Mindspace REIT Q3 results: Net operating income rises 8% to Rs 522 cr

Mindspace Business Parks REIT Q3FY25 results: Company declared a distribution of Rs 315 crore for the October-December quarter

Mindspace Business Parks REIT on Friday reported an 8.3 per cent rise in net operating income (NOI) for the third quarter (Q3) of the financial year 2024-25 (FY25) at Rs 522 crore from Rs 473 crore, reported during the same period last year.

 

Revenue from operations rose 7.5 per cent year-on-year (Y-o-Y) to Rs 642 crore, driven by steady growth in leasing and rentals, from Rs 596 crore.

 

The REIT declared a distribution of Rs 315 crore (Rs 5.32 per unit) for the quarter that ended on December 31, a 10.9 per cent Y-o-Y growth, with the record date set for January 29, 2025. 

Distribution payments will be processed by February 5, 2025.

 

Commenting on the results, Ramesh Nair, CEO of Mindspace REIT, said, “We are on track to achieve our highest annual leasing since listing. The launch of our second data centre and progress on under-construction projects further reinforce our commitment to long-term growth and value creation for our investors.”

 

Since its listing in August 2020, Mindspace REIT has cumulatively distributed Rs 4,852 crore (Rs 81.8 per unit) to unit holders.

 

Pre-leasing increases

The quarter witnessed gross leasing of 1.7 million square feet (msf), which included 1 msf of pre-leases.

 

Among the notable achievements was the complete pre-leasing of the R2 Building at Gera Commerzone Kharadi, covering an area of 1 msf, to a multinational corporation before its completion. This milestone positions the REIT to achieve its highest annual leasing since its public listing.

 

The re-leasing spread for the quarter was 26.4 per cent, which contributed to a rise in in-place rents to Rs 71.4 per square foot per month. Committed occupancy remained steady at 91.5 per cent, underscoring the stability of the portfolio.

 

Q3 highlights and expansion plans

The REIT is currently working on an under-construction pipeline of 4.6 msf. The second data centre at Mindspace Airoli West, Mumbai, spanning 315,000 square feet, was completed ahead of schedule, with three additional data centres in the pipeline. Additionally, a high-street retail complex named ‘Mindspace Fusion’, spread over 67,000 square feet at Mindspace Airoli East, was completed and opened for tenant fit-outs.

 

Mindspace REIT also expanded its portfolio through acquisitions. It has made an offer to acquire 100 per cent equity in Sustain Properties Pvt Ltd, which owns a 1.8 msf IT park at Commerzone Raidurg in Hyderabad.