Mindspace REIT Q3 net dips 13% to Rs 127 cr on higher interest cost

This is despite a 23.4% surge in total revenue to Rs 544 cr in Q3FY23, from Rs 441 crore a year ago

K Raheja Corp group-backed Mindspace Business Parks REIT reported a 13.11 per cent decline in net profit for the third quarter of FY23, mainly on account of higher interest cost. The lower profit figure comes in despite a 23.4 per cent surge in total revenue to Rs 544 crore in Q3FY23, from Rs 441 crore in the year-ago period.

Mindspace REIT's net operating income rose 22 per cent to Rs 455 crore for the reporting quarter, from Rs 373.7 crore a year ago.

The company announced a 3.4 per cent year-on-year increase in distribution to unitholders, at Rs 4.80 per unit. The record date for the distribution, which entails an outgo of Rs 284.6 crore, is February 6.

Mindspace Business Parks raised Rs 1,000 million through issuance of Commercial Paper at the REIT level, the company said.

Mindspace REIT’s committed occupancy was up 88.3 per cent sequentially, while in-place rents grew by 9.4 per cent YoY.

“We are delighted to report yet another strong quarter, recording a gross leasing of 1.3 million sq ft in the third quarter taking the cumulative first nine months (9M) of FY23 leasing to 3.5 million sq ft. Despite the challenging economic environment, the committed occupancy of the portfolio jumped by 400 bps to 88.3 per cent during 9M FY23,” said Vinod Rohira, chief executive officer, Mindspace Business Parks REIT.

Mindspace REIT, which plans to redevelop 1.6 million sq ft at Madhapur, owns office portfolios in four key commercial markets, namely Mumbai Region, Pune, Hyderabad, and Chennai. The portfolio has a total leasable area of 32 million sq ft, of which 25.6 million sq ft is completed area, 1.8 million sq ft is under construction and 4.6 million sq ft is for future development. The portfolio has five integrated business parks and five independent office assets.