Mindspace REIT Q1: Net operating income rises 24 percent, distribution at Rs 5.79/unit

K Raheja Corp-sponsored Mindspace Business Parks REIT reported that its net operating income in the April-June quarter increased by 24 percent year-on-year to Rs 616 crore, while its revenue from operations grew by 21 percent over the same period to Rs 752 crore. During the quarter, the REIT reported a gross leasing of 1.7 million square feet, taking committed occupancy for the quarter to 93.7 percent.

The total distributions for the quarter were reported at Rs 353 crore, 18 percent higher than the same quarter last year. On a per unit basis, distributions were Rs 5.79, up by nearly 15 percent.

"We remain confident in the long-term prospects of our portfolio, supported by the strength of our high-quality assets, enduring tenant relationships, and proactive leasing strategy. Additionally, our strategy to grow the portfolio through value accretive acquisitions and organic development positions us for sustained growth over the long term," said Ramesh Nair, MD and CEO of Mindspace REIT, in a statement.

The REIT had an average in-place rent of around Rs 73 per square foot per month, with a loan-to-value ratio of 25 percent, which it said signifies a strong balance sheet. During the quarter, Mindspace REIT also raised commercial paper worth Rs 800 crore, at a rate of 6.46 percent per annum per month, as well as NCDs worth Rs 600 crore, with a tenure of five years, at 7.15 percent.