Mindspace Business Parks REIT has released its financial results for Q3 FY25, showcasing steady growth across key performance indicators. The results reflect the REIT’s operational efficiency, strong leasing activity, and strategic expansion efforts.
Mindspace REIT Q3 Results – Financial Highlights
For the quarter ending 31 December 2024, Mindspace REIT’s net operating income (NOI) grew by 8.3% year-on-year (YoY) to INR 522 crore, compared to INR 473 crore in Q3 FY24. Revenue from operations increased by 7.5% YoY, reaching INR 642 crore. This growth was driven by consistent leasing momentum, rental escalations, and the re-leasing of key properties at favourable terms.
The REIT announced a distribution of INR 315 crore (INR 5.32 per unit), a 10.9% YoY increase. The record date for distribution is 29 January 2025, with payouts scheduled for 5 February 2025. Since its listing in August 2020, Mindspace REIT has distributed INR 4,852 crore (INR 81.8 per unit) to unitholders.
Leasing and Operations
The REIT achieved gross leasing of 1.7 million square feet (MSF) during the quarter. Notably, it pre-leased 1 MSF of space at the R2 building in Gera Commerzone Kharadi, Pune, to a global MNC before project completion. Re-leasing spreads reached 26.4%, with in-place rents rising to INR 71.4 per square foot per month.
The portfolio’s committed occupancy rate remained stable at 91.5%, with six out of nine business parks reporting occupancy levels above 96%. Demand from global capability centres (GCCs), technology firms, and professional services supported record annual leasing activity since the REIT’s listing.
Development and Expansion
Mindspace REIT advanced its 4.6 MSF under-construction pipeline during the quarter. Key milestones include:
- The early delivery of a 3,15,000-square-foot data centre in Airoli West, Mumbai.
- Completion of the high-street retail complex “Mindspace Fusion” in Airoli East.
Both projects are expected to bolster revenue streams. The REIT has also offered to acquire Sustain Properties, which owns a 1.8 MSF IT park in Hyderabad. Additionally, it is evaluating another acquisition opportunity in Hyderabad to strengthen its footprint in high-demand markets.
Financial Position
Mindspace REIT reported a low Loan-to-Value (LTV) ratio of 22.6% and an average cost of debt at 8.07%. With disciplined capital management and access to sustainability-linked bonds, Mindspace REIT is well-equipped for future growth and acquisitions.
Ramesh Nair, CEO of Mindspace REIT, remarked, “This quarter’s performance reflects our focus on long-term growth. Strategic leasing, proactive acquisitions, and timely project deliveries position us to meet market demand while delivering sustainable value to investors.”
Portfolio Overview
Mindspace REIT’s portfolio spans Mumbai, Pune, Hyderabad, and Chennai, covering 34.8 MSF of leasable area. Of this, 26.8 MSF is completed, with 8 MSF under construction or planned. The portfolio’s high committed occupancy and diverse tenant base, including technology, BFSI, and healthcare firms, ensure consistent demand. Over 45% of the leased area is occupied by GCCs, reaffirming the REIT’s appeal to multinational corporations.
Conclusion
With strong financials, strategic leasing, and disciplined expansion, Mindspace REIT reinforces its position as a key player in India’s commercial real estate sector. Its focus on sustainability and tenant-centric development ensures it remains resilient amidst evolving market dynamics.
Mindspace REIT made its primary market debut on 7 August 2020, with an issue size of INR 4,500 crore. On the listing day, it delivered a return of 10.44%. Currently, the stock is trading at around INR 378 per share, reflecting a 37% return on investment.
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