Mindspace REIT’s Q1 net operating income rises 28% to Rs 788 crore

MUMBAI: Mindspace Business Parks REIT has reported a 27.8% year-on-year rise in net operating income (NOI) at Rs 788 crore for the quarter ended June, driven by healthy leasing activity, higher rentals and the addition of new assets.

The office REIT expanded its development pipeline with two new office buildings and two hotels totalling 1.7 million sq ft across Pune, Mumbai and Hyderabad.

The company has also announced its highest-ever quarterly distribution per unit (DPU) of Rs 6.67, up 15.2% from a year earlier. Revenue from operations rose 26.4% on-year to Rs 951 crore during the quarter from Rs 752 crore a year ago.


“The performance reflects the strength of our portfolio, the quality of assets, and disciplined execution. With most of our under-construction office assets due for delivery over the next twelve months already pre-committed, demand for our campuses remains strong. Building on this momentum, we have started work on two new office projects and hotels to further enhance our integrated campus ecosystems and elevate the occupier experience," said Ramesh Nair, MD and CEO, Mindspace REIT.

During the quarter, the REIT recorded gross leasing of about 0.9 million sq ft In-place rents across the portfolio stood at about Rs 81 per sq. ft. per month, with a mark-to-market rental potential of about 19.6%.

The REIT is actively developing an under-construction pipeline of 6.6 million sq ft and has launched two new office buildings and two hotels spanning about 1.7 million sq ft across Pune, Mumbai and Hyderabad. With these additions, its total portfolio has expanded to about 46.2 million sq ft.

As part of its diversification strategy, Mindspace REIT has announced two hotels in Pune and Hyderabad that have been pre-let to Chalet Hotels, taking the total number of hotels across its campuses to five. Its data centre portfolio now stands at 1.7 million sq. ft.

The REIT's gross asset value increased to Rs 51,890 crore following the addition of newly acquired assets. Its loan-to-value ratio stood at about 29.7%, while the cost of debt remained flat sequentially at 7.42% per annum.

Mindspace REIT completed the acquisition of a 100% stake in Commerzone Pallikaranai and a 51% stake in International Tech Park Chennai - Radial Road, now re-branded as One Radial. Following these acquisitions, the portfolio's committed occupancy stands at 92.1%.

The board declared a distribution of Rs 442 crore for the quarter. The record date for the distribution is August 8. Since listing, the REIT has distributed about Rs 7,201 crore, or about Rs 119 per unit, to unitholders.