Embassy Office Parks Reit · NSE:EMBASSY.RR
Embassy Office Parks Reit — Shareholder Meeting (June 2024)
27 slides from Embassy Office Parks Reit's shareholder meeting presentation, Jun 27, 2024
Slide 1: 6th Annual Unitholders' Meeting
Embassy Office Parks REIT 6th Annual Unitholders’ Meeting June 27, 2024 Bangalore 1
Slide 2: 5 Year Highlights
5 Year Highlights Central Garden, Embassy TechVillage, Bangalore
Slide 3: Embassy REIT – 5 Year Highlights
6th Annual Unitholders’ Meeting Embassy REIT – 5 Year Highlights Since listing, Embassy REIT has demonstrated strong operational performance and delivered annualized total returns of over 11% 47% 12.0 msf 5.5 msf 19.5 msf Increase in Completed Area Acquisitions(1) New Buildings Delivered(2) Gross Le
Slide 4: FY2024 Highlights
FY2024 Highlights Hilton Hotel Complex, Embassy Manyata, Bangalore
Slide 5: Highest Ever Annual Leasing
6th Annual Unitholders’ Meeting Highest Ever Annual Leasing Leased a record 8.1 msf across 99 deals at 31% leasing spreads, surpassing initial leasing guidance of 6 msf by 35%. Mar’24 Occupancy of 85% on a portfolio level and 87% on a same-store basis Area (msf) 8.1 msf 8.1 Total Lease-up across 99
Slide 6: Marquee Pre-Commitment Deals
6th Annual Unitholders’ Meeting Marquee Pre-Commitment Deals Signed four large pre-commitment deals, totaling 2.4 msf in our under-development projects in Bangalore Embassy Manyata – Blocks D1 & D2 (1.4 msf) Embassy TechVillage – Block 8 (1.9 msf) Perspective Perspective 78% Pre-leased(1,2) to an Au
Slide 7: GCCs Continue to Drive Demand
6th Annual Unitholders’ Meeting GCCs Continue to Drive Demand GCCs contributed to 66% of the FY2024 leasing. Added 31 new corporates in our occupier roster and leased expansionary space to 68 existing occupiers FY2024 Leasing Driven by GCCs Australian American Banking Major Retail Major GCCs GCCs FY
Slide 8: New Office Deliveries
6th Annual Unitholders’ Meeting New Office Deliveries In FY2024, delivered 2.2 msf of new office buildings across Bangalore and Noida Embassy Oxygen T1, Noida (0.7 msf) Embassy Manyata M3 Block A, Bangalore (1.0 msf) Embassy Business Hub Phase1, Bangalore (0.4 msf) 8
Slide 9: Hospitality Business Continued its Growth Trajectory
6th Annual Unitholders’ Meeting Hospitality Business Continued its Growth Trajectory Operating hotel portfolio continued to grow strongly with 56% occupancy, 14% YoY ADR growth and FY2024 EBITDA of ₹1,841 mn RevPAR (₹) and Occupancy (%) Revenue (₹ mn) and EBITDA (₹ mn) 42% 10% 26% 50% 56% Revenue EB
Slide 10: Robust Financial Performance
6th Annual Unitholders’ Meeting Robust Financial Performance Met FY2024 guidance for NOI and distributions. Revenue and NOI up 8% each year-on-year. Commercial office margins of 85% and hotel margins of over 45% continue to be best-in-class Revenue (₹ mn) NOI (₹ mn) 36,852 81% 81% +8% 29,819 34,195
Slide 11: Well-Diversified Debt Book
6th Annual Unitholders’ Meeting Well-Diversified Debt Book Option 1: ₹30 Total gross debt Bondofat₹168 bnbook REIT bnLevel and ₹15 bn well-balanced across LRD diverse at Manyata investor to refinance pools, debt ZCBinstruments at an average and tenures rate of 7%, average maturity period of 4 years,
Slide 12: Expanding Unitholder Base
6th Annual Unitholders’ Meeting Expanding Unitholder Base Unitholder base continues to expand and diversify since listing; public float of 92% well distributed among foreign and domestic institutions and retail unitholders Well-diversified Investor Base Increasing Acceptance of REIT as an Investment
Slide 13: Latest Acquisition
Latest Acquisition Embassy Splendid TechZone, Chennai
Slide 14: Completed Acquisition of Embassy Splendid TechZone, Chennai
6th Annual Unitholders’ Meeting Completed Acquisition of Embassy Splendid TechZone, Chennai Successfully acquired ESTZ for an Enterprise Value of ₹11,853 mn, a best-in-class office park that marks Embassy REIT’s entry into a new growth market of Chennai 5.0 msf campus-style office park spread over
Slide 15: Accretive Across Key Metrics
6th Annual Unitholders’ Meeting Accretive Across Key Metrics Overall transaction is 2.0% NOI, 0.2% DPU and NAV accretive, on a proforma basis FY2025 NOI (₹ mn)(1,2) FY2025 DPU (₹ / unit)(1,2,3) 33,453 22.79 32,800 22.75 2.0% 0.21% Existing Proforma Post Existing Proforma Post Portfolio Acquisition P
Slide 16: Looking Ahead
LU TT ti K2) is) o —_- <x ©) £ =< \e) oe) a FIFC, Mumbai
Slide 17: India: The Office to the World
6th Annual Unitholders’ Meeting India: The Office to the World India remains optimally positioned to drive global offshoring demand, led by favorable demographics, skilled talent availability and cost-efficient high-quality spaces offered in India’s gateway cities India’s Dual Structural Advantage C
Slide 18: Bangalore is Asia's and India's Leading Office Market
6th Annual Unitholders’ Meeting Bangalore is Asia’s and India’s Leading Office Market Embassy REIT’s portfolio concentration in Bangalore remains a key competitive advantage, as the city continues to lead India’s office absorption on the back of sustained interest from GCCs Balanced Demand-Supply Ai
Slide 19: Active Development Pipeline
6th Annual Unitholders’ Meeting Active Development Pipeline 6.1 msf active developments at highly attractive yields, with 100% of the projects in Bangalore, India’s best office market Development Pipeline(1) (msf) Area (msf) (3) 48% 81% 87% - - 2.5 2.2 2.2 1.4 1.0 0.4 0.8 FY2024 FY2025 FY2026 FY2027
Slide 20: Upcoming Office Deliveries
6th Annual Unitholders’ Meeting Upcoming Office Deliveries Embassy TechVillage Block 8, Bangalore (1.9 msf) Embassy Manyata M3 Block B, Bangalore (0.6 msf) FY2025 Perspective Perspective 1.2 msf or 76% Pre-leased, incl. expansion option(1) 0.6 msf or 100% Pre-leased Embassy Manyata Block L4, Bangalo
Slide 21: Embedded Rent Growth
6th Annual Unitholders’ Meeting Embedded Rent Growth Contracted rent escalations (generally ~15% every 3 years) and significant mark-to-market opportunity (16% blended MTM till FY2028) are key drivers for NOI growth Embedded Rent Escalations of ~15% aids NOI Growth 29% of Leases Expire Between FY202
Slide 22: Multiple Embedded Growth Levers for Embassy REIT
6th Annual Unitholders’ Meeting Multiple Embedded Growth Levers for Embassy REIT Embassy REIT’s strategy leverages on multiple levers to enhance NOI and delivering long term total return value for Unitholders Vacant area lease-up – occupancy expected to stabilize at pre-Covid 5.6 msf levels of mid
Slide 23: Full Year FY2025 Guidance
6th Annual Unitholders’ Meeting Full Year FY2025 Guidance FY25 NOI guidance of ₹32.1 to ₹33.5 bn and distributions guidance of ₹22.4 to ₹23.1 per unit, implying a 10% NOI growth and 7% DPU growth year-on-year, at the mid-point of guidance range Key Assumptions for FY25 Guidance NOI (₹ mn) 32,800 Pre
Slide 24: Q&A
Q&A Embassy TechVillage, Bangalore
Slide 25: Key Terms & Definitions
6th Annual Unitholders’ Meeting Key Terms & Definitions Notes: 42. Occupied Area – The Completed Area of a property which has been leased or rented out in accordance with an agreement entered into for the purpose and also includes Letter of Intents (LoI) ► All figures in this presentation are as of
Slide 26: Disclaimer
6th Annual Unitholders’ Meeting Disclaimer This presentation is issued by Embassy Office Parks Management Services Private Limited (the “Manager”) in its capacity as the Manager of the Embassy Office Parks REIT (“Embassy REIT”), for general information purposes only, without regards to the specific
Slide 27: As India's First Listed REIT
AS INDIA’S FIRST LISTED REIT 50.5 MSF TOTAL PORTFOLIO | 5 GATEWAY CITIES | 14 OFFICE PARKS | 255+ BLUE CHIP OCCUPIERS INVESTOR CONTACT: Website: www.embassyofficeparks.com | Email: lr@embassyofficeparks.com | Office: +91 80 4722 2222
Embassy Office Parks REIT — Shareholder Meeting (June 2024) on 6ix