Brookfield India Real Estate Trust reports earnings for Q3FY22

Brookfield India Real Estate Trust (Tickers: BSE: 543261, NSE: BIRET) ("BIRET"), India's only institutionally managed REIT, has announced financial results for the quarter and nine months ended December 31, 2021.

FINANCIAL HIGHLIGHTS

• Planned distribution of Rs 1.5 billion (Rs 5.00 per unit) this quarter, with 34% of distributions tax free for unit holders. Total cumulative distribution of Rs 17.00 per unit since listing
• Generated NDCF of Rs 1.4 billion (Rs 4.74 per unit) for the quarter, totalling Rs. 5.3 billion (Rs 17.59 per unit) since listing
• Achieved a ~40 bps reduction in borrowing costs and continue to maintain a strong balance sheet with 33% loan-to-value ratio post N2 Acquisition
• Income from Operating Lease Rentals at Rs 1.4 billion (4.3% decrease over Q3 FY2021) and Net Operating Income at Rs 1.5 billion (7.7% decrease over Q3 FY2021) with an expected pick up in subsequent quarters driven by the new leases contracted in Q3 FY2022

"We continue to witness strong leasing momentum with 536,000 sf of gross leasing across assets with additional expansion options of 291,000 sf in the quarter totalling 825,000 sf of gross leasable area. We also increased our total leasable area by 32% with the acquisition of Candor Techspace N2 in Noida. The country's high growth IT sector is driving a strong demand for safe, high-quality workplaces. Occupiers are looking to accommodate an even larger workforce today and a stronger core business as they draw their back to office plans. Our global expertise, commitment to sustainable practices and placemaking capabilities ensure that we continue to remain their long-term partner in this journey." said Alok Aggarwal, Chief Executive Officer, Brookprop Management Services Private Limited.

The key highlights of the business from Q3 FY2022 were as follows:

BUSINESS HIGHLIGHTS

• Collected 99% of contracted rentals, while achieving an average 7% escalation on 0.5 M sf of leased area
• Quarter-end Committed Occupancy at 83%
• Achieved a gross leasing of 536,000 sf across assets during the quarter with additional expansion options of 291,000 sf totalling 825,000 sf
• Successfully completed the acquisition of Candor Techspace N2 on 24th January 2022 for Rs. 40 billion
• The acquisition was partially financed through India's first preferential issue to institutional investors by a listed REIT of Rs 9.5 billion. Commitment by Brookfield Group alongside reputed long-term institutional investors is a testament of our high-quality portfolio and positive business outlook.

ESG HIGHLIGHTS

• In line with our commitment to sustainable practices, we continue to adopt strategies to mitigate the impact of our operations on the environment. Achieved a 6% reduction in energy consumption and 27% reduction in water intensity across assets.
• Received the Sword of Honour for Safety by British Safety Council for N1 and K1
• Secured IGBC Platinum certification for G2 and N1, and IGBC Gold rating for K1
• Achieved 5S Gold Rating from CII

CANDOR TECHSPACE G1 (IDENTIFIED ASSET) HIGHLIGHTS

• Candor Techspace G1 achieved 274,000 sf of new leasing during the quarter, taking its Committed Occupancy to 76%
• Rental collections continue to be robust at 99%

Shares of Brookfield India Real Estate Trust REIT was last trading in BSE at Rs. 311.92 as compared to the previous close of Rs. 309.66. The total number of shares traded during the day was 3947 in over 342 trades.

The stock hit an intraday high of Rs. 314.30 and intraday low of 309.00. The net turnover during the day was Rs. 1230713.00.

Source : Equity Bulls

Keywords

BRET REIT InvIT BrookfieldIndiaRealEstateTrust Q3FY22 9MFY22 ResultUpdate