On Friday, Citi updated its outlook on Brookfield India Real Estate Trust (BIRET:IN), increasing the price target to INR330.00 from the previous INR300.00, while reaffirming a Buy rating on the stock. The adjustment follows BIRET's second quarter financial year 2025 (2QFY25) report, which exhibited an approximate 2.3% quarter-over-quarter growth in adjusted net operating income (NOI). This growth was attributed primarily to new leasing activities and contractual escalations, although it was partially offset by lease expiries.
During the second quarter, BIRET achieved gross leasing of 0.97 million square feet (msf), contributing to a total of 1.2 msf in gross leasing for the first half of the financial year 2025 (1HFY25). The trust also saw an improvement in committed occupancy, which rose to 85% in 2QFY25 from 84% in the preceding quarter. Management has expressed confidence that the occupancy rates could reach between 87% and 89% by the end of FY25, bolstered by robust leasing momentum and non-performing asset (NPA) conversions.
The positive assessment by Citi reflects the trust's strong performance and potential for future growth. Citi's analyst highlighted the Brookfield Group's expertise in acquiring and managing assets, which, along with its significant asset base in India, suggests potential for inorganic growth. Such growth could enhance yields and scale for BIRET, as well as diversify its portfolio, thereby reducing geographic and client concentration risks—benefits that the trust has experienced in past acquisitions.
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