Mindspace Business Parks REIT (BSE: 543217 | NSE: MINDSPACE) (‘Mindspace 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 impact and temporary disruptions of COVID-19 on businesses worldwide and India has been significant. 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.
Performance Highlights for H1 FY 2021
· Gross leasing remained on track at 1.0 msf, with an average rent of INR 70 psf/month
· Achieved Re-leasing spread of 33.1% on 0.6 msf of area re-leased
· 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)
Financial Highlights for H1 FY2021
Net Operating Income of INR 6,584 Mn
· Raised INR 5,000 Mn via debentures at 6.8% p.a.(1) (Rating – CRISIL PP-MLD AAAr/Stable)
· Weighted average cost of debt reduced from 9.2% in March 2020 to 8.1%(2) in September 2020
· Robust balance sheet with low net debt to market value of 13.6%(3)
· NAV of INR 338.41 per unit as of 30 September 2020
Operational Update for H1 FY2021
· 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
Other Updates for H1 FY2021
· Received the British Safety Council’s Covid-19 Assurance Assessment, for our globally benchmarked workplace, health, safety and environment standards, across key projects
· Became the first real estate entity from India to join the Climate Group’s EV 100 initiative, committing to 100% electric mobility by 2030
Speaking on the results, Mr. Vinod Rohira, Chief Executive Officer, Mindspace Business Parks REIT said, “Our long-standing relationships and quality of tenants has ensured resilience in the portfolio which is reflected in the collection of 99% rentals. We have added marquee tenants to our portfolio, while helping existing tenants grow their footprint within our Business Parks. The next few quarters remain challenging and we will see gradual grassroots of demand emerge. We continue to invest our time in keeping engaged with our Clients, and work on re-energising our Parks, with a focus on health and safety, as we continue to partner with Clients for their business and growth needs.”
Investor Communication and Quarterly Investor Call Details
Mindspace REIT has disclosed following information pertaining to the financial results and business performance (i) interim condensed standalone and consolidated financial statements for the quarter and half year ended 30 September 2020 (The consolidated financial results include financial results of Asset SPVs for cumulative two month period from 01 August 2020 to 30 September 2020) and (ii) an earnings presentation covering Q2 and H1 FY2021 results. All these documents are available on Mindspace REIT’s website at https://www.mindspacereit.com/investor-relations/financial-updates/#ir