Mindspace REIT's Quarter Triumph: NOI Surges, Distributions Rise

Mindspace Business Parks REIT reported a 26% increase in net operating income to Rs 634 crore for Q2. It plans to distribute Rs 355 crore to unitholders. Leasing momentum, record occupancy, and acquisitions highlight its strategy to enhance long-term value with low leverage and efficient capital deployment.

Mindspace Business Parks REIT announced a remarkable 26% rise in net operating income, reaching Rs 634 crore for the second quarter. This marks a significant leap from the Rs 504 crore achieved during the same period last year.

The realty firm also revealed plans to distribute Rs 355 crore to its unitholders for the second quarter, a 16.3% increase from Rs 305 crore in the previous year, as disclosed in a regulatory filing. CEO and MD Ramesh Nair attributed the notable performance to robust leasing activities amounting to 0.8 million sq ft and a re-leasing spread exceeding 28%, especially pronounced in Hyderabad and Navi Mumbai. Record committed occupancy levels were noted, reaching 94.6% on a like-for-like basis, and 93.8% when including the recent Q-City acquisition.

Despite low leverage and declining debt costs, Mindspace REIT is poised to capitalize on the thriving demand for Grade A office spaces through strategic capital allocation in development and acquisitions. Since its listing on Indian bourses in August 2020, the REIT has garnered a substantial portfolio across Mumbai Region, Pune, Hyderabad, and Chennai, totaling 38.2 million sq ft.

(With inputs from agencies.)