According to Brookfield India Real Estate Trust (BIRET), net operating income has also risen by a substantial 14% per annum, to ₹540.4 crores in the third quarter of the 202526 financial year. This has increased growth in October-December, mainly driven by leasing activity and better occupancy rates in its vast office portfolio. The net operating income had increased by 9% on a same-store basis compared with the prior year, which was helped by the achievements of lease-ups, mark-to-market, and rental escalation under contract. There was also an increase of 13% in the income of operating lease rentals, amounting to ₹500.3 crore in the quarter.
The third quarter was characterized by a high leasing momentum of 1.2 million square feet. This leasing was realized at the phenomenal average re-leasing spread of 17%, which implies high growth prospects in rentals. The occupancy of the trust was 92%, which was a huge increment of about 500 basis points annually and a sequential increment of about 200 basis points. One of the reasons behind this demand has been the relocation and expansion needs of large companies, and Global Capability Centres (GCCs) have occupied 44% of gross leasing in the period.
One of the key quarterly events was the acquisition of a 100% interest in Ecoworld, a huge 7.7 million square foot Grade A office campus, located in Bengaluru at the Outer Ring Road. This December, strategic action has greatly expanded the operations of the trust, expanded its operating base, and consolidated gross asset value by 35%.
Alok Aggarwal, the CEO and the Managing Director of Brookfield India REIT, observed that this addition guarantees that about half of the portfolio value is currently led by the high-growth market of Bengaluru and Mumbai. The diversification of the portfolio has also been enhanced by this purchase, as the share of GCCs in contracted rentals has increased to 45% and has decreased reliance on the top ten tenants.
The REIT was able to raise ₹5,500 crore in the quarter to fund its expansion efforts and have a healthy balance sheet. This inflow of capital was done via a blend of a ₹3,500 crore Qualified Institutional Placement (QIP) and about ₹2,000 crore of it through sustainability-linked bonds.
The fundraise was strongly attended by top international and local institutional investors, showing strong market confidence in the business prospects of the trust. The REIT declared a quarterly payment of ₹5.40 per unit, amounting to ₹400 crore. It is a 10% annual growth in payout to unitholders.
The third quarter results of Brookfield India REIT highlight the strength and appeal of quality office properties in the leading markets of India. By way of strategic acquisitions such as Ecoworld and emphasis on attracting Global Capability Centres, the trust has succeeded in improving its income profile and portfolio stability.
Having an effectively implemented capital raise and a well-defined path of growth in occupancy and rental spreads, Brookfield India REIT is still in a strong position to leverage the continued commercial real estate demand for Grade A property as well as provide steady value to its investors.