News
‘Breaching Rs 500 Cr NOI mark Is significant achievement’
On factors contributing to highest-ever quarterly distribution of Rs 305 crore:
The record-breaking distribution and the year-on-year growth are outcomes of consistent operational and financial performance. Our committed occupancy rate rose from 87.6 per cent to 91.7 per cent over the past year, with notable leasing success that included 2.1 million sq. ft this quarter alone. Higher occupancy translates directly into increased rental income, which has a positive impact on distributions. Beyond occupancy, we have seen steady rental growth of 5 per cent YoY. We surpassed Rs 500 crore in net operating income in Q2FY25, which is a significant milestone.
On strategic steps that helped raise committed occupancy to 91.7 per cent:
For us, one of the biggest game changers has been the amendment to the SEZ policy. We successfully demarcated 2.1 msf out of which we leased 0.9 msf in Navi Mumbai. Six out of our nine business parks have a close to 95 per cent occupancy, and our Chennai asset is at 93.4 per cent. Our vacancy largely lies in Navi Mumbai. With strong demand from both GCCs and domestic companies for Navi Mumbai, we are well positioned to capture this demand.
On Data Centre Portfolio Growth:
We have entered into a strategic partnership with Princeton Digital Group (PDG) to develop three additional state-of-the-art, built-to-suit data centres, adding an additional 1 msf to our portfolio. These will join the two already existing data centres developed for PDG, covering approximately 0.63 msf. Upon completion, our Mindspace Airoli West campus will house 5 advanced data centre buildings, with a total data centre footprint within Mindspace REIT reaching about 1.65 msf - with a total capacity of 285 MW, making it PDG's largest data centre campus in India.
On key Areas Towards Capital Infusion & Financing:
We are the first Indian REIT to issue a Sustainability Linked Bond, raising Rs 650 crore from the International Finance Corporation. This bond aligns with our commitment to stringent ESG targets, such as reducing greenhouse gas emissions, increasing the share of green-certified operational areas, and improving energy efficiency.
Source: BW Businessworld