Latest news with #RameshNair
Mint
08-05-2025
- Business
- Mint
India office Reits report higher FY25 income, leasing on strong GCC demand
Bengaluru: Driven by strong demand from global capability centres (GCCs) and improved occupancy, India's top office Reits – Embassy, Mindspace Business Parks, and Brookfield India– have posted higher FY25 net operating income and leasing, signalling a robust rebound from pandemic-induced downturn. The recovery also benefited from increased rental values as businesses enforced return-to-office policies, catalyzing demand and higher occupancy. Reits, or real estate investment trusts, have had their share of challenges in recent years, many of them pandemic-induced. But with the office market turning around, they are gaining more acceptance. Embassy REIT, India's first publicly-listed Reit that owns and operates a 51.1 million sq. ft portfolio of 14 office parks, clocked 6.6 million sq. ft of leasing in FY25, 60% of which was accounted for by GCCs across sectors. GCCs are offshore centres owned by multinational companies to run back-end work like IT infrastructure, human resources, supply chain and sales management. Read more: Mid-market global capability centres tend to grow faster than larger peers, without burden of legacy issues: Nasscom 'FY2025 was a bumper year for Embassy REIT on multiple fronts. We exceeded our leasing guidance by 22%, recorded a 10% increase in both revenue and NOI (net operating income), and most importantly, delivered 8% growth in distribution. This momentum sets a solid foundation as we head into FY2026," said Ritwik Bhattacharjee, CEO, Embassy REIT. Distribution refers to the payment of income, including dividends, by the Reit to its shareholders. A Reit is a trust that owns a pool of income-generating commercial office assets, such as office parks and shopping malls, held in a special purpose vehicle (SPV). It generates revenue by leasing out these properties and collecting rent from tenants. Sebi regulations require at least 80% of a Reit's assets to be completed and income-producing. Ramesh Nair, managing director and CEO of Mindspace REIT, said the company has outperformed on all fronts in FY25. It achieved its highest-ever annual gross leasing of 7.6 million sq. ft, with net asset value (NAV) up 10%, driven by rising rentals across micro-markets. Buoyed by the FY25 performances, office Reits are aiming to clock faster growth in the current financial year. 'We expect FY26 to be a steady year in terms of leasing, and growth in NOI and distribution. The vacancy level in our portfolio is 7%, and we will continue to focus on increasing the retention rate with tenants," Nair said. The turnaround in the Reit space comes at a time when gross leasing of commercial office space touched a historic high of 79 million sq. ft in 2024, as per property advisory CBRE India. The January-March period of 2025 saw 18 million sq. ft of gross leasing. All the Reits are also in the process of denotifying spaces in special economic zones, which will lead to increased occupancy levels, as tenants earlier exited due to higher compliance norms and few tax benefits. Read more: Robust demand for office spaces to give occupancies a leg-up Brookfield REIT, in an earnings presentation, said that with 2 million sq. ft of ongoing conversions and a robust leasing pipeline, it is well-placed for sustained growth this year. Mindspace REIT has also converted 2.2 million sq. ft, of which 1.2 million sq. ft has been leased. As per the latest Indian Reits Association figures, the Indian Reit market oversees gross assets under management (AUM) of around ₹ 1.52 trillion, with a market capitalization surpassing ₹ 95,000 crore as of February. Embassy REIT's Bhattacharjee said the company has guided to double-digit growth in both revenue and NOI, with distributions coming in at 10%. Reits derive cash flows from owned commercial realty assets as rental income, most of which is distributed among unitholders. Hence, the total return offered by a Reit is measured as a mix of regular distribution and capital appreciation of the units of the trust. Brookfield India REIT, which raised ₹ 3,500 crore in December through a qualified institutional placement (QIP), said in an investor presentation that it is looking to pursue acquisitions this year to significantly expand its asset portfolio. India has nearly 400 million sq. ft of Reit-worthy office space, setting the stage for future listings, as per analyst estimates, which will lead to the growth of the product. In March, a Reit sponsored by Blackstone Group and Bengaluru developer Sattva Group filed draft papers with the market regulator for an initial public offering (IPO) to raise around ₹ 7,000 crore. With a portfolio of 30 Grade A office assets across 48 million sq. ft, it will be one of the largest Reits once listed. Ram Chandnani, MD, advisory and transaction services, CBRE India, said that this year, the office market is poised to surpass the leasing levels of 2024. 'In 2025, GCCs are expected to account for nearly 35-40% of total office space absorption," he said. Read more: Sebi's big bet on REITs, InvITs—are we fixing what isn't broken?
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Business Standard
30-04-2025
- Business
- Business Standard
Mindspace Reit Q4: NOI grows 13% amid sustained demand for grade-A assets
Mindspace Office Parks Real Estate Investment Trust (Reit) reported net operating income (NOI) of Rs 540 crore for the fourth quarter of financial year 2025 (Q4FY25), a 13.2 per cent rise from Rs 522 crore the year before, amid sustained demand for grade-A assets. The Reit's revenue from operations also grew by 7.64 per cent year-on-year (YoY), to Rs 610 crore. Quarterly, the revenue grew by 1.7 per cent. Ramesh Nair, chief executive officer and managing director, 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 Rs 392 crore, up 39 per cent YoY — the highest growth since listing. 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 sustained long-term growth.' Mindspace recorded gross leasing of 2.8 million square feet (msf) in Q4FY25, compared to 2 msf in Q4FY24. The occupancy across its assets stood at 93 per cent. In FY25, the company's NOI grew by 8.9 per cent YoY to Rs 2,062 crore, while gross leasing increased by 111.11 per cent YoY to 7.6 msf. The Reit also declared a distribution of Rs 392 crore for Q3FY25, up 38.7 per cent YoY. The Reit cumulatively distributed approximately Rs 1,312 crore in FY25. As per the Securities and Exchange Board of India (Sebi), Reits are mandated to distribute at least 90 per cent of their taxable income. Its net asset value grew by 10 per cent from Rs 392.6 per unit on September 30, 2024, to Rs 431.7 per unit on March 31, 2025, driven by rising rentals across its micro markets, accretion from acquisitions, and completion of pre-committed buildings.
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.
Time of India
30-04-2025
- Business
- Time of India
Mindspace Business Parks REIT leases 2.8 million sq ft in March quarter
Mindspace Business Parks REIT achieved record leasing, with 2.8 million sq ft leased in the last quarter and 7.61 million sq ft for the year. Net Operating Income rose by 13.2% to Rs 540 crore for the quarter. The company declared a distribution of Rs 392 crore for the quarter, driven by strong demand and rental growth, particularly in Hyderabad. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads K Raheja Corp-backed Mindspace Business Parks REIT has recorded the highest ever quarterly gross leasing of 2.8 million sq ft during the quarter ended March, taking cumulative leasing for the financial year 2024-25 to 7.61 million sq REIT has pre-leased an entire building under redevelopment at Mindspace Madhapur in Hyderabad with leasable area of 1.5 million sq ft to a large multinational company's Global Captive Center (GCC).The REIT has reported 13.2% on-year rise in Net Operating Income (NOI) during the quarter to Rs 540 crore, taking its 2024-25 NOI to Rs 2,062 crore. Revenue from operations for the quarter rose 14% to Rs 678 company has declared distribution of Rs 392 crore for the quarter ended March, taking the full year distribution to Rs 1,312 crore. Record date for the distribution is set as May 06.'With 3.6 million sq ft already pre-leased, demand for top-quality office space remains robust across our portfolio. Our 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,' said Ramesh Nair , CEO and MD, Mindspace REIT has witnessed robust growth in rentals across micro markets, especially Hyderabad's Madhapur. While in-place rent stood at Rs 71 per sq ft per month, Mark to Market (MTM) spread on rentals increased to around 13.4%, the REIT said in its earnings company has received Occupation Certificate (OC) for one of its buildings at Gera Commerzone Kharadi, Pune. This building is spread across 1 million sq ft, and is also entirely pre-leased to a large MNC's REIT is actively working on an under construction pipeline of around 3.7 million sq has completed the first right of first offer (ROFO) transaction by acquiring a 100% equity shareholding in Sustain Properties that houses 1.8 million sq ft at Commerzone Raidurg, Hyderabad. The company has also concluded acquisition of 0.26 million sq ft in Mindspace Madhapur, Hyderabad, consolidating ownership in the business park.
