MINDSPACE — earnings call
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Prepared remarks
Unattributed
“Mindspace Business Parks REIT
Earnings Call for Q3 FY2026 Financial Results”
January 28, 2026
MANAGEMENT: MR.
RAMESH NAIR – CHIEF EXECUTIVE OFFICER &
MANAGING DIRECTOR – MINDSPACE BUSINESS PARKS
PREETI CHHEDA – CHIEF FINANCIAL OFFICER –
MINDSPACE BUSINESS PARKS REIT
GOVARDHAN GEDELA – HEAD (CORPORATE
FINANCE) – MINDSPACE BUSINESS PARKS REIT
SHWETA SHAH – MANAGER, CORPORATE FINANCE
& INVESTOR RELATIONS - MINDSPACE BUSINESS PARKS
Mindspace Business Parks REIT
January 28, 2026
Moderator
Ladies and gentlemen, good day and welcome to Mindspace Business Parks REIT Earnings
Call for Q3 FY2026 Financial Results.
Please note all participant lines will be in the listen
only mode, and there will be an opportunity for you to ask questions after the presentation
Please note that this conference is being recorded.
With that, I hand over the call
Shweta Shah from Mindspace Business Parks REIT.
Thank you and over to you.
Good evening, everyone and thank you for joining the earnings call for Q3, FY2026 of
Mindspace Business Parks REIT.
At this point, we would like to highlight that the
management may make certain statements that may be forward-looking in nature.
advise that our actual results may differ materially from these statements.
guarantee these statements or results and are not obliged to update them at any point of
I would now like to welcome our CEO and MD, Mr.
Ramesh Nair, CFO Ms.
Govardhan Gedela, Head, Corporate Finance, who will take you through
the business update and the financial performance during the quarter.
I will now hand over
the call to Ramesh.
Ramesh Nair
Thank you, Shweta.
Good evening, everyone and thanks for joining us all today.
quarter was another strong quarter for Mindspace REIT.
The quarter was driven by strong
demand for grade A office assets and disciplined execution by us.
We recorded gross
leasing of 1.1 million square feet.
This momentum translated into good financial
NOI grew by 28.7% year-on-year to Rs.671 Crores.
Distribution for the
quarter increased by 19.8% year-on-year, delivering a DPU of 5.83 per unit.
show for the nine-month period of FY’26.
NOI grew by 26% year-on-year to Rs.1,922
Crores and distributions increased by 18.1% year-on-year, resulting in 12.5% DPU growth.
Rental traction remains healthy across the portfolio.
We achieved a re-leasing spread of
27.4% on 1 million square feet re-let during the quarter.
Rentals continue to trend upward,
particularly in Madhapur.
In Madhapur, we signed a transaction at Rs.105 per square foot,
highlighting significant mark-to-market potential.
During the quarter, we further
strengthened and scaled up our portfolio to announce acquisitions.
Prime CBD assets in
Mumbai like Ascent-Worli, which is Goldman Sachs HQ in India, The Square in BKC
(Annex), which is JP Morgan's HQ in India, and a small office asset in Pune.
acquisitions added 800,000 square feet of leasable area to our portfolio.
I am happy to share
that we have concluded the acquisition earlier this month.
These assets are irreplaceable,
increasing our CBD portfolio and benefit from strong scarcity premiums.
there are two clear drivers for our growth.
Well-chosen acquisitions and a development
pipeline we can execute with discipline and focus.
A strong balance sheet keeps us agile.
This gives us the ability to pursue when the right opportunity presents itself.
Mindspace Business Parks REIT
January 28, 2026
is straightforward-consistent execution and delivery, reinforcing our performance and
building trust.
I would now like to share highlights from the various IPC reports.
look at the JLL insights first.
In 83 million square feet of gross leasing in 2025, up 8% from
77 million square feet.
GCC led demand by 31.4 million square feet, up 13% year-on-year,
accounting for 38% of total leasing.
Q4 2025 leasing hit a record 27 million square feet,
driven by global firms and expanding GCCs.
Net absorption again crossed 57 million
square feet, up 14% year-on-year.
Vacancy is the lowest in the last five years, with many
micro-markets witnessing single-digit availability.
Now let us look at the CBRE insights.
GCCs are said to drive 35% to 40% total absorption in 2026.
Demand is driven by steady
investment, portfolio expansion and ongoing digitization by global and domestic firms.
While US firms remain the main GCC drivers, EMEA and APAC occupiers are
increasingly setting up shop in India.
New supply rose 10% year-on-year to 59 million
square feet in 2025.
Q4 completions increased 10% year-on-year to 16.6 million square
The Cushman and Wakefield report states that 2026 completions projected at 60
million square feet to meet rising demand, growth driven mainly by fresh leasing alongside
a steady rise in pre-commitment.
Despite higher 2026 supply, vacancy is expected to remain
Reads and listed developers likely to expand further in 2026, which is
expected to increase the share of premium grade certified grade A assets.
report stated that with demand exceeding supply in 2025, vacancy declined year-on-year,
while average rental rose up to 15% YoY across major cities.
Hyderabad was driven by
BFSI, consulting and healthcare together accounting for more than 50% of the conventional
leasing in Hyderabad.
Hyderabad market against our rental increased by more than 15%.
Mumbai, with limited new supply in 2025, vacancy fell to 8% and rental strengthens
sharply year-on-year.
Now we come to the operating and growth highlights.
We recorded gross leasing of 1.1
million square feet in Q3 FY2026.
The committed occupancy for the quarter stood at 95.3%
excluding Pocharam and the acquisition being made in the second quarter FY2026.
acquired asset, the square financial district is undergoing a planned stabilization phase as
we evaluate and implement value enhancement ideas.
Including the financial district asset
The Square; the portfolio committed occupancy for the quarter stood at 94.5%.
achieved a releasing spread of 27.4% for Q3 FY2026 on 1 million square feet of area re-
We saw robust growth in rentals across our micro-markets, especially Madhapur,
We signed a deal in Madhapur, like I mentioned, at Rs.105 per square foot,
offering huge mark-to-market potential.
This follows last quarter deal signed at a rent of
Rs.100 per square foot, reinforcing sustained rental momentum.
A global Fintech giant
renewed their office space for 10 years giving us a mark to market of 50% in Hyderabad.
Similarly a global engineering GCC renewed their space for 10 years giving a mark to
January 28, 2026
In place rent for portfolio today stands at Rs.75 per square foot, indicating
clear headroom for mark-to-market opportunities.
I am happy to share that we have
received occupancy certificate for the Pearl Club in Mindspace Madhapur.
We also received
full occupancy certificate for Mindspace Fusion in Mindspace Airoli East.
Growth pipeline
is well on track.
We are actively working on under construction of 3.6 million square feet
and approval for the balance 3.5 million square feet development pipeline are at advanced
We are very pleased to share that we have been ranked in top five REIT globally out
of 377 REIT in 2025 in the S&P Corporate Sustainability Assessment, the DJSI.
aware, portfolio expansion remains a strategic priority with a continued focus on value-
added acquisitions.
Over the past year, we have grown our completed portfolio size by over
4 million square feet.
This is through a mix of organic and inorganic growth strategies.
Organically, we successfully constructed and leased 1.3 million square feet.
building in Pune and one data center.
Our inorganic growth included acquisition of
sponsored assets of nearly 2.6 million square feet, the hetero-commerzone asset in
Hyderabad, the asset in Worli, the square asset in BKC, and the Rahejawoods in Pune.
large external third-party acquisition asset of 0.8 million square feet, which is the Q-City
acquisition, and a consolidation within our parks of 300,000 square feet.
Moving forward,
we intend to focus more on acquisitions to strengthen our portfolio.
With a scalable
platform in place, we will continue to pursue high-quality assets in our core markets.
A broad update on the development side.
At Mindspace Airoli East, Fusion, our F&B hub,
added many new outlets last quarter.
Upon completion, we have 22 F&B and retail outlets,
which will be lined up.
As a public-facing destination, Fusion will bring more footfall and
buzz to the park.
Also, upgrade work is underway across buildings 1,9, 10, 11, and 12 in
We are creating premium hospitality arrival experiences in the sense of calm
The lobbies would be both sophisticated and functional.
Clubhouse upgrades have
commenced and progressing well.
We are also building a new food court and sports arena.
Regular upgrades and redevelopments keep our parks future ready.
At Mindspace Airoli
West, committed occupancy has climbed from 72% nearly two years back to 96% since the
demarcation announcement in December 2023.
Across a 5.4 million square feet business
park in Airoli West, vacancy today stands at a low of close to 200,000 square feet.
progress strengthens our confidence in Navi Mumbai's growth and our long-term plan for
the micro-market.
Rentals have moved up as well, with recent deals in Airoli being signed
at Rs.71 per square foot.
We currently have two data centers up and running in Airoli West,
three more are in different stages of development.
Mindspace is the only Indian REIT with
a data center portfolio today.
Once completed, our portfolio will include about 1.7 million
square feet of data center space.
Starting early in data centers has been advantageous as
demand for digital infrastructure continues to rise.
At Mindspace Madhapur, 10 million
January 28, 2026
square feet business park, vacancy is as low as 180,000 square feet.
The Pearl Club, which
is the experience center, remains on track for opening.
We are also extending our Skywalk
from one kilometer to two kilometer to improve tenant experience.
The Skywalk is further
expected to ease commute for nearly 100,000 people who use our Madhapur Park.
also provide direct link from the Raidurg Metro Station to key points within our campus.
also helps reduce road crossings and traffic congestion.
In Commerzone Yerwada, our
upgrades are aimed at making the campus more vibrant and engaging for everyday users.
Refurbishment of the entrances has begun, improving the welcome experience.
B1’s food court is also progressing well.
We are also undertaking lobby and facade
Plans are underway to add terrace amenities and a revitalized central recreational
Let us look at customer centricity.
We put customers first, their feedback shapes our
priorities and sustainability is built into everything we do.
We fast-tracked our H23
program, which is 23 focused actions to bring a more premium hospitality-led feel across
We have added more spaces to relax and connect, more breakout zones, indoor
games, music corners, and cafe-style seating.
We are strengthening amenities across parks
with better food options, activated terraces, improved clubhouses, and covered walkways.
Elevator upgrades are also in progress guided by life cycle assessments.
We organized 16
tenant employee events last quarter from festive celebrations and sports tournaments to
stand up comedy and curated third party formats.
We are directing capex into modernizing
assets to drive stronger renewals and long-term stickiness based on the surveys, audits, and
regular tenant inputs.
The aim is simple; improve everyday experience for our valued
occupier clients.
These upgrades help us win and retain tenants.
We understand that value
comes from the park experience, not just the address.
Our approach is consistent, build,
lease, upgrade and repeat.
In terms of ESG, Mindspace earned strong global recognition for
our sustainability work.
We are ranked among the top five REIT worldwide out of 377
REIT in the 2025 DJSI Corporate Sustainability Assessment with an overall score of 73 out
Green building milestones included building B4 in Kharadi achieving an IGBC
Platinum and LEED v4 Gold and Madhapur buildings 1 and 8 which received EDGE pre-
These achievements reflect our focus on building in ways that use energy,
water and materials more efficiently.
In conclusion, over the next one to two years, grade A supply constraints in many markets
will support near-term pricing power for Mindspace REIT.
On the demand side, AI-related
job placement is not yet a material risk for Indian office markets.
Lower interest rates
should benefit us at Mindspace given stable long duration cash flows.
delivered excellent returns of 37% in calendar year 2025, significantly outperforming Nifty
Indian REITs have now seen a full market cycle and we have proven resilience
across COVID, rate hikes and SEZ disruption.
With relatively lower interest rates compared
January 28, 2026
to a year ago, cost of debt is now below cap rates, supporting accretive acquisitions.
Mindspace has low leverage, giving us headroom along with balance sheet strength.
have also demonstrated our ability to close accretive acquisitions.
We also have a strong
sponsored acquisition engine and the proven capability to execute large accretive
acquisitions efficiently.
We are also benefiting from rental buoyancy in many of our micro
markets, offering embedded mark-to-market.
Our exposure to Hyderabad is helping us
significantly today, given that Hyderabad has become India's most sought-after GCC
Stepping back, the message is consistent.
Pricing power, resilience through
cycles, multiple levers for growth, and clear drivers for rental re-rating.
We thank each one
of you, our analysts and investors, for your continued support and guidance, which has been
instrumental in our journey.
At Mindspace REIT, we continue to build loved workspaces
and maximizing value.
Our investor proposition remains unchanged, high quality occupiers,
disciplined growth, sustainability-led action, and stable returns.
Thank you all for your time.
I will now hand it over to Preeti for further financial updates of the quarter.
Preeti Chheda
Thank you, Ramesh and good evening, everyone.
I am pleased to present yet another
quarter of strong financial performance.
Revenue from operations for Q3 FY2026 increased
27.2% Y-o-Y to Rs.8.2 billion, while NOI for Q3 FY2026 grew 28.7% Y-o-Y to Rs.6.7
Distributions for the quarter rose 19.8% Y-o-Y to approximately Rs.3.8 billion.
DPU grew 9.6% Y-o-Y to Rs.5.83 per unit on a higher unit base following our recent
concluded acquisition.
I am pleased to report that we have successfully completed the
acquisition of sponsored assets in Mumbai and Pune, which are Ascent Worli, the Square
BKC (Annex) and an IT building in Pune.
With this, the GAV of the portfolio now stands at
Rs.441 billion, basis September 25 valuation.
Including these assets, we have now
completed inorganic acquisitions of 4 million square feet over the last two and a half years,
taking our total portfolio size to 39 million square feet.
We shall continue to actively
explore external acquisition opportunities that align with our investment philosophy and
growth strategy.
As of December 31, 2025, our LTV remains low at 24.9%.
basis, including the acquisitions we completed post-December, the LTV stands at a
comfortable 25.4%.
This provides us enough balance sheet headroom to pursue inorganic
opportunities to scale up.
Our cost of debt declined by 13 bps during the quarter to 7.39%
This was driven by our active refinancing plan to replace relatively higher cost
During the year, we have raised Rs.61.5 billion at 6.95% PAPM through fixed
cost instruments, largely to refinance variable cost loans, which carried higher interest rates.
In Q3, we raised Rs.19 billion at an effective rate of 6.98% PAPM through debentures.
result, the fixed cost portion of our debt increased from 46% in March 2025 to 76% now.
This keeps our interest costs predictable and volatile to the changes in external macro
On the regulatory front, we welcome the recent reforms, including the
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January 28, 2026
classification of REIT investments by mutual funds as equity, effective January 1, 2026,
and REIT eligibility for index inclusion from July 1, 2026.
In addition, relaxations in
investment norms for government pension funds are a positive development.
measures will broaden the investor base and support long-term capital inflows into the
REIT ecosystem.
As we near the end of this financial year, we are happy to have delivered
robust operating and financial for the nine months ended December 2025 and we expect to
end the year maintaining this momentum.
Similar to this financial year, we expect the next
financial year performance to be driven by rising occupancy at our parks, especially Airoli
parks, rental uptake, delivery of projects that are currently under construction, and portfolio
additions through inorganic acquisitions.
I end here and with this I hand over the call to the
operator to open the floor for questions.
Moderator
Thank you so much.
Ladies and gentlemen, we will now begin with the question and
answer session.
Anyone who wishes to ask a question may click on the raise hand icon from
the participants tab on your screen.
We will wait for a few minutes until the question queue
Questions and answers
Moderator
We will take our first question from Samarth Agarwal of Ambit Capital.
go ahead with your question.
Samarth Agarwal
Thanks for this.
Just a couple of questions from my side.
Firstly, for the expiries coming in
2027 and 2028, 1.3 and 2 million square feet respectively, what kind of discussions is you
having with respect to releasing?
Firstly, how much of it would be released to the same
tenants and secondly, and more importantly, what would be the releasing spreads that you
expect from the same?
Ramesh Nair
So Samarth, 77% of our expiries have been released at a healthy spread of close to 28%.
this year our overall expiry is going to be close to 3.6 million square feet.
seen over the last four years, Samarth, is on an average, 3 million square feet is what comes
up for expiry and when the portfolio is growing like it is growing today, a 10% of the
overall portfolio size is definitely something we can expect.
Area coming up for expiry in
FY2027 and FY2028 is only 1.3 million square feet and 2 million square feet respectively
but we have seen some of these things, companies do not tell us what their plans are one,
two and three years ahead.
So sometimes these numbers kind of go up.
In a rising market
like this, in my speech I mentioned about how one client we got a 50% mark to market in
Hyderabad and another client we got a 33% mark to market in Hyderabad.
So these kinds of
opportunities are there.
And out of this 3.6 million square feet, we expect to retain 2.3
million square feet and 1.3 will be exits and out of this 1.3 million square feet exits, we
have already released 300,000 square feet.
So in this 2.3 million square feet, we have again
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January 28, 2026
already retained 1.7 million square feet in the first nine months and the balance 600,000 we
hope to retain in the next three 3 months this quarter
Samarth Agarwal
Understood and secondly, in terms of releasing to newer clients, so just some thought on
contrast between your current portfolio breakup, let’s say between different sectors and how
the new releasing has happened.
Are there any trends that you would like to point out in
terms of any segment or any particular category where the new leases are more prominent
versus your current portfolio breakup?
Ramesh Nair
So this quarter all the GCCs were only 27% of the leasing Indian domestic and Indian
MNCs were 52% and non-GCCs, non-GCC foreign MNCs were 21%.
Overall portfolio is
more or less stable today at 55% for GCCs.
Domestic Indians at 26% and foreign MNCs at
Two to three trends we have seen, Samarth, is some of these IT services clients who
gave up space during COVID time, large Indian and multinational names, they are coming
The main reason for that is they are insisting on office physical attendance for their
That is helping us.
Previously, pre-2020, 2021, pre-COVID era, many large IT
services, they would build their large campuses in different parts of India, outside the big
metros, outside the six cities, outside other cities like Bhubaneswar, Nagpur, and these kind
of big campuses used to happen.
Now that strategy seems to have kind of gone down and
every time they have a new client they are looking at okay why do not we go take a hundred
thousand square feet or a two hundred thousand square feet or a seventy thousand square
feet kind of transaction.
So that is something a new trend which we are seeing.
coming back selectively into campuses where they are comfortable with.
They have been in
some of these campuses, these are some of our large clients who gave up some space during
when the vacancies went up.
We are managing to get them back because they are familiar
with their campuses and many of their employees who are work from home stay close to
So that’s an interesting trend we are noticing.
Samarth Agarwal
And just lastly, given the leasing momentum we have seen for the sector, any
thoughts on how NOI growth and distribution would look like for FY2027?
Ramesh Nair
So we typically do not give forward-looking comments, but Samarth, till now there has not
been any signs of any tariff impact on real estate.
Even today actually not many signs on AI
You heard me talk about JLL's last year data of 14% increase in net absorption from
15 square feet to 57 million square feet.
This year, I was checking 2-3of the data points
when I met up with the IPC heads.
They said whatever RFPs they have in hand, whatever
inquiries they have in hand, this 57 million square feet can only go upwards.
the clients, who they are sitting on, showing properties, inspecting properties.
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feel that they have a much larger view of clientele than us, because they look at the full 900
million square feet of offices in India.
So they feel it is going to be a better year than 2025
So no signs as yet, but there could definitely be an impact of AI later on.
we have not seen.
It is a question that we have been getting asked every week.
could give you the right answers for that.
Till now, no impact.
Samarth Agarwal
Thank you so much.
That is all from my side and good luck for 2026.
Moderator
Thank you so much.
We will take our next question from Jatin Kalra of Bank of America.
Please go ahead with your question.
Please unmute your microphone.
Jatin Kalra
Yes, thanks for taking my question.
Ramesh, my question to you is over the last 12 months
you have seen a very strong growth in market trends in Hyderabad, which has also helped
your actuarial NAV.
The way you have exited this year, how do you think the outlook for
rental growth looks like for next year?
Could it potentially normalize to some extent but
still probably stay ahead of the typical 4% to 5% rental growth that you expect in this
particular asset class?
And second as a follow-up to this one you did mention that expiries
for next year are only at 1.3 million square feet.
So would you think that there is an
opportunity to look at some proactive churn as well to just start taking benefit of this
healthy MTM that you have gathered over the last few months?
Ramesh Nair
Hyderabad, I think I have been going to Hyderabad since 2001 when Naidu
used to be the Chief Minister and what I have been seeing over the last two years I think
number one is crazy, crazy demand.
I have not seen this kind of demand coming in.
remember when I joined the firm two-and-a-half years back, rentals were at 70, and we
were putting up super green buildings, we were investing very heavily and I was actually
sitting with our engineering team to see how we can value engineer and reduce construction
This is two years back.
Exactly opposite has happened that Rs.70 rental today has
B8 which is a new building which is coming up 1.7 million square feet.
building is going to get ready only middle of next year and the kind of inquiries I can say
that we already are sitting on around two to three X of inquiries for that 1.7 million square
I won’t be surprised if building seven, by the time we finished the leasing of these
building seven we had underwritten that building at around 85 in our numbers when Rs.82
to Rs.85 when we decided to demolish and you may remember that we had used the
implosion technology to bring it down in nine seconds and we started building.
we had put it at Rs.80 to Rs.83 was the underwriting.
I will be surprised if the last few deals
in building 17, by the time we lease the full building does not touch 120.
So the market has
You would have seen how 46% of the new GCCs who have entered into
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India have all gone to Hyderabad.
Proactive churn is something behind everything else.
What works is our tenant relations.
We value tenants over rentals.
So unless a tenant shows
their interest in vacating, obviously, they will be trying and retain their tenants.
comes up for renewals, we get that extra.
Please also remember that many of these tenants
were sitting on 10 year leases.
When they vacate, we also get efficiency adjustment related
support because many of 10 years back the market was at 78% efficiency and today we are
able to bring that to 70%.
Almost all, not almost actually, all the deals we have signed in
Hyderabad and Airoli East, all that have happened, new deals which have signed, new deals
which is where the client has gone out and a new client has come, all have happened at 70%
So that is just more area which is also helping us.
So proactive churn we do not
do unless a client comes and says he wants to leave.
Jatin Kalra
That is very helpful and elaborate.
Thank you so much Ramesh.
Moderator
Thank you so much.
Our next question is coming in from the line of Pritesh Sheth of Axis
Please go ahead ask your question.
It seems there is no response from the
connection here.
We will go to our next participant.
We have Puneet Gulati from HSBC.
Please go ahead with your question Puneet.
Puneet Gulati
Yes, thank you so much.
Ramesh, on your comment on efficiency improvements coming to
70% from 78%, will we see that increase in leasable area in your presentations?
Ramesh Nair
Yes, that has been something we have been doing over the last two years.
times, see existing clients, there is always a pushback when they are renewing to reduce that
Many times we get away with 74% to 75% but new clients are perfectly okay
with 70% given that almost all the Grade A institutional developers in their day-to-day
paths have started quoting 70% as efficiency.
So that is something which we kind of
Puneet Gulati
So, and in future also, as you conclude search fields, your leasable area will just keep
on growing just because of momentum to this newer efficiency zone.
My second question is actually on Airoli East, right?
I mean, you have got still half a
million square feet coming up for expiry, 1.2 million square feet to lease.
How do you think
about this market now?
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Ramesh Nair
So let us rewind back a couple of years, Puneet.
Overall combined Airoli in East and West,
the occupancy used to be around the 75% mark.
Today that 75% has become close to a 90%
So that is significant and my leasing team was telling in the next few months we may
not even have any space left in Gigaplex, Airoli West.
Airoli East I admit that we have
We believe there will be good trickledown effect of more space being available
in Airoli West into Airoli East and Airoli West has already touched 96% and Airoli East has
already touched again 82%.
Given that couple of our competing developers, their projects
are also more or less leased in that Navi Mumbai market.
We see good traction Puneet, into
our Airoli East asset and like I mentioned in my speech, we are proactively upgrading.
buildings are getting upgraded.
Building 1,9, 10, 11, and 12.
We are also upgrading a
clubhouse, adding more amenities across the path, so all that is happening simultaneously.
Puneet Gulati
Understood and also next year FY2027, you have got Square Nagar's 0.4 million square feet
coming up for renewal.
Is that one large client or is it multiple clients?
think about releasing that part?
Any color would be useful.
Ramesh Nair
Which square is this Pune Square?
Puneet Gulati
Yes Pune Square Nagar yes Pune?
Ramesh Nair
Okay there are a couple of clients there and we are in proactive talks with them to renew.
think the chances of them renewing is more than 90%.
In today's market actually I used to
feel bad when clients used to say they are going to vacate two years back.
These days if a
client says they want to vacate, we are perfectly okay with it because we get a better deal
I mean I changed my stand one year down the line but today we are okay if clients
are, clients leave, but proactive discussions happening there on retaining.
This is one client.
Puneet Gulati
This is one client okay and in your portfolio, you have already close to 95% leased out.
How should one think about potential for a further increase in occupancy and when do we
see the gap between the actual and committed occupancy get bridged?
Ramesh Nair
Actual and committed, always it takes some amount of time, given that clients take a little
bit extra time to close documentation also given that 55% of the clients are GCCs and
another 20% non-GCC multinationals.
I think the focus would be now, I believe the focus
would be financial district where we have some space left.
The recent ascent which we
picked up in Worli, that still has around 70,000 square feet left.
So the focus would be to
make sure in parks like Yerwada Commerzone and in Madhapur, whatever you see that
little bit of 80,000 square feet vacant in Yerwada or Madhapur 180,000 square feet.
are all scattered around the park.
So it is not that we are going to get clients tomorrow to fill
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them up and these are also smaller units may not be the best type of units for clients.
plates may not be as efficient as the rest of the parks, rest of the buildings, so some of this
will get eventually leased.
So the focus is on every weekly basis when we review our
leasing teams to see how we can fill all this up.
But Airoli West, which was a problem two
Today, no longer a challenge.
I hope to say something similar for Airoli East in
the next few quarters.
Puneet Gulati
And also, that is very helpful and lastly, Preeti, if you can talk about the cost of debt already
at very fine rates of 7.39 and you have got some maturity due in FY2027, should we expect
further compression from here on or you think you have already maxed out given where G-
sec and repo rates are?
Preeti Chheda
Yes, Puneet, hi.
I do not think you should look for any further reduction in interest rates
because as we talk, the large deal which we did, from there the yields have almost gone up
25 bits already.
If at all, we should be able to maintain these levels or see marginal increase
but I do not see them coming down.
So you can take at similar levels as we have achieved
Puneet Gulati
Understood that is very helpful.
Thank you so much and all the best.
Moderator
We have our next question coming in from Yashas Gilganchi of BOB Capital
Please go ahead with your question.
Yashas Gilganchi
Thank you for taking my questions.
In-place rents at around 74.7 per square foot or 4.6%
higher year-on-year versus a 6% increase that Mindspace has achieved since 2021.
holding back growth in in-place rents and what can drive this in the future?
Ramesh Nair
So because of the very nature of this business Yashas where you sign a 9-year and 10-year
contract, that is where the mark-to-market every time we see. just in the last few quarters,
we have been talking of mark to market between 25% to 30%.
And it also shows what the
opportunity we have.
Even when these rentals come up for renewal, clients also know that
property next door is paying much, May be Rs.20 more or Rs.25 more.
They are willing to
So that is something which we will take advantage of every time agreement
comes up for renewal.
Preeti Chheda
Also just to add to what Ramesh said, of course, as Ramesh said, I mean, we have generally
seen about 3 million square feet of re-letting coming, whether it is early exits or scheduled
I think one big contributor to rent enhancement has also been Hyderabad.
Hyderabad, we do not have too much coming up for re-letting immediately.
Mindspace Business Parks REIT
January 28, 2026
have, but I think where we really make good will be the new areas which are gone come up,
the two redevelopment buildings, one will be delivered in the coming financial year and one
So those are the ones which will give you a large upside in terms of your rental.
Otherwise it will all depend on the re-leasing which is coming up in the next two years.
Ramesh Nair
Yashas, just like I had mentioned when we underwrote this to demolish building eight, it
was around the Rs.80 to Rs.83 mark and today we are quite confident that even the earlier
deals will cross Rs.110 and it will touch Rs.120 by the time we finish leasing in that part.
Yashas Gilganchi
Okay understood.
Just trying to understand this a bit deeper, so despite strong office leasing
momentum, releasing spreads compressed to around 27.4% versus 28.1% as of 2Q 2026,
though it is up from around 26.4 as of 3Q 2025.
Please tell us what is pressurizing spreads?
Ramesh Nair
This is one of the quarters here and there that 24,27, it depends on clients.
clients in our portfolio.
You should not look at that kind of as long as it is going up, it is
fine. 24 and 28 is not materially different.
Different clients have their own strategy.
them are big, some of them are big names, and some of them occupy a lot of, so it is not just
Preeti Chheda
And it also depends on which location is coming up for re-leasing.
So locations where the
spread is really large, if you have re-leasing coming there, then we tend to benefit more than
locations where rentals are not seeing such a big spike.
Yashas Gilganchi
Thank you very much.
Moderator
Thank you so much.
Our next question is coming in from the line of Parvez qazi of Nuvama
Parvez, please unmute your microphone.
Parvez Kazi
Hi, good afternoon.
Congratulations for a great set of numbers.
A couple of questions from
First, given the strong leasing momentum that you are witnessing, where would
you expect your occupancy levels to be, let us say one year down the line or maybe by
Ramesh Nair
So this year we are hoping it will touch 95% and that upward momentum will continue next
year, so quite confident Parvez that this 95% number will go up.
Whatever, in two cities we
have some innovative repositioning, value addition ideas in mind, which we will start
executing from this quarter onwards and like you heard me say, there is a lot of upgrades
happening in Airoli East.
These are the only two places that we have some decent vacancy.
And when we had bought Q-City in Hyderabad financial district and renamed it the The
Mindspace Business Parks REIT
January 28, 2026
Square Financial district, we had mentioned at that time that we would look for some
innovative value-added strategies there and that is exactly what we are executing starting
So you will hear some good news out of that soon.
Moderator
Parvez, please unmute your microphone if you have any more questions.
Parvez Kazi
The second question is on the SEZ part.
What would be the vacancy in SEZ versus
non-SEZ portion of our portfolio?
Ramesh Nair
So as we said, we have benefited hugely from the demarcation approval rules.
demarcated 2.8 million square feet of which we have already leased 2.2 million square feet
out of the 2.8 million square feet.
So, non-SEZ occupancy today stands at 96.6% and SEZ
occupancy today stands at 92.7%.
Preeti Chheda
Just to add to what Ramesh said, actually now SEZ and non-SEZ have become infructuous
front of us because we are able to get demarcation within 45 to 60 days.
So it really does
not matter now whether it is an SEZ area or it's a non-SEZ area.
Parvez Kazi
Thanks and all the best.
Moderator
Thank you so much.
We have Pritesh Sheth of Axis Capital with his question here.
Pritesh Sheth
Sorry for the technical issue earlier.
Couple of questions.
I think one is where I am trying to
build blocks for growth in FY2027.
So just on previous participant's question as well, in
terms of narrowing the gap between actual and committed, I understand that gap will
always, some bit of gap will always remain, but right now we are at 89% odd on actual
occupancy, while our committed is at 92% to 93% this 4% gap will be able to bridge
sometime next year because I understand that some of the leases that we had in Airoli West
where some kind of deferred leasing which would take some time in terms of occupying.
I am just trying to understand whether we will reach actual occupancy of 93% next year
Ramesh Nair
Earlier than that, actually, a lot of these are just getting completed in terms of
documentation and it is mainly because of the timing difference between Airoli and the
It is just a matter of time.
See, clients obviously take their time to close these kinds of
large deals and I mentioned earlier that even that there is a lot of GCC demand where there
are multinational stakeholders outside the country.
Typically, it takes time but obviously,
our intent is to bring it down as much as possible because we want the rentals to start at the
So the work is on that bridge.
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January 28, 2026
Govardhan Gedela
I think structurally there will be some gap between the two because we also do experience
So typically between one client moving or new client signing up and rents
commencing there will be some structural gap between the two numbers.
Pritesh Sheth
Sure, sure got it, got it and so apart from the acquisition led growth we will have 1.5 million
square feet completed in Q1 FY2027, the first redevelopment block in Madhapur and since
it is fully leased, we will start generating rentals sometime in starting second half of next
year, right if that is right?
Ramesh Nair
So building is on track to get completed and our project team is
doing a very good job.
We will finish the building by Q1FY27, so we are on track.
on track to finish the project.
Preeti Chheda
And it will be in phases.
So you may not see too much of rent from this building coming in
the next financial year when the rent will start, but I would say if you really have to assume
any meaningful rental from this building, then you should take it up by 2028.
Ramesh Nair
These large clients, obviously, they take time to do their fit outs.
And this is a large global
banks, biggest GCC outside of US.
So they will take time obviously, when they take time to
do their fit outs they also negotiate longer entry periods so that is part of the deal.
Pritesh Sheth
Sure completion you mentioned is December of 2026.
Preeti Chheda
The rent, we are talking about the rent Pritesh not the completion.
Pritesh Sheth
Okay fair enough got it.
Preeti Chheda
Our completion estimates will be somewhere around between Q1 and Q2.
expect so around June to July but we expect the rent to start by December because it will
take about a few months to finish the terms so that is why I said you will not realize rent for
the full year you will realize for part.
Pritesh Sheth
Got it fair enough and beyond these three developments there is obviously this 1 million
square feet data centre which are coming up, I also heard you saying that we are progressing
with another five and a half million square feet development, in terms of getting approvals.
Mindspace Business Parks REIT
January 28, 2026
Can you first elaborate the timelines of data center and then you know talk about this five
and a half million square feet which you highlighted?
Ramesh Nair
So three and a half Pritesh the challenge was last year there was no approvals being given
and then the Supreme Court order came in September and our files were right on top in
B15 in Airoli, B17 in Airoli, B18 in Madhapur.
All these, data centers million square feet.
All this are at that final stages of getting approval.
So many of it, the local bodies like in
Mumbai, the local body to give approval is MIDC.
Already called the MIDC approval.
only the environmental MOEF approvals are pending and inspections have been happening
and we will be very soon able to if I was in September, I would have told you it is still
But right now, the patience will be very certain that it will start construction work
at the earliest.
Pritesh Sheth
Sure and completion timelines for data center would be like FY2029 and beyond or earlier
Ramesh Nair
Typical data centers given that these buildings are just seven levels.
And given that these
buildings do not have basements and where they also create a next door block to keep your
chillers and DGs and all that.
Typically, it should take around 18 to 20 months.
also do not have rent free periods like large GCC clients.
So rentals also kind of start early.
Office building typically, today, takes around three years to build, while a data center takes
only around 18 to 20 months to complete.
Pritesh Sheth
Got it, fair enough.
That is helpful.
That is it from my side, and all the best.
Moderator
Thank you so much.
Anyone who wishes to ask a question may click on the raise hand icon
from the participants tab on your screen.
We have a follow-up question coming in from
Parvez please go ahead.
Parvez Qazi
Just one follow-up.
I mean if I heard it correctly, you said we are working on getting
approvals for another three and a half million square feet data center.
Is the number correct?
Ramesh Nair
I do not think I mentioned that.
Maybe I said three and a half million square feet of
If you remember, we mentioned we have seven million square feet of
Three and a half is under construction and the balance 3.5 is in the final
Mindspace Business Parks REIT
January 28, 2026
stages of getting approvals.
That is what I meant,in that, a million square feet of data centers
Parvez Qazi
I mean that is what I thought, just wanted to clarify.
Moderator
Thank you so much.
As there are no further questions, on behalf of Mindspace Business
Park's REIT, this concludes today's conference call.
Thank you all for joining us and you
can now click on the leave icon to exit the meeting.
Thank you all for your participation.