Mindspace Business Parks REIT owner and developer of quality Grade A office portfolio located in four key office markets of India, reports first results since listing, for the quarter and half year ended September 2020.
The net operating income of H1FY21 stood at Rs658.4cr and the company raised Rs500cr via debentures at 6.8% p.a. (Rating - CRISIL PP-MLD AAAr/Stable). The weighted average cost of debt reduced from 9.2% in March 2020 to 8.1% in September 2020. The company has low net debt to market value of 13.6%. NAV of Rs338.41 per unit as of September 30, 2020.
The company’s gross leasing remained on track at 1.0 msf, with an average rent of Rs70 psf/month. It achieved re-leasing spread of 33.1% on 0.6 msf of area re-leased and collected more than 99% of Gross Contracted Rentals. Committed Occupancy on enhanced portfolio of 88.9% (4.0 msf completed in last 12 months including 0.8 msf at Commerzone, Porur in Chennai completed in June 2020). Same Store Committed Occupancy of 94.7% (Sep 20 vs Sep 19, on 19.9 msf area).
During the period, the company resumed construction activity for 1.7 msf ongoing, on campus development projects. Workforce strength increasing gradually and stands at over 75% of pre Covid levels. Health and safety measures and protocols in place to ensure a safe work environment. Re-energizing of parks in progress with resumption of planned upgrades across projects
“Mindspace REIT has shown a fair degree of resilience, ensuring the inherent strengths and fundamentals of its business remain intact. Organizational competencies built over the years, cost optimization initiatives, disciplined approach to revenue management and a healthy balance sheet, augured well for the business. What gave Mindspace REIT a distinct advantage was the constant engagement with its long-standing clients, coupled with a cohesive ecosystem with high standards of health and safety, addressing the emerging challenges and varying business dynamics,” the company said in a regulatory filing on Wednesday.
At around 9.40 AM, Mindspace REIT stock was trading at Rs305.24 per piece up Rs0.42 or 0.14% than previous closign of Rs304.82 per piece on the BSE.