OUR GROWTH STORY

Steady Momentum and a Positive Outlook

At the heart of our strategic vision lies a dual commitment to expand our business parks into thriving micro-markets and to diversify into emerging economy asset classes and attract occupiers from growing sectors. Our enduring relationships with tenants are built around the bespoke real estate solutions that we craft based on their interests. With our extensive operational expertise in India, we are confident about navigating the dynamic office landscape, ensuring sustainable returns for our unitholders and promote a culture of wellness and resilience across our portfolio.

Our growth journey reflects our unwavering dedication to promoting wellness and sustainability – principles that have guided us through various real estate market cycles and solidified our position as a leader in the industry. During the year, reforms in SEZ regulations have facilitated the unlocking of SEZ space by converting to Non Processing Area thereby allowing more companies to take up space driving demand for SEZ stock which tremendously benefits our parks in Airoli. Additionally, the influx of newer Global Captive Centers (GCC) to India signify a positive outlook for the near term.

Robust Footprint in India's Four Key Premier Office Markets

Mindspace REIT has established a formidable presence in the micro-markets of Mumbai, Hyderabad, Pune, and Chennai Region, with flagship properties like Mindspace Madhapur and Mindspace Airoli (East) standing as the largest business parks in Hyderabad and the Mumbai Region, respectively.

Our competitive edge stems from the scale and quality of these assets that have been developed over time. Through our strategic focus on portfolio enhancement, which involves revitalizing legacy structures and implementing various refurbishment initiatives, Mindspace REIT adeptly meets the evolving needs of the millennial workforce.

Key Highlights in FY24

c.0.24 MSF

Concluded an accretive acquisition at Commerzone Porur, Chennai

c.0.8 MSF

Launched mixed-use development at Mindspace Airoli East - 0.5 msf of office development and 250+ Keys of Hotel (0.3 msf pre-leased) of Hotel (subject to approvals)

Leveraged cutting-edge implosion technology for the strategic demolition of two aging buildings (Building 7 and 8) in Madhapur, Hyderabad to expand organically through Redevelopment.

Bolstering Partnerships with Marquee Tenants

We cultivate trusted tenant partnerships by proactively addressing their evolving needs. Through customized services and a holistic tenant experience, we continuously add value to our offerings, positioning ourselves as the preferred partner for tenants' growth aspirations. The expansion of marquee tenants like BA Continuum, and LTIMindtree in our portfolio is a sign of the trust and value they associate with our brand. Moreover, our inhouse facility management platform and ongoing tenant relationship management enables us to actively listen to tenant feedback and adapt to cater to their needs and preferences creating a satisfying experience.

Key Highlights in FY24

11 YEARS

Average period of association with top 10 tenants

68.1%

Leased to existing tenants out of 3.6 msf gross leasing

6.8 YEARS

WALE - a testimony to our steadfastness

Stable Cashflow with Sustained Growth

Mindspace REIT's strategic emphasis on long-term leases, complemented by built-in escalations, ensures a steady and foreseeable cash flow trajectory.

The portfolio harbors intrinsic growth catalysts, including potential re-leasing spreads, leasing of vacant areas, oncampus developments, and redevelopment prospects across specific assets. With a weighted average lease expiry (WALE) of 6.8 years as of March 31, 2024, and a notable history of re-leasing approximately 3.4 msf at rents averaging 14.3% higher than existing rates, our position for sustained growth is solidified. Moreover, our Right of First Offer (ROFO) agreement with the KRC Group presents an avenue for potential acquisitions of specific projects developed by our sponsors.

Key Highlights in FY24

c.7.0 MSF

Expansion potential of business parks as of March 31, 2024. Of this, 4.4 msf constitutes an Under Construction Area and 2.5 msf of Future Development Area

Prudent Fiscal Management

At Mindspace REIT, our low-leverage balance sheet positions us to pursue growth through value-accretive opportunities. Strategically, we have achieved a balance between fixed and variable cost debt, with 55.6% of our total outstanding debt as of March 31, 2024, structured as fixed cost. Our corporate credit rating by CRISIL Ratings and ICRA stands at CCR AAA/Stable and [ICRA] AAA (Stable), respectively.

Key Highlights in FY24

`14.9 bn

Raised via NCDs and CPs at REIT level in FY24

21.1%

Net Debt to Market Value