Embassy Office Parks REIT · NSE:EMBASSY.RR
Embassy Office Parks REIT — Non-Deal Roadshow (August 2022)
29 slides from Embassy Office Parks REIT's roadshow presentation, August 2022
Slide 1: Embassy Office Parks REIT India REIT Primer
Embassy Office Parks REIT India REIT Primer August 2022 1
Slide 2: Introduction to REITs
India REIT Primer Introduction to REITs Embassy TechVillage, Bangalore
Slide 3: REITs: Globally Accepted For 60 Years
India REIT Primer REITs: Globally Accepted For 60 Years History of REIT Launches in Major Economies Australia Singapore Thailand India 1960 1971 1989 2001 2002 2003 2004 2007 2019 2020 USA Malaysia South Korea Japan Hong Kong Germany UK Philippines 1960 US$ 2.5 trillion 900+ Value of Publicly-listed
Slide 4: Global REITs – Major Constituents of Listed Real Estate Universe
India REIT Primer Global REITs – Major Constituents of Listed Real Estate Universe REITs contribute 71% of the listed real estate universe in the most mature REIT markets and 55% of the global listed real estate market capitalization Total Listed Real Estate REITs Market Capitalization $bn $bn As %
Slide 5: REITs – A Hybrid Product between Equity and Fixed Income
India REIT Primer REITs – A Hybrid Product between Equity and Fixed Income REITs provide regular yield with steady capital appreciation via increasing property valuation Fixed Income REITs Equity Regular and growing Appreciation through cash yield increasing property valuation Yield Oriented Capital
Slide 6: Introduction to Indian REITs
India REIT Primer Introduction to Indian REITs Express Towers, Mumbai
Slide 7: What Assets Can an Indian REIT Own?
India REIT Primer What Assets Can an Indian REIT Own? PERMITTED NOT Commercial Rental income PERMITTED Sectors earning real estate projects Offices, hotels, retail, Residential (houses, industrial, healthcare apartments) Speculative landbank Leverage Min. 80% Restrictions completed & income Max. 20%
Slide 8: How do REITs Generate and Distribute Income?
India REIT Primer How do REITs Generate and Distribute Income? Rental income is generated from underlying real estate assets held in the portfolio High-quality institutional grade commercial properties in key metro cities Asset Quality attract premium rentals Diversified and high-credit quality
Slide 9: Indian REIT Taxation – A Brief Summary
India REIT Primer Indian REIT Taxation – A Brief Summary Nature of Income Taxability / Exemption Withholding Tax (WHT) Rate Dividends received from SPVs Exempt u/s 10(23FD) NA distributed by REIT(1) Interest received from SPVs distributed Taxable u/s 115UA - Resident – 10% (194LBA) by REIT - Residen
Slide 10: Snapshot of Indian REITs
India REIT Primer Snapshot of Indian REITs The Indian REIT market continues to evolve since the listing of the first REIT in April 2019 93 msf ₹ 688 billion ₹ 200 billion Across India’s top Market Primary Equity Proceeds commercial office markets(1) Capitalization(2) Raised Since 2019 ₹ 91 billion A
Slide 11: Listed REIT Landscape in India
India REIT Primer Listed REIT Landscape in India Embassy Mindspace Brookfield Office Parks Business Parks India REIT Ticker (NSE) EMBASSY MINDSPACE BIRET Ticker (BSE) 542602 543217 543261 Listing Date April 01, 2019 August 07, 2020 February 16, 2021 Market ₹ 355 billion ₹ 219 billion ₹ 114 billion C
Slide 12: Indian REITs rank among top 10 listed real estate players in India
India REIT Primer Indian REITs rank among top 10 listed real estate players in India In short span of over 3 years since listing, Indian REITs’ market capitalization rank among top 10 listed real estate players in the country Market Capitalization (₹ billion) 939 536 379 355 349 244 219 187 117 114
Slide 13: Why Invest in Indian REITs?
India REIT Primer Why Invest in Indian REITs? Liquidity Transparency Asset Quality REIT units are freely traded Strong governance Fractional ownership in in stock markets like equity framework and disclosure professionally-managed shares requirements from SEBI Grade A commercial assets Distributions
Slide 14: Embassy REIT Overview
India REIT Primer Embassy REIT Overview Hilton Hotel Complex, Embassy Manyata
Slide 15: Who We Are: Quick Facts
India REIT Primer Who We Are: Quick Facts We own and operate a commercial office portfolio that serves as essential corporate infrastructure to global occupiers, including many technology companies 42.8 msf(1) 214 87% Portfolio Blue-chip Occupancy occupiers 12 1,614(1) 100 MW NCR (7%) Commercial Hot
Slide 16: Fueled by Global Technology Trends
India REIT Primer Fueled by Global Technology Trends Tech occupiers and Global Captives constitute over 70% of our occupier base Industry Diversification(1) Top 10 % of Sector Occupiers(2) Rentals Financial Services Global Technology Technology 7.5% Technology 19% and Consulting Major 40% JP Morgan
Slide 17: Occupier Growth Driving Strong Leasing Momentum
India REIT Primer Occupier Growth Driving Strong Leasing Momentum Record total leases of 1.8 msf, making it the highest total leasing in a single quarter since listing Avg. Quarterly Total Leasing 415k sf 0.6 0.5 1.0 1.0 1.0 0.3 0.6 1.8 Re-leasing Spread of 31% Pre-Commitment in U/c Parcel 8 at ETV
Slide 18: Robust Balance Sheet with Active Debt Management
India REIT Primer Robust Balance Sheet with Active Debt Management Balance sheet well-positioned amidst rising interest rate environment - low leverage, low interest rate locked-in at fixed-rate debt, and limited exposure to floating-rate debt Significant reduction in interest rates since IPO Net De
Slide 19: Delivering on Distributions
India REIT Primer Delivering on Distributions Distributions for Q1 stood at ₹5,052 mn i.e., ₹5.33 per unit with 88% being tax-free for Unitholders Distribution Highlights Distribution Mix – Q1 Q1 Particulars FY2023 Distribution period Apr’22 – Jun’22 Amortization of SPV Debt Distribution amount (mn)
Slide 20: Business Performance and Price Movement
India REIT Primer Business Performance and Price Movement Robust business performance since listing across leasing, delivery and acquisitions. Delivered 52%(5) total returns since listing to period until August 16, 2022 Business Performance since Listing Performance since Listing (5) Total Returns (
Slide 21: What We Do: Our Strategy
India REIT Primer What We Do: Our Strategy Embassy REIT’s strategy focuses on enhancing NAV and delivering long-term, total return value for Unitholders 1 Grow Operating income by leasing vacant spaces ~95% Leasing Capture mark-to-market upside Occupancy Partnership approach to occupier engage
Slide 22: Appendix
India REIT Primer Appendix Embassy Galaxy, Noida
Slide 23: How are REITs Structured?
India REIT Primer How are REITs Structured? Sponsor / Investor Ownership of Distribution of cash units flows Holds the REIT assets in trust for the benefit of the Unit holders Management Services Trustee Manager REIT Manager Fee Distribution Holding Company Distribution of Cash Flows of Cash Flows S
Slide 24: Who can Invest in Indian REITs?
India REIT Primer Who can Invest in Indian REITs? Any investor (domestic / foreign / retail / institutional) can buy REIT units in India No minimum trading lot size; previous minimum trading lot size of Rs 50,000 and 200 units done away with now Investors can purchase REIT units through a dema
Slide 25: Benefits of a REIT vs Direct Investment vs Equity Shares
India REIT Primer Benefits of a REIT vs Direct Investment vs Equity Shares REIT Units Direct Investment in RE1 Real Estate Equity Shares ₹ 2.5 million onwards (for Minimum lot size of 1 units Minimum lot size of 1 share strata units) Freely transferable listed Freely transferable listed In
Slide 26: Regulatory Framework for Indian REITs
India REIT Primer Regulatory Framework for Indian REITs India REITs have to adhere to a strong SEBI regulatory framework aimed at protecting unitholder value Minimum 80% of value in completed and income producing assets – hence, less risk to cash flows Asset and Distributions Restrictions on spe
Slide 27: Management Fee Structure Comparison
India REIT Primer Management Fee Structure Comparison Compared to international counterparts, Indian REITs have a significantly lower and simpler fee structure to drive value to unitholders Indian REITs1 Select Asian REITs2 2% - 3% 3% - 3.5% Property Mgmt. Fees of Gross Revenue or / and Net of Total
Slide 28: Disclaimer
India REIT Primer 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 objectives, fi
Slide 29: Investor Contact
Investor Contact: Website: www.embassyofficeparks.com | Email: ir@embassyofficeparks.com | Office: +91 80 4722 2222
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