Mindspace Business Parks REIT Announces Results for Q3 FY24

Net Operating Income (NOI) grows 10.4%⁽¹⁾ YoY in Q3 FY24 

Announced Distribution of INR 285 Crs or INR 4.80 per unit

Committed Occupancy of the portfolio stood at 86.1%

Mumbai, January 29, 2024: 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 December 31, 2023.

Operating and Growth Highlights

·         Recorded gross leasing of c.0.45 msf in Q3 FY24, taking cumulative leasing for 9 months in FY24 to 1.6 msf.

·         Re-leasing spread for Q3FY24 stood at 17.1% on c.0.4 msf of area re-let.

·         In-place rents increased by c.5.4% YoY to INR 68 per square foot per month.

·         Received board approval to acquire an area of 42,000 sq.ft. in Commerzone Yerawada, Pune helping consolidate ownership within the Business Park.

·         Received board consent to initiate the process to divest the vacant Pocharam asset in Hyderabad.

·         Actively working on under construction pipeline of 4.4msf.

·         Strong trend of expansionary demand, with over 80% of the new/pre-leasing by existing occupiers across various sectors.

Financial Highlights

·         Clocked healthy Net Operating Income (NOI) growth:

o    NOI grew by 10.4% YoY⁽¹⁾ in Q3 FY24 to INR 473 Crs.

o    Recorded NOI of INR 1,419 Crs for the 9month period in FY24, 12.8%⁽¹⁾⁽²⁾ growth y-o-y.

·         Low Loan-to-Value (LTV) of 21%³[1] demonstrating balance sheet strength.

·         Raised commercial paper for INR 150 Crs at a coupon of 7.72% per annum, per month.

·         Average cost of borrowing at the end of Q3 FY24 stood at 7.8%.

Distribution

·         Declared distribution of INR 285 Crs or INR 4.80 per unit for Q3 FY24; of this, c.89% is in form of dividend, tax-exempt in the hand of unitholders.

·         Record date for the distribution is Feb 06, 2024. Payment of the distribution shall be processed on or before February 13, 2024.

3 For the purpose of LTV and net debt calculations, cash and cash equivalents and fixed deposits (including deposits with tenure> 3 months which can be liquidated as and when required) are reduced from gross debt.

Corporate Comm India (CCI Newswire)