Mindspace Business Parks REIT reported a robust operational performance for the third quarter of fiscal year 2025–26, reflecting continued demand for premium office space across India’s top urban centres. The real estate investment trust (REIT) registered net operating income of Rs 671 crore for the quarter ended December 31, 2025, marking a nearly 29% year-on-year increase, signalling confidence in India’s commercial property sector despite wider market uncertainties.
The quarter’s performance was underpinned by strategic portfolio expansion and sustained leasing activity. During this period, Mindspace REIT acquired central business district (CBD) office properties in Mumbai and Pune, adding approximately 0.8 million sq ft of leasable area. Industry observers noted that such inorganic growth, particularly in high-demand urban corridors, enhances rental stability and provides critical scale for institutional investors seeking resilient cash flows. The acquisitions bring the REIT’s total post-listing inorganic additions close to 4 million sq ft. Leasing activity remained strong, with the REIT recording gross leasing of around 1.1 million sq ft, while committed occupancy rose sequentially to nearly 94.5%. Re-leasing spreads on approximately 1 million sq ft of renewed space averaged 27.4%, demonstrating healthy rental appreciation. Analysts highlighted that these figures reflect persistent tenant interest in well-located, high-quality office stock amid a tightening supply in core CBD locations. The portfolio’s average in-place rent currently stands at Rs 75 per sq ft per month, providing a benchmark for premium office rents in these cities.
The REIT also advanced its development pipeline, which encompasses roughly 3.6 million sq ft, including recently completed projects such as the Pearl Club at Mindspace Madhapur in Hyderabad. Urban planners and market experts suggest that such developments, integrated with modern amenities and sustainability-conscious design, reinforce long-term value creation while supporting India’s broader economic shift toward knowledge-intensive services and office-led urban densification. On the financial front, Mindspace REIT maintained a conservative loan-to-value ratio of 24.9% and successfully raised Rs 1,900 crore through non-convertible debentures at an effective cost of 6.98%, reducing overall borrowing costs to 7.39%. The portfolio’s gross asset value increased to approximately Rsv44,136 crore following recent acquisitions, underscoring the REIT’s balance-sheet strength and capacity for future investment. With a total leasable area of 39 million sq ft, including completed, under-construction, and future development projects, the trust continues to play a pivotal role in shaping India’s commercial real estate landscape.
Looking ahead, market analysts expect Mindspace REIT’s focus on high-quality, sustainably designed office spaces and disciplined capital management to support continued income growth, attract global investors, and promote environmentally responsible urban development across India’s metropolitan hubs.
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Mindspace REIT Expands Portfolio Amid Strong Leasing
