Mindspace Reit Q1 results: Net operating income rises 28% to ₹788 crore

Higher rental income, acquisitions and sustained occupancy helped the K Raheja Corp-backed Reit report strong growth in the June quarter

Mindspace Business Parks Reit, a K Raheja Corp-backed real estate investment trust (Reit) reported a 27.8 per cent year-on-year (YoY) increase in its net operating income (NOI) to Rs 788 crore for the first quarter of the fiscal year 2027 (Q1 FY27).

 

The increase in NOI was driven by higher rental income, supported by acquisitions, healthy leasing activity and sustained high occupancy across the portfolio.

 

The Reit’s revenue from operations for the quarter under review stood at Rs 951 crore, up 26.4 per cent YoY. The Reit declared a distribution of Rs 442 crore for Q1 FY27 for its unitholders, translating to a distribution per unit (DPU) of Rs 6.67, up 15.2 per cent YoY.

 

 

According to the Securities and Exchange Board of India (Sebi), Reits are mandated to distribute at least 90 per cent of their Net Distributable Cash Flows (NDCF). NDCF is the standard financial metric defined by Sebi to calculate the actual surplus cash available for payout to Reit investors. Reit distributions are returns which can be in the form of dividends, interest, amortisation of debt received from the special purpose vehicles, other income or a combination of these above-mentioned aspects.

 

“These results reflect the strength of our portfolio, the quality of our assets, and disciplined execution. With most of our under-construction office assets due for delivery over the next twelve months already pre-committed, demand for our campuses remains strong. Building on this momentum, we have launched two new office projects and two new hotels to further enhance our integrated campus ecosystems and elevate the occupier experience,” said Ramesh Nair, managing director and chief executive officer, Mindspace Reit.

 

The Reit recorded gross leasing of 0.9 million square feet (msf) in Q1 FY27, down 47 per cent YoY. In-place rents for the Reit’s portfolio stood at Rs 81 per square foot per month, compared to Rs 73 per square foot per month. Committed occupancy across Mindspace’s portfolio stood at 95.8 per cent compared to 95.7 per cent in Q4 FY26.

 

Mindspace is working on an under-construction project pipeline of 6.6 msf. During Q1 FY27, Mindspace announced two new office buildings and two new hotels spread across 1.7 msf in Pune, Mumbai, and Hyderabad. Its portfolio size stands at around 46.2 msf with a gross asset value of Rs 51,890 crore.

 

Quarter-on-quarter (QoQ), Mindspace’s NOI grew 6.19 per cent while gross leasing dropped 74.28 per cent.