Mindspace Business Parks Reit · NSE:MINDSPACE.RR
Mindspace Business Parks Reit — Q1 FY25 Earnings Presentation
28 slides from Mindspace Business Parks Reit's earnings presentation, Aug 27, 2024
Slide 1: Investor Presentation Q1 FY25
Investor Presentation Q1 FY25 mindspacereit.com 1
Slide 2: 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 3: Mindspace Business Parks REIT Portfolio Overview
Mindspace Business Parks REIT Portfolio Overview One of the largest Grade-A office portfolios in India 33.6 msf 91.1% INR 197 bn INR 4,964 Mn(4) Committed Occupancy NOI in Q1 FY25 Total Leasable Area (1) Market capitalization(2) (ex. Pocharam) (2) Presence in 4 out of top 6 Indian office markets o S
Slide 4: Delivered Robust Performance
Delivered Robust Performance Cumulative distribution of INR 71.3 p.u. since listing 21.1% c. 16.1 msf (1) Releasing Spread on Gross Leasing 11.6 msf INR 42.3 Bn 11.4 % Total distribution(3) Annualized returns(7) 2.3 msf 7.9 % p.a.p.m. Delivered New Cost of Debt as on 30 Developments Jun 24(5) 7.0% C
Slide 5: Five Integrated Business Parks
Five Integrated Business Parks Mindspace Madhapur Mindspace Airoli East Hyderabad | 13.1 msf (1) Mumbai Region | 7.1 msf Completed Area: 9.6 msf; Committed Occupancy: 97.4% Completed Area: 4.8 msf; Committed Occupancy: 78.4% Mindspace Airoli West Gera Commerzone Kharadi Commerzone Yerwada Mumbai Reg
Slide 6: Five Quality Independent Office Assets
Five Quality Independent Office Assets Commerzone Porur Paradigm, Mindspace Malad Chennai | 1.1 msf Mumbai Region | 0.8 msf Completed Area: 1.1 msf; Committed Occupancy: 90.0% Completed Area: 0.8 msf; Committed Occupancy: 99.6% The Square, Nagar Road Mindspace Pocharam The Square, BKC Pune | 0.8 msf
Slide 7: Diversified Portfolio of Marquee Tenants
Diversified Portfolio of Marquee Tenants Top 10 tenants contributing 27.5% (Jun 24) vs. 28.1% (Mar 24) Diversified tenant mix across sectors Top 10 tenants Gross Contracted Rentals contribution (27.5%) (1) (1) % split by Gross Contracted Rentals % of total Gross Contracted Rentals # of parks Manufac
Slide 8: Key Highlights: Q1FY25
Key Highlights: Q1FY25 mindspacereit.com 8
Slide 9: Q1 FY25: Strong Operational Performance driving Financial Growth
Q1 FY25: Strong Operational Performance driving Financial Growth 91.1% Rising Committed Occupancy excl. Pocharam (1) 1.1 msf Robust Gross Leasing 9.2 % Y-o-Y NOI growth Y-o-Y INR c. 3.0 Y-o- Bn Distribution up 5% YoY 1.5 msf New Development planned in Airoli East 0.5 msf Received approval for NPA co
Slide 10: Strong Leasing momentum results in Committed Occupancy surpassing 91%
Strong Leasing momentum results in Committed Occupancy surpassing 91%(1) Key Operating Indicators Q1 FY25 Gross Leasing 1.1 msf Re-leased Area 0.6 msf New and Vacant Area Leased 0.5 msf Re-leasing Spread(2) 23.9 % on 1.0 msf Average Rent for Area Leased INR c. 72 psf/Month Portfolio In-Place rent IN
Slide 11: Financial Performance Supported by Strong Operational Performance
Financial Performance Supported by Strong Operational Performance Key Financial Indicators Q1 FY25 Figures in INR Mn 10.6% Revenue from Operations(1) 6,198 Y-o-Y 9.2% Net Operating Income(1) 4,964 Y-o-Y Distribution 5.0% 2,989 Y-o-Y DPU 5.0% 5.04 p.u Y-o-Y (low debt levels to Loan to Value 21.9% sup
Slide 12: Modern and Sustainable workplaces attracting occupiers
Modern and Sustainable workplaces attracting occupiers Rising occupancies across parks; 6 out of 9 parks(1) achieving >96% committed occupancy levels 100% 100% 100% 99.6% 97.4% 96.4% Gera The Square The Square Mindspace Mindspace Commerzone Commerzone Nagar Road BKC Malad Madhapur Yerwada Kharadi Pu
Slide 13: Key Strategic initiatives
Key Strategic initiatives Perspective c .1.5 msf 1 • Configuration: G + 5P+ 14 office floors(1) Planned strategic development in Airoli • Estimated commencement: End Q3 FY25(2) East to meet anticipated demand in 3 – 4 • Estimated Completion Date: Q4FY28 years mindspacereit.com 13 1. Design under fin
Slide 14: Sustainability initiatives and Recognitions
Sustainability initiatives and Recognitions First Indian REIT to raise Sustainability Linked Bond Awards & Recognitions INR 6.5 Bn subscribed by IFC • Opportunity to optimize cost through a step down mechanism Business World - Finance innovation • Reduction in coupon linked to sustainability targets
Slide 15: Our Growth Drivers
Our Growth Drivers mindspacereit.com 15
Slide 16: Organic NOI Growth
Embedded opportunities within Portfolio to drive NOI and Occupancy growth Focused execution and leveraging growth levers to drive NOI growth • Lease up of vacant Area : 2.3 msf (ex. Pocharam) • C.80% Of Vacancy is in SEZ area • Strong leasing evidenced for converted spaces ~9.5 Organic NOI Growth ms
Slide 17: Organic development to drive the next phase of growth
Organic development to drive the next phase of growth c.4.4 msf area under development is estimated to complete over next 3-4 years Commerzone Kharadi Mindspace Airoli East Mindspace Airoli West Building 4 (~1.0 msf) Highstreet (~0.05 msf) Building 8- Data center (~0.3 msf) Estimated Completion – Q3
Slide 18: Near term Portfolio Growth Potential
Near term Portfolio Growth Potential Commerzone Raidurg The Square BKC 98 Hyderabad Mumbai Continuous sponsor pipeline (~15 msf potential) Two assets already offered(1) 1.8 msf 0.15 msf Leased to US tech giant Leased to BFSI tenant In addition to sponsor assets, third party inorganic opportunities b
Slide 19: Re-energizing Parks
Re-energizing Parks mindspacereit.com 19
Slide 20: Dynamic Environment, Vibrant Workspaces
Dynamic Environment, Vibrant Workspaces mindspacereit.com 20
Slide 21: 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 21
Slide 22: 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 22
Slide 23: Experience Center: An Inclusive Ecosystem for all Lifestyle & Business Needs
Experience Center: An Inclusive Ecosystem for all Lifestyle & Business Needs Enhancing the Mindspace offering with a modern club facility with top notch amenities c. 130 ksf Exclusive and premium space Perspective Offers enriching entertainment, sports, lifestyle, recreation and dining experiences m
Slide 24: Annexure
Annexure mindspacereit.com 24
Slide 25: Key Financial Metrics
Key Financial Metrics Delivered consistent growth on key financial metrics Revenue (INR mn) NOI (INR mn) (1,3) 4,912 4,964 5,999 120 (2) 4,818 6,198 4,768 (87) (2) 5,999 5,948 4,551 4,545 4,792 120 (2) 5,440 186 (2) 4,364 4,731 5,360 5,604 4,172 186 (2) 5,879 4,014 4,974 4,365 4,916 5,254 Q1 FY23 Q2
Slide 26: Low Leverage Offers Balance Sheet Headroom for Future Growth
Low Leverage Offers Balance Sheet Headroom for Future Growth INR 65,504 Mn 21.9 % INR 7,771 Mn 7.9% 3.6 x Net Debt to Undrawn Committed Cost of Debt Net Debt (1) Net Debt to EBITDA(5) Market Value (1) Facilities (p.a.) Diversified debt Book with a mix of debentures Well staggered maturity profile an
Slide 27: Unitholding Pattern as on June 2024
Unitholding Pattern as on 30 June 2024 Unitholding Summary INR 19,753 Cr 36.5% Market Cap(1) % Free- float 593 Mn units Unitholding Pattern (Market Cap : INR 197 Bn) (1) MF AIF 1.3% 0.4% Insurance 1.8% NIIs 10.9% Sponsors & Sponsor Public DIIs Group (Others) 3.5% Total 63.5% 36.5% Unitholders 63,788
Slide 28: Thank You
Thank You Investor Relations Enquiries: Nitin Garewal (Finance & Investor Relations) Email id: ir@mindspacereit.com mindspacereit.com 28
Mindspace Business Parks REIT — Q1 FY25 Earnings Presentation on 6ix