Mindspace Business Parks REIT records revenue of Rs 620 cr in Q1 FY25

July 31, 2024: Mindspace Business Parks REIT, owner and developer of Grade A office portfolio located in four key office markets of India, has announced its financial results for the first quarter (Q1) of the fiscal year 2024-25 (FY25) ended June 30, 2024. The REIT recorded an operational revenue of Rs 620 crore in Q1 FY25, up by 10.6% from Rs 560 crore in Q1 FY24. The net operating income grew by 9.2% YoY from Rs 455 crore in Q1 FY24 to Rs 496 crore in Q1 FY25. It announced a distribution of Rs 299 crore in Q1 FY25, up by 5% from Rs 285 crore in Q1 FY24, bringing up the cumulative distribution to approximately Rs 4,231 crore since listing in August 2020.

Mindspace Business Parks REIT’s committed occupancy for the quarter increased to 91.1%. It recorded gross leasing of 1.1 million square foot (msf) in Q1 FY25. It witnessed a steady growth in rentals across all its parks, taking its in-place rent to Rs 70 per square foot (sqft) per month. The REIT recorded a low Loan-to-Value (LTV) of approximately 21.9% and its average cost of borrowing at the end of quarter stood at 7.9%. It raised Rs 1,500 crore at an effective rate of 7.80% p.a.p.m. 

Mindspace Business Parks REIT is actively working on an under-construction pipeline of 4.4 msf, with 1.3 msf planned to be completed in FY25. This includes 1 msf in Commerzone Kharadi and 0.3 msf in the Data Center at Airoli West. The REIT has received approval for demarcation of additional SEZ space in Airoli West and has launched a new 1.5 msf building at Mindspace Airoli East, Navi Mumbai.

Ramesh Nair, chief executive officer, K Raheja Corp Investment Managers, and Manager to Mindspace REIT, said, “Our NOI grew by a robust 9.2% driven by our rising rents and growing occupancy. This healthy leasing, especially at our Navi Mumbai Parks post the SEZ policy reform, has encouraged us to prepone the future development at our Airoli East Park. We plan to build an additional 1.5 million square foot at Mindspace Airoli East to meet the demand over the next 3-4 years. This, alongside our ongoing projects totalling 4.4 msf and the potential lease up of 2.3 msf vacant space, positions us for significant growth ahead.”