April 30, 2024: Mindspace Business Parks REIT (BSE: 543217 | NSE: MINDSPACE) (‘Mindspace REIT’), owner and developer of quality Grade A office portfolio located in four key office markets of India, reports results for the quarter (Q4 FY24) and financial year (FY24) ended March 31, 2024.
Mindspace REIT achieved a milestone by leasing 2 million square foot (msf) in Q4 FY24, marking the highest ever quarterly leasing since its listing. The portfolio committed occupancy surged by 2.5% QoQ to 90.6%, excluding Pocharam. Additionally, the REIT accomplished gross leasing of 3.6 msf during the FY24 financial year. The Net Operating Income (NOI) registered a growth of 11.9% YoY in FY24.
Ramesh Nair, chief executive officer, K Raheja Corp Investment Managers, manager to Mindspace REIT, said, “We had a record-breaking quarter, leasing 2 msf, making this our top-performing quarter since going public. Our committed occupancy now stands at 90.6%. With ongoing expansion projects totalling 4.4 msf, future development of 2.5 msf, and potential leasing of 2.4 msf of vacant area, we are positioned for significant NOI growth.”
Operational highlights include a committed occupancy of 90.6%, gross leasing of approximately 2 msf in Q4 FY24 and cumulative leasing of about 3.6 msf for FY24. Re-leasing spread for Q4 FY24 stood at 16.7%, and for FY24, it was at 14.3%. In-place rents stood at Rs 69.0 per square foot per month. Additionally, Mindspace REIT received approval for demarcation of SEZ space, leasing approximately 1.2 msf in Airoli, including demarcated SEZ area to a marquee BFSI client. The REIT is actively progressing on its under-construction pipeline of 4.4 msf.
Financial highlights include a healthy NOI growth of 9.3% YoY in Q4 FY24 to Rs 477 crore, with a record NOI of approximately Rs 1,896 crore for FY24, reflecting a growth of 11.9%. The REIT maintained a low Loan-to-Value (LTV) of about 21.1%, showcasing robust balance sheet strength. Mindspace REIT raised Rs 340 crore at an effective rate of 7.83% per annum, with an average cost of borrowing at the end of FY24 standing at 7.8%. The Net Asset Value (NAV) surged to Rs 380.5 per unit as on March 31, 2024.
Regarding distributions, Mindspace REIT declared a distribution of Rs 283 crore or Rs 4.77 per unit for Q4 FY24, with a cumulative distribution for FY24 amounting to Rs 1,136 crore. The record date for the distribution is May 9, 2024, with payment processing scheduled on or before May 15, 2024. Cumulative distribution since listing in August 2020 approximates to Rs 3,932 crore or approximately Rs 66.3 per unit.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
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