Brookfield India Real Estate Trust, India’s only 100% institutionally managed REIT, on August 3, 2022, reported an adjusted net operating income of Rs 2.3 billion during the first quarter of FY23, registering a 38% annual increase. Announcing its financial results for the quarter ended June 30, 2022, the company also said that rental collections remained strong at 99% for the quarter even as it continued to maintain a strong balance sheet with 31% loan-to-value, and an ‘AAA Stable’ rating from CRISIL.
“At Brookfield India REIT, we continue to demonstrate strong operating and financial performance backed by a 6% increase in our organic growth from the previous quarter. Our gross leasing for this quarter remained positive at 311,000 MSF with robust leasing demand from new clients coupled with an increase in leasing momentum from existing tenants who have chosen us as their office space partners as they draw up their expansion plans and encourage their workforce to return to offices,” said Alok Aggarwal, CEO, Brookprop Management Services Private Limited.
“With a healthy acquisition pipeline of 6.4 MSF supported by the sustained demand for high-quality assets, we are well poised to capture the growing requirement for commercial real estate in India and uphold our commitment to drive sustainable long-term growth,” Aggarwal added.
Brookfield India Real Estate Trust is India’s only institutionally managed REIT, comprising five large campus format office parks located in key gateway markets of India, namely Mumbai, Gurgaon, Noida, and Kolkata. Its portfolio consists of 18.6 MSF, comprising 14.2 MSF of the completed area and 4.4 MSF of future development potential. BIRET is sponsored by an affiliate of Brookfield Asset Management Inc, one of the world’s largest alternative asset managers and investors, with approximately $725 billion of assets under management, across real estate, infrastructure, renewable power, and private equity and credit strategies and has a global presence across more than 30 countries.
Key highlights
- 85% of the new leasing demand for the quarter was from existing occupiers as they continue to execute their return to office plans
- Quarter-end effective economic occupancy at 89%, a 2% increase over Q4 FY2022
- Achieved a 6% growth in adjusted net operating income run rate from last quarter and have an additional growth headroom of 15-20% till stabilisation
- Robust embedded growth with 9% average escalation on 1 MSF of leased area during the quarter
- Completed construction of tower 11A of 155,000 SF in Candor Techspace N2. The tower is covered under the Income Support from the Sponsor Group
- Continue to monitor the progress on our near-term inorganic growth pipeline of 6.4 MSF of fully built properties to further increase our scale and operating income
- Completed the submission for the GRESB score for FY2022
- Replaced 15% of the AHU fans and filters at Candor Techspace G2 to enhance energy efficiency
- Candor Techspace N1 and K1 won the CII Inter Industry Kaizen Competition
- Sponsored a Zero Waste Run at Powai, launching the #Breaktheplastichabit initiative and attracting 2,000+ participants
- On track to fulfil the commitment to establish decarbonization goals based on Science Based Targets Initiative (SBTi)
- Generated NDCF of Rs 1.7 billion (Rs 5.13 per unit) for the quarter, in line with guidance
- Announced distribution of Rs 7 billion (Rs 5.10 per unit) this quarter, with 52% of distributions tax free for unit holders
- Operating lease rentals of Rs 0 billion, a 26% increase over the corresponding quarter last year, primarily due to the addition of Candor Techspace N2 into the portfolio