Mindspace Business Parks REIT, one of India’s leading owners and developers of Grade A office assets, delivered a strong and stable performance in the third quarter of FY26, reflecting sustained demand for quality workspaces across key office markets.
Strong Financial Performance in Q3 FY26
For the quarter ended December 31, 2025, the REIT reported revenue from operations of Rs. 816 crore, marking a 27.2 per cent year-on-year increase. Net Operating Income (NOI) rose 28.7 per cent to Rs. 671 crore, supported by higher leasing activity, rental growth and continued portfolio expansion. Distribution for the quarter stood at Rs. 378 crore, up nearly 20 per cent from the same period last year, while distribution per unit (DPU) increased 9.6 per cent year-on-year to Rs. 5.83.
Leasing Momentum Reflects Office Market Resilience
The operating performance during the quarter underlined the ongoing recovery and resilience of India’s commercial real estate market. Mindspace REIT recorded gross leasing of approximately 1.1 million square feet in Q3 FY26, driven by strong demand for Grade A offices from global capability centres, technology firms and domestic occupiers. Committed occupancy rose sequentially to 94.5 per cent, indicating steady absorption across its portfolio.
Rental Upside in Key Micro-Markets
Re-leasing activity remained robust during the quarter. The REIT achieved re-leasing spreads of around 27.4 per cent on nearly 1.0 million square feet of space re-let, highlighting its ability to capture rental upside in a tightening market. Rental growth was particularly strong in micro-markets such as Madhapur in Hyderabad, which continues to see sustained interest from large occupiers. The portfolio’s in-place rent now stands at about Rs. 75 per square foot per month.
Portfolio Expansion Through Strategic Acquisitions
Mindspace REIT continued to scale its portfolio through inorganic growth. During Q3 FY26, it completed the acquisition of central business district office assets in Mumbai and Pune, adding approximately 0.8 million square feet of leasable area. With these additions, the REIT’s total inorganic expansion since listing has reached around 4 million square feet. Following the acquisitions, the gross asset value of the portfolio increased to approximately Rs. 44,136 crore.
Development Pipeline and Project Progress
Development activity progressed steadily across markets. The REIT received the occupancy certificate for the Pearl Club at Mindspace Madhapur and remains actively engaged on an under-construction pipeline of about 3.6 million square feet. These projects are expected to support future growth while strengthening the quality and competitiveness of the portfolio.
Balance Sheet Strength and Cost of Capital
On the financial front, Mindspace REIT reported year-on-year NOI growth of nearly 29 per cent for the quarter and 26 per cent growth for the nine months ended FY26, with cumulative NOI for the period reaching about Rs. 1,922 crore. The balance sheet remained conservative, with a loan-to-value ratio of approximately 24.9 per cent.
During the quarter, the REIT raised non-convertible debentures worth Rs. 1,900 crore at an effective interest rate of 6.98 per cent per annum. Refinancing initiatives helped reduce the average cost of debt by 13 basis points sequentially to 7.39 per cent per annum.
Distribution and Returns to Unitholders
Mindspace REIT declared a distribution of around Rs. 378 crore for Q3 FY26. The distribution per unit of Rs. 5.83 reflected a healthy 9.6 per cent year-on-year growth, while DPU growth for the nine-month period stood at 12.5 per cent. The record date for the distribution is January 30, 2026, with payouts scheduled on or before February 6, 2026. Since listing, the REIT has delivered cumulative distributions of approximately Rs. 6,330 crore, translating to about Rs. 105.7 per unit.
Focus on Sustainability and Long-Term Growth
Reinforcing its sustainability credentials, Mindspace REIT was ranked among the top five REITs globally out of 377 peers in the 2025 S&P Corporate Sustainability Assessment. With office demand remaining resilient and occupiers continuing to favour high-quality, well-located assets, the REIT is positioned to benefit from evolving workplace needs while delivering consistent, long-term returns for investors.
