Brookfield India Real Estate Trust (Biret) Reports Net Income of Rs 59.7 Crore in the Third Quarter of FY22

Brookfield India Real Estate Trust (Biret), the country's sole institutionally managed REIT, posted a December quarter net income of Rs 59.7 crore and a dividend of Rs 5 per unit to unitholders on Friday, owing to robust leasing activity. 

The figures are not comparable since the firm was privately owned throughout the prior fiscal year's comparable period.Biret, which is funded by Canadian alternative investment firm Brookfield Asset Management, was listed in February 2021 after a Rs 3,800 crore public offering that was eightfold oversubscribed.

The board of directors authorised a dividend of Rs 5 per unit as the net distributable cash flow (NDCF) distribution for the quarter, totaling Rs 150 crore, of which 34% would be tax-free to unitholders.

The business stated in a statement that this brings the total dividend payout to Rs 17 per unit since its February debut.

Additionally, it said that the company's net income for the quarter was Rs 59.72 crore.

Income from operational lease rents was Rs 140 crore and net operating income was Rs 150 crore, although the company anticipates a pickup in the coming quarters due to the new leases signed in Q3.

The business reported NDCF of Rs 140 crore or Rs 4.74 per unit for the quarter, bringing the total to Rs 530 crore or Rs 17.59 per unit since listing.

Alok Aggarwal, CEO of Brookprop Management Services, stated that the company continues to see strong leasing momentum with 536,000 square feet of gross leasing across assets and additional expansion options totaling 291,000 square feet in the quarter, totaling 825,000 square feet of gross leasable area.

Additionally, it boosted total leasable area by 32% after acquiring Candor Techspace N2 in Noida for Rs 4,000 crore in January.

It collected 99 percent of contractual rents throughout the quarter, while averaging a 7% increase in leased space of 5,00,000 lakh sqft. This puts committed occupancy at 83 percent, Aggarwal said, adding that they leased 536,000 square feet across properties throughout the quarter, with future extension possibilities totaling 825,000 square feet of 291,000 square feet.

Biret's property portfolio totals 18.6 million square feet, including 13.9 million square feet of finished space, 0.2 million square feet of under construction space, and 4.4 million square feet of future potential.

The firm reduced borrowing rates by 40 basis points during the quarter and continues to maintain a robust balance sheet with a 33 percent loan-to-value ratio after the recent purchase of N2.

Biret also has the option to purchase an additional 3.7 million square feet and first offer rights on an additional 6.7 million square feet, both of which are presently controlled by members of the Brookfield Group.