Brookfield India REIT Achieves 16% NOI Growth and Robust Distributions in FY25

Strong Financial Performance Highlights Resilience

Brookfield India Real Estate Trust (Brookfield India REIT) has once again demonstrated its operational excellence and financial resilience, reporting a 16% year-on-year increase in Net Operating Income (NOI) to ₹488.5 crore for the quarter ending March 2025. This impressive growth highlights the REIT’s strong fundamentals, high-quality asset portfolio, and effective leasing strategies amid the evolving landscape of India’s commercial real estate sector.

Consistent and Rising Distributions for Investors

Alongside this robust income growth, Brookfield India REIT declared a distribution of ₹319.1 crore to its unitholders for the March quarter, translating to ₹5.25 per unit. This distribution marks a 10.5% increase from the previous quarter, reflecting the REIT’s consistent commitment to delivering attractive and reliable returns to its investors.

Full-Year Growth Driven by Leasing and Acquisitions

For the full financial year 2024-25, Brookfield India REIT achieved a remarkable 37% increase in NOI, reaching ₹1,854 crore compared to ₹1,350 crore in the prior fiscal year. This significant year-on-year jump was driven by heightened leasing activity, stable rental inflows, and strategic acquisitions that have strengthened the portfolio. Total distributions for the fiscal year stood at ₹1,053.7 crore, or ₹19.25 per unit, representing an 8.5% increase from the previous year. These consistent and growing distributions reinforce Brookfield’s reputation as a reliable yield-generating investment vehicle, appealing to both institutional and retail investors.

Leadership Perspective: Strategic Vision and Investor Confidence

Alok Aggarwal, CEO and Managing Director of Brookfield India Real Estate Trust, commented on the company’s performance, describing fiscal 2025 as “a remarkable all-round performance.” He highlighted strong leasing momentum, double-digit same-store growth, higher distributions, and a marquee acquisition as key contributors to this success. Aggarwal noted that the ₹47 billion capital issuance during the year reflects strong investor confidence in the REIT’s long-term strategic vision. He further emphasized that ongoing conversions of two million square feet in Special Economic Zone (SEZ) properties, combined with a robust leasing pipeline, position the REIT well for sustained growth in the upcoming fiscal year.

Leasing Momentum and Portfolio Expansion

Brookfield India REIT’s leasing activity in FY25 was particularly noteworthy, with gross leasing reaching approximately three million square feet. This included 2.2 million square feet of new leases and 0.8 million square feet of lease renewals. More than half of this leasing volume occurred within SEZ properties, signaling a steady recovery in demand for SEZ office spaces-a segment that had faced challenges during the pandemic years due to remote work trends and regulatory uncertainties.

The REIT manages a high-quality, pan-India portfolio of ten Grade A office assets located in key commercial hubs such as Delhi, Mumbai, Gurugram, Noida, and Kolkata. These cities are witnessing renewed demand from global occupiers, technology companies, and financial institutions. As of March 2025, the portfolio comprises a total leasable area of 29 million square feet, which includes 24.5 million square feet of operating assets, 0.6 million square feet under construction, and 3.9 million square feet earmarked for future development. This expansive and diversified portfolio gives Brookfield India REIT a strategic advantage to capture leasing opportunities while effectively managing geographic and sectoral risks.

Strategic Capital Deployment and Growth Outlook

During the fiscal year, Brookfield India REIT successfully raised ₹4,700 crore through a capital issuance, underscoring investor trust and confidence in its growth trajectory. The capital raised is being strategically deployed toward new acquisitions, development of under-construction assets, SEZ-to-Non-SEZ conversions, and enhancements to tenant amenities and sustainability features. This proactive capital deployment strategy is expected to enhance asset values and drive future rental yields, further solidifying Brookfield’s position as a long-term wealth creation platform in India’s real estate market.

Sectoral Context: Commercial Real Estate Recovery

Brookfield’s strong performance comes at a time when India’s strong performance comes at a time when India’s commercial real estate sector is experiencing a renewed growth trajectory. After navigating the disruptions caused by the COVID-19 pandemic, the sector is witnessing a return-to-office momentum, increased absorption by IT/ITES, BFSI, and co-working operators, and heightened interest from foreign investors in income-generating real estate assets. Real Estate Investment Trusts (REITs) like Brookfield India have emerged as popular investment instruments, offering stable returns and exposure to institutional-grade assets. The robust fiscal numbers and predictable payouts from Brookfield India REIT are likely to attract further capital inflows into this segment.

Conclusion: A Promising Outlook for Investors

With a solid foundation of high-occupancy Grade A assets, strategic capital deployment, and focused SEZ conversions, Brookfield India REIT is well-positioned to sustain its growth momentum. The trust’s ability to deliver double-digit NOI growth, maintain attractive yields, and expand its footprint will be critical in cementing its leadership in India’s REIT market. As investors increasingly seek real estate-backed, yield-oriented instruments, Brookfield’s transparent operations, consistent distributions, and visible growth levers present a compelling case for long-term investment.