Mindspace REIT: Management meeting takeaways

Research evidence excerpt

Mindspace REIT: Management meeting takeaways

ants. Discussions with clients suggest 90%85%

that AI-led disruption has not been a driver of exits thus far. 80%

75%

Data center optionality. Mindspace REIT is the only REIT in India with a DC portfolio of 1.7msf, 70%

1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 2QFY25 3QFY25 4QFY25 1QFY26 2QFY26 3QFY26 4QFY26

~5% of portfolio; with its MMR campus seeing the DC buildout. Company rents the DC buildings Portfolio occupancy (actual) Portfolio occupancy (committed)

for a long (~15-yr) tenure to colo operators. While DC construction costs are higher by ~30%, .Source: Company, Jefferies

but rents are higher by 50%, driving strong economics.

Exhibit 2 - Lease expiry trend

Rentals growth and leasing momentum. Portfolio in-place rents stood at Rs80.4/sf/mth in 4.0 (m sf) 3.6 12%

4QFY26, implying a healthy 20–25% mark-to-market rental upside. Management highlighted 3.53.0 3.2 10% 2.5 2.7 2.6 8%

2.5

robust rental growth across key office markets like Hyderabad, Navi Mumbai ann Chennai. 2.0 1.7 1.8 1.9 6%

4%Reflecting the strength of occupier demand, upcoming Hyderabad assets are already fully pre- 1.51.0

leased to four GCCs, attributing the momentum to sustained leasing activity. Overall, we expect 0.5 2%

FY24 FY25 FY26 FY27E FY28E FY29E13% NOI growth in FY27E. While debt costs are higher by ~30bps since Mar26, they have 0.0 FY22 FY23Total expiries 0% (scheduled, net of early & revisions)

trended down lately. . As % completed portfolio (RHS)

Source: Company, Jefferies

Portfolio expansion opportunity. Medium term growth visibility is supported by a 8.5msf

under construction pipeline of assets. A further ~15msf of ROFO inventory held by the sponsor

which can also aid portfolio growth.