Mindspace Business Parks REIT Announces Results for Q2 FY24

Business Wire India

  • Net Operating Income (NOI) grows 17.7% YoY in Q2 FY24 
  • Announced Distribution of INR 284 Crs or INR 4.79 per unit 
  • Receives Board Approval for MoU with Chalet Hotels Ltd. to develop and sub-lease a c.0.28 msf Hotel at Mindspace Airoli East


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 September 30, 2023.

Q2 FY24 Key Business Highlights

Particulars Unit Q2 FY24 Q2 FY23 Growth
Q1 FY24 Growth
Revenue from Operations INR Crs 600 497 20.6% 560 6.9%
Net Operating Income (NOI) INR Crs 491 417 17.7% 455 8.1%
Operating and Growth Highlights


  • Recorded Gross leasing of c.0.8 msf in Q2 FY24, taking cumulative leasing in H1 FY24 to 1.1 msf
  • Re-leasing spread for Q2FY24 stood at 9.7% on c.0.7 msf of area re-let
  • In-place rents increased by c.6.4% YoY to INR 67 psf per month
  • During the quarter, successfully concluded the acquisition of c.0.24 msf of leasable area at Commerzone Porur, Chennai, for INR 182 Crs1
    • The strategic acquisition consolidates the REIT’s ownership in the project, now owning 100% of the Asset
    • Mindspace REIT’s total leasable portfolio area has grown to 32.3 msf with completed area of 26.1 msf
  • In 2023 GRESB (Global Real Estate Sustainability Benchmark) Ratings, Mindspace REIT
    • Became 1st Indian Commercial Real Estate Entity to receive 100/100 in Office Development Benchmark, with coveted title of ‘Global Listed Sector Leader’
    • Ranked 1st in Asia in the ‘Listed Companies Category’ for Commercial Business Development
    • Received 5 Star GRESB Rating for the Second Consecutive Year
    • Scored 91/100 in the Standing Investment Benchmark, ranking 6th among real estate peers across Asia with a 5-star Rating
Financial Highlights


  • Clocked healthy Net Operating Income (NOI) growth:
    • NOI grew by 17.7% YoY in Q2 FY24 to INR 491 Crs
    • Recorded NOI of INR 946 Crs in H1 FY24, 15.5% growth y-o-y
  • Low Loan-to-value (LTV) of 19.8%2 demonstrating balance sheet strength
  • Raised INR 500 Crs through NCDs at REIT; 56.1% of the outstanding debt is fixed cost debt
  • Average cost of borrowing at the end of Q2 FY24 stood at 7.8%
  • Gross Asset Value of the portfolio increased by 2.3% over March 23 to INR 28,671 Crs
  • Net Asset Value (NAV) stands at INR 369.6 per unit as on September 20, 2023
Development Highlights


  • Actively working on under construction pipeline of 2.9msf
  • Redevelopment of Buildings 7 and 8 at Mindspace Madhapur, Hyderabad is underway, with successful demolition of two buildings through ‘Implosion Technology’ making way for the new development of 1.6msf
    • A first in Hyderabad, the 18-year-old structures were successfully dismantled in just 6-8 seconds, in a stark contrast to the traditional demolition process that typically spans 3-4 months
  • Received Board approval for revised arrangement, to commence a mixed-use composite structure development, spanning c.0.8msf at Mindspace Airoli East. Of this, c.0.53msf is earmarked for office development and c.0.28msf for an upper upscale Hotel on a long-term lease to K Raheja Corp group company, Chalet Hotels Ltd.
    • The addition of the Hotel, will create synergies, enhancing amenities available to tenants, contributing to the development of a more cohesive and integrated ecosystem
  • Received go ahead from Princeton Digital Group for commencement of a 2nd Data Centre in Mindspace Airoli West


  • Declared distribution of INR 284 Crs or INR 4.79 per unit for Q2 FY24; Of this, c.90% is in form of dividend, tax-exempt in the hand of unitholders
  • Record date for the distribution is Nov 06, 2023. Payment of the distribution shall be processed on or before November 10, 2023
Speaking on the results, Mr. Ramesh Nair, Chief Executive Officer, K Raheja Corp Investment Managers Private Limited, Manager to Mindspace REIT said, We’ve had a good quarter in terms of NOI growth. India’s tech prominence and growing office space demand, driven by GCCs, is promising, and the IT industry considering return to a 5-day office week is encouraging. While short-term challenges are expected, our optimism for the industry’s long-term future remains. Our MoU with Chalet Hotels Ltd. for the mixed-use development, enhances tenant offerings and fosters business synergies. Our recent GRESB rankings demonstrate our continued dedication to ESG. We anticipate a rising demand for office spaces focusing on design, sustainability, functionality, safety, and technology, and we’re well-equipped to deliver to it. Our capable team is ready to construct, lease, and manage our assets, positioning us well to seize upcoming opportunities.”

1Including Transaction cost
2For 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