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Mindspace REIT records highest-ever quarterly leasing of 2 million sq ft in Q4

Mindspace Business Parks REIT has recorded gross leasing of over 2 million sq ft in the quarter ended March, making it the highest ever leasing since its listing in August 2020. With this, the K Raheja Corp-backed REIT’s total leasing to 3.6 million sq ft in the financial year 2023-24.

The REIT’s net operating income grew 9.3% from a year ago during the fourth quarter to Rs 477 crore and 11.9% to Rs 1,896 crore for 2023-24.

“We had a record quarter, leasing 2 million sq ft, making this our top-performing quarter since going public. Our committed occupancy now stands at 90.6%,” said Ramesh Nair, CEO, K Raheja Corp Investment Managers, Manager to Mindspace REIT.

According to him, with ongoing expansion projects totalling 4.4 million sq ft, future development of 2.5 million sq ft and potential leasing of 2.4 million sq ft of vacant area, we are positioned for significant net operating income growth.

The REIT has leased over 1.2 million sq ft in Navi Mumbai’s Airoli locality including around 4 lakh sq ft of demarcated Special Economic Zone (SEZ) area to a banking, financial services & insurance (BFSI) company. It is one of the first entities to have received approval from the government for demarcation of SEZ space.

The REIT has raised Rs 340 crore at an effective annual rate of 8.18% and average cost of borrowing at the end of 2023-24 stood at 8.06%. Its loan-to-value stood at 21.1% .

Mindspace REIT has declared distribution of Rs 283 crore or Rs 4.77 per unit for the quarter ended March, taking its cumulative distribution for the financial year to Rs 1,136 crore.

The record date for the distribution is set as May 09 and the payment of the distribution will be processed on or before May 15. The REIT has made a cumulative distribution of around Rs 3,932 crore or Rs 66.3 per unit since listing. Ends

Source: The Economic Times