Brookfield India Real Estate Trust (BIRET) Q1 24/25 earnings summary

Executive summary

• Strong demand in the Indian office market, with gross leasing up 48% year-over-year to 18 million sq ft, driven by both domestic and global corporations, and SEZ reforms supporting industry growth.

• Completed acquisition of a 50% stake in North Commercial Portfolio and 3.3 MSF of Grade A commercial assets in Delhi-NCR, expanding operating area and adding Bharti Group as a cornerstone investor.

• Achieved 17% higher incremental NDCF and 0.9% NAV accretion per unit from the North Commercial Portfolio acquisition.

• Committed occupancy rose to 84% in Q1 FY2025, marking the third consecutive quarter of growth.

• Net profit after tax for the quarter ended 30 June 2024 was ₹1,045.22 million, up from ₹702.76 million in the same quarter last year.

Financial highlights

• Operating lease rentals for Q1 FY2025 were Rs 4,203 million, up 4% sequentially and 99% year-on-year.

• Adjusted NOI for Q1 FY2025 at Rs 4,748 million, up 3% sequentially and 94% year-on-year, driven by recent acquisitions.

• Distribution for Q1 FY2025 was Rs 2,160 million, with a DPU of Rs 4.50; NDCF per unit at REIT level was Rs 4.52.

• Annualized adjusted NOI revenue, including North Commercial portfolio, stands at Rs 24,080 million.

• Revenue reached Rs 5,738 million, a 7% increase from the previous quarter.

Outlook and guidance

• Updated leasing guidance for FY2025 to 1.5–2.0 million sq ft, including the Worldmark portfolio, with a robust 3.0 MSF pipeline.

• Distribution guidance for FY2025 set at Rs 18.5 ±0.25 per unit, supported by occupancy growth and strong leasing pipeline.

• Targeting exit occupancy of 87%–89% by March 2025, up from 84% in June 2024.

• At least 90% of Net Distributable Cash Flows will continue to be distributed quarterly, as per SEBI REIT regulations.

• Expecting further improvement in dividend component to 20%–25% over the next 4–6 quarters due to capital reduction schemes.