Mindspace Business Parks REIT, one of India’s leading Grade-A office space owners and developers, has reported a solid second quarter for FY26 with strong operational and financial growth. The REIT posted a Net Operating Income (NOI) of ₹634 crore, marking a 25.8% year-on-year (YoY) increase, while Revenue from Operations rose by 24.8% YoY to ₹778 crore.
The quarter also saw gross leasing of approximately 0.8 million sq. ft., reflecting sustained demand for high-quality office spaces across Mindspace’s portfolio.
Strong Leasing and High Occupancy
Mindspace REIT maintained a committed occupancy of around 93.8%, which increases to 94.6% on a like-to-like basis, excluding the newly acquired Q-City (now rebranded as The Square 110 Financial District).
The REIT achieved a re-leasing spread of about 28%, indicating robust rental growth, particularly in Hyderabad’s Madhapur micro market. Mindspace also signed its first deal in Madhapur at approximately ₹100 per sq. ft. per month, underscoring the potential for further rental upside.
“With a robust balance sheet, low leverage, and declining cost of debt, we remain well positioned to deploy capital in our development pipeline and capitalize on the strong demand for Grade-A office spaces,” said Ramesh Nair, CEO & MD, Mindspace REIT.
Financial Performance: Revenue, NOI, and Distribution Up
For Q2 FY26, Mindspace REIT’s:
- Revenue from operations stood at ₹778 crore (up 24.8% YoY).
- Net Operating Income (NOI) stood at ₹634 crore (up 25.8% YoY).
- Distribution to unitholders increased by 16.3% YoY to ₹355 crore.
- Distribution per unit (DPU) grew 13.2% YoY to ₹5.83 per unit.
On a half-yearly basis, NOI for H1 FY26 rose by 25% YoY to around ₹1,250 crore. The record date for Q2 distribution is November 8, 2025, and payments will be made on or before November 14, 2025. Since its listing, the REIT has cumulatively distributed about ₹5,950 crore, translating to approximately ₹99.9 per unit.
Portfolio Value and Balance Sheet Strength
As of September 30, 2025, Mindspace REIT’s Gross Asset Value (GAV) rose to ₹41,020 crore, up from ₹36,647 crore in March 2025. The Net Asset Value (NAV) per unit stood at ₹483.7.
The REIT maintained a conservative Loan-to-Value (LTV) ratio of about 24.2%, reflecting strong financial stability. Its cost of debt further reduced by 32 basis points sequentially to 7.52% per annum, aided by refinancing and recent rate cuts.
Mindspace raised ₹1,700 crore through Commercial Papers at an effective rate of 6.12%, and ₹1,150 crore through Non-Convertible Debentures (NCDs) at 7.12%.
Sustainability and Global Recognition
Mindspace REIT continued to earn international recognition for its sustainability initiatives. For the third consecutive year, it achieved a 5-star GRESB rating and was named ‘Global Listed Sector Leader – Office Development Benchmark’.
Its Development Benchmark scored 100/100, ranking 2nd among 18 peers in Asia, while the Standing Investment Benchmark scored 93/100, also ranking 2nd among 20 peers in Asia.
Development Pipeline and Outlook
Mindspace REIT is actively progressing on an under-construction pipeline of approximately 3.7 million sq. ft., positioning it to capture future demand in India’s premium office markets. With low leverage and stable occupancy, the REIT remains optimistic about sustained growth in rentals and portfolio expansion.
The company believes the strong absorption trends across Hyderabad and Navi Mumbai will continue to drive performance in the coming quarters.
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