Brookfield India Real Estate Trust (BIRET) Q2 24/25 earnings summary

Executive summary

• Indian office market remains robust, with leasing expected to surpass 80 million sq ft in 2024, driven by economic growth and global corporations establishing offices in India.

• Committed occupancy improved by 500 basis points year-over-year to 85% as of September 30, 2024, with strong demand for both SEZ and non-SEZ spaces.

• Standalone net profit for the half year ended 30 September 2024 was ₹2,708.21 million, up from ₹1,797.54 million in the previous half year, reflecting strong growth in distributable income and investment returns.

• Sustainability initiatives advanced, including 40% renewable power transition and a five-star GRESB rating for the third consecutive year.

• The Trust completed the acquisition of a 50% stake in Rostrum Realty Private Limited, expanding its portfolio and issuing 40,930,000 units at ₹300 per unit as consideration.

Financial highlights

• Operating lease rentals reached INR 426 crore in Q2 FY25, up 1% QoQ and 55% YoY.

• Adjusted NOI for Q2 FY25 was INR 486 crore, up 2% QoQ and 40% YoY, with same-store NOI increasing by 18% YoY.

• Distribution per unit for the quarter was INR 4.6, totaling INR 221 crore, and NDCF per unit for Q2 FY2025 was Rs 4.76.

• Net assets at fair value as of 30 September 2024 stood at ₹164,947.48 million, with a NAV per unit of ₹343.63.

• Gross Asset Value reached Rs 368 billion, a 3% increase from Q4 FY2024.

Outlook and guidance

• Fiscal year-end committed occupancy target remains at 87%-89%, supported by strong leasing momentum and NPA conversions.

• Distribution per unit guidance for FY25 is INR 18.5 ± INR 0.25.

• Management reaffirms commitment to quarterly distributions and prudent capital management.

• Recent acquisitions are expected to enhance future cash flows and NAV.