Mindspace Business Parks REIT (MINDSPACE) Q2 25/26 earnings summary

Executive summary

• Achieved record occupancy of 94.6% (93.8% including new acquisition), with strong and consistent performance and annualized total returns of nearly 26% over the last two years.

• Unit price rose from INR 315 to INR 455 over two years; GAV increased to INR 410.2 billion; NAV per unit up 12% to INR 483.7 as of September 2025.

• Q2 FY26 NOI increased 25.8% year-over-year to INR 6,339 million; DPU up 13.2% to INR 5.83 per unit.

• Focused on sustainable growth, operational efficiency, and strong unitholder returns, with investments in renewable energy and asset acquisitions.

• SEBI's reclassification of REITs as equity instruments is expected to enhance liquidity and investor participation.

Financial highlights

• Q2 FY26 revenue from operations grew 24.8% year-over-year to INR 7,778 million; H1 FY26 revenue at INR 15,301 million, up 23.1% year-over-year.

• H1 FY26 NOI at INR 12,503 million, up 25% year-over-year; profit for H1 FY26 at Rs. 2,935.85 million.

• Distributions for Q2 increased 16.3% year-over-year to INR 3.5 billion; cumulative distributions since listing reached INR 5,952 crore.

• NAV per unit (fair value) as of 30 September 2025 is Rs. 483.66.

• Operating margin for H1 FY26: 82.68%; net profit margin: 19.03%.

Outlook and guidance

• Targeting portfolio occupancy close to 95% by end of FY 2026, with strong leasing momentum and robust demand in Hyderabad and Navi Mumbai.

• Confident in healthy NOI and DPU growth, supported by rental growth, increasing occupancy, and a progressing under-construction portfolio.

• NAV growth expected to continue, driven by operating performance, rental increases, and ongoing enhancements and redevelopments.

• Area coming for expiry in FY27 and FY28 is 1.5 msf and 2.2 msf, respectively, with strong re-leasing visibility and healthy spreads.

• Management continues to focus on stable distributions, asset value growth, and sustainability initiatives, including renewable energy investments.