Brookfield India Reit Q2 net operating income jumps 44%

Mumbai: Brookfield India Real Estate Trust (BIRET) on Tuesday said its adjusted net operating income grew 44% year-on-year to ₹346.7 crore in the September quarter. The company recorded a 24% jump in the operating income to ₹592 crore for the first half of FY24 (April-September).

The company's income from operating lease rentals grew 33% YoY to Rs. 274.1 crore in July-September. The rentals increased by 19% Y-o-Y to ₹485.4 crore in April-September.

“The second quarter was transformative for our business due to the successful acquisitions of Downtown Powai and Candor TechSpace (G1) Gurugram. These transactions have increased our operating area by 45%, strengthened our presence in Mumbai and Gurugram and substantially diversified our tenant roster. We achieved gross leasing of 521,000 sq ft and signed 463,000 sq ft of new leases in the second quarter, with releasing spreads of 19%,” said Alok Aggarwal, chief executive officer, Brookfield India Real Estate Trust, said in a release.

The company added 529,000 sq ft of new leasing to take its total to 822,000 sq ft, with a re-leasing spread of 18% on new leases. BIRET achieved an 8% average escalation on 3.9 million sq ft leased area.

According to Aggarwal, India is already the “office to the world” and is emerging as the destination of choice for fostering global business operations and innovation.

The company has a tenant roster with banking and financial services and insurance or BFSI share increasing from 12% to 22% and top five tenant concentration reducing from 52% to 31%.

During the period, BIRET raised ₹27 billion in capital with strong participation from the sponsor group, existing unitholders, and new investors.

It announced distributions totalling ₹357.4 crore ( ₹8.25 per unit), with income from Downtown Powai and Candor TechSpace (G1) Gurugram flowing through partially in H1 FY2024 cash flows, the release said.

Brookfield India Real Estate Trust is India's first institutionally managed REIT, comprising seven large integrated office parks located in key gateway markets of India – Mumbai, Gurugram, Noida, and Kolkata. Its portfolio consists of 25.3 million sq ft of total leasable area, comprising 20.7 million sq ft of operating area, 0.7 million sq ft of under construction area and 3.9 million sq ft having future development potential. Brookfield India Reit has a right of first offer on an additional 4.0 million sq ft, currently owned by members of the Brookfield Group.