Mindspace REIT 's net operating income in September quarter is Rs 417.2 crore

15 Nov 2022 , 09:12 AM

For the quarter that ended in September 2022, Mindspace Business Parks REIT, which is funded by K Raheja Corp, achieved a net operating income of Rs417.2 crore, an increase of 16.0% year over year, as it continued to collect more than 99% of gross contracted rentals.

The management company for Mindspace REIT, K Raheja Corp Investment Managers LLP, approved a payout of Rs281.7 crore for the second quarter of FY23. Since IPO, Mindspace REIT has distributed Rs37.53/unit to investors, totalling Rs2230 crore (including Q2 FY23 distribution).

Distribution is made up of 92% (Rs4.37 per unit) of tax-free dividends, 7.6% (Rs0.36 per unit) of interest, and 0.4% (Rs0.04 per unit) of other income (Rs0.02 per unit)

The distribution’s record date is November 21, 2022, and payment must be executed by November 29, 2022, at the latest.

The REIT reported gross leasing of 1.3 million square feet (msf) in the quarter, bringing the total amount leased in the first half of FY23 to 2.1 msf. L&T Infotech, Axis Bank, Johnson Control, and ACI Global were a few of the clients signed in Q2.

The REIT raised Rs500 crore in debt during the quarter at a 7.9% annual yield rate.

Additionally, Sundew Real Estate Private Limited (“Sundew”), Ivory Property Trust (“IPT”), and its nominees have given notice to the REIT of their desire to sell all of the outstanding equity interests in Sundew to the REIT.

The business is now assessing a ROFO notification from Sustain Properties Private Limited (“Sustain”) and its shareholders stating their desire to sell all of the outstanding equity shares owned by Sustain shareholders to Mindspace REIT.

The REIT has also proposed redeveloping two buildings at Mindspace Madhapur, which is expected to start soon and expand the leasable area to an estimated 1.31 million square feet from the present 0.36 million square feet.

The Mumbai Region, Pune, Hyderabad, and Chennai are the four major office markets in India where the REIT has office portfolios for sale. It is one of the largest Grade-A office portfolios in India, with a total leasable space of 24.9 msf. The portfolio has a diverse tenant base, with over 185 tenants as of September 30, 2022, and consists of 5 integrated business parks and 5 separate office assets.

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