EL7.AI
StocksMedium•3 November 2026•
4 min read

Mindspace REIT Distributes 6.67 Rupees per Unit as Net Operating Income Grows 31.9%

Key Facts

1The distribution was 6.67 rupees per unit, totalling 4,415 million rupees and representing year-on-year growth of 14.4%.
2Net operating income rose 31.9% to 8,361 million rupees, while operating revenue increased 29.8% to 10,099 million rupees.
3Like-for-like committed occupancy was 96.1%, compared with 93.8% including acquisitions and excluding Pocharam.
4Gross asset value rose 15.9% to about 552 billion rupees, and net asset value per unit increased 7.2% to 565.1 rupees.
5The distribution is payable to unitholders registered on 5 November 2026, with payment to be processed no later than 13 November 2026.

Mindspace REIT announced on 2 November 2026 a cash distribution of 6.67 Indian rupees per unit for the second quarter of fiscal 2027, as part of results for the period ended 30 September 2026. The total distribution was about 4,415 million rupees, up 14.4% year on year per unit. That puts the distribution above the 5.83 rupees recorded in the second quarter of fiscal 2026, but equal to the amount distributed in the first quarter of fiscal 2027. The official distribution page also shows 6.67 rupees in the first quarter of fiscal 2027, while the previous high for fiscal 2026 was about 6.64 rupees in its fourth quarter. The second-quarter announcement therefore does not mark a higher level than the previous quarter, contrary to the initial draft.

The second-quarter amount comprises 4.17 rupees per unit in dividends and 2.50 rupees in repayment of debt by subsidiaries, according to the trust’s record. The announcement came alongside growth in net operating income, which rose 31.9% year on year to 8,361 million rupees, compared with 6,339 million in the corresponding quarter of the previous fiscal year. Operating revenue also increased 29.8% to 10,099 million rupees, from 7,778 million. On a like-for-like basis, meaning comparable assets, net operating income rose 16.8% year on year. That figure highlights growth in comparable assets alongside the increase reported for the trust as a whole.

The chief executive said net operating income grew 31.9% during the quarter and like-for-like occupancy reached a record 96.1%, attributing the performance to strong leasing, higher rents and completed developments. He added that the recently acquired Chennai assets exceeded his leasing and rental expectations, linking this to disciplined investment. The trust said it leased about 1.6 million square feet in total during the quarter, including about 0.6 million square feet at the new Chennai assets since their acquisition. It also recorded 0.4 million square feet of re-leasing, with a re-leasing spread of 24% and an average gross leasing rent of 94 rupees per square foot. At One Radial, the trust signed a deal for nearly 0.5 million square feet with a European global capability centre in the banking, financial services and insurance sector.

Like-for-like committed occupancy stood at 96.1% on 30 September 2026, a level the trust described as a record. Including acquired assets, committed occupancy was 93.8%, with Pocharam excluded from this measure. Leasable area totals 46.4 million square feet, while the number of tenants exceeds 310. Foreign multinational companies account for 72% of gross contracted rentals. The market rental value index against in-place rents was 22.8%, while the weighted average lease expiry stood at 7.2 years.

The portfolio’s gross asset value rose 15.9% to about 552 billion rupees, while net asset value per unit increased 7.2% to 565.1 rupees, compared with 527 rupees in the second quarter of fiscal 2026. The completed portfolio totals 37.7 million square feet, with a development pipeline of 6.0 million square feet. During the quarter, the trust acquired 0.15 million square feet across Commerzone Yerwada and Mindspace Madhapur. On financing, the loan-to-value ratio remained at about 29.1%, while the cost of debt held steady at 7.43% annually. These figures reflect the portfolio’s scale and development, alongside debt levels and costs as reported by the trust.

According to Business Standard, Securities and Exchange Board of India rules require real estate investment trusts to distribute at least 90% of their net distributable cash flows. This regulatory threshold provides context for the distribution policy, while the current-quarter amount remains split between dividends and repayment of subsidiary debt, according to Mindspace REIT’s record. The distribution is payable to unitholders registered on 5 November 2026, with payment to be processed no later than 13 November. The trust also scheduled a call to discuss its second-quarter results for 3 November at 8:30 a.m. India time. Business Standard published its report on the results on 2 November, also citing the nearly 0.5 million-square-foot One Radial deal.