Mindspace REIT’s Q2 net operating income jumps 18% to Rs 491 crore

Mindspace Business Parks REIT has posted an 18 per cent increase in its net operating income (NOI) to Rs 491 crore for the second quarter of this fiscal.

Its NOI stood at Rs 417 crore in the year-ago period.

The revenue from operation rose 21 per cent to Rs 600 crore in the July-September period from Rs 497 crore in the corresponding period of the previous year, according to a regulatory filing on Monday.

Mindspace REIT has declared a distribution of Rs 284 crore or Rs 4.79 per unit for the second quarter of this fiscal.

Of this, around 90 per cent is in the form of dividends, tax-exempt in the hands of unitholders.

Ramesh Nair, Chief Executive Officer of K Raheja Corp Investment Managers, the manager of Mindspace REIT, said, “We have had a good quarter in terms of NOI growth”.

“India’s tech prominence and growing office space demand, driven by GCCs, is promising, and the IT industry considering a return to a 5-day office week is encouraging.

“While short-term challenges are expected, our optimism for the industry’s long-term future remains,” Nair said.

On the operational front, Mindspace REIT recorded gross leasing of 0.8 million square feet in Q2 FY24, taking cumulative leasing in the first six months of this fiscal to 1.1 million square feet.

Mindspace REIT received the Board’s approval for the revised arrangement to commence a mixed-use composite structure development, spanning 0.8 million square feet at Mindspace Airoli East.

Of this, 0.53 million square feet is earmarked for office development and 0.28 million square feet for an upper upscale hotel on a long-term lease to K Raheja Corp group company, Chalet Hotels Ltd.

Mindspace REIT’s total leasable portfolio area has grown to 32.3 million square feet with a completed area of 26.1 million square feet.