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Mindspace REIT NOI crosses ₹500 cr for first time in Q2

Mindspace Business Parks REIT leased gross 2.1 million sq ft in Q2 of FY25, and net operating income crossed the ₹500 crore milestone, rising over 5 per cent on year. 

The REIT reported 6 per cent higher revenue at ₹623 crore, with rentals seeing a steady growth across all its business parks taking its in-place rent to ₹70.4 per sq ft, it said in a release. It recorded a re-leasing spread of 27.8 per cent on 1 msf of area that were re-let. 

Quarterly payout increased 7.5 per cent to ₹5.15 per unit, translating into a total outgo of ₹305 crore. 

Average physical occupancy was at 74 per cent at the end of the quarter, and committed occupancy was 60 bps higher at 91.7 per cent. The REIT said it had a pipeline of 8 msf of onging and upcoming projects, of which it was actively constructing 4.4 msf, and 1.3 msf would be completed in the current fiscal year. 

During the quarter its board approved acquisition of 260,000 sq ft in Mindspace Hyderabad for ₹275 crore. 

Data centre portfolio

It also expanded its data centre portfolio to 1.68 msf with three new built-to-suit facilities for Princeton Digital Group. 

Mindspace REIT obtained approval for demarcation of 1.2 msf of SEZ space taking the total demarcated space to 2.1 msf in its portfolio. 

“Our performance this quarter reflects both the strength of our business and the broader momentum in the commercial real estate sector. As demand for high-quality spaces continues to grow, we play a key role in shaping this landscape,” said Ramesh Nair, CEO, K Raheja Corp Investment Managers. 

The REIT ended the half year in FY25 with a 7 per cent growth in NOI to ₹1,000 crore. 

The gross asset value of the portfolio rose to ₹31,300 crore at the end of the quarter from ₹29,800 crore while the net asset value was ₹392.60 per unit. 

Source: The Hindu Businessline