Mindspace Business Parks REIT owner and developer of quality Grade A office portfolio located in four key office markets of India, reports results for the quarter and full year ended March 31, 2023.
Sustained leasing momentum for FY23, achieved robust Gross leasing of c.4.1 msf. Committed Occupancy rose by c.470 bps to c.89.0% and Re-leasing spread stood at 26.3% on c.2.5 msf of area re-let. In-place rents increased by c.5.7% YoY to INR 65.2 psf/month.
Completed area of the portfolio grew by c.1.9 msf to 25.8 msf and added over 30 new tenants in the portfolio, taking the total to over 200 tenants across sectors like IT, BFSI, Telecom & Media, Engineering & Manufacturing, Healthcare
Raised INR 5.5 bn through India’s first REIT level Green Bond Issuance; 19.1% of the debt outstanding is green, as on 31 Mar 2023. And raised a cumulative amount of INR 15.4 bn through NCDs at REIT and SPV level. Diversified capital sources through issuance of first Commercial Paper by an Indian REIT
Average cost of borrowing at the end of FY23 stood at 7.6% and Net Asset Value (NAV) of the REIT grew by INR 1.6 per unit from INR 370.3 per unit as on 30-Sep-22 to INR 371.9 per unit as on 31-Mar-23
The Q4 FY23 Key Highlights include gross leasing of 0.6 msf, committed occupancy increased by c.70 bps and NOI growth by 9.2% YoY in Q4 FY23 to INR 4,364 Mn.
Speaking on the results, Vinod Rohira, Chief Executive Officer, Mindspace Business Parks REIT said on the strong set of numbers, “We continue to benefit from the discernible shift in occupier preferences towards taking up experiential office spaces. This augured well for business, boosting our gross leasing to over 4 million square feet and aiding growth in committed occupancy by 470 bps to 89%. The strong leasing performance has also contributed to clocking double-digit NOI growth of 13% YoY. We continue to bring in strategic supply in the micro-markets where our assets are nearing 100% committed occupancy, and remain committed to delivering long-term value to our stakeholders.”
