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 ended December 31, 2022. The operating and growth highlights recorded robust gross leasing of c.1.3 msf in Q3 FY23, taking cumulative leasing in 9M FY23 to c.3.5 msf. It achieved average rent of INR 67 psf/month, across 17 tenants in Q3 FY23. The committed occupancy further rises by ~140 bps QoQ to 88.3%. The re-leasing spread in Q3 stood at 24.9% on 1.0 msf of area re-let. In-place rents have grown by 9.4% YoY to INR 64.5 psf/month. It plans to re-develop 1.6 msf at Madhapur, to enhance the growth pipeline.
Some of the financial highlights are its net operating income (NOI) remained strong at INR 4,551 (2) mn in Q3 FY23. It was up at 16.8% YoY and 4.6% QoQ (excluding one-time compensation of INR 186 mn received). It recorded NOI of INR 12,737 (2) mn in 9M FY23, 14.6% growth excluding one-time compensation with strong balance sheet with low net debt to market value of 17.6%. The company raised INR 1,000 mn through issuance of Commercial Paper at REIT level.
Distribution wise it recorded INR 2,846 mn or INR 4.80 per unit for Q3 FY23, a growth of 3.4% YoY. Its dividend, which is tax-exempt in the hand of unitholders, forms 91.0% (INR 4.37 p.u.) of distribution while interest constitutes c.9.0% (INR 0.43 p.u.) The record date for the distribution is February 06, 2023, payment of the distribution shall be processed on or before February 13, 2023.
Speaking on the results, Vinod Rohira, Chief Executive Officer, Mindspace Business Parks REIT said on their strong set of numbers, “We are delighted to report yet another strong quarter, recording a gross leasing of 1.3 msf in Q3 taking the cumulative 9M FY23 leasing to 3.5 msf. Despite the challenging economic environment, the Committed Occupancy of the portfolio jumped by 400 bps to 88.3% during 9M FY23. Our strong performance further instils confidence to bring forward strategic supply and pursue another value accretive redevelopment opportunity in one of India’s top-performing micro-markets. Our well-curated offerings and strong brand equity, enable us to deliver long-term sustainable growth for our unitholders.”
