quality Independent Office Assets (2/2)
Quality Independent Office Assets (2/2) The Square, BKC, Mumbai The Square, Nagar Road, Pune 0.1 msf 100% 0.8 msf 100% Leasable Area Committed Leasable Area Committed Occupancy Occupancy Note: m i n dAbove s p a c eareas r e i t include . c o m Under-Construction Area and Future Development Area 25
Slide 26: Energized Landscape for Business Excellence
Energized Landscape for Business Excellence mindspacereit.com 26
Slide 27: Infusing modern design elements to elevate entry experience
Infusing modern design elements to elevate entry experience Tailoring common areas to meet the evolving preferences of tenants mindspacereit.com 27
Slide 28: Attracting Millennial Workforce of India
Attracting Millennial Workforce of India Amenities and high safety standards within our parks make us the partner of choice for occupiers Landscaped podiums Amphitheatre & lobby areas Club house and play area Biophilic landscaped gardens mindspacereit.com 28
Slide 29: Mindspace REIT Growth Drivers
03 Mindspace REIT Growth Drivers mindspacereit.com 29
Slide 30: NOI and Occupancy Growth Drivers
NOI and Occupancy Growth Drivers Focused execution and leveraging growth levers to drive NOI growth 83% • Committed Occupancy as of Dec’23 Increased Occupancy ~ is 86.1% Vacancy in SEZ Vacant area excl. Pocharam – • New SEZ demarcation guidelines to 2.4 msf aid Airoli leasing 10 • c.10 msf of NOI gr
Slide 31: Lease up of Vacant Area
Driving portfolio growth through occupancy growth and Organic development Organic Revenue Generation potential of 10 msf in the medium term Lease up of Vacant Area c. 3.0 msf Area under Development c. 4.4 msf(1) c. 10.0 msf Future Development (Across Airoli and Madhapur) c. 2.5 msf mNote indsp: 1. a
Slide 32: Unlocking value through strategic redevelopment initiatives
Unlocking value & fostering growth through strategic redevelopment initiatives Re-development – Building 1 Building 1 Building 8 0.8 msf 3.6x c.3 msf m iNote: ndspa Images c e r e i t shown . c o m are Perspectives 32
Slide 33: Organic development to drive the next phase of growth
Organic development to drive the next phase of growth ~4.4 msf area under development completing over next 3-4 years Commerzone Kharadi, Pune Mindspace Airoli East, Mumbai Mindspace Airoli West, Mumbai Building 4 (~1.0 msf) Highstreet (~0.05 msf) Building 8- Data center (~0.3 msf) Mindspace Madhapur
Slide 34: Delivering Occupancy Growth
Delivering Occupancy Growth Non-SEZ portfolio has achieved pre-COVID c. 99% c. 95% c. 99% occupancy levels(1) Pune Madhapur Airoli (Non-SEZ) Decks cleared for SEZ space unlocking; Strong demand for Non SEZ spaces in Airoli c. 0.4 msf c. 1.5 msf c. 2.3 msf Vacant SEZ Area expected to Conversion to NP
Slide 35: Inorganic growth through ROFO assets
Inorganic growth through ROFO assets Commerzone Raidurg The Square BKC 98 Hyderabad Mumbai Continuous sponsor pipeline (~15 msf potential) Two assets already offered 1.8 msf 0.15 msf Leased to Qualcomm Leased to BFSI tenant In addition to sponsor assets, third party inorganic opportunities being exp
Slide 36: Value Creation via ESG
04 Value Creation via ESG mindspacereit.com 36
Slide 37: Key Achievements and Awards
Key Achievements and Awards Mindspace REIT: Real Estate Excellence • 1st in India to score 100/100 as ‘Global Listed Sector Leader’ in Office Development Benchmark • Ranked 1st in Asia in ‘Listed Companies’ category for commercial development • Received 5 star rating for 2nd consecutive year, in GRE
Slide 38: Our Commitment to Build an ESG Centric Ecosystem
Our Commitment to Build an ESG Centric Ecosystem India’s first real estate entity to Signatory of EV100 Initiative Visit to Vipla Foundation sponsoring join RE100 initiative meals through the year Durgam Cheruvu Lake Establishing a school with a capacity Great place to work Makeover, Hyderabad of 40
Slide 39: Tenant Engagement Initiatives, Designed to Build Camaraderie
Tenant Engagement Initiatives, Designed to Build Camaraderie NAVRATRI FIESTA ATUL KHATRI LIVE GAURAV KAPOOR LIVE CHRISTMAS CARNIVAL Event attendance – 40,000+ Event attendance - 1,100 Event attendance - 1,700 Event attendance - 20,000+ mindspacereit.com 39
Slide 40: Tenant Engagement Initiatives, Designed to Build Camaraderie
Tenant Engagement Initiatives, Designed to Build Camaraderie NAVRATRI FIESTA NAVRATRI FIESTA ATUL KHATRI LIVE ATUL KHATRI LIVE GAURAV KAPOOR LIVE GAURAV KAPOOR LIVE CHRISTMAS CARNIVAL CHRISTMAS CARNIVAL CHRISTMAS CARNIVAL Over 60,000 employees across 5 of our business parks attended the events minds
Slide 41: Disclaimer
Disclaimer By attending the meeting where this presentation (“Presentation”) is made, or by reading the Presentation materials, you agree to be bound by the following limitations: This Presentation (a) is for information purposes only without regards to specific objectives, financial situations or n
Slide 42: Thank You
Thank You Investor Relations Enquiries: Nitin Garewal (Finance & Investor Relations) Email id: ir@mindspacereit.com mindspacereit.com 42
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