.jpg){kind=logo}
Mindspace Business Parks REIT (‘Mindspace REIT’), owner and developer of quality Grade A office portfolio located in four key office markets of India, reports results for the quarter ended June 30, 2024.
Speaking on the results, Ramesh Nair, Chief Executive Officer, K Raheja Corp Investment Managers Private Limited, Manager to Mindspace REIT said, “We’ve had yet another great quarter, renting out over 1 million square feet and achieving a remarkable committed occupancy of 91.1%. Our NOI grew by a robust 9.2% driven by our rising rents and growing occupancy. This healthy leasing, especially at our Navi Mumbai Parks post the SEZ policy reform, has encouraged us to prepone the future development at our Airoli East Park. We plan to build an additional 1.5 million square feet at Mindspace Airoli East to meet the demand over the next 3-4 years. This, alongside our ongoing projects totalling 4.4 million square feet and the potential lease up of 2.3 msf vacant space, positions us for significant growth ahead."
Committed Occupancy for the quarter stood at 91.1%1. Recorded gross leasing of 1.1 msf in Q1 FY25. Re-leasing spread of 23.9% for Q1 FY25 on 1 msf of area re-let. Steady growth in rentals across all our Parks, taking our in-place rent to INR 70 per square foot per month. Received approval for demarcation of additional c.500 ksf of SEZ space in Airoli West.
Actively working on under construction pipeline of 4.4 msf, with 1.3 msf planned to be completed in FY25. This includes 1 msf in Commerzone Kharadi and 0.3 msf in the Data Center at Airoli West. Launch of a new 1.5 msf building at Mindspace Airoli East, Navi Mumbai.
Clocked healthy Net Operating Income (NOI) growth. NOI grew by 9.2% YoY in Q1 FY25 to INR 496 Crs Low Loan-to-Value (LTV) of approximately 21.9%2 demonstrating good balance sheet strength. Raised INR 1,500 Crs at an effective rate of 7.80% p.a.p.m. Average cost of borrowing at the end of quarter stood at 7.9% Became First Indian REIT to issue Sustainability Linked Bonds for INR 650 Crs subscribed by IFC, a World Bank member.
Declared distribution of INR 299 Crs or INR 5.04 per unit for Q1 FY25; YoY growth of 5%. Record date for the distribution is Aug 02, 2024. Payment of the distribution shall be processed on or before Aug 08, 2024. Cumulative distribution of approximately INR 4,231 Crs or approximately INR 71.3 per unit since listing in Aug 2020.
