Brookfield India Real Estate Trust’s adjusted net operating income increased by 48% YoY to Rs 2,413 million, the company said in a regulatory filing. Brookfield India Real Estate Trust, a 100% institutionally managed REIT, also reported gross leasing of 0.6 million square foot in the first half of the financial year 2023, with expansion options of 0.1 million square foot.
“The office leasing momentum continues to increase steadily with physical occupancy going up on account of expansion plans from global captives and technology players. With over 3,06,000 SF of leasing and 16,000 SF of expansion options, we continue to attract marquee tenants in Q2 FY2023. While interest rates continue to firm up globally, our long-term growth potential and minimal refinancing requirements ensure that our portfolio is de-risked. Across our properties in India, we are deploying the very best of technologies to achieve our goal of being net zero by 2040,” said Alok Aggarwal, chief executive officer, Brookprop Management Services Private Limited.
Key highlights: H1 FY2023
- Achieved 9% growth in the net operating income run rate from Q4 FY2022 and have an embedded growth headroom of 18%
- Inorganic growth pipeline of 6.4M SF of fully built properties to further increase our scale and operating income
- Distributions for the half year are Rs 10.20 per unit in line with our guidance
- Delivered an attractive total return of 21% since IPO, with a further 12% headroom to NAV
Key highlights: Q2 FY2023
- Received a 5-star rating from GRESB in the first year of submission
- Received an overall score of 90%, for operational buildings
- Advanced our Net Zero target by 10 years to 2040
- Achieved leasing of 3,06,000 SF in Q2 FY23 of which 1,27,000 SF is new leasing and 1,79,000 SF is renewals and signed expansion options of 16,000 SF in N1
- Achieved 9% average escalation on 9,09,000 SF leased area
Financial highlights
- Grew adjusted net operating income by 48% YoY to Rs 2,413 million, led by the N2 acquisition and increase in O&M margins from higher physical attendance at our campuses
- Increased operating lease rentals by 32% YoY to Rs 2,056 million Appendix I
- 4% YoY increase in NAV which stands at Rs 337 per unit as of September 30, 2022
- Announced distribution of Rs 1,709 million (Rs 5.10 per unit) this quarter, with 52% of distributions non-taxable for unit holders
Growth highlights
- Commenced construction of retail led 561,000 SF mixed use development, comprising 174,000 SF retail spaces and 387,000 SF office space
- The 174,000 SF retail development will be a F&B led retail destination with multiple restaurants, cafes, large and small format retail outlets, gaming center and an open terrace area, which will substantially enhance our occupier experience at K1. The 387,000 SF office development will comprise of high quality non SEZ office spaces diversifying our tenant offering
