Brookfield India REIT

Basis of our Recommendation

Brookfield India REIT's management has articulated a strong growth trajectory, bolstered by strategic acquisitions and a robust pipeline, particularly highlighted by the recent acquisition of Ecoworld in Bengaluru. This expansion is expected to enhance revenue growth, with management projecting healthy re-leasing spreads of 9% to 18% through FY2030, which supports Vista's forecast of accelerating revenue growth beyond historical levels. However, margins are anticipated to remain under pressure due to potential cost increases and the cyclical nature of the REIT industry. The macroeconomic environment in India, characterized by stable inflation and strong demand for real estate, further underpins the positive outlook. Key opportunities include leveraging the sponsor's high-quality asset pipeline and increasing occupancy rates, while watchpoints include geopolitical uncertainties that may impact leasing timelines and the management of floating debt exposure. Overall, Vista's valuation reflects expectations of continued long-term growth, with a target price of approximately INR 644 over the next 24 months, indicating a potential upside of 0.38%