Brookfield India REIT’s Q3 NOI up 89 per cent y-o-y

Brookfield India Real Estate Trust reported an 89 per cent rise in net operating income in the third quarter of FY24 on the back of income from lease rentals that rose 90 per cent and revenue that was 77 per cent higher from a year ago.

Its Net Operating Income in the reporting quarter was ₹453.4 crore, income from lease rentals was at ₹392.7 crore and revenue was at ₹530.8 crore.

In Q3, the REIT achieved 10 lakh square feet gross leasing while 1,47,000 square ft worth of letters of intent are under execution. Of the total, new leasing was 5.1 lakh square feet with over half of them from global capability centres. Renewals accounted for the remaining leases. “Our assets witnessed strong traction with robust leasing demand from global capability centres of large corporates and technology services companies,” said Alok Aggarwal, CEO, Brookfield India REIT.

Project pipeline

The REIT said it had a lease pipeline of 26 lakh square feet, including discussions on 8 lakh square feet with prospective tenants where SEZ spaces will have to be converted to non-processing area. The REIT has applied for conversion of 10 lakh square feet of SEZ space to non-processing areas across its portfolio.

For 13 lakh square feet of portfolio it saw an average escalation of 7 per cent. Average monthly rent on new leases was at ₹94 per square feet, and on renewals of ₹165 psf. It has also announced a distribution at ₹4.75 per unit, with a total outgo of ₹208.6 crore.

Brookfield India REIT operates around 25.4 million square feet of leasable commercial area with a committed occupancy of 80 per cent.