NEW DELHI: Mindspace Business Parks REIT (Mindspace REIT) reported a year-on-year increase of 24.2% in net operating income (NOI) for Q1 FY26, amounting to ₹616 crore for the quarter ending June 30, 2025.
The loan-to-value (LTV) ratio was about 25%. The company issued commercial papers worth ₹800 crore at an effective monthly rate of 6.46% and raised ₹600 crore through a five-year non-convertible debenture (NCD) at an effective monthly rate of 7.15%. Additionally, the cost of debt decreased by 29 basis points on a sequential basis, reaching 7.84% per annum.
The board of K Raheja Corp Investment Managers, which manages Mindspace REIT, approved a distribution of ₹5.79 per unit, totaling ₹3,527.17 million for the quarter ending June 30, 2025. This includes a dividend of ₹3.19 per unit (₹1,943.30 million), interest of ₹0.10 per unit (₹60.92 million), repayment of SPV debt of ₹2.47 per unit (₹1,504.68 million), and other income of ₹0.03 per unit (₹18.28 million).
Ramesh Nair, CEO and MD, remarked, “We’ve had another successful quarter, leasing out 1.7 million sq ft and achieving a committed occupancy rate of 93.7%. Our NOI rose by an impressive 24%, fueled by acquisitions, increasing rents, and rising occupancy. We delivered a solid quarterly distribution per unit (DPU) of ₹5.79, reflecting a 14.9% year-on-year increase.”
The company also noted a 21.13% rise in net consolidated profit for Q1 FY26, reporting a profit after tax of ₹166.79 crore compared to ₹137.70 crore in the same quarter last year. Mindspace REIT recorded total consolidated income of ₹754.80 crore for Q1 FY26, a 17.71% increase from ₹641.23 crore during the same period last year.
The board approved the acquisition of an office space measuring approximately 8,960 sq ft in Commerzone Yerawada, Pune, for ₹80.5 million.
During Q1 FY26, the company achieved gross leasing of 1.7 million sq ft, with a committed occupancy rate of 93.7% and a re-leasing spread of 29.5% over 1.4 million sq ft. They also have a development pipeline of 3.7 million sq ft.
The board appointed Sandeep Mathrani as an independent director for a five-year term and Preeti Chheda as the new chief financial officer.
In July 2025, following the conclusion of Q1 FY26, Mindspace REIT completed the acquisition of 100% equity shares in Mack Soft Tech (MSTPL), which owns ‘Q-City’, a 0.81 million sq ft commercial asset located in Hyderabad’s Financial District, valued at ₹512 crore. This acquisition expands Mindspace REIT’s portfolio in Hyderabad to over 16 million sq ft.
