Mindspace REIT Q2 NOI Rises to Rs 504 Cr, Distributes Rs 305 Cr

New Delhi, Oct 25 (PTI) Mindspace Business Parks REIT on Friday reported a 5 per cent growth in its net operating income to Rs 503.7 crore in the second quarter of this fiscal and announced distribution of Rs 305.4 crore for the July-September period.

The company's net operating income (NOI) stood at Rs 491.2 crore in the year-ago period.

Ramesh Nair, Chief Executive Officer, K Raheja Corp Investment Managers Pvt Ltd, Manager to Mindspace REIT, said, "Our performance in the second quarter reflects both the strength of our business and the broader momentum in the commercial real estate sector."

"As demand for high-quality (office) spaces continues to grow, we play a key role in shaping this landscape. We leased around 1 million square feet of our completed portfolio and increased our committed occupancy to 91.7 per cent, aligning with the sector's need for premium, scalable solutions," he added.

For the first time, Nair said the company's NOI surpassed Rs 500 crore, while distributions exceeded Rs 300 crore, demonstrating its ability to drive sustained growth.

"The expansion of our data centre portfolio to 1.68 million square feet, with three new built-to-suit facilities, supports the increasing demand for digital infrastructure. With over 8 million square feet of ongoing and upcoming projects, we are well positioned to support the sector's evolving needs and enable long-term value creation," he said.

Mindspace REIT said the company received board approval for a strategic acquisition of around 0.26 million square feet in Mindspace Madhapur, Hyderabad for a consideration of Rs 275 crore, consolidating ownership in the park.

It also received approval for demarcation of additional around 1.2 million square feet of SEZ space. Now the total demarcated area stands at 2.1 million square feet.

"Actively working on under construction pipeline of 4.4 million square feet, with 1.3 million square feet planned to be completed in FY25," the company said.

Mindspace Business Parks REIT, sponsored by K Raheja Corp group, got listed on the Indian bourses in August 2020.

It owns office portfolios in four key office markets, namely Mumbai Region, Pune, Hyderabad and Chennai.

The portfolio has a total leasable area of 34.7 million square feet comprising of 26.4 million square feet of completed area, 4.4 million square feet of area under construction and 3.9 million square feet of future development.

Mindspace portfolio consists of five integrated business parks and five independent office assets with superior infrastructure and amenities.