Chairman’s Message
Downtown Powai - Commercial/IT Park Mumbai
ESG at Brookfield India REIT
Committed to Unitholder Expectations
Statutory Section
India's economy remains a bright spot in the global landscape with its rise towards becoming one of the world’s top three economies. Against this backdrop, we have built a market-leading franchise as the preferred ‘landlord of choice’ by owning and developing the highest-quality office spaces with a live, work and play environment across India.
As we reflect on the first half of FY 2024-25, I am pleased to report a period marked by strategic growth and stable performance. Our commitment to delivering value to our stakeholders has been evident in our ability to capitalize on the favourable market conditions and expand our footprint.
Real estate houses the economy, contributing directly to the GDP. It significantly boosts productivity by providing high-quality infrastructure supporting the emergence of various industries. We see a significant trend of large corporations moving to India, not just for back-office work but also for front-end research. India is becoming a prime location for the services sector, which has found a strong foothold here, further cementing its position as the "Office to the World”.
Multinational corporations, particularly Global Capability Centers (GCCs), continue to invest in high-quality real estate infrastructure, reflecting the growing demand for premium office spaces. Additionally, technology is transforming the real estate industry, and we are continuously harnessing its potential to optimize operations and elevate tenant experiences. As we navigate through dynamic market conditions and seize new opportunities, we remain dedicated to our core principles: transparency, integrity, and prudent investment strategies. At Brookfield India REIT, these principles form the foundation of our decision-making process and guide us in all aspects of our operations.
We've expanded our portfolio through both acquisitions and organic growth. Our acquisition of a 50% stake in the North Commercial Portfolio from Bharti Enterprises is a significant step in this direction. Marquee assets such as Worldmark Delhi, Worldmark Gurugram and Airtel Center added 3.3M sf of operating area to our portfolio. With Bharti Group now a shareholder, this partnership reflects confidence that leading institutions have in our long-term vision. Our portfolio has grown by 2.3 times since our IPO, and we remain focused on identifying new opportunities for growth.
Organic growth has also been a key driver of our performance. Over the last three quarters, we achieved a 17% increase in same-store operating income, driven by our leasing performance and an improvement in committed occupancy, which grew from 80% to 84%. With robust leasing momentum and a favorable market environment, we are on track to achieve committed occupancy of 88% by the end of FY 2024-25.
Additionally, the recent reforms to Special Economic Zone (SEZ) regulations have provided us with new opportunities to optimize our existing portfolio. We have applied for the conversion of several SEZ spaces into non-processing areas, allowing us to cater to a broader range of tenants. This flexibility has been well received by the market; we are in the process of converting an additional 15.6M sf of our SEZ portfolio. We are seeing healthy rent growth for leasing of converted non-processing areas. We are also exploring opportunities to re-lease upcoming expiries at higher rents, further enhancing our same-store NOI.
Sustainability is at the heart of our long-term strategy. We are proud to have achieved key milestones in our ESG journey, such as achieving 40% renewable power transition across four marquee campuses and are actively working towards achieving 100% green power across our entire portfolio by 2027.
This year, we were recognized as the Global Sector Leader for Sustainable Mixed-use Development for Baytown, a reflection of our ongoing efforts to set new benchmarks in the industry. Moreover, Brookfield India REIT has achieved a 5-star GRESB rating for the third consecutive year, underscoring our commitment to ESG excellence.
Our commitment to sustainability goes beyond energy; we are actively working to reduce our carbon footprint and enhance the well-being of our tenants, employees, and surrounding communities.
Strong governance practices are equally integral to our approach, ensuring transparency, accountability, and ethical decision-making across all levels of our operations.
Across the board, we have been recipients of over 12 awards in H1 FY2025.
We are strategic partners to global companies that, like us, recognize the long-term value and potential of being in India. Our commitment to fostering long-term partnerships is evident in the work we do with some of the most innovative companies in the world.
We remain optimistic about our growth prospects. Our focus on high-quality assets, operational excellence, and sustainability will drive long-term value creation. We aim to maintain our leadership in the real estate sector and are excited about future opportunities.
Thank you to all our stakeholders for their continued support. Together, we're building a resilient, sustainable future for Brookfield India REIT.
Sincerely,
Chairperson, Board of Directors
Manager of Brookfield India Real Estate Trust
