Brookfield India REIT Q1 net operating income rises 13%, occupancy hits 89% amid leasing surge

Net operating income (NOI) increased 13 percent to Rs 4,986 million.

Brookfield India Real Estate Trust (BIRET) has reported a strong start to FY26, driven by healthy leasing activity, higher occupancy, and growth in distributions. For the quarter ended June 30, 2025, income from operating lease rentals rose 9 percent year-on-year to Rs 4,583 million, while net operating income (NOI) increased 13 percent to Rs 4,986 million, the company said in a press release. The company announced a distribution of Rs 5.25 per unit, totaling Rs 3,190 million, up 17 percent from the year-ago quarter.

During the quarter, BIRET achieved gross leasing of 651,000 square feet with an average re-leasing spread of 22 percent. Committed occupancy climbed to 89 percent, marking an improvement of nearly 9 percent over the past 18 months since SEZ reforms were announced. Across property segments including SEZs, non-processing areas, and IT/commercial spaces, the REIT has delivered 4.6 million square feet of gross leasing.

Alok Aggarwal, Chief Executive Officer and Managing Director of Brookfield India Real Estate Trust, said the REIT continues to benefit from steady demand for its assets across key markets. “The fiscal year began on a strong note with healthy leasing momentum, robust occupancy levels, and continued growth in distributions. We expect to grow occupancy to more than 95 percent, driving around 13 percent growth in NOI and 22 percent growth in distribution over the current quarter. Our proposed fundraise of Rs 10 billion through preferential issue will further strengthen our ability to pursue large growth opportunities,” he said.

The board has approved, subject to unitholder approval, a preferential issue of Rs 10 billion to a mix of investors such as corporate treasuries, family offices, and high-net-worth individuals. This capital raise, combined with Rs 35 billion raised in December 2024, will enhance the REIT’s capacity to pursue large-scale growth plans.

Looking ahead, BIRET is in talks with its sponsor group for the potential acquisition of dominant Grade A properties in Bangalore and Chennai. With a dual AAA credit rating and 88 percent of borrowings linked to repo rates, the REIT is set to benefit from the lower interest rate environment, the company said in a press statement.

A 35 basis point rate cut on borrowings has already been implemented, and another 55 basis point reduction is expected to be fully transmitted in Q2 FY26. Further growth is anticipated from leasing vacant spaces, market-to-market rent adjustments, and contractual escalations, which are expected to boost both NOI and distributions in the coming quarters.