EMBA EMBASSY REIT SSY REIT BUILDING RELATIONSHIPS ENRICHING LIVES - - PowerPoint PPT Presentation

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EMBA EMBASSY REIT SSY REIT BUILDING RELATIONSHIPS ENRICHING LIVES - - PowerPoint PPT Presentation

EMBA EMBASSY REIT SSY REIT BUILDING RELATIONSHIPS ENRICHING LIVES Disclaimer By attending the meeting where this presentation (the Presentation) is made, or by reading the Presentation materials, you agree to be bound by the following


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BUILDING RELATIONSHIPS ENRICHING LIVES

EMBA EMBASSY REIT SSY REIT

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Disclaimer

By attending the meeting where this presentation (the “Presentation”) is made, or by reading the Presentation materials, you agree to be bound by the following limitations: This Presentation is strictly private and confidential and is intended exclusively for the intended recipients. This Presentation and the information contained herein may not be disclosed, reproduced, retransmitted, summarized, distributed or furnished, in or whole or in part, to any other person or persons. Any printed form of this Presentation must be returned to us immediately at the conclusion of the Presentation. This Presentation is for information purposes only without regards to specific objectives, financial situations or needs of any particular person, and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for, or advertisement with respect to, the purchase or sale of any security (including any units or securities of Embassy Office Parks REIT (the ”REIT”) in the United States or in any other jurisdiction, and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The material that follows is a Presentation of general background information. We don’t assume responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent development, information or events, or otherwise. This Presentation comprises information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This Presentation should not be considered as a recommendation to any person to subscribe to any security. This Presentation includes statements that are, or may be deemed to be, “forward-looking statements”. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance including those relating to general business plans and strategy, future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the any objectives specified herein will be achieved. Neither we, nor any of our affiliates or advisors, as such, make any representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein and accept no liability whatsoever for any loss, howsoever, arising from any use or reliance on this Presentation or its content or otherwise arising in connection therewith. Unless otherwise stated in this Presentation, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. Embassy Office Parks REIT is proposing, subject to, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its Units and has filed the Offer Document dated March 11, 2019 ("Offer Document") with SEBI. The Offer Document is available on the websites of SEBI, BSE, NSE at www.sebi.gov.in, www.bseindia.com and www.nseindia.com respectively GCBRLMs at www.morganstanley.com, www.investmentbank.kotak.com, www.jpmipl.com and www.ml-india.com and BRLMs at www.axiscapital.co.in, www.creditsuisse.com, www.db.com/India, www.goldmansachs.com, www.hsbc.co.in/1/2/corporate/equitiesglobalinvestmentbanking, www.iiflcap.com, www.jmfl.com & www.nomuraholdings.com/company/group/asia/india/index.html Potential investors should note that investment in Units involves a high degree of risk and for details relating to the same, see "Risk Factors" beginning on page 22 of the Offer Document. The units or securities of the REIT have not been and will not be registered under the U.S. Securities Act, 1933, as amended (“U.S. Securities Act”) or any state securities laws in the United States, and unless so registered may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. The units or securities have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction. We do not intend to register securities or to conduct a public offering of securities in the United States. By attending this meeting, you confirm that you are either (i) a “qualified institutional buyer” as defined in Rule 144A under the U.S. Securities Act, or (ii) outside the United States. Any failure to comply with the foregoing and below restrictions may constitute a violation of applicable securities laws. This document is just a Presentation and is not intended to be a “prospectus” or “draft offer document” or “offer document” or “final offer document” or “offer letter” or “offering memorandum” (as defined or referred to, as the case may be, under the Companies Act, 2013 and the rules notified thereunder, and the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, as amended, or any other applicable law). It is clarified that this Presentation is not intended to be a document or advertisement offering for subscription or sale of any securities or inviting offers or invitations to offer or solicitation to offer from the public (including any section thereof) or any class of investors. This Presentation has not been and will not be reviewed or approved by a regulatory authority in India or elsewhere or by any stock exchange in India or elsewhere. If the we should at any time commence an offering of securities, any decision to invest in any such offer to subscribe for or acquire securities must be based wholly on the information contained in a final offer document or offering circular (including the risk factors mentioned therein) issued or to be issued in connection with any such offer and not on the contents

  • hereof. Any offering circular will only be provided to potential investors in the United Arab Emirates upon request.

This Presentation is not intended to be an offer or placement for the purposes of the Alternative Investment Fund Managers Directive (“AIFMD”), and any “marketing” as defined under AIFMD may only take place in accordance with the national private placement regimes of the applicable European Economic Area jurisdictions.

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Seven Infrastructure-like Office Parks (31 msf)

(1)

Embassy Golflinks Bengaluru (2.7 msf)(2) Embassy Manyata Bengaluru (14.2 msf) Embassy Quadron Pune (1.9 msf) Embassy Techzone Pune (5.5 msf) Embassy Oxygen Noida (3.3 msf) Embassy Galaxy Noida (1.4 msf) Embassy Qubix Pune (1.5 msf)

Note: For additional detail, please see notes at the end of the Presentation.

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Four Prime City-center Offices (2.4 msf)

FIFC Mumbai (0.4 msf) Express Towers Mumbai (0.5 msf) Embassy 247 Mumbai (1.2 msf) Embassy One Bengaluru (0.3 msf)

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Pan-India Best-in-class Office Portfolio

Mumbai (16.2%) Pune (14.4%) Bengaluru (60.5%) Noida (8.9%)

33 msf

Leasable Area(1)

75

High Quality Office Buildings across 11 Commercial Offices

4

Gateway Cities

160+

Marquee Tenant Base

Note: City wise split by % of Market Value. (1) Includes 24.8 msf sf of Completed Area, 2.5 msf of Under Construction Area and 5.4 msf of Proposed Development Area

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Compelling Business Opportunity

 India has become a global hub for corporates services over the last 20 years leading to 15% annual

employment growth in the technology services sector

 Outsized services sector growth has in turn resulted in key Indian cities having amongst the highest

  • ffice absorption globally(1)

Compelling Industry Fundamentals Best-in-class Portfolio with Multinational Tenants

 Embassy REIT provides infrastructure-like office parks with best-in-class amenities at competitive

rents to multinationals

 95% leased to marquee tenants with 81% of rents from multinational corporations  Located in India’s key office markets with our assets outperforming the market  Asia’s largest office REIT(2) – 33 msf portfolio of office parks and prime city-center offices

Experienced Management Team and Renowned Sponsors

 Seasoned management team with 20 years average experience  Active asset management driving stable occupancy and strong rent growth  Backed by renowned sponsors – Embassy Group and Blackstone

Simple Business Model with Strong Embedded Growth

 7 year WALE(3) with contractual escalations  34% mark-to-market growth potential(4); 48% re-leasing spreads on 2.7 msf over last three years and

nine months

 7.9 msf on-campus development pipeline to accommodate tenant expansion and potential ROFO

assets to enhance growth

 Low leverage(5) provides flexibility for growth through value accretive acquisitions

 High quality office portfolio, serving as essential corporate infrastructure to multinational tenants, with

significant embedded growth aspects

Note: For additional detail, please see notes at the end of the Presentation.

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Multinational Tenant Base of Blue-chip Companies

Multinational Corporate Tenants 81% Indian Corporates 19%

81% of Rents from

Multinational Corporations

(as of December 31, 2018)

43% of Rents from

Fortune 500 Tenants

(as of December 31, 2018)

Financial Services E&M Consulting Healthcare Technology Others

Google Microsoft IBM Cognizant Goldman Sachs JP Morgan Wells Fargo PwC Accenture Volkswagen NOKIA Rolls- Royce Legato Maersk Target Lowe’s

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$150 - 210

$160 - 220 $275 - 325 $175 - 225 $600 - 700 $1,000 - 1,100 $3,100 - 3,150 $3,100 - 3,150 $400 - 500 $1,450 - 1,500 $850 - 950 $350 - 450 $800 - 900 $2,100 - 2,150 $900 - 1,000

Bengaluru NCR Mumbai Pune Shanghai Beijing Hong Kong Tokyo Munich Central London New York Los Angeles San Francisco Singapore Sydney

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Capital Values Significantly Below Peers

 Real estate capital values in Embassy REIT’s markets are significantly below other global peers

Capital Values

(USD psf)

Embassy REIT’s Markets

Note: For additional detail, please see notes at the end of the Presentation. Note: CBRE Research, 2018.

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Considerable Cost Arbitrage in Terms of Office Rents

 Embassy REIT’s markets offer significantly cheaper rentals compared to global commercial hubs

Market Rents in Major Global Cities

Q1 CY 2018 (USD psf /year)

$14.4 $14.9 $24.9 $15.6 $85.0 $120.0 $108.0 $108.0 $50.3 $147.9 $61.9 $35.9 $56.7 $89.0 $44.0

Bengaluru NCR Mumbai Pune Shanghai Beijing Hong Kong Tokyo Munich Central London New York Los Angeles San Francisco Singapore Sydney

Embassy REIT’s Markets

Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation. Note: CBRE Research, 2018.

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5.6% 10.0% 4.0% Jun-08 Jun-10 Jun-12 Jun-14 Jun-16 Jun-18

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Strong U.S. Labour Market Driving Indian Technology Services Growth

 Low unemployment and strong wage growth in the U.S. improves attractiveness of Indian technology

services Decadal Low Unemployment in the U.S. Resulting in 2.5m STEM Employee Shortage

(% unemployment)

Strong U.S. Wage Growth Driving Technology Sector Employment in India

(Rebased to 100 in 2011)

100 117 159 2011 2012 2013 2014 2015 2016 2017 2018

U.S. Private Sector Wages India Technology Employment

(3) (2) (1) Note: CBRE Research, US Bureau of Labor Statistics. Note: STEM denotes employees engaged in the fields of science, technology, engineering and mathematics. For additional detail, please see notes at the end of the Presentation.

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37 318 2000 2018F

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Abundant Talent and Cost Savings Driving Economic Growth and Office Absorption

 Availability of skilled English speaking talent and a low cost base continues to attract global

companies to use India for large services operations leading to high office absorption Space Occupied by Technology Sector

(msf)

India’s Competitive Advantages Technology Sector Growth Cost Advantage

15% CAGR

Technology sector employee growth from 2000 to 2018F

6.4 million

Graduates annually

85%

Lower cost structure than US Tier II cities Large Talent Pool

Cost Arbitrage Services(1)

(call centers, BPOs, testing)

High Value, Less Cost Sensitive Services

(R&D, Healthcare)

Note: CBRE Research, 2018. Note: Years refer to the calendar year ending December 31 respectively. (1) For pre-2000 period.

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Our Markets Continue to Witness Strong Fundamentals

 Embassy REIT’s markets have witnessed strong absorption growth (up 26% from 2013 to 2018F) with

forecast supply remaining constrained and expected to be below historical average absorption Absorption(1)

(msf)

Supply(1)

(msf)

23.8 30.1 2013 2018F 24.1 24.6

  • Avg. from

2013–2017

  • Avg. from

2018F–2019F

Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation. Note: CBRE Research, 2018.

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Key Indian Cities Have amongst the Highest Office Absorption Globally

 Our four markets have experienced total absorption of 136 msf from CY 2013 to Q1 2018, more than 11

global cities combined Absorption

CY 2013–Q1 2018 (msf)

56.7 31.1 29.1 18.9 28.6 17.2 5.4 19.0 14.6 5.6 10.0 9.6 9.1 6.3 3.1

Bengaluru NCR Mumbai Pune Shanghai Beijing Hong Kong Tokyo Munich Central London New York Los Angeles San Francisco Singapore Sydney

135.8 msf Embassy REIT’s Markets 128.4 msf Other Global Cities

Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation. Note: CBRE Research, 2018.

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Portfolio Overview

 Stable tenant base with 95% committed occupancy and 81% tenant retention over the last three

years and nine months

 72% of our tenant base is from the services sector (key driver of India’s growth)  6.8 msf of new leasing over the last three years and nine months without incurring material

Tenant Improvements (“TI”) capex

Highly Occupied by Marquee Tenant Base

 Strategically located in India’s key office markets of Mumbai, Bengaluru, Pune and Noida  Our assets outperform their markets: 940 bps higher occupancy, 270 bps higher rent CAGR(1)

World-Class Assets with Outstanding Amenities In-fill Locations with Significant Scale

 7 infrastructure-like office parks and 4 prime city-center offices  Complete business ecosystem with landscaped environments and amenities such as 1,096 on-

campus hotel keys(2), food courts, gymnasiums, childcare and employee transportation

Attractive Yield Spreads

 175 bps–575 bps premium to capitalization rates for assets of similar quality and tenant profile

in United States, Japan and China

Note: For additional detail, please see notes at the end of the Presentation.

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Embassy REIT’s Markets Represent 77% of India’s Office Absorption

2013–Q1 2018 (% of absorption for Top 7 Indian Cities)

Bengaluru 32% NCR 18% Mumbai 17% Pune 11% Others 23%

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Embassy REIT’s Assets Are Well Positioned in India’s Four Key Office Markets

26%

Absorption growth since 2013 for Embassy REIT’s markets(2)

72%

Of India’s Grade A office stock concentrated in Embassy REIT’s markets(1)

780 bps

Increase in occupancy since 2013 for Embassy REIT’s markets(3)

Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation. Source: CBRE Research, 2018. India’s top 7 cities include Mumbai, NCR, Bengaluru, Pune, Chennai, Hyderabad and Kolkata.

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Infrastructure-like Office Parks with Best-in-class Amenities

Food Court at Embassy Galaxy Noida Hilton at Embassy Golflinks Bengaluru (247 Keys) Embassy Quadron Pune (1.9 msf | 25 acres)

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Our Assets Provide a Complete Business Ecosystem

Tenant Engagement Alfresco Dining Amphitheatre Sports Facilities Childcare Facilities Gymnasium Public Transport Social Responsibility

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Sustainability Initiatives

 Our focus on energy sustainability and environment conservation is a key differentiator

Community Engagement Sustainable Energy Environment, Health and Safety

 100MW Solar Plant supplying green power to

Bengaluru assets and hotels

 Many LEED Platinum / Gold rated assets  Create a sense of community by organizing cultural,

lifestyle and corporate social responsibility events

 Undertaken environment friendly green initiatives such

as employee transportation facilities

100 MW Solar Plant Cycling Event  2 British Safety Council Sword of Honour winning

parks (2017) for select assets

 Environmental, Health and Safety Certifications such

as ISO / OHSAS for select assets

Awards and Certifications

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Embassy REIT’s Assets Have Outperformed Their Markets

 High quality assets with robust infrastructure and amenities backed by professional asset

management has resulted in strong outperformance by our Portfolio Occupancy

(1)

(%)

Rents

(2)

2013 – Q1 2018 (Indexed Rents 2013 = 100)

77.8% 80.8% 81.4% 84.5% 85.5% 85.6% 94.3% 92.8% 93.4% 93.4% 94.7% 95.0% 2013 2014 2015 2016 2017 1Q 2018 90 110 130 150 2013 2014 2015 2016 2017 1Q 2018 Embassy REIT’s Markets Embassy REIT’s Assets 940 bps 270 bps CAGR: 6.9% CAGR: 4.2%

Note: Years refer to the calendar year ending December 31 respectively. For additional detail, please see notes at the end of the Presentation. Note: CBRE Research, 2018.

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Existing Tenants 62% New Tenants 38% 15%–20% 2%–5% US real estate companies Indian real estate companies

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Deep Tenant Relationships and Asset Quality Driving Strong Leasing Traction

 Scale and quality of our assets have resulted in 6.8 msf of new leasing over the last three years and

nine months without incurring material TI CapEx

6.8 msf of New Leasing

  • ver the Last Three Years and nine months

Area Leased (msf)

Typical TI Capex

(% of Rental Revenue)(1)

(1) Source: CBRE Research.

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0.5 0.9 0.8 1.4 3.2 Q4-FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

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Embedded Mark-to-market Growth Potential

Market Rents Are 34% above In-place Rents

Rents (INR psf/month)(1)

29% of Occupied Area Expiring between Q4 2019 – FY 2023

Area Expiring (msf)

62 83 In-place Rents Market Rents

Mark-to- Market Opportunity 8.3% 37.3% 59.3% Rents Expiring (%) 1.8% 4.9% 3.8% 6.1% 9.4%

(1) Based on management's estimates

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Strong Track Record in Re-leasing to Market with High Value Tenants

Achieved 48% Average Re-leasing Spreads

  • n 2.7 msf Area over last three years and nine

months

(% Increase in Base Rents)

Re-leasing to High-Value Services Tenants

(Rents INR psf/month)

26.6% 60.7% 35.3% 49.3% FY 2016 FY 2017 FY 2018 9mFY19 51 77 Before After 46 133 Before After

Embassy Golflinks

(145k, 9mFY19)

Embassy Manyata

(56k sf, 9mFY19)

Area Re- leased (msf)

0.3 1.1 0.5 0.8

Leading Retail Store Leading Technology Tenant Leading Software Developer Leading Technology Tenant 48.0% Average

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1.4 1.3 0.9 1.8 1.5 0.5 0.6 0.7 0.3 3.0

FY 2014 FY 2016 FY 2018 FY 2019 FY 2021 Post FY 2021 Manyata Oxygen Techzone

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Complete On-campus Development Pipeline

 Demonstrated development capability with 4.1 msf delivered over the last five years and nine months

Development Experience & Future Potential

(msf)(1)

De-risked Development

(High Pre-leasing)

Embassy Oxygen | 0.5 msf

(Tower 3)

Perspective Actual

92%

Pre-leased

(Nov-18 completion)

3.6 msf & 0.5 msf added in Manyata & Oxygen respectively

(1) Excludes 619 hotel keys across Hilton and Hilton Garden Inn in Manyata

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Strong Embedded Growth

 Contracted NOI growth drives approximately 50% of projected NOI growth (FY 2019 – FY 2021)

16,141 2,629 1,469 1,209 21,447 FY 2019 Contracted NOI Growth Vacancy Lease-up & Development Re-leasing at Market, Hotel Stabilization & Others FY 2021

NOI Bridge

(INR in millions)

% of Total Growth 50% 27% 23%

(1) (2) Note: For additional detail, please see notes at the end of the Presentation.

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Embassy Sponsor’s Potential ROFO Assets to Drive Growth

 Embassy REIT will have a ROFO on certain assets owned by the Embassy sponsor potentially

expanding our presence to Chennai which is other key Indian office market

Embassy Splendid TechZone (Chennai | 5.0 msf)

Embassy TechVillage (Bengaluru | 12.2 msf)

42.8 msf | 4 assets

Being developed by Embassy across strong markets such as Bengaluru & Chennai ROFO Mechanism

Specifications

 Compliant with REIT regulations  At least 50% area developed

Applicability

 Controlling interest of Embassy Group  Triggered upon any change in controlling interest by Embassy

Asset Size

 Market value not less than INR 7.5 billion

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30 - 40% 18 - 22% Less than 15%

(Post utilization of IPO proceeds)

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Flexible Capital Structure for Disciplined Acquisition Strategy

 Conservative balance sheet, post utilization of IPO proceeds, provides significant flexibility for growth

through value accretive ROFO and third-party acquisitions

Net Debt to GAV

Hong Kong based REITs Singapore based REITs

(1) Source: CBRE Research.

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Simple Business Model

Strong Balance Sheet

 2.5 msf currently under construction on entitled land within Embassy REIT’s assets  Hilton branded hotels totaling 619 keys currently under construction within our assets  Further 5.4 msf of Proposed Development Area to accommodate tenant expansion

Near-Term Leasing Upside to Drive Growth

 Lease-up of existing 5% vacancy – largely transitional and concentrated in select assets  Significant mark-to-market opportunity – market rents are 34% above in-place rents(1)  Lowly leveraged initially with less than 15% loan-to-value post utilization of IPO proceeds  Significant flexibility enables growth through ROFO asset and third-party acquisitions

On-campus Development Potential Stable Cash Flows

 Stable, long-term contracted rents with 10%–15% contractual escalations every 3–5 years  81% of rents from multinationals with 43% from Fortune 500 companies

(1) Based on management's estimates

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Embassy REIT Manager

 Highly experienced senior management team with over 20 years of average experience

Experience

 20+ Years

Experience

 Former

Country Manager and Managing Director of JLL India

 Former CEO of

Assetz Property Group

 11+ Years

Experience

 Former MD,

Blackstone Real Estate

 Former VP at

Piramal Fund Management (erstwhile IndiaREIT)

 23+ Years

Experience

 Worked in various

positions with the Manipal Group

 17+ Years

Experience

 Key person of

Samsara Fund Advisors Private Limited

 Former VP of

Acquisitions at Starwood Capital Group

 26+ Years

Experience

 Former Deputy

General Manager – Leasing and Marketing (Commercial) at Larsen & Toubro Limited

 12+ Years

Experience

 Former ED at

Nomura Singapore Limited and Director at UBS AG Singapore Branch

Management Summary

 The Manager and the Asset SPVs together have over 60 employees  Hands on expertise in asset management, leasing, development, acquisitions and financing  Strong relationships with tenants, lenders and capital providers Michael Holland CEO Vikaash Khdloya Deputy CEO / COO 1 Rajesh Kaimal CFO Sachin Shah CIO Bhhavesh Kamdar Head, Leasing Ritwik Bhattacharjee Head, Investor Relations

(1) Will be deputy CEO/COO on the date of listing

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Active Asset Management Driving Strong Performance

Leasing Rental Growth Tenant Initiatives

 6.8 msf of new leasing over the past three years and nine months  7.7 msf of renewals over the past three years and nine months  7.1% Same-Store Rental CAGR across portfolio assets & investment from FY 2016 to FY 2018  48% re-leasing spreads on 2.7 msf over the past three years and nine months  Pioneered tenant engagement programs such as “Energize” and “Q-Life”

Development Expertise

 Completed 4.1 msf of development over the last five years and nine months

Asset Upgrades / Refurbishments

 Upgraded 7 food courts and 33 office lobbies across assets over the last three years and nine months

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Strong Corporate Governance Framework

 Embassy REIT has incorporated adequate corporate governance standards to protect unitholder value

Asset Debt Manager

 50% independent directors on the Board, with 50% representation on all committees  Manager can be removed with 60% approval of unrelated unitholders  Alignment with unitholder interests due to a distribution linked management fees structure  Minimum 80% of value in completed and leased properties  Minimum 90% of distributable cash flows to be distributed  Restrictions on speculative land acquisition  Majority unitholder approval required if debt(1) exceeds 25% of asset value  Debt cannot exceed 49% of asset value

Strong Related Party Safeguards

 Sponsors are prohibited from voting on their related party transactions  Majority unitholder approval required for acquisition or disposal of asset which exceeds 10% of REIT value  Acquisition or sale price of new asset cannot deviate from average valuation of two independent valuers by +/- 10%

(1) Debt includes consolidated borrowings and deferred payments of the REIT, Hold Co and SPV’s.

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Experienced Board

Nominee Directors Independent Directors Vivek Mehra

 Ex-Partner for PricewaterhouseCoopers Private

Limited

Anuj Puri

 Director at ANAROCK Investment Advisors

Private Limited

  • Dr. Punita Kumar Sinha

 Ex-Portfolio manager, Oppenheimer Asset

Management

  • Dr. Ranjan Pai

 Former Managing Director and CEO of Manipal

Group

Jitendra Virwani

 Chairman & Managing Director,

Embassy Group

Christopher Heady

 Chairman of Blackstone Asia Pacific  Head of Blackstone Real Estate Asia

Tuhin Parikh

 Senior Managing Director of Blackstone Real

Estate’s operations in India

Aditya Virwani

 On the board of several Embassy group

companies

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Credible Sponsors with Significant Local and Global Expertise

45 MSF

Completed area across residential and office development

Integrated Platform

Project management, land acquisitions and marketing of real estate assets

Extensive

Land bank held across the country

Local Expert $119B

Investor Capital under management (1)

473 Real Estate Professionals

Working globally (1)

Public offerings

Hilton and Invitation Homes

Global Manager

(1) As of June 30, 2018

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Notes

 All figures in this presentation are as of December 31, 2018 unless specified otherwise  All figures corresponding to year denoted with “FY” are as of or for the one year period ending (as may be relevant) 31st

March of the respective year. Similarly, all figures corresponding to year denoted with “CY” are as of or for the one year period ending (as may be relevant) 31st December of the respective year

 Some of the figures in this Presentation have been rounded-off to the nearest decimal for the ease of presentation  Any reference to long-term leases or WALE (weighted average lease expiry) assumes successive renewals by tenants at

their option

 Key Terms and Definitions:

  • 1. 1. Embassy Group: refers to the Embassy Sponsor or its subsidiaries or limited liability partnerships
  • 2. 2. Mumbai: represents MMR – Mumbai Metropolitan Region
  • 3. 3. NCR: represents Delhi National Capital Region
  • 4. 4. NOI: Net Operating Income calculated by subtracting Direct Operating expenses from Revenue from operations
  • 5. 5. Occupancy / % Occupied / % Leased: refers to Committed Occupancy unless specified otherwise. Committed

Occupancy is defined as the ratio of the Occupied Area including Completed Area under letter of intent and the Completed Area

  • 6. 6. Rents: refers to Gross Rentals unless specified otherwise. Gross Rentals are defined as the sum of Base Rentals,

fit-out and car parking income from Occupied Area for the month of March 2018

  • 7. 7. Rolls-Royce: refers to Rolls-Royce India Private Limited
  • 8. 8. Years: refers to fiscal years unless specified otherwise
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Notes

Page 3: (1) Includes 7.9 msf of Under Construction and Proposed Development Area (2) Details for 100% of GLSP; Embassy REIT will own a 50% economic interest in GLSP Page 6: (1) Source: CBRE Research. In terms of total absorption for select major office centers from CY 2013–Q1 CY 2018 (2) As at December 31, 2018. Largest REIT by area amongst comparable Asian office REITs. Includes 24.8 msf completed area and 7.9 msf development potential (3) Weighted Average Lease Expiry assuming that each tenant exercises the right to renew for future terms after expiry of initial commitment period (4) Based on management’s estimates (5) Post utilization of IPO proceeds Page 8: (1) NCR represents Delhi National Capital Region, which includes Noida Note: For Bengaluru, NCR, Pune, Mumbai and Sydney, the capital values highlighted above have been computed based on the indicative yields prevalent in the respective markets and representative of Grade A office spaces. For all other cities the values are average capital values for strata sold developments in the respective cities. Page 9: (1) Noida, where Embassy Oxygen and Embassy Galaxy are located, is a submarket of NCR (National Capital Region) Note: New York, Los Angeles and San Francisco represents Gross Asking Rent; Hong Kong, Tokyo, Singapore, Beijing, Shanghai represents Grade A rent on Net Floor Area; Sydney represents rent for all grades on Net Floor Area; Central London, Munich, Mumbai, Pune, NCR and Bengaluru represents Grade A rent on Gross Area. Rents for Central London and Munich are representative of Prime Rents. Rents for Bengaluru, NCR, Mumbai and Pune have been calculated based on the weighted average of market rents and occupied stock of the respective sub markets within the city. Page 10: (1) Represents 2.5 million people employed in the India technology industry and an hourly wage of $23.0 in the US Private Sector in FY 2011 (2) Represents an average hourly wage of $26.8 in FY 2018 (3) Represents 3.97 million employed in FY 2018 Page 12: (1) For Embassy REIT’s markets – Bengaluru, Pune, Mumbai and NCR (2) Average of the annual supply in the relevant period

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Notes

Page 13: (1) Noida, where Embassy Oxygen and Embassy Galaxy are located, is a submarket of NCR (National Capital Region) Note: (1) For office stock in India, CBRE defines “Grade A” as a development type, of which tenant profile should include prominent multinational corporations, while the building area should not be less than 100,000 square feet. The development should include an open plan office with large size floor plates, adequate ceiling height, 24x7 power back-up, supply of telephone lines, infrastructure for access to internet, central air-conditioning, spacious and well-decorated lobbies, circulation areas, good lift services, sufficient parking facilities and should have centralized building management and security systems. (2) For office stock outside of India, “Grade A” development has different definitions depending on the jurisdictions the developments are located in Page 14: (1) Source: CBRE Research, 2018. For Embassy REIT’s markets. Occupancy figures as of March 31, 2018. Rent CAGR over CY 2013–Q1 CY 2018 (2) Includes 477 completed and 619 under construction hotel keys Page 15: (1) As of March 31, 2018. Includes Bengaluru, Pune, Mumbai and NCR (2) Calculated as the percentage increase in the absorption expected for CY 2018 over the CY 2013 actual absorption (3) Includes Bengaluru, Pune, Mumbai and NCR. Occupancy has increased to 85.6% in Q1 CY 2018 from 77.8% in CY 2013 Page 19: (1) Occupancy for REIT assets is as on March 31 of the respective year (2) Market rents for assets as per CBRE Page 24: (1) Includes incremental NOI of INR 455 million on account of solar assets (2) Includes incremental NOI from hotels (INR 423 million) and mark-to-market opportunity (INR 174 million) Note: Excludes 50% interest in Embassy Golflinks as that is a JV interest. Our 50% stake in Embassy Golflinks contributes a further INR 1,648 million and INR 2,026 million NOI in FY 2019 and FY 2021, respectively.

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THANK YOU

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