Mindspace REIT Announces Results for Q1 FY23, Committed occupancy jumps by 130 bps QoQ

Mindspace REIT Announces Results for Q1 FY23, Committed Occupancy Increases on the back of Strong Leasing

Committed occupancy jumps by 130 bps QoQ

Gross leasing of c.0.9 msf during the quarter

Strong Net Operating Income (NOI) growth of 10.9% YoY

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Mumbai, August 10, 2022: 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 ended June 30, 2022.

Q1 FY23 Overview

· Recorded strong leasing of c.0.9 msf across 18 deals

· Committed occupancy of the portfolio jumped by c. 130 bps QoQ to 85.6%

· Re-leasing spread stood at 36.4% on 0.5 msf of area re-let

· In-place rents have grown by 9.3% YoY to INR 62.4 psf/month

· Continue to deliver on NOI growth, NOI at INR 4,014 mn, up by 10.9% YoY

· NOI margin remains strong at over 80%

· Strong balance sheet with low Loan-to-value (LTV) of c.16.6%

· Released 1st Sustainability Report, reiterating our commitment to sustainable development

· Mindspace REIT Group features in India’s Great Mid-Size Workplaces 2022

· Commerzone Kharadi awarded by Architects Engineers & Surveyors Association Pune (AESA) for Good Practices in Building Design and Construction

· Received LEED Platinum O&M certification across 6 Buildings & LEED Gold O&M across 5 Buildings

Distribution

· INR 2,811 Mn or INR 4.74 p.u. for Q1 FY23, a growth of c.3% on sequential basis

· Dividend, which is tax-exempt in the hand of unitholders, forms c. 93% (INR 4.41 p.u.) of distribution while interest constitutes c. 6.8% (INR 0.32 p.u.) and other income of c. 0.2% (INR 0.01 p.u.)

· The record date for the distribution is August 16, 2022, payment of the distribution shall be processed on or before August 25, 2022

Speaking on the results, Mr. Vinod Rohira, Chief Executive Officer, said,

“After recording one of the best years of leasing in FY22, the tailwinds continue to grow stronger as we enter the new financial year. Our strategy of upgrading our offerings during downtime and implementing the best asset management practices has allowed us to benefit from the anticipated demand upswing. The committed occupancy of the portfolio has risen by 130 bps QoQ to 85.6% as we leased 0.9msf during the quarter. The demand recovery initially led by the large occupiers is now seeing a much broad-based momentum. We expect a stronger recovery in the second half of the year as a greater percentage of employees return to their offices.”