Mindspace Business Parks REIT, owner and developer of Grade-A office portfolio in India, announced the results for the quarter ending September 2022. The company recorded gross leasing of around 1.3 msf in Q2 FY 2023, with cumulative leasing of 2.1 msf in H1 FY 2023.
The Committed Occupancy of the portfolio saw an increase of 130 bps QoQ to 86.9% during the period. The re-leasing spread in the quarter was at 22.3% on 0.8 msf of area re-let and in-place rents grew by 8.7% YoY to Rs 63 per square feet per month. The company reported a net operating income (NOI) of Rs 4,172 mn for the quarter, a growth of 16.0% YoY and 3.9% QoQ. It recorded NOI of Rs 8,186 mn during H1 FY 2023 and the NOI margin stood at over 80%. It also reported a low net debt to market value of 16.8%. The gross asset value increased by 3.3% over Mar’22 to Rs 273 bn. The company witnessed an increase in net asset value from Rs 364.9 per unit in Mar’22 to Rs 370.3 per unit.
On the distribution side, Mindspace REIT saw a growth of 3.3% YoY and recorded a distribution of Rs 2,817 mn or Rs 4.75 per unit for Q2 FY23. Dividend, which is tax-exempt in the hand of unit holders, forms 92% (Rs 4.37 p.u.) of distribution while interest constitutes c.7.6% (Rs 0.36 p.u.) and other income of c. 0.4% (Rs 0.02 per unit). The record date for the distribution is November 21, 2022, payment of the distribution shall be processed on or before November 29, 2022.
Vinod Rohira, chief executive officer, Mindspace Business Parks REIT, said, “As envisaged, we continue to see demand for Grade A institutionally managed office assets as the preferred choice by our global clients as their return to office plans are now in motion. We have leased 1.3 msf during the quarter taking the cumulative gross leasing to 2.1 million square feet in the first half of the financial year resulting in further improvement in committed occupancies in our portfolio.”
Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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