GCC demand drives Brookfield India REIT’s Q2 NOI growth

Brookfield India Real Estate Trust

A high single-digit increase in the income from operating leases saw Brookfield India Real Estate Trust’s net operating income rise 13 per cent in the June quarter, while payout rose 17 per cent.

Operating lease income increase came from new leasing and contractual escalations, though that was partly offset by expiries. Of the total gross leasing of 6.5 lakh square feet in the quarter, over 90 per cent was new leasing while Global Capability Centres contributed over 60 per cent.

Average re-leasing spread was at 22 per cent, an indicator of healthy demand for office space.

The REIT reported NOI of ₹498.6 crore and income from operating lease rentals was at ₹458.3 crore. Total revenue from operations rose 11.8 per cent to ₹641.6 crore.

At ₹5.25 per unit, total payout in the quarter is at ₹320 crore.

The REIT said it expected its occupancy levels to go over 95 per cent from the 89 per cent at the end of June, which will drive 13 per cent NOI growth and 22 per cent rise in distribution in the ongoing quarter.

The board has taken approval to raise ₹1000 crore through a preferential issue, while conversations are also under way with the sponsor group for acquiring properties in Bangalore and Chennai.

The fund raise, through the issue of 3.2 crore units at ₹310 per unit, will result in Brookfield’s holding going down to 25 per cent from 26.45 per cent at the end of June.

There is an acquisition pipeline of over 12 million square feet, and the properties include Ecoworld, Ecospace and Whitefield portfolio in Bengaluru and Millenia Business Park in Chennai.

Published on August 2, 2025