Brookfield India REIT Q2 net operating income up 48% at Rs 241 cr | The Financial Express

Brookfield India REIT Q2 net operating income up 48% at Rs 241 cr

The REIT’s net asset value (NAV) increased 4% y-o-y to Rs 337 per unit as of September 30.

Brookfield India REIT Q2 net operating income up 48% at Rs 241 cr
Brookfield has commenced construction of retail led 561,000 sq ft mixed use development, comprising 174,000 sq ft retail spaces and 387,000 sq ft office space.

Brookfield India Real Estate Trust on Monday reported a 48% year-on-year increase in its adjusted net operating income to Rs 241.3 crore for the quarter ended September, led by the N2 acquisition and an increase in O&M margins from higher physical attendance at its campuses. The operating lease rentals increased by 32% y-o-y to Rs 205.6 crore.

The REIT’s net asset value (NAV) increased 4% y-o-y to Rs 337 per unit as of September 30. It announced distribution of nearly Rs 171 crore (Rs 5.10 per unit) this quarter, with 52% of distributions non-taxable for unitholders.

“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 306,000 square feet of leasing and 16,000 sq ft of expansion options, we continue to attract marquee tenants in Q2 FY2023,” said Alok Aggarwal, chief executive officer, Brookprop Management Services.

He said while interest rates continue to firm up globally, the long-term growth potential and minimal refinancing requirements ensure that its portfolio is de-risked.

Brookfield achieved gross leasing of 0.6 million sq ft in the first half of the financial year with expansion options of 0.1 million sq ft. It achieved a 9% growth in the net operating income run rate from Q4FY22 and has an embedded growth headroom of 18%.

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The REIT expects inorganic growth pipeline of 6.4 million sq ft of fully built properties to further increase its scale and operating income. Distributions for the six months of April-September were at Rs 10.20 per unit, in line with its guidance. It delivered a total return of 21% since the IPO, with a further 12% headroom to NAV.

Brookfield has commenced construction of retail led 561,000 sq ft mixed use development, comprising 174,000 sq ft retail spaces and 387,000 sq ft office space.

The 174,000 sq ft retail development will be an F&B-led retail destination with multiple restaurants, cafes, large and small format retail outlets, a gaming centre and an open terrace area. The 387,000 sq ft office development will comprise high quality non-SEZ office spaces diversifying our tenant offering, it said in a statement.

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First published on: 08-11-2022 at 01:00 IST