Mindspace Business Parks REIT (MINDSPACE) Q1 25/26 earnings summary

Executive summary

• Achieved strong Q1 FY26 financial and operational performance, with robust growth in NOI, revenue, and distributions, driven by high demand for Grade A office spaces and record occupancy rates.

• Committed occupancy reached 93.7%, the highest since listing, with five assets at 100% occupancy and two more above 97%.

• Gross leasing reached 1.7 million sq ft in Q1 FY26, with a re-leasing spread of 29.5%, the highest since listing.

• Completed value-accretive acquisitions, including Q-City Hyderabad and Sustain Properties, expanding the portfolio and reinforcing the growth strategy.

• Earnings per unit for the quarter stood at Rs. 2.99, with a distribution of Rs. 5.79 per unit declared.

Financial highlights

• NOI grew 24.2% year-over-year to INR 6,164 million; like-to-like NOI growth (excluding third-party acquisition) was 18.3%.

• Revenue from operations increased 21.4% year-over-year to INR 7,523 million.

• Distributions rose 18% year-over-year to INR 3,527 million; DPU up 14.9% to INR 5.79 per unit.

• Profit after tax for the quarter was Rs. 1,822.33 million, with a net profit margin of 62.83%.

• Interest income and dividend income were major contributors to total income, at Rs. 978.79 million and Rs. 1,821.17 million respectively.

Outlook and guidance

• Targeting committed occupancy of around 95% by year-end, with ongoing focus on leasing and portfolio expansion.

• Expecting continued healthy DPU growth, supported by NOI growth, rental increases, and lower interest rates.

• High re-leasing visibility for FY26, with 78% of expiries expected to be retained or re-leased.

• Ongoing and future development projects with a balance construction capex of INR 42,420 million.

• The Board reaffirmed its commitment to distribute at least 90% of Net Distributable Cash Flows to unitholders quarterly.