Latest news with #MindspaceBusinessParksREIT
Hindustan Times
20-05-2025
- Business
- Hindustan Times
Are REITs the stability your stock portfolio needs now?
Six years ago, I wrote an article laying out five solid reasons why REITs (Real Estate Investment Trusts) could be a smart option for retail investors. It was April 2019, and India had just listed its first REIT—Embassy Office Parks. The idea was compelling: you could finally own a piece of India's best office buildings, enjoy steady dividend income, and ride the wave of commercial real estate growth. What wasn't to love? Now that we have four REITs — three office-focused and one in retail—it's time to ask: have REITs delivered? And are they truly the stabilisers your stock portfolio needs? Let's start with hard data. The four listed REITs distributed ₹6,070 crore to shareholders in FY25, a 13% jump from a year ago. Seems great, doesn't it? But dig deeper, and the shine fades. Here's the breakdown. Embassy Office Parks REIT, India's first listed REIT, debuted at ₹300 a unit. Nearly six years on, it's trading around ₹385. This translates to a modest 4% annual unit price growth. Brookfield India REIT launched in February 2021 at ₹275 and now trades around ₹299. Price appreciation has been minimal—roughly 2% annualised. Of the three office REITs, Mindspace Business Parks REIT has delivered the best returns. Since its IPO at ₹275 in August 2020, the unit price has risen to ₹395—translating to a ~7.5% annualised capital appreciation. The dividend yields across all three have been similar, at 6-6.5%. Consequently, their overall returns vary quite a bit, with the Mindspace Business Parks REIT delivering 13% plus while Brookfield India REIT only managing 8.5% annualised returns since listing. Interestingly, the most impressive REIT performance hasn't been in the office space, but in retail. The Nexus Select Trust REIT marks two years on the stock exchanges this May and its unit price has appreciated from ₹100 to ₹131, translating to an annualised return of around 14%. Add to that a dividend yield of around 6.5% each year, and investors have made a handsome 21% per annum on this investment. · REITs are not a "fill-it, shut-it, forget-it" investment. In the case of an underperforming REIT, an investor who bought in on Day 1 and held on could see annualised returns as modest as 8.5%. While this beats a fixed deposit, it's roughly at par with debt mutual funds and yet carries a higher market risk. Also Read: From heatwaves to high bills: How to stay cool for less · Timing matters. Entering a REIT at its high can be costly. Take Embassy REIT, for instance. If you bought at its peak of ₹467 in 2020, your dividends wouldn't have cushioned the fall. Same with Nexus Select. Despite being the best-performing REIT, if you jumped in during the August 2024 euphoria at ₹150, you're still waiting to break even. · Let's discuss dividends. Those initially promised yields of 7.5% to 8% lasted only a few quarters before the pandemic struck. Today, dividends hover around 6%. So yes, while dividends are steady, they are not spectacular. And your true upside depends on the price appreciation of the listed unit. Occupancy of Office REITs is a niggling concern. When Embassy REIT listed, its top-tier Grade A offices reported a 95% occupancy. Four years post-COVID, they're still well below their peak. Embassy and Brookfield REITs hover at 87% and 88% occupancy, respectively, and only Mindspace has crossed over to a 91% occupancy. The figures reported by listed REITs are of gross leasing, and not net leasing, which isn't the best practice. Net leasing gives a more accurate picture of the real change in occupancy. Then comes the question around assets transferred to the REIT. Since the sponsor and REIT are the same— Embassy Group owns Embassy REIT, K Raheja owns Mindspace, and Brookfield owns Brookfield REIT — it's unclear how fairly assets are priced when moved into the REIT. Transfer of assets in the previous financial year like Embassy Splendid TechZone, Candor TechSpace N2, and Mindspace's Hyderabad commercial asset, were all claimed to be at a discount to the market value—but who's verifying that? The overlap between sponsor and REIT calls for greater scrutiny and stronger safeguards for investors. If you're looking for a portfolio diversifier that offers steady income with relatively low downside, REITs fit the bill. But if you're chasing growth with a surety of double-digit returns, dial down those expectations. Also, know that all REITs are not equal, even though they wear a similar badge of being India's top grade A office asset owners. The quality of management matters. Returns vary quite a bit. Just like stocks, REITs demand homework and an entry at a fair valuation. Retail investors would do well to stay informed and stay discerning. Manisha Natarajan is a well-known editorial voice in Real Estate and Sustainable Built Environment.
Business Insider
04-05-2025
- Business
- Business Insider
Jefferies Sticks to Its Buy Rating for Mindspace Business Parks REIT (MINDSPACE)
In a report released on May 2, Abhinav Sinha CFA from Jefferies maintained a Buy rating on Mindspace Business Parks REIT (MINDSPACE – Research Report), with a price target of INR420.00. The company's shares closed last Tuesday at INR345.06. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Mindspace Business Parks REIT has an analyst consensus of Hold.
Business Standard
02-05-2025
- Business
- Business Standard
Mindspace Business Parks REIT consolidated net profit declines 26.77% in the March 2025 quarter
Sales rise 13.53% to Rs 704.14 crore Net profit of Mindspace Business Parks REIT declined 26.77% to Rs 86.85 crore in the quarter ended March 2025 as against Rs 118.60 crore during the previous quarter ended March 2024. Sales rose 13.53% to Rs 704.14 crore in the quarter ended March 2025 as against Rs 620.24 crore during the previous quarter ended March 2024. For the full year,net profit declined 9.29% to Rs 476.28 crore in the year ended March 2025 as against Rs 525.04 crore during the previous year ended March 2024. Sales rose 8.04% to Rs 2660.47 crore in the year ended March 2025 as against Rs 2462.39 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 704.14620.24 14 2660.472462.39 8 OPM % 72.0071.24 - 72.1571.95 - PBDT 354.62326.58 9 1377.461329.66 4 PBT 250.28232.56 8 971.47947.00 3 NP 86.85118.60 -27 476.28525.04 -9
Hindustan Times
30-04-2025
- Business
- Hindustan Times
Mindspace Business Parks REIT reports 13% rise in Q4 net income to ₹540 crore; Appoints Ramesh Nair as MD and CEO
Mindspace Business Parks REIT on April 30 reported a 13% year-on-year increase in net operating income, reaching ₹540 crore for the quarter ended March. The company also declared a distribution of ₹392 crore for the same period. In a regulatory filing, the company announced that Ramesh Nair, currently serving as CEO, has been additionally appointed as Managing Director. His new designation, CEO and Managing Director, is effective immediately and will be held for a five-year term. The company's net operating income (NOI) rose 8.9% in 2024-25 to ₹2,061.6 crore from ₹1,895.9 crore in the preceding year. The distribution to unitholders stood at ₹1,312 crore for 2024-25, a growth of 15.5% on an annual basis. The company recorded gross leasing of 2.8 msf in Q4 FY25, taking cumulative leasing for FY25 to 7.6 msf. An entire building under re-development at Mindspace Madhapur, Hyderabad with leasable area of 1.5 msf pre-leased to a large MNC Global Captive Center, the company said. The company has received an Occupation Certificate for B4 Building at Gera Commerzone Kharadi, Pune, spread across 1 msf, entirely pre-leased to a large MNC Global Captive Center. It is actively working on an under construction pipeline of around 3.7 msf, the company said. As far as the company's acquisitions update is concerned, the company said that it had successfully completed its 1st ROFO transaction by acquiring a 100% equity shareholding in Sustain Properties Private Limited, which houses 1.8 msf at Commerzone Raidurg, Hyderabad. The company also concluded acquisition of around 0.26 msf in Mindspace Madhapur, Hyderabad, consolidating ownership in the Business Park, it said. In a leadership update, the company said that the Board of Directors of K Raheja Corp Investment Managers Pvt. Ltd., the Manager to Mindspace REIT, has recently appointed Akshaykumar Chudasama as an Additional Director in the capacity of Non-Executive Independent Director. He is the Managing Partner of Shardul Amarchand Mangaldas & Co. Ramesh Nair, CEO and MD, Mindspace REIT said, 'FY25 has been a record-breaking year for us, our best ever since listing. We achieved our highest-ever annual gross leasing of 7.6 msf and delivered a strong quarterly distribution of ₹392 crore, up ~39% YoY, the highest growth since listing. Net Operating Income for the quarter grew ~13% YoY to ₹540 crore, and committed occupancy rose to 93%2. With 3.6 msf already pre-leased, demand for top-quality office space remains robust across our portfolio.' He said that the company's NAV has grown by 10% driven by rising rentals across our micro markets, accretion from acquisitions and completion of pre-committed buildings. 'We remain optimistic about the long-term outlook for our portfolio underpinned by the quality of our assets, trusted tenant relationships, and proactive leasing efforts. Moreover, our focus on strategic acquisitions, and steady development progress positions us well for a sustained long-term growth.' Mindspace Business Parks REIT, sponsored by K Raheja Corp group, owns office portfolios in Mumbai, Pune, Hyderabad, and Chennai. The portfolio has a total leasable area of 37.1 million square feet, comprising 30 million square feet of completed area, 3.7 million square feet of area under construction and 3.4 million square feet of future development.
Time of India
30-04-2025
- Business
- Time of India
Mindspace REIT Q4 Results: Net income rises 13% to Rs 540 crore; Ramesh Nair elevated as MD & CEO
Mindspace Business Parks REIT on Wednesday reported a 13 per cent increase in its net operating income to Rs 540 crore and declared a distribution of Rs 392 crore for the quarter ended March. Ramesh Nair , currently the CEO, has been additionally appointed as the Managing Director. His new designation is 'CEO and Managing Director', effective immediately, for a period of 5 years, according to a regulatory filing. The company's net operating income (NOI) rose 8.9 per cent in 2024-25 to Rs 2,061.6 crore from Rs 1,895.9 crore in the preceding year. The distribution to unitholders stood at Rs 1,312 crore for 2024-25, a growth of 15.5 per cent on an annual basis. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thousands Are Saving Money Using This Wall Plug elecTrick - Save upto 80% on Power Bill Click Here Undo "FY25 has been a record-breaking year for us, our best ever since listing," Nair said. "We achieved our highest-ever annual gross leasing of 7.6 million square feet and delivered a strong quarterly distribution of Rs 392 crore, up 39 per cent year-on-year (YoY), the highest growth since listing," he said. Nair said the committed occupancy rose to 93 per cent. Live Events "With 3.6 million square feet already pre-leased, demand for top-quality office space remains robust across our portfolio. Our NAV has grown by 10 per cent, driven by rising rentals across our micro markets, accretion from acquisitions and completion of pre-committed buildings," he said. Nair remained optimistic about the long-term outlook for its portfolio, underpinned by the quality of its assets, trusted tenant relationships, and proactive leasing efforts. "Moreover, our focus on strategic acquisitions and steady development progress positions us well for sustained long-term growth," he added. Mindspace Business Parks REIT, sponsored by K Raheja Corp group, owns office portfolios in Mumbai, Pune, Hyderabad, and Chennai. The portfolio has a total leasable area of 37.1 million square feet, comprising 30 million square feet of completed area, 3.7 million square feet of area under construction and 3.4 million square feet of future development.
