Mindspace Business Parks REIT has achieved a remarkable feat by securing 11 Sword of Honour Awards from the British Safety Council, marking its seventh consecutive year of recognition for excellence in health and safety management systems.

Global Recognition

This achievement solidifies Mindspace REIT's position as a leader in workplace safety among listed REITs globally. For the second consecutive year, the company has earned the highest number of Sword of Honour Awards among all listed REITs worldwide, showcasing its consistent commitment to maintaining safe and healthy work environments.

Award-Winning Properties

All 11 participating properties in Mindspace REIT's portfolio received this prestigious recognition, spanning across multiple cities in India:

Rigorous Evaluation Process

To qualify for the Sword of Honour, organizations must achieve a 5-star rating in the British Safety Council's Health and Safety Management Audit. Additionally, they must demonstrate to an independent panel that safety excellence is integrated throughout their operations.

Management Perspective

Ramesh Nair, CEO & MD of Mindspace Business Parks REIT, emphasized the company's approach to safety: "At Mindspace REIT, safety is embedded in the way we design, operate and grow our spaces. Earning the Sword of Honour across 11 properties from British Safety Council is a milestone that reflects our teams' commitment to upholding the highest standards of health and safety."

Comprehensive Safety Approach

Mindspace REIT's success is attributed to its holistic approach to occupational health and safety, which includes:

• Robust safety management systems
• Visible leadership commitment
• Proactive risk assessments
• Employee well-being programs (counselling and mental health support)
• Integration of advanced technologies for performance tracking

Portfolio Overview

Mindspace REIT's portfolio includes:

• Total leasable area: 38.1 million square feet
• Completed area: 31.0 million square feet
• Area under construction: 3.7 million square feet
• Future development area: 3.4 million square feet

The portfolio comprises 5 integrated business parks and 6 quality independent office assets, catering to approximately 223 tenants across four key office markets in India: Mumbai Region, Pune, Hyderabad, and Chennai.

This recognition from the British Safety Council underscores Mindspace REIT's dedication to creating safe, healthy, and sustainable workplaces, setting a benchmark in the real estate investment trust sector for health and safety management excellence.

Mindspace Business Parks REIT (Mindspace REIT) has received a strong vote of confidence from ICRA Limited, with the credit rating agency reaffirming its highest ratings across multiple debt instruments. This reaffirmation underscores the REIT's robust financial health and stable market position in the commercial real estate sector.

Rating Details

ICRA has reaffirmed the following ratings for Mindspace REIT:

Portfolio Strength

The rating action favorably considers Mindspace REIT's well-diversified and expansive portfolio of assets. The REIT boasts:

• A completed area of 30.2 million square feet (msf)
• An under-construction area and future planned development of 7.1 msf
• A committed occupancy rate of 91.9% for the completed area

Geographical Diversity and Tenant Mix

Mindspace REIT's portfolio spans major cities including Mumbai, Pune, Hyderabad, and Chennai. The REIT benefits from a reputed and diversified tenant mix, comprising leading multinational and Indian corporates. Notably, the top 10 tenants contribute 34.8% of the gross contracted rentals, indicating a healthy balance between key clients and diversification.

Financial Position

ICRA's ratings draw comfort from Mindspace REIT's strong financial metrics:

• Total debt stands at Rs. 10,305.90 crore
• Total debt to Annualised NOI ratio of 4.2 times
• Loan-to-asset value (LTV) of 25.0%

This financial position provides Mindspace REIT with substantial flexibility to fund future organic and inorganic growth opportunities.

Liquidity and Risk Mitigation

The REIT maintains a robust liquidity position with:

• Cash and bank balances of Rs. 509.00 crore
• Unutilized overdraft/LRD facilities of Rs. 285.90 crore

While some debt instruments have bullet repayments, exposing the REIT to refinancing risk, this is partially mitigated by tranche repayments and available credit facilities.

Outlook

ICRA's stable outlook reflects expectations that Mindspace REIT will continue to benefit from its large, diversified, and stable operational portfolio. The anticipated growth from assets under development and the projected low leverage levels further support this positive outlook.

The reaffirmation of AAA ratings by ICRA serves as a testament to Mindspace REIT's strong market position, diversified portfolio, and prudent financial management. As the commercial real estate sector navigates through evolving market dynamics, Mindspace REIT appears well-positioned to maintain its growth trajectory and financial stability.