Mindspace Business Parks REIT Announces Results for Q3 FY25

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 ended Dec 31, 2024.

           * Growth (Y-o-Y) excluding one off expense of INR (8.7) Crs in Q3FY24

Speaking on the results, Mr. 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 INR 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.”

Operating and Growth Highlights

• Recorded gross leasing of c.1.7 msf¹ in Q3 FY25.
  • Re-leasing spread of 26.4% for Q3 FY25
• R2 Building at Gera Commerzone Kharadi spread across c.1 msf, entirely pre-leased to a large MNC GCC, even before its completion.
• Steady growth in rentals across our Business Parks, taking in-place rent to INR 71.4 per sq. ft. per month.
• Actively working on under construction pipeline of 4.6 msf.
• High Street retail complex at Mindspace Airoli East, spread across c.67,000 sq. ft. branded Mindspace Fusion, has been completed and opened to tenants for fit outs.
• The 2^nd Data Center, spread across c.315,000 sq.ft in Mindspace Airoli West delivered, ahead of schedule.
• Committed Occupancy remains stable at c.91.5%².

Acquisitions:

• Offer made to acquire 100% equity shareholding in Sustain Properties Private Limited, which houses c.1.8 msf of IT Park at Commerzone Raidurg, Hyderabad, being the ROFO Asset.
• Evaluating another potential third party acquisition opportunity in Hyderabad.

1 Including pre-lease of c.1 msf, in R2,Commerzone Kharadi and Highstreet, Airoli East

2 Excluding Pocharam, approved for initiating the process of divestment; including Pocharam, committed occupancy stood at 89.6%

Financial Highlights

• Clocked Net Operating Income (NOI) growth ofc.8.3%¹ YoY in Q3 FY25 to INR 522 Crs.
  • c.7.5%¹ YoY growth in 9MFY25 to INR c.1,522 Crs.
• Low Loan-to-Value (LTV) of approximately 22.6%²[1]demonstrating good balance sheet strength.
• Average cost of borrowing at the end of quarter stood at 8.07%.

Distribution

• Declared distribution of INR 315 Crs or INR 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 INR 4,852 Crs or approximately INR 81.8 per unit since listing in Aug 2020.

Investor Communication and Quarterly Investor Call Details

Mindspace REIT has disclosed the following information pertaining to the financial results and business performance (i) Unaudited condensed standalone and unaudited condensed consolidated financial statements for the quarter ended 31 Dec 2024 and (ii) earnings presentation covering Q3 FY25 results.