Brookfield India REIT’s Q2 NOI up 44% YoY

Brookfield India Real Estate Trust reported a net operating income of ₹346.7 crore in the September quarter, up 44 per cent on year with income from operating leases rising by a third to ₹274 crore.

One of the significant transactions for the REIT in the second quarter of FY24 was the acquisition of properties in Powai and in Gurugram in an equal partnership with GIC of Singapore. The rise in operating lease rents was chiefly on this account.

Gross leasing in the quarter under review was just over half a million square feet, of which over 88 per cent were new leases with a re-leasing spread of 19 per cent.

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It announced a distribution of ₹4.40 a unit, translating into a total payout of ₹193 crore. The distribution comprises ₹2.07 per unit in the form of interest payment on shareholder loan, ₹2.14 per unit in the form of repayment of SPV debt and NCD and the balance in the form of interest on fixed deposit.

The REIT ended the quarter with a net asset value of ₹322.52 a unit and a gross asset value of ₹28,500 crore, again due to the acquisitions.

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

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With the purpose of increasing the dividend component of the distribution the REIT has approved a capital reduction for three of its special purpose vehicles - Candor Kolkata One Hi-Tech Structures, Shantiniketan Properties and Festus Properties.

Candor Kolkata handles leasing in New Town, Rajarhat, Kolkata and Sector 21, Dundahera Gurugram. Shantiniketan Properties in Noida, and Festus Properties in Powai.

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