Brookfield India Real Estate Trust Q3 FY26 Earnings Call Summary

Summary

Brookfield India Real Estate Trust - Q3 FY 2026 Earnings Call Summary Friday, January 30, 2026

Event Participants

Executives 4 Alok Aggarwal – CEO and MD, Amit Jain – CFO, Rachit Kothari – Non-Executive Director, Shailendra Sabhnani – Brookfield

Analysts 6 Deep Shah (B&K Securities), Dhiraj Dave (Samvad Financial Services), Parvez Qazi (Nuvama Group), Pritesh Sheth (Axis Capital), Puneet Gulati (HSBC), Yashas Gilganchi (BOB Capital Markets)

Financials & KPIs

Geographic & Segment Commentary

• Bengaluru (Ecoworld): Following the 7.7 MSF acquisition, Bengaluru is now the largest market, contributing 32% of Gross Asset Value (GAV). The asset is 94% occupied with significant MTM potential as market rents are currently ~30% higher than the asset’s passing rent.
• Mumbai (Powai): A core focus market alongside Bengaluru, with both GCC-heavy hubs accounting for nearly 50% of the total portfolio value. Management noted high demand for expiries, with term sheets already signed for upcoming vacancies.
• SEZ Assets (G2 & N2): These assets saw occupancy increases of 10% and 8% respectively, driven by the NPA (Non-Processing Area) conversion strategy. Approximately 1.3 MSF in these campuses is either converted or in advanced stages of conversion to accommodate domestic occupiers.

Company-Specific & Strategic Commentary

• Ecoworld Acquisition: Completed in Q3 FY26, this 7.7 MSF acquisition significantly diversified the portfolio, reduced top-10 tenant concentration from 34% to 30%, and increased GCC tenant share to 45%.
• NPA Conversion Strategy: Management is aggressively converting SEZ space to Non-Processing Areas (NPA) to tap into domestic demand. Total conversion pipeline includes 1.9 MSF already leased and an additional 1.2 MSF in advanced stages.
• Capital Raising & Refinancing: Successfully raised ₹35 billion via QIP (3x subscribed) and ₹20 billion via Sustainability-Linked Bonds (SLB). The SLB coupon of 7.06% is approximately 20 bps lower than standard repo-linked borrowings.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Leasing Momentum & Expiries

• Question: What is the status of the 1.1 MSF of expiries scheduled for Q4? (Puneet Gulati)
• Answer: Approximately 80% (800,000 sq. ft.) of these expiries are already renewed or released. For K1 and Powai, term sheets are signed in advance of vacations to ensure no revenue gap (Alok Aggarwal/Rachit Kothari).

Ecoworld Financials

• Question: How did Ecoworld contribute to the DPU if the transaction closed late in the quarter? (Deep Shah)
• Answer: Ecoworld contributed for only 8 days of operation in Q3. However, the SPV also held receivables from the demerged entity which supported the ₹5.4 DPU. Q4 will see the first full quarter of Ecoworld’s operational cash flow (Amit Jain).

NPA Conversion Timeline

• Question: What is the typical timeline for converting SEZ areas to NPAs? (Deep Shah)
• Answer: Once a lease transaction is in an advanced stage or signed, conversion is typically achieved within 75 to 90 days. We currently have 1.2 MSF in advanced stages, mostly backed by LOIs (Alok Aggarwal).

Distribution Structure

• Question: How will the tax-efficient mix of distributions change? (Dhiraj Dave)
• Answer: We are targeting a mix of 30% dividend, 50% capital repayment, and 20% interest. This will be achieved by increasing the number of SPVs (like Ecoworld and K1) that can declare dividends following capital restructuring (Rachit Kothari/Amit Jain).

Key Takeaway

Brookfield India REIT delivered a transformational third quarter, headlined by the completed acquisition of Ecoworld in Bengaluru, which expanded the operating area by 31% to 32.4 MSF. Financial performance was robust with NOI growing 14% YoY to ₹540 crores and committed occupancy improving to 92%. The trust successfully optimized its capital structure by raising ₹55 billion through a QIP and India’s largest sustainability-linked bond, which is expected to lower the average cost of debt to 7.3% in Q4. Strategically, the REIT is pivoting toward domestic demand through its SEZ-to-NPA conversion strategy, with 1.3 MSF undergoing conversion. Management has set a roadmap for a 19% DPU growth upon reaching 97.5% occupancy, supported by a 30% MTM spread in the Bengaluru portfolio. While some tech-sector churn exists, strong GCC demand and a 6.5-year WALE provide a stable outlook for the platform’s next growth phase.