Mindspace REIT falls despite recording best ever quarter in Q4FY24, brokerages retain bullishness

Mindspace units have gained about 14.5 percent over the past six months.

Mindspace Business Parks REIT units slipped over a percent in trade on May 2 even though the realty player notched its best-ever quarter in the March quarter.

Ramesh Nair, CEO of K Raheja Corp Investment Managers, which manages Mindspace REIT said, "We had a record quarter, leasing 2 million square feet, making this our top-performing quarter since going public."

At 1.20 pm, Mindspace units were quoting at Rs 353 apiece on the NSE, lower by 0.5 percent.

Follow our market blog to catch all the live updates

In March quarter, Mindspace Business Parks REIT posted a growth of nine percent in net operating income (NOI) at Rs 476.8 crore. The firm also declared a distribution of Rs 282.9 crore to unitholders. Cumulatively, it distributed around Rs 1,136.2 crore to unitholders for last fiscal year.

Portfolio occupancy was at 83.8 percent, higher by 40 basis points on-year, committed occupancy was at 88.6 percent, improving across all major assets in Airoli, Madhapur, Malad and Yerawada on a quarterly basis. Six of the nine parks achieved over 95 percent occupancy levels.

The company is looking to deliver 4.4 million sq. ft. of assets by FY27E, which should drive NOI growth. Nuvama Institutional Equities said, "We expect leasing to gather traction and Mindspace to generate an CAGR of 10 percent in NOI over FY24–27E." The brokerage retained its buy call, with a target price of Rs 372.

JM Financial maintained its buy rating as well, with a price target of Rs 385. This indicates a total return potential of 14.5 percent: 6.1 percent dividend and 8.5 percent capital appreciation.

Mindspace units have gained about 14.5 percent over the past six months, as compared to a 19 percent rise in the equity index Nifty 50.