Mindspace Business Parks REIT, on July 25, reported a 13.8 percent increase in net operating income (NOI) to Rs 457 crore in the first quarter of 2023-24 (Q1 FY24) and declared an income distribution of Rs 284.6 crore to unitholders for the June quarter.
The income distribution works out to Rs 4.8 per unit, a growth of 1.2 percent year-on-year (YoY). The record date for the distribution is July 31, 2023. Payment of the distribution will be processed on or before August 8.
The dividend, which is tax-exempt in the hands of the unitholders, forms 90.2 percent (Rs 4.8 per unit) of distribution, it said in a regulatory filing.
"India has emerged as a key hub in the global service sector value chain for providing cutting-edge technology support services at a very attractive cost base. This, coupled with the growth of domestic Indian companies, has kept demand for non-SEZ Grade A office spaces strong," said said Vinod Rohira, Chief Executive Officer (CEO), K Raheja Corp Investment Managers Private Limited, Manager to Mindspace REIT.
"As the committed occupancy of our portfolio has started getting converted into occupancy, its impact on NOI growth is visible in the 13.8 percent YoY growth. While our operational and financial performance has continued to remain healthy, we remain watchful of the impact of the evolving economic environment," he added.
The company reported gross leasing of 0.4 million square feet (msf), re-leasing spread stood at 10.1 percent on 0.3 msf, and in-place rents increased by 5.9 percent YoY to Rs 66.2 per sq ft monthly rental. On a quarter-on-quarter (QoQ) basis, the net operating profit grew by 4.7 percent and the average cost of borrowing at the end of Q1 FY24 stood at 7.7 percent.
Mindspace Business Parks REIT, sponsored by the K Raheja Corp Group, got listed on the Indian bourses in August 2020. It owns quality office portfolios in the Mumbai region, Pune, Hyderabad, and Chennai.
Also read: Mindspace Business Parks REIT completes issuance of Rs 100-crore Commercial Papers
The portfolio has a total leasable area of 32 msf comprising 25.8 msf of completed area, 2.5 msf of the area under construction, and 3.7 msf of future development. The portfolio consists of five integrated business parks and five quality independent office assets.
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