Brookfield India Real Estate Trust (BIRET) Q1 25/26 earnings summary

Executive summary

• Achieved gross leasing of 651,000 sq ft in Q1 FY26, with 61% leased to GCCs and a re-leasing spread of 22%.

• Committed occupancy rose to 89%, up over 9% in 18 months, with strong SEZ demand and return-to-office trends.

• Distribution per unit for Q1 FY26 was INR 5.25, totaling INR 3,190.70 million, up 17% year-over-year.

• Preferential issue of INR 1,000 crore at INR 310 per unit approved to fund future growth and acquisitions in Bengaluru and Chennai.

• ESG initiatives advanced, with 44% of Delhi NCR campus energy from renewables and 44% reduction in carbon emissions.

Financial highlights

• Revenue from operations for Q1 FY26 grew to INR 6,416.17 million, up 12% year-over-year.

• NOI for Q1 FY26 reached INR 4,986 million, a 13% increase year-over-year, with a margin of 109% on OLR.

• Net distributable cash flow (NDCF) per unit was INR 5.25, matching the distribution per unit.

• 88% of loans are repo rate-linked; 100 bps repo rate cut in 2025 will yield INR 61 crore annual interest savings.

• Achieved 35 bps reduction in portfolio interest rate in Q1 FY26; remaining 55 bps to be realized in Q2 FY26.

Outlook and guidance

• Leasing momentum expected to remain strong for the rest of the year, with a robust pipeline of 5 million sq ft.

• Targeting portfolio occupancy of 93% by year-end, with early 90s guidance.

• Once stabilized at 97.5% occupancy, NOI projected to grow 13% and distribution per unit to exceed INR 26.

• No formal DPU guidance for FY26, but management indicates a two-year path to reach INR 25.7 per unit, assuming current portfolio and no escalations.

• Revised SEBI NDCF framework implemented from July 2025, impacting calculation and timing of distributions.