Mindspace net operating income rises 31.9% to 8,361 million rupees
Key Facts
Mindspace REIT on November 2 reported results for the quarter and half-year ended September 30, 2026, posting net operating income of 8,361 million rupees in the second quarter of fiscal 2027, up 31.9% year on year. Revenue from operations rose 29.8% to 10,099 million rupees, compared with 7,778 million in the corresponding quarter of the previous fiscal year. Net operating income grew 16.8% on a like-for-like basis, separating growth in the existing portfolio from the impact of new asset additions. Chief Executive and Managing Director Ramesh Nair said operating income grew 31.9% during the quarter and occupancy reached a record level, according to the company. He added that performance was supported by "strong leasing, higher rents and the completion of development projects."
The company attributed rental income growth to contributions from acquisitions in Mumbai, Hyderabad and Chennai, new leases in Airoli and Madhapur, as well as re-leasing and contractual rent increases. Realized rent growth was 26.4% across 3.5 million square feet re-leased since the second quarter of fiscal 2026. Contractual rents also rose 11.3% across 7.1 million square feet over the same period. These figures reflect a mix of income from added assets and improved returns from existing spaces. The company said it had leased about 0.6 million square feet at its new Chennai assets since the acquisition, exceeding its business plan. At One Radial, it signed a large deal of nearly 0.5 million square feet with a global banking and financial services center.
Committed occupancy was 96.1% on September 30, a record level according to the company, but the figure is calculated on a like-for-like basis after excluding new acquisitions completed in the first half of fiscal 2027 and the Pocharam asset offered for sale. Including all acquisitions but excluding Pocharam, occupancy was 93.8%. The gap between the two figures shows the effect of assets added to the portfolio during the measurement period. The portfolio totaled about 46.4 million square feet, of which 37.7 million square feet was completed. The company had 314 tenants in September, across a portfolio of assets in four major office markets in India.
Mindspace recorded gross leasing of 1.6 million square feet during the quarter and re-leased 0.4 million square feet. The re-leasing spread was 24%, calculated on 0.5 million square feet, while the average rent for leased space reached 94 rupees per square foot per month. The area used to calculate the spread means it does not match the total space re-leased during the period. The leasing results come amid the company's demand for space and its new contracts, alongside realized rent growth on space re-leased since the previous fiscal year. These indicators also support the company's explanation of the contribution of leasing and higher rents to operating income growth.
The company announced a total distribution of about 4,415 million rupees, equivalent to 6.67 rupees per unit for the second quarter of fiscal 2027, up 14.4% from 5.83 rupees in the corresponding quarter of fiscal 2026. It set November 5, 2026, as the record date for the distribution, with payment to be processed no later than November 13. Net asset value was 565.1 rupees per unit, up 7.2% from 527 rupees per unit in the comparison cited in the company's statement. Mindspace will hold a call to discuss its quarterly results on November 3 at 08:30 India time. On development, the investor presentation forecasts delivery of 3.2 million square feet in the second half of fiscal 2027, within 8.7 million square feet under construction or in future development.