Mindspace Business Parks REIT reported a 31.9% rise in net operating income to Rs 836 crore for the September 2026 quarter. With 1.6 million sq ft of new space leased, the trust achieved a record 96.1% occupancy. Investors are set for a distribution of Rs 6.67 per unit, payable by November 13, with a record date of November 5.
Mindspace Business Parks REIT has reported strong financial results for the second quarter of the financial year 2027, driven by high demand for its office spaces. The real estate investment trust (REIT) announced a net operating income of Rs 836 crore, marking a 31.9% increase compared to the same period last year. Revenue from operations also saw a significant rise of 29.8% to reach Rs 1,010 crore.
The trust's operational success was largely driven by a strong leasing performance, with 1.6 million sq ft of space leased between July and September 2026. This activity helped push its committed occupancy rate to a record 96.1%. A major contributor to this demand was a deal involving a European financial services firm, which secured 0.5 million sq ft of space. This transaction highlights the continued appetite for high-quality office space among Global Capability Centers (GCCs) in India, which remain a key tenant base for the REIT.
Reflecting the improved financial performance, the trust declared a distribution of Rs 6.67 per unit to its shareholders, a 14.4% increase over the previous year. This total payout of Rs 442 crore is scheduled to be distributed by November 13, 2026, for unit holders on record as of November 5, 2026.
Regarding asset growth, the REIT’s completed portfolio has expanded to 37.7 million sq ft. A key operational highlight was the successful delivery of the trust's first major redevelopment project in Hyderabad, spanning 1.5 million sq ft, which was fully occupied upon completion. The total gross asset value of the portfolio now stands at Rs 55,190 crore, representing a 15.9% increase year-on-year.
The trust maintains a steady financial structure, with a loan-to-value ratio of 29.1% and an average cost of debt at 7.43% per annum. While the results demonstrate operational strength, investors should remain aware of standard REIT risks, such as sensitivity to interest rate changes and the potential for market fluctuations in office demand. Furthermore, the concentration of assets in specific hubs means the company's performance is closely tied to regional commercial real estate cycles in markets like Hyderabad and Pune.
Looking ahead, the REIT has a development pipeline of 6 million sq ft, with an additional 2.7 million sq ft reserved for future expansion. Investors will likely track the trust's ability to maintain high occupancy levels and its progress on the upcoming development projects as it continues to scale its portfolio.