Brookfield REIT Demonstrate Strong Operating & Financial Performance
Brookfield India, Real Estate, India's only 100% institutionally managed REIT announced financial results for the quarter ended June 30, 2022. Alok Aggarwal, Chief Executive Officer of Brookprop Management Services Private Limited stated, “At Brookfield India REIT, we continue to demonstrate strong operating and financial performance backed by a 6% increase in our organic growth from the previous quarter. Our gross leasing for this quarter remained positive at 311,000 MSF with robust leasing demand from new clients coupled with an increase in leasing momentum from existing tenants who have chosen us as their office space partners as they draw up their expansion plans and encourage their workforce to return to offices.” “With a healthy acquisition pipeline of 6.4 MSF supported by the sustained demand for high-quality assets, we are well poised to capture the growing requirement for commercial real estate in India and uphold our commitment to drive sustainable long-term growth,” Aggarwal continued. The key highlights of the business from Q1 FY2023 included - Achieved gross leasing of 311,000 SF at a 27% re-leasing spread. Additionally, signed expansion options of 94,000 SF during the quarter. 85% of the new leasing demand for the quarter was from existing occupiers as they continue to execute their return to office plans. Quarter end Effective Economic Occupancy at 89%, a 2% increase over Q4 FY2022. Achieved a 6% growth in Adjusted Net Operating Income run rate from last quarter and have an additional growth headroom of 15-20% till stabilization. Robust embedded growth with 9% average escalation on 1.1 MSF of leased area during the quarter. Completed construction of Tower 11A of 155,000 SF in Candor Techspace N2. The tower is covered under the Income Support from the Sponsor Group. Rental collections remained strong at 99% for the quarter. Continue to monitor the progress on our near-term inorganic growth pipeline of 6.4 MSF of fully built properties to further increase our scale and operating income Generated NDCF of Rs 1.7 billion (Rs 5.13 per unit) for the quarter, in line with guidance. Announced distribution of Rs 1.7 billion (Rs 5.10 per unit) this quarter, with 52% of distributions tax free for unit holders. Operating Lease Rentals of Rs 2.0 billion, a 26% increase over the corresponding quarter last year, primarily due to the addition of Candor Techspace N2 into the portfolio. Adjusted Net Operating Income of Rs 2.3 billion, a 38% increase over Q1 FY2022. And continues to maintain a strong balance sheet with 31% loan-to-value and AAA Stable rating from Crisil
Tags : Brookfield REIT Demonstrate Operating Financial Performance Alok Aggarwal Chief Executive Officer Brookprop Management Services Private Limited