A leading real estate investment trust (REIT) reported a 13% year-on-year increase in net operating income (NOI), reaching ?4,986 million for the quarter ended June 30, 2025.
During the quarter, the REIT achieved gross leasing of 651,000 sq ft, with an average re-leasing spread of 22%. Committed occupancy rose to 89%, reflecting a 9% improvement over the past 18 months following recent regulatory reforms. Over this period, the portfolio recorded 4.6 million sq ft of cumulative gross leasing.
Income from operating lease rentals grew 9% year-on-year to ?4,583 million. The trust also declared a distribution of ?5.25 per unit, amounting to ?3,190 million, marking a 17% year-on-year increase.
According to the management, occupancy is expected to exceed 95%, supporting targeted growth of 13% in NOI and 22% in distributions for the upcoming quarter. The proposed fundraise is intended to strengthen the trust’s ability to pursue larger expansion opportunities.
The board approved a ?1,000 crore preferential issue to a diversified group of investors to support future growth plans. This follows the ?3,500 crore capital raise completed in December 2024.
The REIT is also exploring potential acquisitions of grade-A commercial properties in major southern cities. Backed by a strong credit rating and 88% repo-linked borrowings, the trust expects additional benefits from a softer interest rate environment. It has already seen a 35 bps reduction in borrowing costs and anticipates a further 55 bps transmission in Q2 FY26.
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