Mindspace Business Parks REIT (MINDSPACE) Q2 24/25 earnings summary

Executive summary

• Achieved record NOI of INR 5.03 billion and distribution of INR 3.05 billion for Q2 FY25, with occupancy at 91.7% and strong leasing momentum, including 1.05 msf pre-leased to Princeton Digital Group for data centers.

• Portfolio expanded to 34.7 million sq ft, with growth in the data center segment and upgrades to 13 buildings; top 10 tenants contributed 28.8% of gross contracted rentals.

• Delivered over 25% total returns to investors in the past year, including distributions.

• Unaudited consolidated and standalone financials for the quarter and half year ended September 30, 2024, were approved with an unmodified auditor opinion.

• Board approved acquisition of 0.26 msf at Mindspace Madhapur for INR 2.75 billion and ongoing divestment of Mindspace Pocharam.

Financial highlights

• Q2 FY25 revenue from operations grew 6% year-on-year to INR 6.2 billion; NOI rose 5.1% to INR 5 billion; consolidated revenue for the quarter was INR 6,379 million.

• Distribution for Q2 FY25 was INR 3.05 billion (INR 5.15 per unit), up 7.5% year-on-year; total distribution for the half year was INR 10.19 per unit.

• Gross asset value increased 4.8% year-on-year to INR 313 billion; NAV per unit rose to INR 392.6.

• Consolidated profit after tax for the quarter was INR 1,349.8 million.

• NOI margin from core renting remained steady at 85%.

Outlook and guidance

• Targeting occupancy of 93.5% by end of FY25, with 2 million sq ft of gross leasing expected in the second half.

• NOI projected to grow by over INR 9 billion in the next 3-4 years, driven by leasing, development, and mark-to-market escalations.

• Ongoing focus on asset acquisitions, capital recycling, and compliance with SEBI’s revised NDCF framework.

• Double-digit development yields targeted for both under-construction and future projects.

• Near-term growth opportunities include sponsor pipeline (~15 msf potential) and third-party inorganic opportunities.