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Mindspace REIT net operating income up 10% in December qtr

Mindspace Business Parks REIT leased office spaces spread over 450,000 sq ft in the quarter to December, taking its cumulative leasing for the nine months of the current financial year to 1.6 million sq ft.
The REIT witnessed a robust trend of expansionary demand with over 80% of the new and pre-leasing by existing occupiers across various sectors. Of the total fresh leases, it re-leased 400,000 sq ft office space at a 17.1% higher rent during the quarter. The existing occupiers renewed their leases with 5.4% on-year higher rents at an average of ₹68 per sq ft a month.

During the quarter, the REIT’s net operating income grew 10.4% from a year ago to ₹473 crore, taking its nine-month net operating income to ₹1,419 crore. It has declared distribution of ₹285 crore, or ₹4.80 per unit, for the quarter.

“We are on track to deliver our 4.4 million sq ft development pipeline over the next 1-3 years,” said Ramesh Nair, CEO, K Raheja Corp Investment Managers, manager to Mindspace REIT. “Our strategic asset acquisitions and prudent investments, backed by a strong balance sheet, ensure continued value for investors.”

The REIT has received board approval to divest a 26-acre land parcel and 600,000 sq ft built office asset in Pocharam locality of Hyderabad. It has also secured approval to acquire 42,000 sq ft in its project Commerzone Yerawada, Pune, helping consolidate ownership within the business park.

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