Mindspace Business Parks REIT, one of India’s leading office real estate investment trusts sponsored by the K Raheja Corp Group, reported another quarter of robust financial performance, buoyed by healthy leasing activity and sustained demand for Grade-A commercial spaces.
For Mindspace REIT Q3 FY26, Net Operating Income (NOI) rose 28.7% YoY to INR 671 crore, while Revenue from Operations increased 27.2% to INR 816 crore.
Distribution for the quarter stood at INR 378 crore, translating to a Distribution Per Unit (DPU) of INR 5.83, marking 9.6% growth YoY.
Mindspace REIT Q3 FY26: Financial Performance
| Particulars | Q3 FY25 | Q3 FY26 | 9M FY26 | YoY Growth (%) |
|---|---|---|---|---|
| Revenue from Operations | 641.9 | 816.3 | 2,346.4 | +27.2 |
| Net Operating Income (NOI) | 521.8 | 671.4 | 1,921.7 | +28.7 |
| Distribution | 315.5 | 378.0 | 1,085.9 | +19.8 |
| Distribution per Unit (INR) | 5.32 | 5.83 | 17.45 | +9.6 |
Operational Highlights
| Operational Parameter | Q3 FY26 | Trend / Comment |
|---|---|---|
| Gross Leasing | 1.1 msf | Strong demand across key micro-markets |
| Re-leasing Spread | 27.4% | Demonstrates significant rental uplift |
| Committed Occupancy | 94.5% | Highest since listing |
| Average Rent | INR 79 psf/month | Stable, up from INR 75 psf YoY |
| Under-construction Pipeline | 3.6 msf | Active, mainly in Hyderabad |
| New Acquisitions | 0.8 msf | CBD assets in Mumbai & Pune |
| In-place Rent | INR 75 psf/month | Reflects strong rental stability |
“Q3 FY26 was another strong and stable quarter for Mindspace REIT, driven by record demand for Grade-A office assets and focused execution across our portfolio. We also saw rental uplift, with re-leasing spreads of ~27.4%,” said Ramesh Nair, CEO & MD, Mindspace REIT.
Balance Sheet and Leverage
| Parameter | FY24 | FY25 | Q3 FY26 | Trend / Remarks |
|---|---|---|---|---|
| Loan-to-Value (%) | 26.3 | 25.4 | 24.9 | Low, stable leverage |
| Cost of Debt (%) | 7.68 | 7.52 | 7.39 | ↓13 bps QoQ due to refinancing |
| Weighted Avg. Maturity (Yrs) | 4.1 | 4.3 | 4.4 | Adequate tenor |
| Interest Coverage Ratio | 2.9x | 3.0x | 3.0x | Strong coverage |
| Net Debt (INR Cr) | 10,750 | 10,420 | 10,230 | Gradual deleveraging |
Distribution Overview
| Metric | Q3 FY25 | Q3 FY26 |
|---|---|---|
| Total Distribution (INR Cr) | 316 | 378 |
| DPU (INR) | 5.32 | 5.83 |
| YoY Growth | +5.1% | +9.6% |
| Key Dates | Paid Feb 2025 | Record Date: Jan 30, 2026 Payment: by Feb 6, 2026 |
Cumulative Distribution since Listing: INR 6,330 Cr (INR 105.7 per unit)
Mindspace REIT Q3 FY26: Portfolio and Expansion
- Total Leasable Area: 39.0 msf (31.9 msf completed, 3.6 msf under construction, 3.5 msf future development)
- Gross Asset Value: INR 44,136 crore
- Key Acquisitions: Ascent–Worli, The Square (BKC Annex), Pune IT Building (~0.8 msf)
- WALE: 7.3 years | Committed Occupancy: 94.5%
Major Projects Underway:
- Mindspace Madhapur 1A–1B & 7/8 Redevelopments (Hyderabad) – 3.1 msf total
- Pearl Club at Mindspace Madhapur – OC received, operational in FY26
Sectoral Context and Outlook
India’s Grade-A office segment remains resilient, led by Global Capability Centers (GCCs) which contributed 42% of leasing in CY2025. Net absorption rose to 57 msf (+14.6% YoY), with Hyderabad, Mumbai, and Pune leading demand on the back of infrastructure growth and corporate reoccupancy.
Hyderabad accounts for 17% of India’s GCC footprint, housing 370+ GCCs and a large tech talent pool — a major advantage for Mindspace’s Hyderabad portfolio.
Final Words
Mindspace REIT Q3 & 9M FY26 results reaffirm its status as a stable yield generator with consistent growth. Its combination of high occupancy, rental reversion potential, and conservative leverage underpins strong distributable cash flow visibility. With expanding development assets, ESG leadership, and a favorable office demand cycle, the REIT appears well-positioned for steady NAV and DPU accretion through FY27.
Key Highlights
| Parameter | FY20 (IPO) | FY25 | Q3 FY26 |
|---|---|---|---|
| Leasable Area | 29.5 msf | 38.3 msf | 39.0 msf |
| Committed Occupancy | 92.0% | 92.8% | 94.5% |
| NOI (INR Cr) | 514 | 6,503 (TTM) | 671 (Q3) |
Mindspace REIT’s steady execution and rental growth have reinforced its reputation as India’s most resilient office REIT. With a record occupancy of 94.5%, double-digit NOI growth, and sustainable leverage, the trust remains on course to deliver long-term value to unitholders in FY27 and beyond.
For more details related to IPO GMP, SEBI IPO Approval, REIT, InvIT and Live Subscription stay tuned to IPO Central.