Mindspace REIT is the second REIT to hit the domestic market after Embassy Office Parks REIT. The REIT, promoted by K Raheja Corp Group (KRC Group), has a completed commercial portfolio of 23 million square feet across key office markets
of Hyderabad, Mumbai, Pune, and Chennai. The company generated net operating income (NOI) of Rs 1,225 crore for FY20. It has grown its NOI at 11-14 per cent over the past two financial years.
For FY21, it has indicated a net distributable cash flow (NDCF) of Rs 574 crore for the second half of FY21. NDCF is the amount available to the REIT for distribution in the form of dividends to unitholders; the REIT has to distribute at least 90 per cent of NDCF on a semi-annual basis.
For FY21, on an annualised basis, the yield in the Rs 274-275 price band works out to 7 per cent. The REIT estimates yields to be at 7.5 per cent in FY22 and 8 per cent in FY23. Returns from rental assets are a function of increasing NOI. Over the FY20-23 period, the company expects this metric to increase 17 per cent annually to just under Rs 2,000 crore, from the FY20 level of Rs 1,225 crore. READ MORE
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