Mindspace Business Parks REIT, a prominent player in India’s Grade A office market, has reported robust financial results for the quarter ending June 30, 2024. The REIT, which manages a substantial portfolio across four key office markets in India, has demonstrated impressive performance metrics and strategic advancements in this period.
The REIT achieved a committed occupancy rate of 91.1% during the quarter, reflecting steady demand for its properties. The gross leasing activity for the first quarter of FY25 totalled 1.1 million square feet, with a notable re-leasing spread of 23.9% on 1 million square feet of re-let area. This positive trend contributed to a significant increase in in-place rents, now averaging INR 70 per square foot per month across its parks. The approval for demarcation of an additional approximately 500,000 square feet of SEZ space in Airoli West further underscores the REIT’s expansion strategy. Mindspace REIT is actively advancing its development pipeline, with 4.4 million square feet currently under construction. This includes 1 million square feet at Commerzone Kharadi and 300,000 square feet at the Data Center in Airoli West. Additionally, the REIT plans to launch a new 1.5 million square foot building at Mindspace Airoli East, Navi Mumbai.
The REIT has also reported a commendable 9.2% year-on-year growth in Net Operating Income (NOI), reaching INR 496 crore for Q1 FY25. This performance is supported by a low Loan-to-Value (LTV) ratio of approximately 21.9%, reflecting solid balance sheet health. Mindspace REIT raised INR 1,500 crore at an effective rate of 7.80% per annum, with an average cost of borrowing standing at 7.9%. Notably, the REIT became the first Indian REIT to issue Sustainability Linked Bonds, raising INR 650 crore, subscribed by the International Finance Corporation (IFC), a World Bank member. The REIT declared a distribution of INR 299 crore, equating to INR 5.04 per unit for Q1 FY25, marking a 5% increase year-on-year. The record date for this distribution is August 2, 2024, with payments to be processed by August 8, 2024. Since its listing in August 2020, Mindspace REIT has distributed approximately INR 4,231 crore, or INR 71.3 per unit.
