Mindspace Business Parks REIT Reports ₹540 Cr in Q4, Focuses on Expansion and Leadership

Mindspace Business Parks REIT reported a 13% year-on-year rise in net operating income for the quarter ended March 2025, reaching ₹540 crore. Alongside the financial update, the company also announced a quarterly distribution of ₹392 crore to unitholders. This performance comes on the back of continued leasing momentum, strategic acquisitions, and development progress across its portfolio. The REIT, sponsored by the K Raheja Corp group, disclosed these figures in its regulatory filing on April 30, 2025.

In a significant leadership development, the company confirmed that Ramesh Nair, currently serving as Chief Executive Officer, has been additionally appointed as Managing Director. His new designation as CEO and MD is effective immediately and will be held for a term of five years. Nair’s expanded role signals continuity in the management’s strategic vision and operational direction. Under his leadership, the REIT has undertaken key leasing activities and acquisitions, which are contributing to the firm’s ongoing growth trajectory.

For the full financial year 2024-25, Mindspace Business Parks REIT posted a net operating income of ₹2,061.6 crore, an increase of 8.9% compared to ₹1,895.9 crore in the previous year. The total distribution to unitholders stood at ₹1,312 crore for the year, marking a growth of 15.5% on an annual basis. These figures reflect stable income generation and consistent cash flows, which are fundamental to the REIT’s ability to make quarterly distributions.

Gross leasing for the fourth quarter of FY25 stood at 2.8 million square feet (msf), bringing the total leasing for the year to 7.6 msf. This included a 1.5 msf building at Mindspace Madhapur in Hyderabad that is currently under redevelopment and has already been pre-leased to a global captive center of a multinational corporation. This indicates strong occupier interest in the company’s assets even before construction completion.

The company also received the Occupation Certificate for the B4 building at Gera Commerzone Kharadi in Pune. The building, with 1 msf of leasable area, is fully pre-leased to another multinational global captive center. Further, the REIT continues to work on an under-construction pipeline of approximately 3.7 msf, with several projects in advanced stages of completion. In addition to organic growth, the company has been active on the acquisitions front. It completed its first Right of First Offer (ROFO) transaction by acquiring 100% equity in Sustain Properties Private Limited, adding 1.8 msf of leasable area at Commerzone Raidurg in Hyderabad. Another acquisition of around 0.26 msf in Mindspace Madhapur, Hyderabad, has helped consolidate its ownership in that business park, adding further value to its portfolio.

Mindspace REIT also announced the appointment of Akshaykumar Chudasama as an Additional Director in the capacity of Non-Executive Independent Director. Chudasama is the Managing Partner at Shardul Amarchand Mangaldas & Co. His inclusion on the Board is expected to bring further governance strength and legal insight to the management team. Commenting on the annual performance, Ramesh Nair stated that FY25 had been a record-breaking year since the company’s listing. He said the company recorded its highest-ever annual gross leasing, while quarterly distributions rose nearly 39% year-on-year. He added that committed occupancy across the portfolio reached 93%, indicating sustained tenant demand for quality office space.

Mr. Nair also pointed out that the company’s net asset value (NAV) increased by 10%, driven by growth in market rentals, accretive acquisitions, and completion of pre-committed buildings. He reaffirmed that demand across the REIT’s portfolio remains strong, supported by the quality of its assets, tenant relationships, and leasing efforts. 

As of March 2025, Mindspace Business Parks REIT’s portfolio stands at 37.1 million square feet. This includes 30 million square feet of completed area, 3.7 million square feet under construction, and 3.4 million square feet earmarked for future development. Its assets are located in Mumbai, Pune, Hyderabad, and Chennai, four major office markets in India. The portfolio is diversified across tenants and sectors, offering resilience and long-term income visibility. With robust leasing, strategic acquisitions, and focused development, Mindspace Business Parks REIT appears positioned for stable growth and steady returns in the coming years.