Mindspace REIT Q3 FY2022 Research Tear Sheet

Mindspace is a brand of commercial and industrial parks located in India. It is established by K.Raheja group. It is situated in Mumbai, Hyderabad, Chennai and Pune. More than 50 businesses are now located at Mindspace including Accenture, L&T Infotech Ltd, Cognizant Technology and Capgemini.

Amount in Rs million	31-12-2021	31-12-2020
Total Income	3002	2973
Total Expense	37	30
Profit	2755	2846

Key Financial Highlights

Net Operating Income of INR 3,715 Mn, grew 3.8% on Y-o-Y basis and 3.4% Q-o-Q.

The average cost of debt reduced by c.20 bps Q-o-Q to 6.7%.

Strong balance sheet with low Loan-to-value (LTV) of c.15.8%.

Collected more than 99% of Gross Contracted Rentals.

Average rent of INR 64 psf/month, signed across 26 deals.

Cash Flow

Cash and cash equivalent for Q3 2022 is  Rs 2819 million compared to Rs 2908 million in Q3 2021. But cash from Operation is negative. The company funds its CAPEX with debt. The cash flow is also impacted due to incremental brokerage payment.

Debt

The company has a debt of 40.5 billion for the quarter. The average cost of debt has reduced to 6.6%.There is a reduction of c. 260 bps in our average cost of borrowing over March 2020.

Conference Call Highlights

Management Updates

Revenue from Operations of INR 4.4 billion.

Announced distribution of INR 4.31 per unit of dividend.

Net Debt to Market  Value is 15.8%.

Business Updates

Received the ROFO notice from the sponsor for Commerzone Madhapur located in one for the prime business districts of Hyderabad.

Mindspace has raised 72 Million Dollars from Institutional Investors.

Others

Received 7 ‘Sword of Honour’ awards received across 5 business parks from British Safety Council.

Received ‘Best Commercial Development Award’ at the CREDAI’s – CREATE Awards 2021.