Mindspace Business Parks REIT raised its quarterly distribution 14.4% to INR 6.67 a unit for the three months to Sept. 30, from INR 5.83 a year earlier, after net operating income jumped 31.9% to INR 8.36 billion on new leasing and buildings it bought in Chennai.

Revenue from operations rose 29.8% to INR 10.10 billion from INR 7.78 billion, Business Standard reported on Monday, Nov. 2, when the trust released its results. Committed occupancy reached a record 96.1% on a like-for-like basis, which excludes acquisitions completed in the first half and a Hyderabad asset at Pocharam that is held for sale.

For investors in Hong Kong and Singapore who follow Asian office landlords, the numbers stand out. Hong Kong landlords are still cutting rents, while India's listed trusts keep posting double-digit growth on demand from global capability centers, the in-house technology and back-office hubs that multinational banks and companies run in Indian cities. Mindspace's growth this quarter was faster than that of its larger rival, Embassy Office Parks REIT, which raised its payout 9% the previous week.

Chennai Acquisitions Drive Mindspace Leasing

The trust leased 1.6 million square feet in the quarter, double the roughly 0.8 million square feet it signed in the same period of 2025, according to the K Raheja Corp group's release for that quarter. About 0.6 million square feet of the new total came from the Chennai assets it bought this year.

The largest single deal was about 0.5 million square feet at One Radial in Chennai, signed with a European banking and financial services group for a global capability center, Business Standard reported. Committed occupancy stood at about 77.5% at Commerzone Pallikaranai and 75% at One Radial, according to a results summary by Aurum PropTech, so both buildings still have space to fill.

Ramesh Nair, the REIT manager's managing director and chief executive, said the Chennai buildings "are already exceeding leasing and rental expectations," according to Business Standard.

The trust also bought about 0.15 million square feet inside two of its existing parks, Commerzone Yerwada in Pune and Mindspace Madhapur in Hyderabad, according to Aurum PropTech. It finished a redevelopment of about 1.5 million square feet in Hyderabad that is fully pre-leased. The completed portfolio now covers 37.7 million square feet, with about 6 million square feet under development.

Valuation, Debt and the Payout

Gross asset value rose 15.9% to about INR 551.9 billion, and net asset value reached INR 565.10 a unit at Sept. 30, up 7.2% from INR 527, Aurum PropTech reported. A year earlier, the trust valued its assets at INR 410.2 billion and reported a net asset value of INR 483.7 a unit.

Leverage rose with the acquisitions. Loan-to-value was about 29.1%, against 24.2% a year earlier. The average cost of debt fell to 7.43% from 7.52% a year earlier, the two reports showed.

The distribution of INR 6.67 a unit is made up of INR 4.17 of dividend and INR 2.50 from debt repaid by the holding company and its special purpose vehicles, according to Aurum PropTech.

Aurum PropTech also put the gap between in-place rents and market rents, the mark-to-market potential, at about 22.8%. That gives the manager room to raise rents as older leases expire. In Hong Kong, by contrast, Link REIT said new and renewed retail rents fell 8.2% in its year to March, Mingtiandi reported.

Net profit after tax rose to INR 4.79 billion from INR 1.27 billion, according to Aurum PropTech.

Results from the remaining Indian office trusts, including Brookfield India Real Estate Trust, will show whether Mindspace's growth reflects a wider office demand trend or its own Chennai purchases. For Mindspace unitholders, the next number to watch is occupancy at One Radial and Commerzone Pallikaranai, which were three-quarters let at the end of September.