Mindspace REIT sees record leasing in Q4

April 30, 2024

Mindspace Business Parks REIT reported a 9.3 per cent rise in net operating income (NOI) in the fourth quarter of FY24 and a 11 per cent rise in revenue, with a record gross leasing of 2 million square feet (msf) at a re-leasing spread of 16.7 per cent for the bulk of it.

The REIT recorded NOI of ₹476.8 crore on revenue of ₹594.8 crore. During the quarter, it distributed ₹282.9 crore to its unitholders at ₹4.77 per unit.

Of the total leased in the quarter, 1.1 msf was re-leased and the remaining was leasing of new and vacant area. The average monthly lease rent in the quarter came in at ₹65 per square feet. The REIT ended the year with a committed occupancy of 90.6 per cent, excluding Mindspace Pocharam, a non-core asset that it is divesting.

“With ongoing expansion projects totalling 4.4 msf, future development of 2.5 msf and potential leasing of 2.4 msf of vacant area, we are positioned for significant NOI growth,” Chief Executive Officer Ramesh Nair said.

For the full year, the REIT saw NOI up 11.9 per cent at ₹1896 crore and revenue up 13.7 per cent at ₹2351 crore. It ended the year with gross leasing of 3.6 msf and in-place monthly rent at ₹69 psf.

Around 5-8 per cent of its portfolio is coming up for expiry annually over the next three years and the REIT said that it had re-leasing visibility for 2 msf or 70 per cent of its expiries in FY25.

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Future NOI growth would be driven by 4.4 msf under development, 2.5 msf future development and 2.4 msf lease-up of vacant area, predominantly SEZs. Divestment of Pocharam would improve occupancy by 2 per cent.

Apart from sponsor assets, it is also exploring third party inorganic opportunities, it added.

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