Brookfield India Real Estate Trust · NSE:BIRET.RR
Brookfield India Real Estate Trust — Q2 FY2025 Earnings Presentation
45 slides from Brookfield India Real Estate Trust's earnings presentation, Nov 6, 2024
Slide 1: Brookfield India Real Estate Trust Q2 FY2025 Investor Update
Brookfield India Real Estate Trust Q 2 F Y 2 0 2 5 – I N V E S T O R U P D AT E NOVEMBER 06, 2024 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 24.3 MSF OPERATING AREA Delhi NCR 17 89% WORLDMARK DELHI EFFECTIVE ECONOMIC OCCUPANCY(1) Kolkata Mumbai, 3 Pune 4 3 Rs 95 PSF IN-PLACE RENT PER DOWNT
Slide 4: 3x AUM Growth since IPO
3x AUM Growth since IPO CURRENT PORTFOLIO 14.1 MSF 24.3 MSF Total Operating Area Total Operating Area Candor TechSpace G2 Candor TechSpace K1 Candor TechSpace G1 Rs 160 B Rs 368 B Consolidated GAV Consolidated GAV(1) 51% 25% Share of top 5 tenants(2) Share of top 5 tenants(2) Candor TechSpace N1 Dow
Slide 5: Turning the Corner
Turning the Corner ~500bps improvement in occupancy over the last 12 months COMMITTED OCCUPANCY(1) (%) 96% 96% 95% 94% 87% 84% 84% 85% 83% 82% 80% 80% Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Work from home Strong return to office Global recession Increased
Slide 6: Key Highlights - Q2 FY2025
Key Highlights - Q2 FY2025 1.0 MSF 500bps YoY Rs 4.76 Gross Occupancy NDCF Leasing Growth per unit 0.4 MSF 18% YoY Rs 344 Tenant Expansions Same Store Net Asset Value in SEZs NOI Growth(1) per unit(2) • 5-star GRESB rating for the third consecutive year • Ranked #1 in Asia for “Management Score” for
Slide 7: Leasing Success
Leasing Success Gross leasing of 1.0 MSF of which ~50% was in SEZ properties LEASING UPDATE – Q2 FY2025(1) New Gross Renewals Leasing Leasing Fidelity Area 679,000 286,000 965,000 (SF) Qualcomm SEZ Properties 447,000 34,000 481,000 (SF) Average Rent(1) Rs 113 Rs 150 Rs 124 (PSF) ION Ernst & Young Av
Slide 8: Leasing Success (Cont’d)
Leasing Success (Cont’d) Our SEZ properties witnessed significant expansion demand totaling to 447,000 SF KEY TENANT EXPANSIONS (SF) Fidelity 136,000 255,000 267,000 200,000 163,000 79,000 DOWNTOWN POWAI (SEZ) G1 G1 A GLOBAL SEMICONDUCTOR CO. 169,000 248,000 298,000 128,000 184,000 273,000 N2 N2 N2
Slide 9: Stable Distribution
Stable Distribution Q2 FY2025 - DPU COMPOSITION Rs 4,858 million ADJUSTED NOI (Q2 FY2025)(1) Rs 0.51 , 11% Rs 0.05 , 1% Rs 1.66 , 36% Rs 2,285 million NDCF (Q2 FY2025)(2) Rs 4.60 Rs 2,208 million per unit DISTRIBUTION (Q2 FY2025)(2) Rs 2.38 , 52% Nov 9, 2024 (3) RECORD DATE Interest on Sharehold
Slide 10: Strong Outlook
Strong Outlook Backed by strong leasing momentum and NPA conversions, we expect the occupancy to reach 87% - 89% by the end of FY2025 LEASED AREA Committed Occupancy (%) (IN MSF) 87% - 89% 85% 0.4 - 0.9 21.0 - 21.5 83%(1) 0.5 20.6 20.1 March, 2024 H1 FY25 September, 2024 H2 FY25E Mar
Slide 11: Strong Outlook (Cont’d)
Strong Outlook (Cont’d) Steady leasing recovery can drive ~14% growth in NOI and ~27% growth in distributions Q2 FY2025 Under Pro-forma Rs Billions Lease up(2) Levers Run Rate Contract(1) (at 100% occ.) 100% Owned Assets (at 100%) 10.5 0.3 1.7 12.4 Rent growth, contracted escalations and MTM 50% Own
Slide 12: Business Updates
Business Updates CANDOR TECHSPACE K1, KOLKATA
Slide 13: Significantly Complete and Diversified Portfolio
Significantly Complete and Diversified Portfolio Our portfolio has an Effective Economic Occupancy of 89% and a long-dated WALE of 7.1 Yrs. Economic Operating Leased Committed / WALE In-place Rent Dev. Potential Asset Value(4) Properties Interest % Area (MSF) Area (MSF) Econ. Occ. %(2) (Yrs.) (Rs
Slide 14: Significantly Complete and Diversified Portfolio (Cont’d)
Significantly Complete and Diversified Portfolio (Cont’d) ASSET VALUE BY GEOGRAPHY(1) ASSET VALUE BY STATUS(1) 8% 1% 3% 11% 32% Rs 368 B Rs 368 B 19% (3) 28% 97% Gurugram Mumbai Noida (3) Delhi Kolkata Ludhiana Operating Development Potential 14 (1) As on September 30, 2024. Note: North Commerci
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 14% Technology, TCS Technology 7% 8% 26% Oil and gas, 2% Accenture Consulting 6% 8% Real Estate and Infrastructure, 3% Bharti Airtel Telecom 4% 3% H
Slide 16: Lease Expiry Profile
Lease Expiry Profile Portfolio has a well staggered lease expiry profile with only 36% 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) • Of the 1.0 MSF expiries due 36
Slide 17: NPA Conversion Update
NPA Conversion Update We expect NPA conversions to further augment leasing in our SEZ properties Downtown In MSF G2 N2 K1 G1 Total Powai (SEZ) SEZ Area(1) 3.9 3.8 2.5 3.7 1.6 15.6 SEZ Vacant Area 0.9 0.8 0.0 1.0 0.1 2.8 Area Under Conversion 0.5(2) 0.3 - 0.5 - 1.3 Leasing Pipeline 0.5 0
Slide 18: ESG | Achievements
ESG | Achievements 40% of occupier space energy at G1 and G2 transitioned to green energy Sourcing of green energy done from Brookfield Renewable Bikaner Solar Power Project with a total capacity of 550 MWp upon full commissioning Pioneering Transaction in India under the Inter State Transmission Sy
Slide 19: ESG | Initiatives
ESG | Initiatives Strengthening communities through significant impact initiatives WORLD NATURE CONSERVATION • 100+ Commemorated World Nature Conservation Day to underscore the importance of conserving nature. DAY PARTICIPANTS • Activities conducted with participants included terrarium- making, plan
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/SFT ) (UNITS/SFT/MONTH) Scope 2 Scope 1 334 4,325 288 10
Slide 21: Financial Updates
Financial Updates DOWNTOWN POWAI, MUMBAI
Slide 22: Q2 FY2025 | Financial Highlights
Q2 FY2025 | Financial Highlights Growth vs RS MILLIONS Q2 FY2025 Q1 FY2025 Operating Lease • Rs 55 million (1.3%) QoQ increase due to recent new Rentals (OLR) Rs 4,257 1% leasing, renewals and escalations achieved offset by expiries Adjusted Net Operating • Rs 111 million (2.3%) QoQ increase primari
Slide 23: Property Income
Property Income RS MILLIONS Q2 FY2025 Q2 FY2024 KEY DRIVERS • Rs 1,516 million YoY increase: o Rs 341 million due to same store new leasing and contractual Income from Operating Lease Rs 4,257 Rs 2,741 escalations partly offset by expiries Rentals (OLR) o Rs 1,176 million due to acquisition of G1 an
Slide 24: Property Income
Property Income RS MILLIONS H1 FY2025 H1 FY2024 KEY DRIVERS • Rs 3,606 million YoY increase: o Rs 548 million due to same store new leasing and contractual Income from Operating Lease Rs 8,460 Rs 4,854 escalations partly offset by expiries Rentals (OLR) o Rs 3,058 million due to acquisition of G1 an
Slide 25: NDCF | Walkdown
NDCF | Walkdown RS MILLIONS Q1 FY2025 Q2 FY2025 H1 FY2025 Income from Operating Lease Rentals (OLR) Rs 4,203 Rs 4,257 Rs 8,460 CAM / Other Revenue 1,535 1,645 3,180 Revenue from Operations Rs 5,738 Rs 5,902 Rs 11,640 Income Support 349 346 695 CAM / Other Direct Expenses (1,339) (1,390) (2,729) Adju
Slide 26: NDCF | Walkdown
NDCF | Walkdown RS MILLIONS Q1 FY2025 Q2 FY2025 H1 FY2025 REIT Level Receipts Rs 2,298 Rs 2,525 Rs 4,823 Interest on Shareholder Debt/CCD/NCD 992 1,024 2,016 (1) Dividends 282 317 599 Repayment of Shareholder Debt/NCD 1,024 1,184 2,208 Net Proceeds from commercial papers 1,871 (4,528) (2,657) Procee
Slide 27: Summary Balance Sheet
Summary Balance Sheet Our business is well-capitalized, backed by a strong balance sheet and Sponsor Group Rs Millions Sep 30, 2024 Total Equity 131,272 Equity 111,425 Non-Controlling Interest 19,847 Liabilities 136,822 Bank Borrowings 104,634 Commercial Paper 4,966 NCD's and CCD's 11,888 Security D
Slide 28: 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 34.5% Dual AAA Rating 81% 8.36% LTV EXCLUDING SHAREHOLDER [ICRA]AAA(STABLE) % LOANS LINKED TO REPO RATE AVERAGE INTEREST INSTRUMENTS(1) CRISIL AAA/STABLE QU
Slide 29: Information Supplement
Information Supplement CANDOR TECHSPACE G1, GURUGRAM
Slide 30: Brookfield: One of the World’s Largest Real Estate Portfolios
Brookfield: One of the World’s Largest Real Estate Portfolios With ~$268B 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 31: Sponsor Assets Pipeline
Sponsor Assets Pipeline Our Sponsor Group owns another 26 MSF across India in complementary markets ECOWORLD, BANGALORE (7.4 MSF) ECOSPACE, BANGALORE (1.6 MSF) MILLENIA, CHENNAI (1.6 MSF) EQUINOX, MUMBAI (1.3 MSF) WATERSTONES, MUMBAI (1.4 MSF) BLUEGRASS, PUNE (1.4 MSF) 31
Slide 32: Leasing Q2 FY2025
Leasing Q2 FY2025 SELECT NEW LEASES / RENEWALS(1) Tenant Assets Area (SF) GET Downtown Powai 103,000 Rs 113 PSF AVERAGE RENT ON NEW LEASING(2) Fidelity G1 67,000 A Global Semiconductor N2 64,000 Company Cognizant G1 64,000 Ergo Downtown Powai (SEZ) 57,000 17% RE-LEASING SPREAD(2) ESRI R&D Worldm
Slide 33: 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 H2 FY25E FY26E FY27E FY28E H2 FY25E FY26E FY27E FY28E H2 FY25E FY26E FY27E FY28E Downtown Powai 302 46 588 489 13% 3% 24% 20% Rs 190 Rs 185 Rs 176 Rs 193 (Co
Slide 34: Portfolio Occupancy: Q1 FY2025 to Q2 FY2025
Portfolio Occupancy: Q1 FY2025 to Q2 FY2025 June 30, 2024 September 30, 2024 Operating Leased Committed Operating Leased Committed ASSET Leasing Expiries Renewed area area occupancy area area occupancy Downtown Powai 4,343 3,950 91% - 214 (215) 13 - 4,357 3,962 91% Commercial / IT Park 2,740 2,430 8
Slide 35: Portfolio Occupancy: Q4 FY2024 to Q2 FY2025
Portfolio Occupancy: Q4 FY2024 to Q2 FY2025 March 31, 2024 September 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% - 242 (236) 34 - 4,357 3,962 91% Commercial / IT Park 2,737 2,402
Slide 36: Q2 FY2025: New leasing & Renewals
Q2 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 214 146 13 297 227 156 Commercial / IT Park 118 146 13 297 130 164 SEZ 97 146 - - 97 146 G1 207 92 2 - 210 92 G2 14 103 1 - 15 103 N1
Slide 37: H1 FY2025: New leasing & Renewals
H1 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 242 152 - 34 282 - 276 165 Commercial / IT Park 145 156 - 34 282 - 179 175 SEZ 97 146 - - - - 97 146 G1 207 92 - 2 - - 210 92 G2(2) 5
Slide 38: Property Income | Consolidation Details (Q2 FY2025)
Property Income | Consolidation Details (Q2 FY2025) INCOME FROM OPERATING REVENUE FROM RS MILLIONS NET OPERATING INCOME(1) LEASE RENTALS (OLR) OPERATIONS Q2 FY2025 Q2 FY2024 Q2 FY2025 Q2 FY2024 Q2 FY2025 % OLR Q2 FY2024 % OLR Downtown Powai Rs 1,823 Rs 787 Rs 2,053 Rs 875 Rs 1,791 98% Rs 770 98% Com
Slide 39: Property Income | Consolidation Details (H1 FY2025)
Property Income | Consolidation Details (H1 FY2025) INCOME FROM OPERATING REVENUE FROM RS MILLIONS NET OPERATING INCOME(1) LEASE RENTALS (OLR) OPERATIONS H1 FY2025 H1 FY2024 H1 FY2025 H1 FY2024 H1 FY2025 % OLR H1 FY2024 % OLR Downtown Powai Rs 3,689 Rs 1,201 Rs 4,097 Rs 1,321 Rs 3,565 97% Rs 1,153 9
Slide 40: Ongoing Capex
Ongoing Capex Rs 4.5 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 Q1 FY2027 Rs 2,190 Denotification cost G1, G2, N2 Q3 FY2025 1
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 11.5 8.0% - Downtown Powai 10.2 8.3% 3.8 (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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