On Monday, Citi updated its outlook on Mindspace Business Parks REIT (MINDSPCE:IN), increasing the price target to INR405.00 from the previous INR393.00. The firm continues to recommend a Buy rating for the stock.
Mindspace REIT has demonstrated a notable performance in the second quarter of the fiscal year 2025, with Net Operating Income (NOI) growing by 5.1% year-over-year. The REIT's committed occupancy rose slightly to 89.7% in the second quarter, compared to 89.1% in the first quarter of the same fiscal year.
The company reported gross leasing of 2.1 million square feet in the second quarter, marking a significant increase from the 1.1 million square feet leased in the first quarter. Additionally, the average rent per square foot per month increased to Rs76 in the second quarter from Rs72 in the previous quarter, indicating robust demand and pricing power.
Furthermore, Mindspace REIT distributed Rs5.15 per unit during the second quarter of FY25. The Net Distribution to Unitholders (NDNCF) saw a 9.5% year-over-year increase in the second quarter, outpacing the NOI growth.
Citi's analyst noted the healthy business momentum and execution as the basis for maintaining the Buy rating on Mindspace REIT. The positive outlook reflects confidence in the company's continued performance and growth potential.
InvestingPro Insights
To complement the positive outlook presented by Citi on Mindspace Business Parks REIT, recent data from InvestingPro offers additional context to the company's financial position and market performance.
According to InvestingPro data, Mindspace REIT is currently trading near its 52-week high, which aligns with the strong performance metrics highlighted in the article, such as the increased NOI and improved occupancy rates. This suggests that the market is recognizing the REIT's solid execution and growth trajectory.
An InvestingPro Tip indicates that Mindspace REIT is a prominent player in the Office REITs industry. This status likely contributes to its ability to achieve significant gross leasing figures and maintain pricing power, as evidenced by the increased average rent per square foot reported in the article.
Another relevant InvestingPro Tip reveals that the company has been profitable over the last twelve months. This profitability is consistent with the growth in Net Distribution to Unitholders mentioned in the article, further supporting Citi's bullish stance on the stock.
For investors seeking a more comprehensive analysis, InvestingPro offers 4 additional tips that could provide deeper insights into Mindspace REIT's financial health and market position. These additional tips, available with an InvestingPro subscription, could offer valuable context to the company's performance beyond the metrics discussed in this article.
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