Mindspace Business Parks REIT has received credit rating reaffirmation from ICRA Limited across its comprehensive debt portfolio, reinforcing the REIT's strong financial position in the commercial real estate sector. The rating agency has maintained its [ICRA]AAA(Stable) rating for various debt instruments totaling INR 11,540 crore.

Rating Portfolio Overview

ICRA's rating action encompasses multiple debt instruments across the REIT's financing structure:

The rating reaffirmation covers existing non-convertible debentures worth INR 7,650.00 crore, proposed NCDs of INR 1,390.00 crore, and the complete commercial paper programme of INR 2,500.00 crore.

Strong Business Fundamentals Drive Rating

ICRA's rating rationale highlights Mindspace REIT's robust operational metrics and diversified portfolio. The REIT maintains a committed occupancy rate of 92.8% as of December 2025, representing an improvement from 89.6% in December 2024. The portfolio encompasses 31.2 million square feet of completed office space with an additional 7.1 million square feet under construction or planned for future development.

Portfolio Diversification and Tenant Quality

The REIT's asset portfolio spans major metropolitan markets including Mumbai, Hyderabad, Pune, and Chennai. The tenant base comprises reputed multinational and Indian corporates, with the top 10 tenants contributing 35.0% of gross contracted rentals as of December 2025, ensuring revenue stability while maintaining diversification.

Financial Strength and Leverage Metrics

ICRA emphasized the REIT's comfortable leverage position as a key rating strength. The financial metrics demonstrate strong debt management capabilities:

The low LTV of 24.9% provides exceptional financial flexibility for future organic and inorganic growth initiatives. ICRA expects the total external debt/annualised NOI to remain below 5 times and LTV to stay under 33% on a sustained basis.

Risk Factors and Mitigation

While acknowledging refinancing risks associated with bullet repayment structures in commercial papers and NCDs, ICRA noted that these risks are mitigated by the REIT's strong liquidity position and staggered repayment schedules. The rating agency also highlighted the REIT's exposure to lease expiries, with tenant leases contributing 2.2%, 5.5%, and 7.2% of gross contracted rentals expiring in Q4 FY2026, FY2027, and FY2028 respectively.

Deployment of Proposed Funds

The proposed NCDs worth INR 1,200 crore are expected to be deployed towards acquisitions, growth capital expenditure, or refinancing existing debt obligations. This strategic flexibility supports the REIT's expansion plans while maintaining prudent leverage levels.

Market Position and Outlook

The stable outlook reflects ICRA's confidence in Mindspace REIT's ability to benefit from its large, diversified operational portfolio and anticipated growth from assets under development. The rating agency expects the REIT to maintain its comfortable financial risk profile while capitalizing on India's expanding commercial real estate demand driven by the growing service economy and urbanization trends.

Mindspace Business Parks REIT has achieved a landmark recognition by securing the No. 1 global ranking for Environmental Performance in the 2025 S&P Global Corporate Sustainability Assessment (CSA). The REIT has also been recognized as the only Indian REIT among the top 10% global performers in the S&P Global Sustainability Yearbook 2026, marking a significant elevation from Sustainability Yearbook Member to earning the prestigious Industry Distinction 2026.

Outstanding Environmental Performance Achievement

Mindspace REIT achieved the highest Environmental Dimension score of 84 in the 2025 S&P Global CSA, ranking No. 1 among 379 real estate companies assessed worldwide in the industry peer group. This exceptional performance demonstrates the REIT's commitment to environmental excellence and sustainable business practices.

Consistent Performance Improvement

The S&P Global Sustainability Yearbook 2026 evaluated over 9,200 companies through the 2025 S&P Global CSA, with 848 companies selected based on their scores. Mindspace REIT has been recognized in the 'Top 10% S&P Global CSA Score' category within the global Equity Real Estate Investment Trusts (REITs) industry.

Mindspace REIT achieved a CSA score of 73/100, reaffirming its position as the highest-rated REIT in India. The REIT's performance demonstrates remarkable consistency and improvement over the past three years:

Excellence Across Multiple Dimensions

Beyond environmental leadership, the REIT has secured a position in the Top 3 globally in the Social dimension, reflecting strong performance in human capital management, occupational health & safety, and stakeholder engagement. Mindspace REIT earned a perfect score of 100/100 in the Transparency & Reporting indicator, highlighting its commitment to governance excellence and global-standard disclosures.

Leadership Commentary and Strategic Vision

Ramesh Nair, CEO and MD of K Raheja Corp Investment Managers Private Limited, emphasized that these achievements validate the company's business approach and reflect disciplined execution of their ESG roadmap. The recognition demonstrates robust governance and decision-making anchored in sustainability, with a clear focus on measurable outcomes.

The entity continues enhancing its sustainability performance through focused efforts across:

• Climate strategy implementation
• Energy and water management optimization
• Supply chain practice improvements
• Customer and employee engagement initiatives

Future Sustainability Commitments

Mindspace REIT's consistent progress reaffirms the direction of its decarbonisation roadmap, including its ambitious target to achieve Net Carbon Zero by 2042. This commitment demonstrates the REIT's dedication to long-term sustainability leadership and responsible growth while creating value for stakeholders and surrounding communities.