Mindspace REIT: Stable dividend yields make it a good long-term bet

The near-term outlook is uncertain and may weigh on its rental portfolio

Mindspace Business Parks Real Estate Investment Trust (REIT) is a play on higher yields from a steady rent-generating portfolio. The REIT, promoted by K Raheja Corp Group (KRC Group), has a completed commercial portfolio of 23 million square feet across key office markets of Hyderabad, Mumbai, Pune, and Chennai. The company generated net operating income (NOI) of Rs 1,225 crore for FY20. It has grown its NOI at 11-14 per cent over the past two financial years. For FY21, it has indicated a net distributable cash flow (NDCF) of Rs 574 crore for the second half of FY21. NDCF is