Mindspace REIT leases 1.6 million sq ft in Q2, NOI rises 31.9%

MUMBAI: K Raheja Corp group-sponsored Mindspace Business Parks REIT has recorded gross leasing of over 1.6 million sq ft during the July-September quarter, taking its committed occupancy to a record 96.1%.

The Real Estate Investment Trust (REIT) has also leased around 0.6 million sq ft at its newly acquired Chennai assets since acquisition. A large transaction covering around 0.5 million sq ft was signed at One Radial with a European banking, financial services and insurance (BFSI) global capability centre (GCC).

The REIT reported net operating income (NOI) of Rs 836 crore in the second quarter, registering a 31.9% year-on-year increase compared with Rs 634 crore in the corresponding quarter last year. Revenue from operations increased 29.8% to Rs 1,010 crore from Rs 778 crore.


On a like-to-like basis, excluding new acquisitions completed in the first half of the current financial year, NOI grew 16.8% from a year ago.

Mindspace REIT’s distribution per unit (DPU) increased 14.4% to Rs 6.67 in the quarter, compared with Rs 5.83 in the year-ago period. The trust declared a total distribution of around Rs 442 crore for the quarter. The record date for the distribution is November 5, and payment will be processed on or before November 13.

The trust’s completed portfolio increased to 37.7 million sq ft, while its development pipeline stood at 6 million sq ft. It also acquired 0.15 million sq ft across Commerzone Yerwada in Pune and Mindspace Madhapur in Hyderabad during the quarter. The REIT has cumulatively consolidated around 0.8 million sq ft within its business parks.

At Hyderabad, the trust delivered its first redevelopment project, covering around 1.5 million sq ft, with 100% pre-leasing.

The portfolio’s gross asset value increased 15.9% to around Rs 55,190 crore. Net asset value per unit rose 7.2% to Rs 565.1 from Rs 527 in the previous year. Since its listing, the REIT has recorded cumulative growth of 78% in NAV per unit, translating into a compound annual growth rate of around 10%.

The loan-to-value ratio remained broadly unchanged at around 29.1%, while the cost of debt stood at 7.43% per annum.

The REIT’s total portfolio has a leasable area of 46.4 million sq ft across Mumbai, Pune, Hyderabad and Chennai, comprising 37.7 million sq ft of completed area, 6 million sq ft under construction and 2.7 million sq ft of future development.