Mindspace Business Parks Reit, a real estate investment trust supported by K Raheja Corp, reported significant growth in its Net Operating Income (NOI) for the first quarter of the fiscal year 2027 (Q1 FY27). NOI increased by 27.8% compared to the same period last year, reaching INR 788 crore.
This growth was driven by several factors: increased rental income, asset acquisitions, active leasing activities, and maintaining a high occupancy rate across the entire portfolio.
The trust's operating revenue for the reporting quarter amounted to INR 951 crore, demonstrating a year-on-year growth of 26.4%. Furthermore, the trust announced a distribution of INR 442 crore to its unitholders in Q1 FY27, equivalent to a Distribution Per Unit (DPU) of INR 6.67, an increase of 15.2% year-on-year.
In compliance with the requirements of the Securities and Exchange Board of India (Sebi), trusts are obligated to distribute at least 90% of their Net Distributable Cash Flows (NDCF). NDCF is a standard financial metric established by Sebi to calculate the actual surplus cash flow available for distribution to the trust's investors. Trust payouts can take the form of dividends, interest, debt amortization from special project companies, or a combination of these elements.
Ramesh Nair, Managing Director and CEO of Mindspace Reit, noted that the results reflect the strength of the portfolio, the quality of assets, and disciplined management. He added that demand for campuses remains high, as most office spaces under construction are scheduled to be handed over within the next twelve months and are already pre-booked. To further enhance the integrated campus ecosystems and improve tenant service quality, the company has launched two new office projects and two new hotels.
In the first quarter of fiscal year 2027, the trust registered gross leasable area of 0.9 million square feet (msf), which decreased by 47% year-on-year. The average rental rate across the trust's portfolio was INR 81 per square foot per month, up from INR 73 per square foot per month. Meanwhile, occupancy in the Mindspace portfolio stood at 95.8%, slightly higher than the 95.7% recorded in the fourth quarter of fiscal year 2026.
Mindspace is working on a pipeline of projects under construction totaling 6.6 msf. During Q1 FY27, the company announced two new office buildings and two new hotels spanning 1.7 msf, located in Pune, Mumbai, and Hyderabad. The total portfolio size is approximately 46.2 msf, with the total asset value estimated at INR 51,890 crore. Quarter-over-quarter (QoQ), Mindspace's NOI grew by 6.19%, while gross leasable area declined by 74.28%.
