Brookfield India Real Estate Trust (BIRET) Q4 21/22 earnings summary

Executive summary

• FY2022 marked the first full year after listing; the portfolio ended March 2022 at 18.6M sf leasable area, 87% effective economic occupancy and 7.1-year WALE.

• Growth combined organic leasing and the January 2022 acquisition of Candor TechSpace N2, which expanded operating area by 35% and gross asset value by 34%.

• Total unitholder return was 27%, including an 8% yield since IPO; FY2022 distributions totaled ₹22.10 per unit.

Financial highlights

• Consolidated FY2022 revenue from operations was ₹8,767.91M, total income ₹8,992.14M and profit after tax ₹2,462.85M; FY2021 covered only July 17, 2020–March 31, 2021, so periods are not comparable.

• FY2022 basic and diluted EPS were ₹7.97 per unit, versus ₹4.26 for the shorter FY2021 reporting period.

• Operating lease rentals collected were 99.6%; rental collections remained above 99% for FY2022, in line with FY2021.

• Net operating income was ₹7,808M, down 7% YoY on a comparable basis; revenue from operations was ₹10,380M, down 6% on that basis.

Outlook and guidance

• FY2023 rental upside is expected to improve as 1.0M sf of expiries come due at below-market rents; FY2022 re-leasing spread was 11%.

• Return-to-office plans, technology-sector hiring and limited new supply in the portfolio’s micro-markets are expected to support leasing and occupancy gains.

• Growth plans include acquiring the 3.7M sf identified asset and evaluating 6.7M sf of ROFO properties; future acquisitions remain subject to applicable terms and conditions.

• Management emphasized quarterly distributions, prudent capital allocation, balance-sheet discipline and reducing debt costs.