Mindspace Business Parks REIT reported Q3 FY26 net operating income of ₹671 crore, up 28.7% year on year. Revenue and distributions also rose sharply, supported by strong leasing activity, portfolio acquisitions in Mumbai and Pune, rising rentals, and disciplined capital management across its 39 million sq ft office portfolio.
Mindspace Business Parks REIT reported a robust operating performance for the quarter ended December 31, 2025, reflecting sustained demand for quality office assets across its portfolio. Net operating income for Q3 FY26 stood at ₹671 crore, marking a 28.7% year-on-year increase. Revenue from operations rose 27.2% to ₹816 crore compared to the same quarter last year, supported by higher occupancies, rental growth, and incremental contributions from recent acquisitions.
Distributions to unitholders also improved meaningfully during the quarter. The REIT declared a distribution of ₹378 crore, up 19.8% year on year, while distribution per unit increased 9.6% to ₹5.83. The steady growth in cash flows highlights the stability of institutional-grade office assets even amid evolving workplace trends.
Leasing Momentum and Rental Upside
Leasing activity remained healthy during the quarter, reinforcing confidence in India’s office market recovery. Mindspace REIT recorded gross leasing of around 1.1 million sq ft, with committed occupancy improving sequentially to approximately 94.5%. Re-leasing spreads remained strong at about 27.4% on nearly 1 million sq ft of space that was re-let, pointing to meaningful rental uplifts across key assets.
Commenting on the performance, Ramesh Nair, CEO and Managing Director of Mindspace REIT, said, “The quarter reflected sustained demand for quality office assets.” He added that strong re-leasing spreads and rising in-place rents indicate improving market fundamentals. The portfolio’s in-place rent now stands at around ₹75 per sq ft per month, reflecting steady pricing traction across major micro-markets.
Portfolio Expansion Strengthens Scale
During the quarter, Mindspace REIT continued to strengthen its footprint through inorganic growth. The REIT acquired central business district office assets in Mumbai and Pune, adding approximately 0.8 million sq ft of leasable area. This brings the total inorganic additions since listing to nearly 4 million sq ft, significantly enhancing the portfolio’s scale and diversification.
The acquisitions also pushed the REIT’s gross asset value to about ₹44,136 crore. Sponsored by the K Raheja Group, Mindspace REIT now has a total leasable portfolio of around 39 million sq ft, comprising 31.9 million sq ft of completed area, 3.6 million sq ft under construction, and 3.5 million sq ft earmarked for future development.
Development Pipeline and Market Strength
Beyond acquisitions, the REIT continues to progress a development pipeline of roughly 3.6 million sq ft. During the quarter, it received an occupancy certificate for the Pearl Club at Mindspace Madhapur in Hyderabad, a market that has seen particularly strong rental growth. These developments position the REIT to capture future demand as new supply comes online in high-performing office hubs.
Balance Sheet Remains Resilient
On the financial front, Mindspace REIT maintained a conservative balance sheet. Loan-to-value stood at approximately 24.9%, providing ample headroom for future growth. The REIT raised ₹1,900 crore through non-convertible debentures at an effective rate of 6.98%, helping reduce its overall cost of debt to 7.39%.
With strong leasing, rising rents, and disciplined capital allocation, Mindspace Business Parks REIT continues to demonstrate resilience and long-term value creation in India’s Grade A office market.
