Detailed Narrative
Strong Leasing Momentum and Occupancy Growth
Brookfield India REIT achieved record gross leasing of 4 million square feet in FY26, with 1.6 million square feet leased in Q4 FY26 alone. This robust demand, concentrated in high-quality, institutionally managed office campuses, led to a 5% year-on-year increase in committed occupancy, reaching 93%. The SEZ portfolio saw a significant improvement from 84% to 91% occupancy, while non-SEZ properties maintained a resilient 96%.
Robust Financial Performance and Shareholder Returns
For FY26, the company reported a Net Operating Income (NOI) of Rs 22.9 billion, marking a 24% year-on-year growth, with same-store NOI increasing by 10% over FY25. Q4 FY26 NOI alone grew over 52% year-on-year to Rs 7.4 billion, supported by contributions from Ecoworld. Distributions per unit (DPU) for FY26 stood at Rs 21.40, an 11% increase year-on-year, with total distributions reaching Rs 15.2 billion.
Strategic Acquisitions and Strengthened Balance Sheet
FY26 was a transformational year, highlighted by the successful acquisition of Ecoworld, a 7.7 million square feet premium office campus in Bengaluru, making it the largest market. This acquisition, combined with a Rs 2,600 crores Qualified Institutional Placement (QIP) and a Rs 1,125 crores primary investment from 360 ONE, significantly strengthened the balance sheet. The pro forma Loan-to-Value (LTV) now stands at 25.2%, providing approximately Rs 50 billion in dry powder for future growth opportunities.
NAV Appreciation and Value Creation
The Net Asset Value (NAV) per unit increased from Rs 349 in September 2025 to Rs 387, reflecting a gain of approximately Rs 2,900 crores in asset valuation. This appreciation was attributed to a 1/3rd impact from reduced cost of debt and cap rates, and a 2/3rd impact from operational progress including higher occupancy, better rents, and mark-to-market gains. The company also noted a potential understatement of NAV by Rs 4 per unit due to certain non-cash liabilities in its North Commercial Portfolio.
SEZ Conversions and Future Development Pipeline
Brookfield India REIT is actively converting SEZ spaces to Non-SEZ (NPA) across its campuses, with 340,000 square feet applied for conversion in N2 and Ecoworld, of which 260,000 square feet are already tied up. Overall, 80% of the total converted and applied NPA spaces have been leased. The company also has a mixed-use asset under construction in Kolkata, expected to be completed by the end of the year, with a strong pipeline for both retail and office components.
Management Outlook and CEO Retirement
Management expressed confidence in achieving 96% occupancy by the end of FY27 and projected a DPU growth of 6-7% per year. They anticipate the dividend component in DPU to reach 25% by FY27, up from 16%. Alok Aggarwal, CEO and Managing Director, announced his retirement in June, marking his last earnings call. He expressed gratitude for the support and highlighted the platform's strong positioning for future growth and value creation.