May 19, 2023: Real estate firm Brookfield India today announced its financial results for the quarter and financial year that ended March 31, 2023. The company achieved gross leasing of 2.1 million square foot (msf) in FY23, which includes 0.9 msf of new leasing and 1.3 msf of renewals. Additionally, it signed 0.4 msf of expansion options.
During the financial year, the company achieved an average escalation of 11% on 4.1 msf of leased area. It also announced distributions totalling to Rs 676.9 crore in the last fiscal and Rs 167.5 crore in the quarter ended March 31.
In the concluding quarter of the last fiscal, the company achieved gross leasing of 1.2 msf, including 0.3 msf of new leasing and 0.9 msf of renewals. Additionally, it signed 0.3 msf of expansion options. During the quarter, it achieved an average escalation of 13% on 0.6 msf of leased area. The company also saw 15% year-on-year (YoY) growth in its net operating income run rate during Q4FY23.
Adjusted net operating income for FY23 grew by 38% YoY to Rs 960.8 crore from Rs 695.8 crore in FY22. The company’s income from operating lease rentals increased by 28% YoY to Rs 826.8 crore in FY23 from Rs 647.6 crore in FY22.
In Q4FY23, adjusted net operating income grew 15% YoY from Rs 213.2 crore in Q4 FY22 to Rs 244.4 crore. The income from operating lease rentals rose from Rs 185.2 crore in Q4FY22 to Rs 210.9 crore in Q4 FY23, up 14%.
The Reit also announced its partnership with GIC to acquire two assets of 6.5 msf for Rs 11,225 crore. These acquisitions will increase the company’s operating area by 44% and consolidated gross asset value by 73%. This is the first such partnership in India between a listed Reit and an international institutional investor.
Alok Aggarwal, chief executive officer, Brookprop Management Services, said, “High-quality, sustainability-first office properties that foster collaboration, creativity and community continue to be workplaces of choice for leading domestic and multinational companies in India. Our business has significant organic and inorganic growth potential waiting to be unlocked and the proposed acquisition of the two assets will further strengthen and diversify our portfolio.”
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