Mindspace Business Parks REIT (BSE: 543217 | NSE: MINDSPACE) (‘Mindspace REIT’) reported results for the quarter and financial year ended 31st March, 2025.
In Q4 FY25, the company reported a 14.1% year-on-year growth in revenue from operations, reaching Rs 678 crore, compared to Rs 595 crore in Q4 FY24. Net Operating Income (NOI) also saw a solid increase of 13.2%, rising from Rs 477 crore in Q4 FY24 to Rs 540 crore in Q4 FY25. Furthermore, the distribution to stakeholders surged by 38.7%, growing from Rs 283 crore in Q4 FY24 to Rs 392 crore in Q4 FY25, highlighting strong financial performance and improved returns.
Ramesh Nair, CEO and MD of Mindspace REIT said, “FY25 has been a record-breaking year for us, our best since listing. We achieved our highest-ever annual gross leasing of 7.6 msf and delivered a strong quarterly distribution of Rs 392 Cr, up ~39% YoY, the highest growth since listing. Net Operating Income for the quarter grew ~13% YoY to Rs 540 Cr, and committed occupancy rose to 93%2. With 3.6 msf already pre-leased, demand for top-quality office space remains robust across our portfolio. Our NAV has grown by 10% driven by rising rentals across our micro markets, accretion from acquisitions and completion of pre-committed buildings. We remain optimistic about the long-term outlook for our portfolio, which is underpinned by the quality of our assets, trusted tenant relationships, and proactive leasing efforts. Moreover, our focus on strategic acquisitions and steady development progress positions us well for sustained long-term growth.”
In Q4 FY25, the company achieved a gross leasing of approximately 2.8 million square feet, bringing the total leasing for FY25 to around 7.61 million square feet. A significant milestone was reached with the re-development of an entire building at Mindspace Madhapur, Hyderabad, which has a leasable area of about 1.5 million square feet, fully pre-leased to a large MNC Global Captive Center. The company also reported impressive re-leasing spreads, with a 17.4% spread in Q4 FY25 on 1.1 million square feet and a 22.8% spread for FY25 on 3.6 million square feet of area re-let. Rentals saw strong growth across key micro-markets, particularly in Madhapur, Hyderabad, with in-place rent reaching approximately Rs 71 per square foot per month, while the mark-to-market (MTM) spread on rentals increased to around 13.4%. Additionally, the company received the Occupation Certificate for the B4 Building at Gera Commerzone Kharadi, Pune, spanning 1 million square feet, fully pre-leased to a large MNC Global Captive Center. The company is also progressing with an under-construction pipeline of approximately 3.7 million square feet.
In the latest acquisitions update, the company completed its first Right of First Offer (ROFO) transaction by acquiring a 100% equity shareholding in Sustain Properties Private Limited, which owns approximately 1.8 million square feet at Commerzone Raidurg, Hyderabad. Additionally, the company finalized the acquisition of about 0.26 million square feet in Mindspace Madhapur, Hyderabad, further consolidating its ownership in the Business Park.
The company reported strong financial performance for Q4 FY25 and FY25. Net Operating Income (NOI) grew by approximately 13.2% YoY in Q4 FY25, reaching Rs 540 crore, and by 8.9% YoY for FY25, totalling Rs 2,062 crore. The Gross Asset Value of the portfolio increased by 16.9% from the 30th September, 2024 valuation, reaching Rs 36,647 crore as of 31st March, 2025. Net Asset Value also saw a healthy 10% increase, rising from Rs 392.6 per unit on 30th September 2024 to Rs 431.7 per unit on 31st March 2025. The company maintained a low Loan-to-Value (LTV) ratio of around 24.3%, indicating strong balance sheet health and the average cost of borrowing at the end of the quarter stood at approximately 8.15%.
The company declared a distribution of approximately Rs 392 crore for Q4 FY25, marking a 38.7% YoY growth, with a Distribution Per Unit (DPU) of 6.44. For FY25, the total distribution amounted to Rs 1,312 crore, reflecting a 15.5% YoY growth, with a DPU of 21.95 per unit. The record date for the distribution is set for 6th May 2025, and the payment will be processed on or before 9th May 2025.
Recently, the Board of Directors of K Raheja Corp Investment Managers Pvt. Ltd., the Manager of Mindspace REIT, appointed Akshaykumar Chudasama as an Additional Director in the capacity of Non-Executive Independent Director. He is the Managing Partner of Shardul Amarchand Mangaldas & Co. Additionally, Ramesh Nair, currently the CEO, has been appointed as the Managing Director, designated as ‘CEO and Managing Director’, effective immediately, for 5 years.
