Mindspace REIT net operating income grows 16%

The net operating income (NoI) of Mindspace Business Parks REIT (real estate investment trust) grew by 16 percent year-on-year (YoY) to Rs 417.2 crore in the second quarter of FY23. The company leased 1.3 million square feet (msf) in the same period, according to a press statement.

In the first half of this fiscal, the company recorded an NoI of Rs 818 crore. The company's debt-to-market value was 16.8 percent, while the portfolio's gross asset value rose to Rs 27,300 crore in September 2022, a 3.3 percent increase YoY.

The company’s CEO, Vinod Rohira, said, “As envisaged, we continue to see demand for Grade A, institutionally managed office assets as the preferred choice of our global clients, as their return to office plans are now in motion. We have leased 1.3 msf during the quarter, taking the cumulative gross leasing to 2.1 msf in the first half of the financial year, resulting in further improvement in committed occupancies in our portfolio.”

The company said the re-leasing spread (jump in the rates of new leases) in the second quarter of this fiscal stood at 22.3 percent (at Rs 62 per square foot on average) on 0.8 msf of re-let area. In-place (existing) rents grew 8.7 percent YoY to Rs 63 per square foot per month.

Previously, the company scored 94 out of 100, ranking fourth in the GRESB Asia Office for Development benchmark. Additionally, it got a four-star rating, scoring 81 out of 100 in the Standing Investment Benchmark.