Mindspace REIT Q2 result: Operating income up 26% at Rs 634 crore

Distribution per unit for the quarter were Rs 5.83

Mindspace Business Parks REIT reported  a 26 percent year-on-year increase in net operating income (NOI) in the September quarter at Rs 634 crore on the back of leasing momentum and stable occupancy.

The K Raheja Corp-backed real estate investment trust’s revenue from operations was up 25 percent at Rs 778 crore. Total distribution grew 16 percent to Rs 355 crore, representing a per-unit distribution of Rs 5.83, the company said.

"Mindspace REIT continued its strong momentum with leasing of 0.8 million sq. ft. and a re-leasing spread of over 28 percent, reflecting healthy rental buoyancy, particularly in Hyderabad and Navi Mumbai," CEO and MD Ramesh Nair said.

It reported gross leasing of 800,000 square feet, with committed occupancy, including its recent acquisition of the Q-City commercial development in Hyderabad, at 93.8 percent. In-place rent for the portfolio stands at around Rs 74 per square foot a month, with a significant headroom for rental growth, it said.

During the quarter, the REIT also signed its first leasing deal at its Madhapur development in Hyderabad for rentals of Rs 100 per square foot per month. The deal showed a large mark-to-market potential, it said.

Mindspace REIT has a net leasable area of around 38 million square feet, of which 31 msf is complete, 3.7 msf is under construction and 3.5 msf has been marked for development.