Mindspace REIT Q2 operating income rises 26% on strong leasing
Mindspace REIT Q2 operating income rises 26% on strong leasing

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Mindspace REIT Q2 operating income rises 26% on strong leasing

K Raheja Corp-backed Mindspace Business Parks REIT has reported a 25.8% year-on-year increase in net operating income  (NOI) to Rs 634 crore for the quarter ended September, driven by strong leasing momentum  and stable occupancy.

Revenue from operations rose 24.8% to Rs 778 crore, while distribution for the quarter grew 16.3% to Rs 355 crore, translating into a distribution per unit (DPU) of Rs 5.83, up 13.2% from a year earlier.

During the quarter, the REIT achieved gross leasing of around 0.8 million sq ft with a re-leasing spread of 28.1%. The committed occupancy stood at 93.8% including the recently acquired Q-City campus in Hyderabad, and 94.6% on a like-to-like basis, the REIT said in a release.

"With a robust balance sheet, low leverage, and declining cost of debt, we remain well positioned to efficiently deploy capital in our development pipeline, pursue acquisition opportunities and capitalize on the strong office demand for Grade A spaces through high quality assets that deliver long-term value to unitholders," said Ramesh Nair, CEO & MD, Mindspace REIT

Average in-place rent for the portfolio was around Rs 74 per sq ft per month, with rentals in Hyderabad’s Madhapur area crossing Rs 100 per sq ft per month for new deals.

The REIT continues to work on an under-construction pipeline of 3.7 million sq ft.

Gross asset value of the portfolio increased from Rs 36,647 crore in March to Rs 41,020 crore as of September. Loan-to-value ratio stood at 24.2%, reflecting low leverage.

During the quarter, Mindspace raised Rs 1,700 crore through commercial papers at a rate of 6.12% and Rs 1,150 crore via non-convertible debentures at 7.12%. Its cost of debt declined by 32 basis points sequentially to 7.52%. Net asset value was Rs 483.7 per unit at the end of the quarter.

The REIT declared a distribution of Rs 355 crore for the quarter, with a record date of November 8 and payment by November 14. Since listing, Mindspace has distributed around Rs 5,950 crore, or Rs 99.9 per unit, to unitholders.

Source: The Economic Times

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