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Mindspace Business Parks REIT (Mindspace REIT) showcased an impressive 6.62 percent growth in net consolidated profit during Q1 FY24. The company reported a profit after tax of Rs 136.90 crore, surpassing the Rs 128.40 crore achieved in the corresponding quarter of the previous fiscal, as per a BSE filing. The net consolidated total income surged to Rs 601.70 crore in Q1 FY24, marking a remarkable 24.01 percent increase from the previous year's Rs 485.20 crore.
In Q1 FY24, the net operating income (NOI) witnessed a robust year-on-year growth of 13.8 percent, reaching a substantial Rs 4,570 million. Additionally, the company recorded gross leasing of approximately 0.4 million square feet and an impressive re-leasing spread of 10.1 percent on around 0.3 million square feet of area re-let. The in-place rents experienced a c. 5.9 percent year-on-year increase, reaching Rs 66.2 per sq. ft per month. Furthermore, the average cost of borrowing at the end of Q1 FY24 stood at 7.7 percent.
Vinod Rohira, CEO of K Raheja Corp Investment Managers, stated that the committed occupancy of their portfolio converting into occupancy has had a visible impact on NOI growth, leading to the 13.8 percent year-on-year increase. The board of directors of K Raheja Corp Investment Managers, manager of Mindspace REIT, approved the distribution of Rs. 2846 million (Rs. 4.80 per unit), which comprises dividends, interest, and other income. Furthermore, the board also approved the proposed acquisition of a leasable area measuring about 0.24 million square feet from RPIL Signalling Systems (RPIL) at the Commerzone Porur Project in Chennai.
The project includes the underlying 22 percent undivided right, title, and interest in the land, which measures approximately 22,425.13 sq. metres. Horizonview Properties, the asset SPV of Mindspace REIT, will be entitled to 78 percent of the Commerzone Porur Project. The finalization of the consideration and other terms and conditions will be negotiated between the parties. The company's progressive approach and focus on customer service have enabled it to expand its business interests in multiple areas, making it a leading player in the real estate industry.
Mindspace REIT, a pioneer in shaping world-class business districts, embodies a vision of responsible leadership and creating enduring experiences for all stakeholders. Embracing change to foster creativity and innovation, the entity focuses on built-to-suit facilities with a diverse portfolio across premium commercial micro-markets in the Mumbai Region, Hyderabad, Pune, and Chennai. Endorsed by prestigious corporates, global MNCs, and Fortune 500 companies, the portfolio, valued at Rs 280 billion as of March 31, 2023, prioritizes safety, prudence, sustainability, and governance. Mindful of its corporate purpose, Mindspace REIT builds engaging, community-based ecosystems that create lasting value.
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