Mindspace REIT Q2 FY23 Committed Occupancy Rises 130 bps QoQ

BY Realty+

Mindspace Business Parks REIT, owner and developer of a quality Grade A office portfolio located in four key office markets of India, reported results for the quarter that ended September 30, 2022. 

The operating highlights of Mindspace REIT recorded gross leasing of ~1.3 msf in Q2 FY23, taking cumulative leasing in H1 FY23 to 2.1 msf where the committed occupancy of the portfolio rises by ~130 bps QoQ to 86.9%. The re-leasing spread in Q2 stood at 22.3% on 0.8 msf of area re-let. In-place rents grew by 8.7% YoY to Rs 63 per sq ft per month.                                                                                                                                                                                                                                             

It received a 5 Star GRESB Rating and ranked 4th in Asian Office for Development Portfolio. Also received 4 Star Rating for Standing Investment from GRESB, the leading global ESG standard for real estate and infrastructure investments. Awarded 9 ‘Sword of Honour’ Awards on the back of its Five Star Occupational Health and Safety Ratings by British Safety Council, spanning over 23.5 mn sq ft. 

Received intention notice from Sundew Real Estate Private Limited (‘Sundew’) and the shareholder of Sundew, Ivory Property Trust (‘IPT’) and its nominees, expressing their interest to offer all the outstanding equity shares held by IPT in Sundew to Mindspace REIT.  The commercial building owned by Sundew, situated at BKC Annex, Mumbai, comprises approximately 0.16 mn sq ft of the leasable area which is entirely leased. 

The company clocked NOI at Rs 4,172 mn in Q2 FY23, up by 16.0% YoY and 3.9% QoQ. It recorded NOI of Rs 8,186 mn in H1 FY23. The NOI margin remains strong at over 80%. The resilient balance sheet with low net debt-to-market value of 16.8%. The gross asset value of the portfolio increased by 3.3% over March 22 to INR 273 bn. Net Asset Value increased from INR 364.9 per unit in March 22 to INR 370.3 per unit. 

Distribution of INR 2,817 mn or INR 4.75 per unit for Q2 FY23, a growth of 3.3% YoY. Dividend, which is tax-exempt in the hand of unitholders, forms 92% (INR 4.37 p.u.) of distribution while interest constitutes c.7.6% (INR 0.36 p.u.) and other income of c. 0.4% (INR 0.02 per unit). The record date for the distribution is November 21, 2022, payment of the distribution shall be processed on or before November 29, 2022.

Speaking on the results, Vinod Rohira, Chief Executive Officer, Mindspace Business Parks REIT said on their strong set of numbers, “As envisaged, we continue to see demand for Grade A institutionally managed office assets as the preferred choice by our global clients as their return to office plans are now in motion. We have leased 1.3 mn sq ft during the quarter taking the cumulative gross leasing to 2.1 mn sq ft in the first half of the financial year resulting in further improvement in committed occupancies in our portfolio. We continue to unlock value in our portfolio through disciplined organic growth and prudent capital allocation, in alignment with our focus to maximize unitholder value.”

Tags : Mindspace Business Parks REIT owner developer Sundew Real Estate Private Limited Ivory Property Trust Vinod Rohira Chief Executive Officer Mindspace Business Parks REIT