Mindspace Business Parks REIT has successfully raised INR 500 crore through the allotment of 50,000 Non-Convertible Debentures (NCDs) on May 06, 2026. The issuance carries a fixed coupon rate of 7.63% per annum, payable quarterly, with a tenor of 10 years and a final redemption date of May 06, 2036. The debentures were fully subscribed by one of India's leading life insurance companies and hold AAA/Stable ratings from both CRISIL and ICRA. Proceeds from this issuance will be deployed towards refinancing existing borrowings.

NCD Issuance Details

The allotment of 50,000 secured, redeemable, transferable, taxable, non-cumulative NCDs was approved by the Executive Committee of the Board of Directors of K Raheja Corp Investment Managers Private Limited, acting as Manager to Mindspace REIT, at its meeting held on May 06, 2026. The pricing was determined through bidding conducted via the Electronic Book Provider (EBP) Platform of BSE Limited. The key terms of the issuance are summarised below:

Strategic Rationale

This debt capital raise is consistent with Mindspace REIT's strategy to lock in fixed rates for longer durations. The approach ensures predictability of debt servicing costs, protection against interest rate volatility due to macroeconomic factors, and expansion of the investor base. Including this transaction, Mindspace REIT and its SPVs have cumulatively raised approximately INR 16,400 crore through capital market instruments, including NCDs, Commercial Papers, Green Bonds, and Sustainability Linked Bonds. Mindspace REIT's debt investor base spans across mutual funds, insurance companies, and pension funds.

Management Commentary

Mr. Ramesh Nair, CEO & MD, Mindspace REIT, stated, "We manage a REIT where income is stable, long-term, and predictable, and our borrowing strategy reflects the same discipline. We are happy to have one of India's leading life insurance companies commit capital to us for 10 years, signalling the trust and interest in our papers. We are committed to long-term value creation through strong operating performance, judicious capital allocation and cost optimisation strategies."

Ms. Preeti Chheda, CFO, Mindspace REIT, added, "This 10-year fixed-coupon NCD is consistent with our strategy to shift a larger share of borrowings to fixed interest instruments and lock in longer tenures to ensure greater cash flow stability. Mindspace REIT's strong and consistent credit track record has enabled access to capital at competitive interest rates, despite the macroeconomic headwinds, supporting higher net distributable cashflows."

Regulatory Context

The allotment follows an earlier approval dated April 29, 2026, subject to the condition that aggregate consolidated borrowings do not exceed 33% of total assets. The fund-raising was approved such that net debt does not exceed INR 1,57,000 Million. The disclosure complies with SEBI (REIT) Regulations, 2014, and SEBI (LODR) Regulations, 2015.

Mindspace Business Parks REIT has reported consolidated financial results for the quarter and financial year ended March 31, 2026, demonstrating robust operational performance across key metrics. The commercial real estate investment trust delivered significant growth in profitability and revenue, reflecting effective portfolio management and operational efficiency.

Financial Performance Summary

The REIT's financial results for Q4FY26 showed substantial improvement across major indicators:

Strong Profitability Growth

Net profit after tax for Q4FY26 reached ₹2,087.31 million, representing a 117% year-on-year increase compared to ₹961.11 million in the corresponding quarter of the previous year. This significant improvement underscores the REIT's effective cost management and operational execution. For the full financial year FY26, net profit after tax grew 35% to ₹6,942.58 million from ₹5,137.46 million in FY25.

Revenue Expansion

Total income from operations for Q4FY26 stood at ₹9,148.94 million, marking a 29% increase from ₹7,077.67 million recorded in Q4FY25. On an annual basis, total income from operations for FY26 reached ₹32,930.87 million, up 23% from ₹26,756.27 million in the previous financial year. This consistent revenue growth demonstrates the REIT's ability to generate steady income from its commercial real estate portfolio.

Key Financial Ratios and Capital Structure

The REIT maintained strong financial health indicators during the period. The debt service coverage ratio stood at 2.90 for Q4FY26, while the interest service coverage ratio was 3.38, indicating comfortable debt servicing capabilities. The debt equity ratio remained stable at 0.83 for both Q4FY26 and FY26. Unit capital increased to ₹187,154.26 million from ₹168,964.03 million in the previous year, reflecting growth in the REIT's capital base. Net worth stood at ₹150,468.19 million as of March 31, 2026.

Board Approval and Auditor Report

The consolidated financial results for the quarter and financial year ended March 31, 2026, were recommended by the Audit Committee and approved by the Board of Directors of K Raheja Corp Investment Managers Private Limited (acting as Manager to Mindspace Business Parks REIT) at its meeting held on April 29, 2026. The Statutory Auditors of Mindspace REIT have issued an unmodified report on the financial results.