Mindspace Business Parks Reit delivered exceptional performance in Q1 FY27, achieving record occupancy of 95.8% - the highest in the company's history. As reported by CNBC TV18, MD and CEO Ramesh Nair attributed this milestone to robust office demand, particularly from global capability centres (GCCs) which now account for 53% of the tenant profile. The company's gross leasing activity reached 0.9 million square feet during the quarter, while in-place rents stood at ₹81 per square foot per month, compared to ₹73 previously. The strong occupancy performance reflects the company's disciplined execution and successful positioning in high-demand markets across Hyderabad, Pune, Navi Mumbai and Chennai.
Mindspace Business Parks Reit delivered robust financial results for Q1 FY27, with consolidated net profit rising 67.10% year-on-year to ₹261.87 crore compared to ₹156.71 crore in the previous year. According to reports from Business Standard, the K Raheja Corp-backed real estate investment trust's revenue from operations stood at ₹946.44 crore, up 27.85% YoY from ₹740.26 crore in Q1 FY26. The strong performance was driven by higher rental income supported by acquisitions, healthy leasing activity and sustained high occupancy across the portfolio. Net operating income (NOI) increased 28% year-on-year to ₹788 crore for the quarter ended June, as reported by CNBC TV18.
The Reit declared a record quarterly distribution of ₹442 crore for Q1 FY27 for its unitholders, translating to a distribution per unit (DPU) of ₹6.67, up 15.2% YoY. As reported by Business Standard, this distribution performance aligns with Sebi regulations requiring Reits to distribute at least 90% of their Net Distributable Cash Flows (NDCF). The record date for the distribution is August 8, and since listing, the REIT has distributed approximately ₹7,201 crore, or about ₹119 per unit to unitholders. According to CNBC TV18, DPU growth has been consistent with double-digit growth for the past four quarters, with the company delivering 15% growth in the current quarter, 15% in the previous quarter, 13% two quarters ago, and 10% in the quarter before that. This represents the highest-ever quarterly distribution per unit in the company's history.
The strong performance is driven by robust office demand, particularly from global capability centres which now account for 53% of Mindspace REIT's tenant profile. As reported by CNBC TV18, GCCs currently drive around 40-45% of overall office demand in the market. The company has benefited from this trend through its presence in markets where GCC demand remains strong. Office absorption across the four markets has remained strong despite macroeconomic and geopolitical challenges, with net absorption in the first six months of the year growing 12%. Over the last three years, absorption numbers have grown at 18%, 16% and 15% across the four markets where the company operates. The tightening availability of quality office space is supporting the market, with India's relevant office stock at 530 million square feet having vacancy at 9.9%, and Bombay experiencing the lowest vacancy in 15 years.
As reported by Business Standard, Mindspace is working on an under-construction project pipeline of 6.6 million square feet. During Q1 FY27, the company announced two new office buildings and two hotels spanning 1.7 million square feet across Pune, Mumbai and Hyderabad. The company's portfolio size stands at around 46.2 million square feet with a gross asset value of ₹51,890 crore. As part of its diversification strategy, Mindspace REIT has announced two hotels in Pune and Hyderabad that have been pre-let to Chalet Hotels, taking the total number of hotels across its campuses to five. The company's data centre portfolio now stands at 1.7 million sq. ft.. Approximately 4.7 million square feet of the under-construction pipeline is expected to be completed during FY27, with most of this space already leased, as reported by CNBC TV18.
According to Business Standard, the Reit's gross asset value increased to ₹51,890 crore following the addition of newly acquired assets. The company's loan-to-value ratio stood at about 29.7%, while the cost of debt remained flat sequentially at 7.42% per annum. The company completed the acquisition of a 100% stake in Commerzone Pallikaranai and a 51% stake in International Tech Park Chennai - Radial Road, now re-branded as One Radial. Following these acquisitions, the portfolio's committed occupancy stands at 92.1%, reflecting the company's disciplined execution and strong demand for its integrated campus ecosystems. IT services companies continue to take up office space despite relatively muted headcount growth, with companies increasingly seeking ready-to-occupy offices in major cities rather than building their own campuses or moving to locations further from city centres.
