Brookfield India Real Estate Trust (Brookfield India REIT) reported a net profit after tax of INR 37.35 crore for Q1 FY25, reversing last year's loss. The total income rose to INR 590.19 crore, up 84.01% from last year. Adjusted net operating income grew 94%, and operating lease rentals increased by 99%. The trust declared a distribution of INR 2,160 million (INR 4.50 per unit). Brookfield India REIT acquired a 50% stake in a Delhi-NCR commercial portfolio for INR 12,280 million. It achieved gross leasing of 242,000 square feet, targeting 87%-89% occupancy by FY 2025.
Brookfield India Real Estate Trust (Brookfield India REIT) reported a net consolidated profit after tax of INR 37.35 crore for the quarter ending June 30, 2024, a notable turnaround from the net loss of INR 27 crore recorded in the same period of the previous fiscal year. The trust's net consolidated total income rose to INR 590.19 crore in Q1 FY25, marking an impressive growth of 84.01% from INR 320.73 crore in the same quarter last year. The adjusted net operating income (NOI) rose significantly by 94% year-on-year, up from INR 2,453 million in Q1 FY24, whilst operating lease rentals saw a substantial increase of 99% from INR 2,113 million.
The company declared a quarterly distribution of INR 2,160 million, or INR 4.50 per unit. This distribution designates INR 859.23 million (INR 1.79 per unit) for interest payments on shareholder loans, CCDs, and NCDs; INR 1,022.43 million (INR 2.13 per unit) for the repayment of SPV debt and NCDs; INR 244.81 million (INR 0.51 per unit) as dividends; and INR 33.60 million (INR 0.07 per unit) for interest on fixed deposits.
Alok Aggarwal, CEO and Managing Director, noted that same-store operating income grew organically by 17% over the past three quarters, driven by enhanced leasing performance and an increase in committed occupancy from 80% to 84%. The company targets a committed occupancy rate of 87% to 89% by the end of FY2025. Brookfield India REIT also completed the acquisition of a 50% stake in a premium commercial asset portfolio in Delhi-NCR from Bharti Enterprises during the quarter.
Valued at approximately INR 12,280 million, this acquisition involved issuing 40.93 million units to Bharti Enterprises at INR 300 per unit. In Q1 FY25, the trust achieved gross leasing of 242,000 square feet at INR 135 per square feet, compared to an in-place rent of INR 94 per square feet and re-leasing spreads of 13%. For FY25, Brookfield India REIT has set a leasing target of 1.5 to 2 million square feet and anticipates reaching an occupancy rate of 87% to 89% by the end of the fiscal year.
The REIT's portfolio comprises 28.8 million square feet of total leasable area, including 24.2 million square feet of operational space, 0.6 million square feet under construction, and 4 million square feet allocated for future development. Operating primarily in major cities such as Mumbai, the National Capital Region, and Kolkata, the REIT manages a diverse array of commercial properties. On August 7, Brookfield India REIT's units closed 0.3% higher at INR 269 on the National Stock Exchange.
Brookfield India REIT's strong financial performance in Q1 FY25, marked by significant profit growth and strategic acquisitions, highlights its resilience and strategic foresight in the commercial real estate sector. As the trust continues to expand its portfolio and improve occupancy rates, it positions itself as a key player in India's rapidly evolving real estate market.
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