DBT Bureau
Pune, 24 Jan 2025
Mindspace Business Parks, owner and developer of quality Grade A office portfolio located in four key office markets of India, reports results for the quarter ended Dec 31, 2024.
In Q3 FY25, the company recorded gross leasing of approximately 1.7 million square feet, with a strong re-leasing spread of 26.4%. The R2 Building at Gera Commerzone Kharadi, spanning around 1 million square feet, was entirely pre-leased to a large MNC GCC even before its completion. The company has seen steady growth in rental income across its business parks, with in-place rent increasing to Rs 71.4 per square foot per month. The under-construction pipeline remains active, with 4.6 million square feet in development. Additionally, the High Street retail complex at Mindspace Airoli East, branded as Mindspace Fusion, covering around 67,000 square feet, has been completed and opened to tenants for fit-outs. Furthermore, the second data center in Mindspace Airoli West, spanning approximately 315,000 square feet, was delivered ahead of schedule. The committed occupancy remains stable at around 91.5%.
Speaking on the results, Ramesh Nair, CEO, Mindspace REIT said, “We delivered a strong performance this quarter, setting key milestones. We leased 1.7 msf, including 1 msf in pre-leases, and fully leased our R2 Building in Gera Commerzone Kharadi to a major MNC GCC, even before completion. This positions us to achieve our highest annual leasing since listing. NOI grew 8.3% YoY to Rs 522 Crs, and distributions rose 10.9%, reflecting our commitment to investor value. Re-leasing spreads of 26.4% further increased our in-place rents, boosting portfolio efficiency. The launch of our second Data Center in Airoli West, with three more in the pipeline, further strengthens our portfolio. With a robust leasing pipeline and solid results, we remain on track for steady growth and long-term value creation.”
Acquisitions:
· Offer made to acquire 100% equity shareholding in Sustain Properties Private Limited, which houses c.1.8 million square feet of IT Park at Commerzone Raidurg, Hyderabad, being the ROFO Asset.
· Evaluating another potential third party acquisition opportunity in Hyderabad.
Financial Highlights
- The company recorded a Net Operating Income (NOI) growth of approximately 8.3% year-on-year in Q3 FY25, reaching Rs 522 crores.
- The company achieved a year-on-year growth of approximately 7.5% in the first nine months of FY25, reaching Rs 1,522 crores.
- Low Loan-to-Value (LTV) of approximately 22.6%2 demonstrating good balance sheet strength.
- Average cost of borrowing at the end of quarter stood at 8.07%.
Distribution
· Declared distribution of Rs 315 Crs or Rs 5.32 per unit for Q3 FY25; YoY growth of 10.9%.
· Record date for the distribution is Jan 29, 2025.
· Payment of the distribution shall be processed on or before Feb 05, 2025.
· Cumulative distribution of approximately Rs 4,852 Crs or approximately Rs 81.8 per unit since listing in Aug 2020.
