Brookfield India Real Estate Trust (REIT) announced a robust 40% increase in its net operating income to INR 485.8 crore for the September quarter. To reduce debt and fund future growth, the REIT plans to raise up to INR 3,500 crore through an institutional placement of units. The operating lease rentals rose 55% to INR 425.7 crore, driven by higher leasing volume and spreads. The company also achieved 1 million sq ft of gross leasing, with 0.7 million sq ft being new leases and two-thirds of these in the SEZ area. Committed occupancy increased to 85%. Brookfield India REIT owns 10 Grade A assets across major Indian cities, totalling 28.9 million sq ft of leasable area.
Brookfield India Real Estate Trust (REIT) announced a 40% increase in its net operating income to INR 485.8 crore for the September quarter. The REIT also revealed plans to raise up to INR 3,500 crore through an institutional placement of units to reduce debt and fund future growth.
In a regulatory filing, Brookfield India REIT stated that its adjusted net operating income rose from INR 346.7 crore in the year-ago period to INR 485.8 crore during the July-September period. Operating lease rentals increased by 55% to INR 425.7 crore, driven by higher leasing volume and spreads. The operational leases saw an increase of INR 34 crore due to same-store new leasing and contractual escalations, along with an additional INR 117.6 crore from new acquisitions. Revenue from operations climbed 47.5% year-on-year to INR 590 crore, buoyed by higher store occupancy and the acquisitions.
The company announced a distribution of INR 220.8 crore for the second quarter of the fiscal year to unitholders, primarily as dividends. The board of directors of Brookprop Management Services Pvt Ltd, the manager of the REIT, approved the issuance of units through an institutional placement, not exceeding INR 3,500 crore, to be used for partial or full repayment of outstanding borrowings, equity contribution, general purposes, and future growth opportunities.
On the operational front, Brookfield India REIT achieved 1 million (10 lakh) sq ft of gross leasing of office space, with 0.7 million sq ft being new leasing and two-thirds of the space leased in the SEZ area. Committed occupancy in the quarter increased to 85%, up 500 bps (5%) over the last 12 months. The REIT expects occupancy to reach 87-89% by the end of the current fiscal, supported by strong leasing momentum and NPA conversions. Brookfield India REIT owns 10 Grade A assets in Delhi, Mumbai, Gurugram, Noida, and Kolkata, with a total leasable area of 28.9 million sq ft, comprising 24.3 million sq ft of operating area, 0.6 million sq ft of under construction area, and 4 million sq ft of future development potential.
Brookfield India REIT's strong financial and operational performance, coupled with its strategic initiatives to raise funds and expand its portfolio, positions the trust for continued growth and success. The planned unit issuance will enable the REIT to strengthen its balance sheet and capitalise on emerging opportunities in the commercial real estate market, reinforcing its position as a leading player in the Indian REIT landscape.
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