Mindspace Business Parks REIT (MINDSPACE) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 gross leasing was 1.6 msf; like-for-like committed occupancy reached 96.1% and NOI was INR 8,361 Mn, up 31.9% YoY.

• Committed occupancy including H1 FY27 acquisitions was 93.8%; leasing included newly acquired Chennai assets and multiple GCC leases.

• Q2 distribution reached a record INR 6.67 per unit, up 14.4% YoY; fair-value NAV was INR 565.09 per unit.

Financial highlights

• Revenue from operations was INR 10,099 Mn, up 29.8% YoY in operating results; consolidated revenue from operations was Rs 10,058.13 Mn vs Rs 7,720.09 Mn.

• H1 FY27 revenue was INR 19,608 Mn, up 28.1% YoY; NOI was INR 16,240 Mn, up 29.9%.

• Consolidated Q2 profit attributable to unitholders was Rs 4,661.45 Mn; reported profit benefited materially from tax and deferred-tax remeasurement.

• Q2 distribution totaled INR 4,415 Mn, or INR 6.67 per unit; cumulative distributions since listing reached INR 126 per unit.

Outlook and guidance

• Organic NOI additions of INR 17–18 Bn are expected over three years, supported by leasing, developments, rent mark-to-market and contractual escalations.

• 3.2 msf of deliveries are scheduled during FY27; management targets ~97% occupancy by FY27-end.

• Around 5 msf of development is due by FY2029; active RFPs total 9–10 msf, and 3.7 msf of 6 msf under construction is pre-let.

• Management expects borrowing costs to rise ~25 bps by FY-end in a conservative case of two further rate hikes; tax savings are expected to leave NDCF mostly unaffected.

• The Pocharam sale process continues amid weak demand, extending beyond the initial 12-month expectation.