Mindspace REIT announces Results for Q2 FY2022

Mindspace Business Parks REIT (BSE: 543217 | NSE: MINDSPACE) ('Mindspace REIT'), owner and developer of quality Grade A office portfolio located in four key office markets of India, reported results for the quarter and six months ended September 30, 2021.

Performance Update

• Gross leasing remained strong at c.0.9 msf, with an average rent of INR 88 psf/month, signed across 11 deals
• Leased c.2.1 msf during the half year ended September 30, 2021
• The Square BKC now stands fully leased
• Concluded another Build-to-Suit lease of 0.5 msf at one of the ROFO assets - Mindspace Juinagar in Mumbai Region
• Re-leasing spread stood at 21.6% on 0.6 msf of area re-let
• Continued to collect more than 99% of Gross Contracted Rentals
• Committed Occupancy and Same Store Committed Occupancy at c.85%

Financial Update

• Reported Net Operating Income of INR 3,592 Mn, up by 6.7% on y-o-y basis
• Declared distribution of INR 2,728 Mn / INR 4.60 p.u., with over 90% being tax-exempt
• Annualised distribution yield of 6.7% on issue price of INR 275 p.u.
• Raised INR 4 Bn in the form of debentures at SPV level at 6.1% p.a. coupon
• Average cost of debt further reduced by c.15 bps q-o-q to 6.9% as on September 30, 2021
• Strong balance sheet with low net debt to market value of c.14.9%
• NAV stood INR 357.8 p.u. as on September 30, 2021, vs. INR 345.2 p.u. as on March 31, 2021

Distribution

The Governing Board of K Raheja Corp Investment Managers LLP, Manager to Mindspace REIT approved a distribution of INR 2,728 Mn or INR 4.60 p.u. for Q2 FY2022 at its meeting held earlier today. Dividend, which is tax-exempt in the hand of unitholders, forms c. 93% (INR 4.28 p.u.) portion of distribution while interest constitutes the remaining c. 7.0% (INR 0.32 p.u.). The record date for the distribution is November 18, 2021, payment of the distribution shall be processed on or before November 27, 2021.

Speaking on the results, Mr. Vinod Rohira, Chief Executive Officer, Mindspace Business Parks REIT said, "We continue to witness strong leasing activity across our portfolio with over 2.1 million square feet leased in first half of this financial year. We remain increasingly confident of the commercial market outlook, buoyed by record tech hiring and growth trends, improved GCC prospects, vaccination coverage in our gateway cities as employees return to office. We are excited about the robust demand cycle re-emerging."

Source : Equity Bulls

Keywords

MinspaceBusinessParks REIT Q2FY22 H1FY22 ResultUpdate