Mindspace Business Parks REIT (MINDSPACE) Q1 24/25 earnings summary

Executive summary

• Achieved strong business performance in Q1 FY25, with 91.1% committed occupancy, 1.1 million sq ft gross leasing, and 9.2% YoY NOI growth, supported by robust Indian office market conditions and positive industry outlook for 2024.

• Announced new developments, including a 1.5 million sq ft project in Airoli East, expanding the portfolio to 33.6 million sq ft.

• Distribution rose 5% YoY to INR 2.99 billion (INR 5.04 per unit), with a 6.1% yield.

• Focused on tenant experience, sustainability, and innovation, with high tenant satisfaction, several ESG milestones, and the first Indian REIT to raise a sustainability-linked bond.

• Board approved potential divestment of Mindspace Pocharam.

Financial highlights

• Revenue from operations reached INR 6.2 billion, up 10.6% YoY; NOI at INR 4.96 billion, up 9.2% YoY.

• NOI margin from operations remained steady at 85%.

• Net debt as of June 30, 2024, was INR 65.5 billion; LTV at 21.9%; cost of debt at 7.9%.

• Consistent quarterly growth: 12.3% revenue CAGR and 11.2% NOI CAGR from Q1 FY23 to Q1 FY25.

• Distribution for Q1 FY25 was INR 2.99 billion, up 5% YoY.

Outlook and guidance

• Occupancy expected to rise to 92.5%-93% in the next 12 months and reach 95% in the following year.

• Gross leasing target for FY25 set at 3 million sq ft, including new assets.

• 1.5 million sq ft new development in Airoli East planned, with estimated commencement by end Q3 FY25 and completion by Q4 FY28.

• NOI projected to grow organically by over INR 800 crore in the next 3-4 years from leasing and development.

• Continued pursuit of inorganic growth opportunities and portfolio expansion.