Brookfield India REIT experiences quarterly net operating income increase attributed to growing demand within the GCC region.
Brookfield India Real Estate Trust (BIRET) has announced impressive results for its second quarter ending June 30, 2025. The REIT's net operating income (NOI) saw a significant 13% year-on-year increase, reaching Rs 4,986 million. This growth was driven by a rise in income from operating lease rentals, which increased by 9% to Rs 4,583 million.
The strong performance was underpinned by a committed occupancy rate of 89%, a nearly 9% improvement over the past 18 months. The robust leasing activity of 651,000 square feet during the quarter, with over 90% of the total gross leasing being new leasing, provided a solid foundation for the growth.
The average re-leasing spread stood at a healthy 22%, indicating high demand for office space. This led to a total payout of Rs 320 crore at Rs 5.25 per unit, marking a 17% increase compared to the same quarter last year.
Looking ahead, BIRET aims to push its occupancy levels beyond 95%, a move that is expected to drive approximately 13% growth in NOI and a 22% rise in distribution in the current quarter. To fund this expansion, the REIT has proposed a preferential issue of 3.2 crore units at Rs 310 per unit, which, if approved, will lower Brookfield's holding to 25%.
The acquisition pipeline includes notable properties such as Ecoworld, Ecospace, and the Whitefield portfolio in Bengaluru, and Millenia Business Park in Chennai, totalling over 12 million square feet. Conversations are also ongoing with the sponsor group for acquiring properties in Bangalore and Chennai.
In summary, BIRET's Q2 FY2025 performance reflects a healthy demand and operational improvements, with a focus on increasing occupancy and leveraging a significant capital raise to fuel further portfolio growth and income distribution to investors. The REIT continues to make strategic moves to strengthen its position in the Indian real estate market.
[1] Brookfield India Real Estate Trust Q2 FY2025 Results Press Release [2] Business Standard: Brookfield India Real Estate Trust reports 13% rise in net operating income [4] Moneycontrol: Brookfield India Real Estate Trust distributes Rs 3.19 billion to investors in Q2 FY2025
- The impressive Q2 FY2025 results announced by the Brookfield India Real Estate Trust highlight a rise in the net operating income (NOI) in the finance sector, specifically within the real-estate business.
- In the economy, investment in the Brookfield India Real Estate Trust saw a 17% increase in payout, boosting the income distribution to investors.
- The preferential issue of 3.2 crore units by the REIT aims to fund expansion in the Indian real-estate market, which could potentially drive a 13% growth in NOI and a 22% rise in distribution.
- The business strategy of Brookfield India Real Estate Trust focuses on increasing occupancy levels and acquiring notable properties, such as Ecoworld, Ecospace, and the Whitefield portfolio, to strengthen its position in the Indian real-estate market.
