Mindspace REIT net operating income rises 16% in Q2 on strong leasing

Company's debt-to-market value stood at 16.8 per cent while the gross asset value of the portfolio increased by 3.3 per cent over March 2022 to Rs 27,300 crore

Mindspace REIT on Monday announced its Q2FY23 result. The company's net operating income (NOI) growth saw a rise of 16 per cent YoY to Rs 41.72 crore in Q2 FY23. The firm also recorded NOI of Rs 818.6 crore in H1 FY23. The NOI margin remained over 80 per cent. 
 

The company's debt-to-market value came at 16.8 per cent while the gross asset value of the portfolio increased by 3.3 per cent over March 2022 to Rs 27,300 crore. The net asset value increased from Rs 364.9 per unit on March 22 to Rs 370.3 per unit.

Speaking on the results, Vinod Rohira, Chief Executive Officer, Mindspace Business Parks REIT said, “As envisaged, we continue to see demand for Grade A institutionally managed office assets as the preferred choice by our global clients as their return to office plans are now in motion. We have leased 1.3 msf during the quarter taking the cumulative gross leasing to 2.1 million square feet in the first half of the financial year resulting in further improvement in committed occupancies in our portfolio. We continue to unlock value in our portfolio through disciplined organic growth and prudent capital allocation, in alignment with our focus to maximize unitholder value.”

The company recorded gross leasing of approximately 1.3 msf in Q2FY23, taking cumulative leasing in H1 FY23 to 2.1 msf. The re-leasing spread in Q2 stood at 22.3 per cent on 0.8 msf of area re-let, while the in-place rents grew by 8.7 per cent YoY to Rs 63 per square feet per month.