Brookfield India Real Estate Trust ($BIRET)

Ladies and gentlemen, good day, and welcome to the Fourth Quarter and Full Year FY 2026 Earnings Call for Brookfield India Real Estate Trust. Brookfield India Real Estate Trust released its financial results for the quarter and full year ended March 31, 2026. Brookfield India Real Estate Trust has placed the financial results, earnings presentation in the Investors section on the website at www.brookfielddiareid.in. Please note that the management may make certain remarks during this call that could be considered forward-looking statements. Actual results may differ from these statements, and Brookfield India Real Estate Trust does not guarantee such outcomes or not undertake any obligation to update them. Any financial guidance or pro forma information shared today represent management's estimates based on specific assumptions and has not been audited, reviewed or independently verified. We caution you against placing undue reliance on this information as there can be no assurance of achieving the results discussed. [Operator Instructions] On the call we have us today Mr. Alok Aggarwal, CEO and MD; Mr. Rachit Kothari, Non-Executive Director; Mr. Amit Jain, CFO of or Management Services Private Limited, Mr. Shailendra Sabhnani from Brookfield. I now hand the conference over to the management for their opening remarks. Thank you, and over to you, sir.

Thank you. Good afternoon. This is Alok. Welcome to Brookfield India Real Estate as Q4 and financial year 2026 Earnings Call. thanks to all our unitholders, analysts and participants for joining us today. Let me start by providing a brief update on the broader macro environment in India. India structural advantages including its deep talent pool, competitive occupancy costs, digital ecosystem and policy stability continue to stand and exploration as a preferred destination for multinational corporations a global capability centers. India office market maintained strong momentum during last year 2026, gross leasing, which in a record 91 million square feet and net adoption of 58 million square feet. Demand continues to be concentrated in high quality, institutionally managed office campuses that offer operational variability, sustainability dirential employee wellness infrastructure and flexibility for future expansion. Efficiency levels tighten in leading office micro markets, rental growth and mark-to-market opportunities continue to remain favorable for high-quality landlords. Against this backdrop, to finder is well positioned with 1 of India's highest quality and most diversified office portfolio panning 32.5 million square feet across key gateway markets in strong exposure to multinational tenants and GCC occupiers. Financial year 2026 was a transformational year for Brookfield India Real. I'm happy to mention that we have completed 5 years since '15, marking 5x growth in terms of we delivered record leasing performance during the year, achieved meaningful occupancy growth across our portfolio and completed the acquisition of Eco work, making Bengaluru our largest market. Together with Mumbai, these GCC focus markets now account for a majority of the portfolio bandit. In April 2026, we also successfully closed 2 capital raising initiatives INR 2,600 crore qualified institutional placement and INR 1,125 crores primary investments in EcoWor361, being a strong audition for future growth. Now let me go to our update performance for the quarter and the full year. During financial year 2026, we achieved a record 4 million square feet of gross leasing, including a 1.6 million square feet in Q4 '26 alone. Leasing demand remained broad-based across sectors and geographies, demonstrating the resilience and diversification of demand across our portfolio. Importantly, approximately 50% of quarter 4 and financial year 2026, desicame from DCC occupiers. We enforcing Bona's strong positioning as a preferred partner for multinational corporations establishing, expanding their Indian operations. We continue to see increasing demand from amplifiers involving high-value functions such as engineering, analytics, R&D, financial operations consulting and technology development. Our committed occupancy increased to 92%, up 5% year-on-year, while maintaining a long-dated rail of 6.7 years. Occupancy growth was particularly strong across our SCD portfolio. Their committed occupancy improved from 84% to 91% over the last year. Non properties continue to operate at a resilient of 96% of the gray. Alesion momentum continues to be good across products and tenant categories across our portfolio. In addition, we have been strategically converting SEG spaces when NPS across the campuses. In the current quarter, we have applied for conversion of 3.40 Lakh square feet pace across 2 and equal. And out of this space, about 260,000 square feet has already been tied up. All of the total NPA spaces, which include converted and applied for conversion, we have already leased out 80% of the space, and we have a healthy pipeline of tenants of these spaces. In addition, we have also derisked our near-term lease expiry profile by proactively storing 0.7 million square feet of commitments against FY 2027 expiries to Adi renewal expansion led releasing. This also reflects a tenstickiness in the portfolio and our robust relationships. FY '26 also marked an important milestone in our growth journey with the successful acquisition of EcoWorld at 7.7 million square feet premium A office campus located in Actelion. We successfully raised ultimately INR 37 billion from key institutional investors for a combination of INR 26 billion in and INR 11.3 billion primary investment by 361 into the recovered SPV in April '26. At the same time, retaining full operational and board control of the covered SPV by bringing a high- institutional capital partner. These transactions further strengthened our balance sheet and created significant headroom for future growth opportunities. Apoora LTV now stands at 25.2%, going 10% headroom from the upper end of our target LTV test of 35%, which translates to dip out of approximately INR 50 billion of future growth opportunities. We have been importance of ESG and sustainability initiatives, and that continues to remain deeply embedded within our operating portfolio. During the quarter, Bull India led received the Borden pickup of our lobusness excellence from the Institute of Directors, sugenizing our strong governance framework and operational excellence. Additionally, Worldmark, Worldmark, Center received advanced education from down for the new liposuctions across quality, environmental and safety standards. We continue to make meaningful progress against our sustainability-linked bond including renewal energy option and water exciting targets. I will now hand over to Amit to take you through the financial performance for the quarter.

Thank you, Alok, and good afternoon, everyone. Let me now take you through the financial highlights for Q4 FY 2026. FY 2026 was a strong year from both an operating and financial standpoint or FY 2026. Our net operating income stood at INR 22.9 billion, reflecting a robust growth of approximately 24% Y-o-Y. Same-store NOI increased by approximately 10% over FY 2025, driven primarily by lease up of recent areas, mark-to-market gains and contractual rent escalations. For FY 2026, we declared distributions of INR 21.40 per unit, reflecting an increase of 11% Y-o-Y. Total distributions for the U.S. stood at INR 15.2 billion. For Q4 FY 2026, our NOI stood at INR 7.4 billion, reflecting strong Y-o-Y growth of over 52%, supported by contribution from EcoWorld same-store growth across the portfolio. Our balance sheet remains robust with year-ending borrowing LTV of 32.2%, excluding shareholder loan instruments and in stable carats rating from Cristian Lira. As Alok mentioned earlier, following the QIP and the 361 investment into covers our performances creating 50-plus billion of dry order for future acquisitions. Our average cost of debt stands at 7.3% with long-dated debt profile and minimal term amortization. With that, I would now request the moderator to open the floor for questions.

[Operator Instructions] The first question is from the line of Puneet Gulati from HSBC. I'm sorry, Mr. Gulati, you're inaudible, sir. Mr. Gulati, Sir, I would kindly request you to rejoin the queue, please. Mr. Gulati. We can't hear you so yes In the meanwhile, we'll take the next question from the line of Deep Shah from 361 Capital.

Congrats on the require high occupancies. Sir, 1 question is on it. So I see about both of our rentals is and what I also see is the increased rental expiry is slightly higher than the increase rent at the 2 property level. So if you could give us some idea as to is there any discussion on renewals? Or any color on that would be very useful. Secondly, on the debt, so now with the money that we raised both at the tower level and at the reach level. How should we expect debt to moderate and then according the impact on DPU for 1Q and 2Q, I'm sure we might have some plans for property purchase later in the year. But we might still see some benefit on BPO, right, because of lower debt costs. So these are 2 of my questions.

So the let me talk about 2. So if you see 2 occupancy is already up from 84% to 94% in 1 year. And when you talk about expiry, as we have said, about 7 lakh per se, we already have kind of pre-leased or signed leases for the space which is expiring. So there's 1 tower in 2, which is kind of a there's a tenant who is building their own campus and they're going to be located we already have signed with a large and an entire tower leasing and it's a mark-to-market of substantial good mark-to-market so that's on and what was the second question in terms of rentals did you say? in 2?

No, I was wondering if there any rental pressure given that the tenant which is expiring, they are at 69% versus then to average being at 66%. But I think you probably answered it by saying that we vacated MTM already. Is that fair understanding?

Yes, yes, yes. And are 94% occupancy and really I'm in the whatever we can have back at a premium. So there's no ended sector. We are able to achieve this mark-to-market, and that's the poised very, very particular about MPS where we are.

And then on your second question on debt. So utilizing these QIP proceeds and the fund raise a recovered we are expecting to pay around INR 3,600 crores of debt and our average debt quarter so that will translate into an incremental interest saving of around INR 60 crores to INR 65 crores that should flow into the distributions going forward.

Right. And this would probably the, let's say, way onwards, right, in the sense, the lower debt savings should start new onwards.

It will the repayments will happen over a period of time. And in the repayment seen the money will be parked in mutual funds and B, which will also accrue interest income for the portfolio. So overall, it will be incremental to the BPU.

The next question is from the line of Puneet Gulati from HSBC.

Yes. Can you hear me well now. Okay. Good. Yes, just continuing with the interest cost, most of your debt is still floating. How are you thinking about taking the contours of your debt?

So Puneet, we did do a bond issuance in December, and we continue to monitor the pricing across bank loan markets and the bond markets. as well as where the maturities such that we have a balanced maturity profile. As you would see, we have very limited maturities that are upcoming. But we continue to evaluate the cost of financing between these markets and we'll hopefully look to continue to increase. the fixed rate instruments on a proportionate basis. But obviously, we'll continue to watch and take decisions that are appropriate based on what is the effective cost of financing.

Is there a target fixed tenure debt that you have in mind?

So the question is, do we have a target fixed to floating we don't necessarily have a particular ratio there.

Okay. Understood. Secondly, on the control of the CF cash walk-down. If you can talk a bit about, number one, give the nature of working capital-related positive outflows and Also, how much surplus cash would you still have been met with which you can still use to manage the distribution a bit?

So on working capital, so EcoWorld was acquired recently into the deep portfolio as we know it. And there are certain leases that got signed recently. So a big number of new utilization reserve, which is an IndAS impact, which has approved and is flowing through the working capital adjustment so that is one. And as you would have seen, we have...

That will be a negative number, right, in the initial years?

That will be a negative number in the initial, right? And then the positive side, there have been security deposit inflows in the current quarter, primarily from the new leases that have been signed up. So overall, there is a positive impact on the working capital.

Yes. So what is can you share the positive numbers of the security deposit?

So over so total security deposit inflow in the current quarter was INR 72 crores, around INR 70 crores.

Okay. Understood and also in the yes, sorry, go ahead, please. Just continuing on the use of cash. put a number that cash.

so in the current quarter, the overall generation was in the range of INR 5.7 per unit. Now considering the QIP happened in April, and therefore, distribution was to be made to the new unitholders as well. So to maintain the NDCF utilized portion of opening cash which was available from prior acquisitions that REIT had done. So overall, from if you look from a order perspective, the overall indicate has been positive in the current quarter.

Actually, what I wanted to understand was, is there of the total cash that we have? Is there a quantum which you can use for this? Or is the entire cash available for this distribution in some sense?

So we have around INR 50 crores to INR 60 crores available with this from previous quarters that can be used towards distribution in the coming quarters. I hope that answers your change

Yes, that is. That's sure. And secondly, if you can just talk a bit about what has been the key drivers for the NAV increase that we saw in the current quarter?

Yes. As well as our NAV we reported a INR 349 per unit NAV in September. And today, we are reporting a essentially, if I look at it, we can kind of break it down into, say, 3 key buckets. We have gained roughly INR 2,900 crores in our asset valuation, which have kind of flown through to NAV. 1/3 of it is on account of reduction in cost of debt and cap rates, hence, impacting the valuation. And on account of the operating progress. that we have kind of made in our portfolio due to higher occupancy and better leading to better cash flows. So this impact of INR 2,900 crores have kind of flown into our NAV and I would also want to highlight that our NAV is also understated approximately by INR 4 due to certain noncash liabilities in our not commercial portfolio. If we managed to consolidate that not commercial portfolio, this is also kind of initial way. So there is a INR 4 kind of understatement, which is currently there.

The next question is from the line of Girish Choudhary from even destock.

Yes. Thank you for also congratulations from the strong quarter 1 also the year on by, firstly, how should we think about the trajectory going forward, particularly given we're going to see a full year of EcoWorld and then we have had QIC and whatever lease run up, which is expected. So you can just give some thoughts on the trajectory of that.

So we, as of now, are not giving any guidance per se. But as you would have seen the leasing schedule, we are expecting to end FY '27 at around 96% occupancy levels, right? And as you rightly said, with debt paydowns, which we discussed earlier, increase in occupancy. The debut will definitely grow from current levels. But as of now, we are not giving any guidance.

Yes. If you see last year also, we increased by 11% from 19.2% to so it will definitely move on. exit, I think probably too early to say post number.

Broadly just to add to what Alok and Amit said, you broadly look at income at a 93% occupancy level should grow at 5% to 6% per year, 5% just contracted we will, of course, improve occupancy as we move along. If you just compare last 2 financial years, it's over 10% uptake in store, we'll expect at least 6% to 7% uptick as we trend from which should, I believe, give us an equivalent NDCF increase, if not more. Just given we have, of course, some leverage in the capital structure, maybe some taxes that will offset the growth impact. But broadly, I think 6% to 7%, which should mean call it or 5 per year from this point onwards. I should be fairly predictable.

Okay. That's hopeful. My next question is on the lease expiry profile. When I look at, obviously, Mtonnes have 24% of the rentals expiring in transition. And outside of that, I also see downtown seeing a significant expertise coming in over the next 2 years and also are center we see 100% of the area expanding in fiscal '20. So if you could give us some color on the releasing strategy and also the NPM of which site lease assets.

So Girish, for Fasial7, we have about 2.8 million power of that we already have 0.7 million. 1.3 million is expected to be renewed and about INR 0.8 billion will expire. And just to talk about individual cases we talked about data centers, same tenant is continuing so that's continuing in downtown away, we hope to renew. So just I would like to maintain but we're already at 93% open to kind of 4% to 96%. So a what is the availability of space is kind of a short supply their demand is good. So we have talked about able to renew morale leases. But if some space is expiring, some tenant is vacating for whatever reasons, we are able to get mark-to-market and able to get better numbers.

Okay. Okay. And then lastly, you spoke about the NAV drivers from September until the, let's say, March of around INR 37 per share across 3 buckets, but we have to look forward next year also. How should we think some will be the drivers of NAV going ahead across the 3 trend buckets you mentioned about.

So in our public disclosures, 1 thing we have kind of given is that we have reported INR 387 we have earlier explained that there is that INR 4 approximately addition that can kind of come in. At the meantime, we have done this April 2027 QIP. So it also will have an impact as we go forward. On top of that, yes, the QIP proceeds will be used to kind of eventually will go into future acquisitions, which will add to and there will be growth in the current cash flows of the existing portfolio, which will also better drive and flow through to the NAV. So basically, going forward, there is an organic growth in an that is expected on top of that, the proceeds being used for inorganic growth will further improve the NAV going forward.

We'll take the next question from the line of Karan Khanna from Ambit Capital.

Firstly, look, in light of the recent global geopolitical uncertainties, what's the kind of feedback that you're getting, particularly from global tenants regarding future leasing decisions, including renewals and more importantly, on the expansion plans? And how does that fare versus, let's say, how things was here a couple of years back?

Just can you repeat your last in what last intends is it correct Yes.

Yes. So I was asking in terms of leasing decisions, how they stand today versus how things were, let's say, a couple of years back?

No. So Karan, when you talk about mobile turmoil, especially, let me talk about we have seen in terms of tariffs, we have seen it had no impact. this has meaningfully moved up in the last 1 year. So that is something we'll be able give everybody. Now let's talk about the wall, which is happening in the well. So if you really see this voice is not going to have a mid- to long-term impact on any of the leading decisions. It's not going to really GCCs always to take a decision based on this or whether they should be looking to India, that's why the event. And what's possible that it is all continue for, let's say, for 2 more months, some delays can happen. So no kind of a leasing demand is going to be lost. DC is going to take a decision not to come to India, but we can expect to be 2 months delay this that's something at the MAX can happen. So that's something which I would like to Sure.

And just if I look at the acquisition pipeline and, let's say, the Slide #12, given you have almost INR 50 billion plus of dry powder, if you think about some of the sponsor pipeline, going forward, would you look to acquire sponsor assets, which can deepen presence in the existing markets, such as Walmart or copac or some of the assets in Mumbai or would you like to evaluate new markets such as Puan Chennai first to further diversify the portfolio. And if you can also provide a bit of color on both the sponsor and third-party acquisitions that you're currently evaluating? And going into FY '27, what does the acquisition pipeline look like?

Yes. Maybe I'll take that Karan, the consumer today has in their network about 11 million to 12 million of operating assets of's some's them, as we rightly said on a natural for us to consolidate stakes in situations where we don't own the entire 100% should they come up. But also, I would say, in terms of market each of these are pretty robust markets, right? If you look at growing in Mumbai or whether you're looking at a point, I don't think until look at these markets very differently from a strategy standpoint. I would rather say that there's a big focus on the reach today to ensure 2 things: number one, by highly occupied assets. I think our choice of acquisitions we pursue is largely driven by occupancy of those assets being in the 90% plus the code. So there's some upside, but also the large part of stability that adds to the portfolio. And second is really to look at assets which are now more front office of GCC leader maker to just diversify the portfolio a little bit more. just rewind the clock and when you compare the portfolio we had in 2023 to what we have today in 2026, addition of Mumbai, addition of daily addition of Manor has really changed the flavor of how our tenancy split across the part, but also the risk profile of the larger pie that we have, right, with some of these assets now contributing more than half the value. We'd like to tread down that car and add assets that fit that strategy as opposed to be constrained by locations. So that's broadly how we think about it, but I'm not sure if it answered the question. But happy to answer.

Sure. No, just a follow-up in terms of FY '27 pipeline. So is there any third-party acquisition also that you're evaluating? Or will the focus be on consolidating stake in the existing assets sit?

No, we are open to third-party opportunities as long as, of course, they're highly occupied and complement our portfolio. So we have evaluated a few in the past. We'll continue to evaluate at come up in the market.

Sure. The. And then lastly, in terms of the given the recent changes at the state government level, how you're rethinking about Kevan, do you expect market rentals to see a huge bump up here given the changes? And what does that imply for your 7.5% like see the expiries here in FY '27, 28? And how does that change the overall cap rates for this asset?

Yes. So actually, if you see Tata, we are almost 100 occupied. They're very small, very, very small, almost negligible we can see. And anyway, dentals have moved up substantially in the last 2 years. and on expiries and mark-to-market opportunities and the new tower coming up, we expect them to leave at much higher intel. So that's the citation. Now I'm not sure that cap that something changing or changing. I think that probably the government will antifiBut Canada has done pretty well for the last 2 years and is expected to do better with changing government and the positive momentum what said. I think the market level vacancy in calcite, not a lot of people know this is single digit, low single digit today. The absolute in the market rents, of course, have been capped at, call it, early 50s levels. It is impossible to bring in new supply at those rents today. So new companies, new talent, newcomers into the city, the rents have no choice but to move up.

The next question is from the line of Yashas Gilganchi from BOB Capital Markets Limited.

Releasing spreads achieved over the quarter or approximately 200 bps lower than what was achieved last quarter and even maybe 4 25. What is causing the compression in spreads despite the robust leasing within your portfolio?

So just, I can see the leasing our when you see these in the mother average and leading are always it you can always probably when leaving the expiring rate to be higher or to be lower than it mines where we are, but what's the leading seat we get. But from our point of view, on the new rent, we are always kind of a moving up quarter-on-quarter and then year-on-year. So the closing end doesn't close. But at times, we can do that a little here at times, the pine rent could be a little bit higher, and that can be a mine the leasing spread.

Okay. Understood. And has there been any progress on the redevelopment plan for campus 3? Do you think additional FSI will be made available? Or is there any change in your expectations of the yield on cost?

Look, that in terms of our strategy right now is on the list of existing pie, the idea is to refurbish it and lead to new tenants that strategy. I think that rate.

Understood. Any indication of when we can expect rents to flow in post the publishment on this asset?

So we are -- I mean, as you will be aware that currently the cancer CAPC is occupied by tenant. We are in discussions on concluding on the vacation of the tenant from the campus CABC. Once that is finalized, we will as Alok said, well under will take up the refurbishments, which should take anywhere between 9 to 12 months and post that we expect that asset to be leased up in market. As we speak, we have quite a bit of inbound demand in that particular asset. We are marketing this to the RFPs in the market, there is an expansion demand coming from the total campus in itself. So I think the leasing momentum looks very well for the campus once we kind of finalize the vacation of the tenant, we should be up and running in the next 12 months from there.

And just to add, at presently rent yielding. It's not an or it's not that dental coming.

The next question is from the line of Sumit Kumar from JM Financial Institutional Securities.

Congratulations on a good performance and my first question is on the DPU growth. I wanted to understand how much of a gap is there between committed and actual renting occupancy, which can get converted from noncash to cash NOI? And any guidance on the distribution mix, what you should look for in FY '27, '28.

So currently, we are at a committed occupancy of 19 percentage. There are roughly close to or 700,000 to million, which are under free currently. This will kind of flow through into rentals going forward in the subsequent quarter. As far as DPU is current. Sorry, I didn't get the second question.

The distribution mix of dividend interest and principal repayment what that would look going forward into FY '27, '28?

So currently, I mean, while we are kind of distributing 55, we have a dividend mix of roughly 16-odd percentage in the BPO 5.5. In FY '27, we expect this 16 percentage to kind of each append roughly around 25-odd percentage in financial the BPU has been impacted by the recent tax regulations on MAT write-off. We were we were inching up to kind of get a better incident going forward. But then given the math write-off, the in company in the DPUs are targeted to be in the up 25% for FID.

Sure. And my second question is to Alok. You have a number of IT companies with your top 10 tenants. Recently, 1 of them announced job cuts as well, and the sector is experiencing so any fallout of the sale in the future demand or leading indications that you have seen?

We have been talking to most of the companies. And when you talk about job and I don't know which Padcal about don't take the names, but if you really see but probably would not I mean 1 company we can also offer, which was a global level versus 3% of the workforce and probably talking about that company. So the of number is not very large. And on study to see most of the IT companies have seen their maximum revenues and Maxim profits in last quarter. So that's also a matter of fact. Now when we talk to these companies, these companies are, of course, play confident. They are taking space from us. They are giving lock in. They're not hesitant to give a lock-in. You have seen and in the proof of footing, we have seen lock-ins, we have seen these companies staying higher rental. We have seen these companies having best profits and the kind of revenues in last quarter. So that's where we are. Now in the too long term, if things have to change, that's something which needs to be assessed.

Sir, one final question, if I may. In the 25.5% LTE calculations for pro forma numbers, any adjustments done for stake? Or is it like the full headline numbers that you have taken?

We have calculated this basis the B regulations, and we have kind of looked at the consolidation of that we own 50% in consolidated and taking the CP 50% in noncommercial portfolio. So the LTV calculation is consistent with the way we have been kind of reporting it. One thing to kind of note is that this is and as we have noted it also in the same slide, which is excluding the TCB NCD as shareholder debt that we have excluded from the calculation of 25 percentage.

The next question is from the line of Mohit Agrawal from IIFL.

Yes. Good afternoon, and thank my first question is for the area where we are seeing expiries in FY '17 or FY '28, say, into coal, Tanabe what is the current market rates it is there incremental is happening compared to our in-place centers or let's say the experimental. So could you give us some color on that?

So for each asset, we have to talk about, let's say, the toward and to Ensis happening in kind of a 70% kind of range. When we talk about the equal you talked about, Ecovadis business happening in anyway 125, 130 as number we are getting as depends on the space take or how large tenant is. And so these are 2 things to ask. That's also a Bombay. Yes, Bombay also. Bombay, it could it's going in the range of about INR 10, 100 light around 200. So these are the kind of closing numbers. And as we have said, we are getting able to get mark-to-market excise are there. But at least in 2 cases, we have been able to release of close expiries and enter talked about 1 full tower has already been kind of a lease. It's going to get vacated by September, but it's already committed similarly in corals about 45,000 with a large GCC occupier has been closed ahead of you. 9 months ahead of shed.Andwe-I've already given in terms of expiry, that 0.7 billion is closed, 171.3 million is going to hopefully will it and 4.8 million we did exit. So that's for next year. We are not important to comment for financial come as of now. But that's where we stand.

Great. That's useful. And secondly, on your the cash tax rate in the NDCF bottom, how do you see that panning out for the next, say, couple of years? And given the change in the MAT in the budget? Do you see any increase in your or any change in your cash tax payout next year, next.

So no changes expected in cash taxes, at least for 2 years and was the MAT write-offs that have happened in the current financial year as per our projections, we were not utilizing those credits in the next 2 to 2.5 years. So to answer your question, no impact at least in the next 2, 2.5 years.

So no significant outflow on cash taxes for the next 2 years also.

That's correct.

The next question is from the line of Parvez Qazi from Nama Group.

A couple of questions from my side. For just wanted to get your views on a ramp-up in occupancies in even in Q2. I mean these are our only as their occupancy in the. So how do we see anything happening here?

Yes. So I mean, if you talk about G1, we have moved from 80% to 89% so I mean, very late 80s, I'm very I'm confident this 9% 89% will definitely, in the next few quarters, we'll cross mid-90s and will move to high 90s demand is pretty strong. Almost 10% we have seen increase in a year's time. Same thing, again, it put a question of time. Again, then in 2, we have moved from 7 to 8. Again, very confident this ADC will move first 2 190s, and mid-90s and high 90s. So that's something we will cons and most of these vacancies or pickup that you're talking about are in nonprocessing areas from this point onwards. We impact have around 8 lakh square feet of non purposing areas that are currently in the various stages of conversations. 1and G2 are the largest beneficiary of that takeup from this point onwards. And as Alok mentioned, I think a lot of pickup that happened over the course of the last financial year was almost 10 percentage points each in each of the assets that you spoke about. I think something similar should the go-forward trend. just these are very cost competitive locations right now with this sector, everything else said is available in Nina.

Sure. I make the total number I think you've given it earlier of what is the total CV area that we have converted to date and how much of that has been already leased. Would it possible to get that number?

We have consulted till date roughly 2.5-odd million square feet, out of which we have already leased 2.1. There is almost 1 million stare feet that we had apply for inversion. So put together, the total number converted and applied comes to around 3.5 billion, out of which we have leased on a total basis, 2.7 so the occupancy on the nonprocessing area comes to around 79 percentage today. And as Radipmentioned, we have a very healthy pipeline there of tenant type of sales.

And beyond the 3.5 million square feet overall, will we still have some media lift?

Yes, I mean, we are we are having a planned conversion also, which will be kind of taking up for conversion subsidiaries. There are also certain leases where we there is a demand, and we are trying to kind of cater to that by doing a conversion going forward. So yes, on the ICG properties, we have headroom to kind of convert further, and we are strategically looking at converting it whenever the demand plans come in and we have already occupancy teeing of take capacity. So I think going forward, we will be converting more spaces and NPA area update will be the way forward for our assets.

Sure. And post our IT and investment at 361. What is the total debt in EcoWorld now on both internal and external debt.

So current debt at Ecova was INR 5,300 crores and post diluting the stake in reading INR 1,100 crores the number will come down to around INR 200 crores of taking over it.

Sure. And last question, we have seen pretty significant ramp-up in Occupant now we do have, I think, a mixed-use asset, which is under construction. Apart from that, we also, I think, have about if I'm not on 2 million to 2.1 million future development so what is our thought process about this considering the existing of which maybe almost.

So on the development still is happening. We are expecting to complete the development by end of this year. And there's a strong pipeline at good numbers on the retail piece as well as the office piece, and we should be closing on -- should be able to move ahead with leasing. In terms of land, we have various options. Of course, 1 option can be. We can do a demand-based development, we can do that. So that's something we would prefer. But once this development happens, probably will take up all of that, we should kind of amortize.

The next question is from the line of Jatin from Bank of America.

Sorry if I missed this, Sara, but I just wanted to understand your thought process puts and takes around the deal that you did with 3 getting partners in and have them invest in highly stabilized asset SPVs versus, let's say, help them invest at an overall REIT level is farmer more slightly more accretive way and you get to keep control as well? Is that the thought process behind such deals?

I think the torque really was to get access to capital that is available at a price higher than what we paid, right? And the real reason for raising that capital from our perspective was to offset the obligation of INR 1,125 crores of the word consideration. That is yet to be discharged against cover acquisition, right? We didn't want to be at the mercy of the market, the capital was available yet it was available for the asset as opposed to the REIT itself. But we decided to raise it in any case because the obligation will also gain the asset. But again, in our mind, we expect that we will be able to consolidate that stake in 3 to 4 years' time back into the REIT. It is just an arrangement where this money has been raised at the asset, but we'll find its way into the capital stack as well. So this deposit capital, different partnerships available to the REIT. We didn't want to turn away money when it's available at a good price.

The next question is from the line of Puneet Gulati from HSBC.

Just continuing on this 1 on the 361 is there an explicit obligation to return this money or pay back or give an exit to 360 in this asset?

No, there's no obligation to give an exit for cash has an option to swap their interest in the asset into the interest only unit capital of the read on a NAV-to-NAV basis. Yes. Let's say, the NAV the state down below 100 and the NAV of the REIT per unit is 10, they can get 10 units of the retail after 3 years from now, there's no tonation available for 2 to 3 years from today. But after that, they have this option to swap for the share loser. Again, to reiterate, REIT has no obligation to buy them for cash but can of course offer stock.

Understood. Understood. And on the INR 463 crores of capital work in progress that you have, when should we expect that to get capitalized and what is the potential for that?

No, no. So these are normal as a great end. So development is happening in K1 as you know, right. on completion for that is December 2026 so most part of this CWIP will should get capitalized by December 2026.

So what should we expect in terms of capitalization? How much is attributable to the 1? It's 0.5 million square feet or has it been changed and of late.

Yes. Most part of it is related to Kevan. The others are small upgrades that continue to happen in some of the assets, but most part of it is attributed to Kevin.

The next question is from the line of Nilesh Doshi from Prospero Tree AMC.

Sir, I think you have replied about the committed occupancy versus the at occupancy, but we didn't understand what is the actual occupancy in percentage .

The actual occupancy is 93 percentage. I think what the question earlier was that out of this 9 per there will be certain areas, which will be current under rent-free, which will start generating cash rent going forward in the subsequent quarter. So the actual committed occupancy and 31st of March is 93% reach for the REIT.

But I'm not asking about the committed occupancy because we are not generating any rent income on the committed occupancy. We can generate the income only from the actual occupancy from the date we gave the purchase to the tenant. That is my understanding. If I'm wrong, clarity.

Yes, that is correct. Typically, there are a 3- to 6-month lag between committed occupancy and generating occupancy. The and generating occupancy as it stands today, the same as what it was last quarter ending, which was 91%. And somewhere between antidata.

Okay. So there is a gap. And it is normal in the REIT business that the 2% to 3% difference between the committed and actual occupancy. It is the normal and not on the higher side.

I won't say it's a fixed gap. As I said, the committed occupancy starts generating rent within 3 to 6 months of being committed. So there was an area that was just leased the last quarter, I will start giving you rent in 2 quarters' time.

Okay. And sir, my next question is that recently, the Primestor is suggesting that the Bertam home culture, will need features in any way?

I think it's a timely call, but please appreciate this is late to the wall, which is going on, and it's for short term. And anyway, we are in a bit of a hybrid board where people other people are working at home. But in terms of these, all of these are long-term leases, and it's not that somebody is going to downsize, maybe work from home, but maybe get slightly more acceptable is maybe 2 days ago, we also maybe 3 days or 1 day demand go 2 days. That's what was expected. It's not a new fact in early does.

And do the tenants have any right to exit earlier than the contractual period. And if yes, do we charge anything extra for the early it?

I mean tenants do not have rights to exit during the lock-ins, but in some cases, and they are very cases. We have talked this case maybe a smaller end air and there, which are not in our portfolio, even that over time, we have collected 99% of the rents in some cases happen, then a holistic, but we have not really seen tens everything before they're committed thank you.

And the cost for the tenant we leave today in late is to spend INR 4,000 a square feet in our new office. So that is the biggest. While the final and long may not get paid if a tenant leave only a tenant has to ensure that they have another 4,000 big square feet if they want to open an office again. So in situations like these, people take a longer-term view and this transient announcements do not typically impact take-up decisions or termination decision.

Okay. And sir, last question. Sir, I think the reais supposed to raise around INR 4,000 crores and we conclude INR 2, INR 600 crores any reason for the raising of last fund?

So we've taken an enabling approval for up to INR 4,000 crores to be raised in 1 or more tranches. When we launched the transaction, we launched for a base cyper of INR 2,000 crores, and then we upsized the transaction by 30% to raise INR 2,600 crores. So we're pretty much within what we had communicated at the time of taking the enabling approvals.

The next question is from the line of Rui from Neo Asset Management.

Yes, please proceed. Yes. So I just wanted to understand the shareholding of past the group currently in the bet. So regarding the transaction that happening per year and how much does the market growth on into.

So Bharti Group had taken stock when they had swapped their holdings 50% stake. We don't comment on specifics of shareholders, but we understand that they may have traded a bit of what they had gotten in terms of stock at that time. and they continue to hold the balance.

Okay. But there's no disclosure of how much percentage of full currently, right? So look, you can look at public disclosures in case there are any disclosures that are available for those earnings.

As there are no further questions, I would now like to hand the conference over to the management for closing comments. Thank you, and over to you, sir.

Thank you. FY '26 has been defining year for Brookfield India Real we delivered report leasing, improved occupancy meaningfully across the portfolio, competitor transformational acquisition ban strengthen our balance sheet and enhance our future growth variability with the high-quality portfolio diversified across India's gearing office markets, strong sponsor backing, a healthy balance sheet a significant embedded growth potential, we believe Brookfield India Real is well potent for the next phase of growth and value flation. As many of you may know, I will be retiring in end June, and this is my last earnings call at Brookfield India Real it has been a privilege to lead this platform and to engage with all of you so LeTote in 20. I'm BP grateful for your continued support and partnership for the journey and I'm sure you will continue to extend their trust and support to this platform going forward. I will be sharing from sideline, and I'm on your call away thank you for listening.

Thank you, members of the management. Ladies and gentlemen, on behalf of Brookfield India Real SD Trust, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.