 "Q3 result")
Brookfield real estate investment trust (REIT) reported an annual increase of 11 per cent in its net operating income (NOI) for the third quarter of financial year 2024-25 (Q3 FY25). The REIT’s adjusted NOI stood at Rs 503.7 crore.
“We delivered a robust performance with gross leasing exceeding 1 million square feet (msf) for the second consecutive quarter. Occupancy rose by 7.7 per cent year-on-year (Y-o-Y) to 87 per cent, in line with guidance. As a result, our net operating income grew 17 per cent Y-o-Y,” said Alok Aggarwal, chief executive officer and managing director of the REIT.
The REIT’s gross leasing stood at 1.1 msf with an average re-leasing spread of 14 per cent. The committed occupancy increased to 87 per cent, improving by about 7.7 per cent over the last 12 months.
The REIT also declared a distribution of Rs 4.9 per unit for the quarter, with the dividend component at 21 per cent of the distribution. As per the Securities and Exchange Board of India (Sebi), REITs are mandated to distribute at least 90 per cent of their taxable income.
In Q3 FY25, the REIT’s profit after tax (PAT) stood at Rs 25.81 crore, up 55.5 per cent Y-o-Y.
During the quarter under review, the REIT raised Rs 3,500 crore through a qualified institutional placement with participation from several foreign and domestic institutional investors, including the International Finance Corporation—a part of the World Bank group—Life Insurance Corporation of India, SBI Mutual Fund, and ICICI Prudential Mutual Fund.
The REIT aims to utilise the raised capital to “enhance financial capacity and provide the necessary headroom to pursue strategic inorganic growth.” Sequentially, the REIT’s NOI rose 4 per cent.
