Good evening, everyone, and thank you for joining the earnings call for quarter four, financial year 2026, of Mindspace Business Parks REIT. At this point, we would like to highlight that the management may make certain statements that may be forward-looking in nature.

Please be advised that our actual results may [unclear] may differ materially from these statements. We do not guarantee these statements or results and are not obliged to update them at any point of time.

I would now like to welcome our CEO and MD, Mr. Ramesh Nair; CFO, Ms.

Preeti Chheda; and Mr. Govardhan Gedela, Head, Corporate Finance, who will take you through the business update and the financial performance during the quarter.

We will then open the call to a round of Q&A. I will now hand over the call to Ramesh.

Thank you, Shravan. Good evening, everyone.

Thank you for joining us today. Q4 was another strong quarter for us.

We achieved a gross leasing of 3.5 million square feet. This momentum is truly reflected in our financials.

NOI grew by 37.4% year-on-year to ₹742 crores for the quarter. Distribution for the quarter increased by 9.7% year-on-year.

Please note that we had a one-off tax refund in Q4 FY25 of ₹46 crores. Excluding this one-off tax refund in Q4 last year, distribution has grown 24.5% year-on-year, and DPU has grown 17% year-on-year.

For the full year FY26, NOI has grown 29.2% year-on-year to ₹2,664 crores. Distributions increased by 15.6% year-on-year, resulting in 9.7% DPU growth.

Excluding the ₹46.6 crores one-off tax refund in Q4 last year, distributions grew 19.8% year-on-year and DPU by 13.7%. Re-leasing spreads remained very healthy: 40.3% for the quarter and 31.8% for the full year.

Rentals continue to trend upward, particularly in Madhapur, where we signed a transaction at ₹120 per square foot. That speaks of the mark-to-market potential for our overall Hyderabad portfolio.

We announced two acquisitions in Chennai in the well-established PTR Road: International Tech Park Chennai on Radial Road and Commerzone Pallikaranai on the same road. We are acquiring at a combined acquisition price of ₹5,541 crores.

Happy to report that we have received the unitholder nod for the Commerzone Pallikaranai acquisition. We are currently negotiating rentals at ₹85 per square foot per month for both these assets.

To put the pricing in context, last year TVS had acquired land adjacent to ITP Chennai on PTR at ₹50 crores an acre. Currently, a US tech company is at an advanced due diligence stage to acquire 12 acres in the same road at nearly ₹80 crores per acre.

We are a dominant player across every market we are present in, and we cement our position in Chennai. Grade A office demand remains robust.

The balance sheet is strong that gives us the agility to move when the right opportunity presents itself. Our commitment remains unchanged: consistent execution, consistent delivery, and reinforcing performance.

Now, I'd like to share highlights from various IPC and other research reports. The JLL report stated that India's office market posted a quarterly record 21.5 million square feet of gross leasing in Q1 2026, up 10.2% year-on-year.

GCCs expanded their footprint by 43% year-on-year to 10 million square feet, commanding 45% of the total leasing activity. Pan-India vacancy dropped to a 5-year low of 14.7%.

Net absorption reached a record 13.7 million square feet for the quarter. City-wise leasing status: Mumbai was 20%, Hyderabad 17%, and Pune 15%.

Within GCCs, tech and BFSI dominated leasing activity, followed by manufacturing. Global headquartered firms accounted for 57% share of India's office leasing landscape in Q1 2026.

The CBRE report stated that domestic firms account for 43%, American companies 38%, companies from Europe 14%, and APAC companies 5% of the leasing. Fortune 500 companies leased 5 million square feet, accounting for 21% of the share.

48% of GCC leasing is by Fortune 500 companies. Office stock expected to surpass 1 billion square feet in 2026 as per CBRE.

The Cushman & Wakefield report spoke about how pan-India stock-weighted average rents crossed ₹100 per square foot per month for the first time. I'd like to also highlight an interesting report that I came across from CRE Matrix on the Navi Mumbai market.

It spoke about Navi Mumbai having 32.7 million square feet of Grade A stock hosting 430 unique IT companies and 12.3 million square feet under construction. GCCs form 25% of the Grade A+ stock in Navi Mumbai.

Buildings are 33% younger than the average age of buildings in Mumbai, and 72% of the Grade A stock is green certified. Navi Mumbai also emerged as India's leading data center hub, which we all know.

It has 628 megawatt operational IT load and 3,400 megawatt in the pipeline. As you're aware, we're the only REIT with data centers in our portfolio.

I want to talk a little bit about the global headwinds on the Iran war. We are mindful of the macro environment.

Oil-driven inflation and rising input costs are real. Steel is up 2%, RMC and cement is up 8%, paint is up 15%, tiles up 10%, PVC pipes are up 16%.

We observed some slowdown in decision-making on a few deals. Our long-term leases and strong balance sheet make us well-positioned to ride through this cycle.

Rupee depreciation has made India definitely more attractive to GCCs. In dollar terms, Indian office rents have effectively held flat, while our infrastructure and talent pool have only strengthened as a country.

Global headwinds and travel disruptions may delay some transactions in the near term. We had seen similar slowdowns in decision-making during April last year after the Liberation Day tariffs, and May last year when the India-Pakistan war started.

When the pent-up demand releases, we are positioned to capture it. A 200,000 square feet GCC client in Hyderabad who we are negotiating with for a ₹120 rental had put their requirement on hold because of the war.

We managed to lease the same space at ₹130 to another GCC in 15 days. Let's look at artificial intelligence and the impact of what we have seen so far.

I want to currently take a glass-half-full view on AI. Many of you have been asking us about AI and its impact on office.

One interesting aspect was many of the Magnificent Seven companies have taken good amount of office space in India last year for AI-related work. We have also seen many large IT services companies who gave up space during COVID due to work-from-home come back and take more space with us.

This could be because of flight to quality or they could be because no longer looking at owned campus strategies. When we take the glass-half-full view, we believe there's a lot of evidence which supports it.

PC, internet, cloud computing, each was supposed to reduce employment; none did. Spreadsheets eliminated bookkeeping clerks, but created financial analysts.

E-commerce disrupted retail jobs, but built warehousing, logistics, and delivery jobs. Technology changes how people work far more than it eliminates work.

Now, let's look at the data. The AI narrative has been running for the last 3 years.

In that period, office demand has grown 18%, 16%, 15% year-on-year, and this quarter 7%. GCCs, technology, consulting, BFSI clients—the biggest adopters of AI—are all hiring at scale.

There is no evidence of mass vacancy increases. In fact, the very AI companies blamed for killing offices are themselves taking new office spaces in some parts of the country.

These are high-value occupiers who seek Grade A, best quality spaces. AI is also creating entirely new roles: ML engineers, prompt specialists, AI product managers, data governance teams, cybersecurity experts.

The logic is quite straightforward: AI increases productivity; productivity drives growth of companies; growth needs talent, and talent needs space. Job displacement will obviously happen in certain functions, but job creation and role evolution will also happen alongside it.

I feel the workforce will become augmented, not replaced. India has a lot of structural advantages here: young, tech-trained workforce, strong AI hiring growth, and growing AI skills density.

That makes India more attractive, not less attractive. There's also qualitative shift.

When AI handles the repetitive tasks, human work becomes more collaborative, more strategic, more judgment-driven, all requiring office space. In regulated industries like healthcare, legal, pharma, human oversight is not optional.

Client-facing work still matters. R&D cannot function remotely.

Breakthrough ideas will come from unplanned hallway conversations. The future is not no office, it is better office.

I believe AI will accelerate the flight to quality. Companies will seek upgraded spaces, stronger amenities, better sustainability credentials.

I also believe that offices are shifting from rows of desks to collaboration hubs. Workplaces now express corporate identity.

Attractive spaces remain key to winning talent. For a portfolio like ours, which is Grade A, low-rise, business-park-focused, sustainability-led, this shift works firmly in our favor.

Now, let's look at the REIT performance update. Let's look at some of the operating and growth highlights.

A quick update on the annual performance for the 12 months as we close FY26. Gross leasing for the year was 7.1 million 7.1 million square feet, the second highest since listing.

Last year, we had done 7.6 million square feet. More importantly, committed occupancy reached 95.7%, the highest we have ever reported since listing, up from 93% in FY25.

We also delivered healthy NOI of ₹2,664 crores, our highest year-on-year growth since listing, up 29.2% year-on-year. This reflects the compounding of higher occupancy, stronger rents, and disciplined operations.

Distributions stood at ₹1,516 crores, up 15.6% year-on-year. DPU this year grew 9.7% year-on-year and 13.7% excluding the one-off tax refund which I spoke about.

Our in-place rents have moved north of ₹80 from ₹71 a year ago. Now for our Q4 FY26 performance highlights: gross leasing hit 3.5 million square feet, the second highest quarter since listing, up from 2.8 million square feet in Q4 FY25.

Every leasing metric is at or near a record. NOI stood at ₹742 crores, our highest year-on-year growth rate since listing at 37.4% year-on-year.

We delivered ₹431 crores in distributions, up 9.7% year-on-year. We set a new record with the highest-ever quarterly DPU at ₹6.64 per unit.

DPU grew 3.1% year-on-year. DPU is 17% excluded one-off tax refund.

NAV closed at ₹527 per unit, up 9% from ₹483.7 as of September '25. Our unitholders are seeing both income and capital appreciation working together.

Let's look at some of the other business highlights. We have pre-leased 2 million square feet across B8 and B18 in Hyderabad.

We signed 1.5 million square feet in B8 and 0.53 million square feet in B18 during the quarter. Pre-leased 0.8 million square feet to a healthcare GCC at ₹110 per square foot.

We pre-leased another 0.7 million square feet to an Indian MNC who will build, operate, transfer the premises to a BFSI GCC at ₹121 per square foot. Rental traction is only building from here.

Mindspace Madhapur, committed occupancy touched 99%, the highest ever. Mindspace Airoli West reached nearly 99%, also the highest ever.

Some of you may remember we used to be around 2 years back 72% here. The largest assets in our portfolio are essentially full.

GAV has increased to ₹47,600 crores, and NAV is now ₹527 per unit. This shows the steady growth and the strong quality of the portfolio over time.

Currently, dry runs are underway at The Pearl Club at Mindspace Madhapur, and we are scheduled to go live in this quarter, which will be India's best club. Under-construction pipeline today stands at 5.4 million square feet, well on track, out of which please don't forget that 4.5 million square feet out of this 5.4 million square feet is already pre-let.

Let's look at portfolio expansion. Portfolio growth remains a strategic priority, and we have delivered on it.

Over the past year, we grew our completed portfolio by over 2 million square feet. This came largely through inorganic growth.

We acquired three prime CBD assets in Mumbai and Pune. We also brought in 0.8 million square feet of our external third-party asset, The Square Financial District, which was previously called Q City, and we consolidated 50,000 square feet within our existing parks.

As you're aware, we have recently announced another two further acquisitions in Chennai, which is underway and expected to close over the next 10 days. We have built a strong platform, operate in clear markets, and have an active pipeline.

We will continue to pursue high-quality assets and move decisively when the right opportunities present themselves. Let's look at the REIT development update.

At Mindspace Airoli East, committed occupancy has risen to 83%. Following the success of Mindspace Fusion, our F&B hub, we're exploring an expansion of F&B offerings within the business park.

Upgrade focus: buildings B1, 9, 10, 11, 12 has made much progress and will conclude in the next couple of months. The lobbies today look a lot more sophisticated, functional, and suited to a best-in-class park.

Client feedback has also shaped our infrastructure plans. We are building covered walkways across the park to create more comfortable, connected experience.

In Mindspace Airoli West, when the demarcation was announced, committed occupancy stood at 72%. Last quarter, it was 96%.

This quarter, it's 99%, a clear indication of how well the leasing team has performed. Across our 4.4 5.4 million park, total vacancy is just down to 72,000 square feet.

This progress strengthens our confidence in Navi Mumbai's growth and our long-term plan for the micromarket. Rentals have also followed.

Recent deals in Airoli have been signed at ₹74 per square foot, a clear signal of where the micromarket is headed. As you're aware, Mindspace is the only Indian REIT with a data center portfolio: two data centers are already operational, three more are in various stages of development.

Once complete, our data center portfolio will span approximately 1.7 million square feet. Our confidence in Navi Mumbai's long-term trajectory has never been higher.

In Mindspace Madhapur, we have 10 million square feet with 99% occupancy. Just over 100,000 square feet of vacancy remaining.

Madhapur is, for all practical purposes, full. Rentals have demonstrated marked improvement.

A large American banking GCC has taken up space at ₹125. A large American healthcare GCC has taken up space at ₹110.

We are also redeveloping aged assets to keep the park modern, competitive, and tenant-ready for the next decade. At Commerzone Yerwada, we're entering an exciting phase.

A comprehensive phase-wide upgrade is underway. The entrance refurbishment has already begun.

Building B1 has a new food court and will be completed over the next few weeks. Lobby and kiosk extension, facade upgrades, terrace amenities, and a revitalized central garden are all in the pipeline.

Ascent, the new building we acquired in Worli: when we acquired Ascent Worli, occupancy stood at 86%. Today, it's at 97% with only 15,000 square feet vacant.

Average rents in Worli stand at ₹306, and we have just signed a fresh deal at ₹345. The rental trajectory again here is firmly upward.

Let's look at what we are doing on the customer centricity side. We also weave in sustainability into each of our offerings, with nearly 50% of electricity today currently sourced from green energy.

Our Edge 23 program offering the true hospitality-led experience has also accelerated with 23 focused items to bring a more premium, hospitality-led feel across our parks. Another area of focus is our infrastructure and amenity upgrades.

Our lifecycle assessment study has guided our MEP upgrades, and we would be investing significant amounts of money in upgrading our MEP this year. We divided our budget between front of house and back of house.

Front-of-house operations will have a direct positive impact on client satisfaction, and back of house ensures uptime, compliance, safety, and efficiency. Capex is prioritized for asset modernization to drive tenant stickiness and sustainable rental growth.

The second edition of Mindspace Eco Run drew 8,200 participants across Airoli and Madhapur, cementing our position as a community-first business park operator. Every decision we make starts with one question: what do our tenants need?

Feedback from surveys, audits, daily engagement feeds directly into how we run and improve our parks. The playbook is simple: build, lease, upgrade, repeat.

Simple and compounding. Modernized assets drive stickiness, stickiness drives renewals, and renewals drive rental growth.

We're not just building parks; we're building ecosystems where businesses grow and people belong. On the valuation front, GAV grows to ₹47,600 crores.

NAV rises to ₹527 per unit. In Madhapur, leases were being signed at ₹85 to ₹90 just a year ago.

This quarter, like I mentioned, we signed at ₹121 per square foot. In Navi Mumbai, rentals have moved from ₹65 to ₹70, with the highest transaction at ₹81 per square foot in Airoli West.

Rents and occupancy have moved meaningfully, leading to value creation. On ESG credentials, our ESG credentials are not just strong, they're globally recognized.

Very happy to report that Mindspace REIT ranks number three globally in GRESB, which is the number one global rank in environmental performance. At 73 out of 100, we are India's highest-rated REIT.

We are also the only Indian organization in our sector to achieve Industry Distinction in the S&P Global Sustainability Yearbook 2026. We've been recognized at the Asset Triple A Sustainable Finance Awards 2026 in Hong Kong for leadership in integrating sustainability into our financial framework.

We also launched our GreenMind Ideathon. This initiative puts sustainability ideas in the hands of people who matter most: our tenants and employees.

Our ESG commitments again extend beyond our parks to the communities around them. In partnership with Navi Mumbai Municipal Corporation and NGO Project Mumbai, our plastic and e-waste recyclathon is making tangible progress.

FY26 has been a landmark year, and the numbers speak for themselves. In conclusion, record committed occupancy of 95.7%, NOI growth of 29.2% year-on-year, the highest since listing, and distribution growth of nearly 16%, 20% excluding the one-off of last year.

Here are some broad annual performance metrics. In the start of FY26, committed occupancy stood at 93%.

We close the year at 95.7%. Vacancy at the start of the year was 2 million square feet; after all the acquisitions, it now stands at 1.35 million square feet.

In-place rents move from ₹71 to ₹80 per square foot. GAV grew from ₹36,647 crores to ₹47,635 crores.

NAV grew from ₹432 to ₹527 per unit. Our portfolio is expanded from 37.1 million square feet to 39.3 million square feet.

Since listing, we expanded our portfolio by approximately 9.1 million square feet through accretive acquisitions valued at ₹10,600 crores, including the announcements of ITPC and Commerzone Pallikaranai in Chennai recently. Our unit price has appreciated 63% since IPO.

Our unitholder count has crossed 1 lakh; when we listed, it was 8,000 unitholders. The investor base is broadening and deepening.

GCCs now represent 52% of our tenant base. Hyderabad, our largest market, has emerged as India's most sought-after GCC destination.

In FY26, we have leased 3.4 million square feet to IT services in spite of the slowdown of IT services. Geopolitical risk and commodity cost inflation are real, but they're also manageable.

Our portfolio is domestically anchored, our leases are long, and our tenant base is deep. Our LTV today stands at 24.3%.

Cost of debt at 7.41%, amongst the lowest in several quarters, and now comfortably below our cap rates. Regulatory tailwinds on equity classification and bank lending to REITs will further deepen our capital access over time.

Beyond FY26, our growth agenda is well defined. Data centers in Airoli West are progressing.

5A 5B redevelopment in Madhapur will commence soon. The Pearl Club and Accent Residences go live this year, and our acquisition pipeline remains active across core markets.

Each of these are a distinct value driver, and all are moving in parallel. Stepping back, FY26 delivered record performance, demonstrated resilience through cycles, and validated every pillar of our growth strategy.

As we enter FY27, we enter with the strongest position since listing. Our proposition remains unchanged and strengthened: high-quality occupiers, disciplined growth, sustainability leadership, stable, growing returns.

We continue to maximize value and build loved workspaces and portfolios investors trust. Thank you for your continued confidence in Mindspace REIT.

I will now hand it over to Preeti for further financial updates of the quarter.

Thank you, Ramesh. Good evening, everyone.

I'm pleased to present the financial results for the quarter and the financial year ended 31st March 2026. We delivered a quarter of very robust operating and financial performance.

Ramesh has already spoken about the operating performance. On the financial side, our NOI for Q4 FY26 grew a healthy 37% year-on-year to INR 740 crore, and for full financial year by 29% to INR 2,660 crore.

Revenue from operations for Q4 '26 increased by 31% y-o-y to INR 888 crore, while full-year revenue grew 26% to INR 3,200 crore. Excluding the one-off tax refund, which Ramesh alluded to, our distribution growth was 19.8% for FY26 and about 25% for Q4 FY26.

In aggregate, for FY26, we distributed around ₹24 per unit to the unitholders. The gross asset value of our portfolio increased about 16% from September 2025 to INR 47,600 crore.

The Chennai acquisitions will add another ₹4,200 crore to the GAV. NAV of our portfolio also grew by a healthy 9% from ₹484 per unit at September '25 to ₹527 per unit at March '26.

This strong growth was driven mainly on account of: one, the rental increases across our micromarkets, particularly Madhapur, Hyderabad, and Navi Mumbai; two, the rising occupancy across our portfolio; and the cap rate compression of about 25 bps across some of our projects that the valuer has considered. Our loan-to-value at March 2026 was about 24.3%.

The two acquisitions that we did in Chennai would take this LTV to 28.7%. Our cost of debt remained largely flat sequentially at 7.4% p.a., which is lower by almost 75 bps y-o-y.

We expect the financing cost to remain around these levels or marginally rise because of the geopolitical challenges. On the operational front, as Ramesh has already spoken of, rising occupancy at Airoli has been very encouraging.

Rentals across our markets have been moving up. In addition, the embedded development pipeline and the third-party acquisition, as we may undertake, will all aid the growth of NOI and DPU going forward.

With this, I hand over the call to the operator to open the floor for questions. Thank you.

Yeah. Hi.

Thanks, team. Just a couple of questions from my side.

Ramesh, firstly, when GCCs, data centers, and to some extent the flex workspaces were key demand drivers in FY26 for the commercial RE markets at large and for Mindspace assets, what are likely to be the major demand driver categories one should monitor going into FY27? Will it largely remain the same as FY26, or are there any new demand drivers that you would want to point out?

Look,

we will look at if we can do more data center deals within our portfolio for sure given that we have that 100 acres, and if there are any good redevelopment opportunities, we'll definitely look at data centers. Today, our portfolio, like I mentioned, GCCs is around 52%, foreign MNCs around 20%, and Indian domestics the balance 28%.

If you look at our top clients, it's a good mix of R&D, energy, IT services, GCC banking, some flex players, Indian BFSI, Indian large domestic, global telecom, global energy again. I was just going through the list of our top 10 15 clients: global banking.

I think this will definitely continue going forward. Our flex today is 8.4% of our portfolio, and within that 8.4% portfolio, most of the space has actually been done by enterprise clients, which includes people like IBM, Prudential, Nationwide, Telstra, Airtel, Fujitsu, L'Oréal, Mastercard.

We obviously look at who the enterprise clients of these flex players are. I was looking at our top five top six exposures to again flex players, which is again we deal with the top six players: four of them are listed, two of them are planning to list, so that's our list of six players.

I see this continuing. I don't see any big change in the tenancy profile.

Although when I look at the RFPs, Hyderabad seems to be having the most number of RFPs in the country, massive RFPs, like there's a 2.5 million square feet RFP from a global bank, there's a 1.2 million square feet RFP from a global tech player, there's a 1.2 million square feet RFP from a bank, another bank 800,000 square feet, pharma 500,000, Big Four 500,000, pharma 200,000, another pharma. That's massive, so much RFPs happening, and we're closely tracking all that.

It's a mix, Karan, and I don't see that trend changing.

Sure. Just on the portfolio occupancies, given that you're already at close to 95%, what would be the realistic peak occupancy that you expect the portfolio to reach?

With 1.8 and 1.9 million square feet of expiries in FY27 and '28, could you share early talks on re-leasing and re-leasing spreads you are likely expecting across these assets? A follow-up, given that yeah, please go ahead, Ramesh.

From a re-leasing spread point of view, we were looking at the portfolio still. It's still 20 20% potential MTM we have in our portfolio.

Given the way rentals have been behaving in some of these markets, especially Hyderabad, I definitely see that going up. Out of the expiries, 73% of the 3.6 million square feet of expiries we had, we have already kind of re-leased it.

One good news is all the new deals which we did, 71% of it came from existing tenants in our India portfolio, which means that tenants are happy with whatever we're doing. Our asset management teams are doing a good job.

That is again an interesting data point. FY27 expiries are lesser compared to this year.

We had FY26 the expiries were 3.6 million. FY27 the numbers show 1.8 million square feet.

The key focus obviously is going to be making sure the new parks which you have acquired in Chennai, we manage to fill it up and reducing vacancy in Airoli East.

Sure. A last question for you, Preeti, on the board approval to raise up to ₹157 billion.

When you say upper cap of 33%, what does that number translate to, and how much headroom does that leave you versus the current net debt of ₹115 billion?

As such, from a cap perspective, board keeps approving from time to time as and when we find opportunities and we want to invest, and if that requires additional debt headroom, then we go to the board and approve. I don't think that's a challenge.

As we have always said, we would keep our LTV around 30 35, which is our stated position. We are about 28.7 now with these two acquisitions.

That leaves us enough headroom for growth. As said again, 35 30 35 is what we'll be comfortable with.

I think for now we have enough headroom. As I said in the last call also, if there are opportunities which require us to raise capital, we will do that at an appropriate time.

Sure. This is helpful.

Thank you, and all the best.

Yeah. Thank you so much, and congratulations on great performance.

My first question is with respect to the development capex which you outlined. Can you sort of quantify how much do you intend to spend on upgrades and how much do you intend to spend on new area addition during the current year?

This year, our capex is ₹1,434 crores for base build, and upgrades is ₹203 crores. We have a balance capex of ₹4,075 crores, which is for finishing our B1, B8, the three data centers, B15, B17, B18.

All this put together, we have another balance capex of ₹4,075 crores.

Okay. Versus the ₹1,600 crore that you spent and that you plan to spend in '27, what was the spend in '26?

'26, I think, was 1,000 plus 200. I think ₹1,200 crores was the capex.

Okay. Understood.

We are increasing that overall capex.

Right, right. Understood.

Secondly, if you can also talk about the gap between the Mindspace Airoli East committed occupancy versus actual. For three quarters, it hasn't picked up.

Should we expect the gap to narrow anytime soon, or do you think there is more fit-out finish that it still needs to be done there?

Airoli occupancy, the gap between committed occupancy, what we're seeing is it's only because of the timing difference between LOI to lease deed.

Having

a lot of deals which we have done in March, so that's where the difference is. The difference is hardly anything for Airoli West, I think the difference is only around 2%, and for Airoli East, I think, is around 9%.

All this will get done in the next quarter or so, and this will move towards signing and will move towards committed occupancy.

Next quarter, you said, this gap?

Next few months.

Next few months. Okay.

Lastly, if you can also talk about your acquisition strategy. Preeti talked about comfortable with 35% LTV from current 28.7.

Would you like to fund your acquisitions more with debt now versus equity or is it likely to be similar to what you've done in the past?

Before Preeti talks on the debt equity piece, we stay committed to acquiring more assets. We've already done 9 million square feet, like I said, ₹10,600 crores.

A lot of deals across the country is suddenly coming up after people have seen our recent acquisitions. Obviously, it should be accretive for everybody.

We look at multiple strategies. You've seen during our acquisitions that we have done core, core plus, value add, opportunistic, all types of acquisitions we have done.

Preeti, you want to talk for the debt equity?

Yeah. Puneet, the way we see is all the sponsor acquisitions that are likely to come, as we've seen in the past, I expect them to be by way of swap.

That effectively would not require us to do any kind of debt raise. Third-party acquisitions mostly are going to be cash outs by those sellers.

Those we will fund out of debt. As I said, if we are getting closer to 35, which we've been saying is our comfort level, then we will, at an appropriate time, raise equity.

For sponsors, as I said, we don't really need. For third-party acquisitions outside the sponsor group, we will look at it at an appropriate time whether debt is good enough for us to do those acquisitions, and if we feel we need to raise equity, then at that point in time, we will look at it.

In the next 1-year pipeline that you may have, is it more sponsors or more third party?

Early to tell right now, Puneet. We've just done two big acquisitions.

With this acquisitions, we go to from 24.5%, we go to 29%. I think it will again be a mix of both sponsor and third party.

Okay. Thank you so much.

Just lastly on my side, if you have any thoughts on the data center strategy. You already lease out some space.

Is there a thought to start doing a bit more MEP sort of work for data center, or would you largely limit yourself to core and shell?

We will continue with our strategy, what we have been doing so far. We are real estate experts, and we are looking at one data center opportunity within our park, and hopefully we'll be able to announce something good and big from a data center point of view in the coming few months.

Great. That's all from my side.

Thank you so much, and all the best.

Yeah. Hi.

Thanks for the opportunity. Couple of questions from my side.

First is so next year about 3.2 million square feet comes live in Madhapur. Out of 5 and 1/2 that we have under construction, more than half will be ready.

I guess we also have new construction in Chennai. This spread between NOI and NDCF growth, should we expect that to moderate starting in '28 or even in FY28 we expect NOI growth will be higher than our NDCF growth?

That is my first question. Then my second question is on debt repayment.

If I look at our debt schedule, I find about 85% of debt which is up for repayment next year is at coupons of 7.7 or higher, in fact most of it is 7.9 and 8. Would it be a fair assumption that our debt cost can actually still further remain in this range or even go down slightly?

Would that be a fair assumption? Yeah.

That's from my side. Thank you.

I'll let Preeti handle the debt question. On the rent commencement dates, B1 is 100% leased, that's 15 lakh square feet.

B8, which is your 17 lakh square feet, in that 15 lakh square feet is already absorbed. The 2 lakh square feet will get done this month, in the next 15 to 30 days that will also get done.

In terms of RCDs of some of this, we have a large client's RCD starting in December '27. We have something starting in September '28.

We have something starting in March '28. We have something starting in Feb '29.

It's spread out, where these large clients ask for large significant rent-free periods also. It's a mix.

Most of these deals the actual rentals will start kicking in next financial year, and from that time onwards, things will start going up. Just a couple of points I want to talk here is in Hyderabad, our rental revenues have gone up in the last financial year by close to ₹110 crores just because we managed to lease most of the vacant space and also because rentals have gone up.

Again in GigaPlex, our rentals have gone up ₹80 crores. In Yerwada, because we managed to lease some of these spaces, rentals have gone up ₹40 crores.

We're looking at every 20 30 50,000 square feet which is vacant to increase our cash inflows. I'll let Preeti talk about the debt part.

Yeah. On the financing cost, as I said, we are today at 7.4.

We have about ₹2,700 crore of refinancing in FY27. Basis our discussions with lenders and debt investors, we expect that the funding which we have for balance of the year to maybe be around these levels, because we really don't know how long it will take for these interest rates to actually stabilize.

Keeping that in mind, I think overall for FY27, either we will remain at these levels. I don't see us actually going below this, and if at all, it could be marginal 5, 10 bps increase, but I really am not seeing reduction from here.

Either we'll remain around the same or maybe marginal increase. Sure.

Sure, this is useful. If I can just squeeze in one more, apologies.

When we started this year, when I look at our FY25 presentation, Madhapur about 0.4 million expiries was expected. If you could help us understand what were the actual expiries.

I'll just say the context. The context is that over the next 3 years, less than 10% of space comes for expiry in Madhapur, and that is of course our best asset in terms of the MTM opportunities that we have.

If you could give 2, 3 years' data, that would be very useful, or even if FY25 data, is there a case to be made that generally the actual expiries are higher than what is expected? Is that something you've seen historically, or that would be a very optimistic assumption?

Actually, you're right, Deep. When we estimate these numbers in terms of expiries or exits, this is based on our client communication today.

Given that most clients they have 6 months to give notice, but a lot of guys who may come back. This year when the year started, we were talking about 2 and 1/2 million square feet of expiries.

The year ended at 3.6 million square feet inquiries. Right now, given where the market is today, we are not complaining of tenants exiting because it's giving us massive upside.

Otherwise, we won't be achieving 40% mark-to-market what we did this quarter. Tough to kind of put a exact number now given the 6 months notice periods which clients have.

Yeah. At this stage, we typically only know based on the contracts what are the expiries that are upcoming.

There also happens sometimes that client could prepone given the rentals are moving up, they would like to lock in rent, sometimes they do an early renewals as well. Even though their expiry is, let's say, in the next year, but they would like to lock in, they prepone their renewals, and they do a leasing much prior.

That would also kind of then the expiries move forward in a way.

Right, right. This is useful.

Thanks, guys, and all the best.

Thanks, Deep.

Yeah. Good evening, everyone, and thanks for the opportunity.

My first question is the outlook on the rental increase in Hyderabad. Like last year, we've seen almost market rentals going up by 20%, 25%.

You've been signing deals at 120 bucks now. How do you think the trajectory will be for this year?

Do you expect a similar increase? You spoke about RFPs being very strong, if you could also talk about a little bit of what kind of supply, apart from us, is coming in the micromarket, that'd be great.

Just trying to understand where could probably the rentals be in the next 1, 2 years.

Definitely, in the next 1 year, we see rentals going up, not by 25% what we saw last year, because obviously companies will have their budget restrictions also. Hyderabad market, wish we had more space to give.

Everything is gone, like I said, B18 is gone, B1 is gone, B8 is gone. We don't have space.

Maybe we could look at some of the sponsor acquisitions which again will come quite quite later. It's a good place to be in.

Very surprisingly, we've been talking about redevelopment in Hyderabad and which is going to be ready after we get approvals, after we design, after we complete the building, all that. There are already two inquiries which have come up for something which may come up 4 years down the line.

The market is that hot. I'm sure some of you would have read that 46% of the GCCs who came to India last year went to Hyderabad versus 32%, 33% who went to Bangalore.

We've been big beneficiaries of that.

Okay. The in-place rentals continue to grow by about high single digits, right?

Considering that you have low expiries in the next couple of years, is that a fair assumption to make?

In-place rentals are obviously going up, but it all depends on when some clients will leave. And

Yeah. Our CAGR on the in-place rents since our listing has been about 7%, north of 7%.

Expiries these days are giving us higher re-leasing spreads compared to earlier years, primarily driven by Hyderabad. We used to achieve about 25 to 20 20% to 25% of re-leasing spreads.

In the last couple of quarters, we've done 30%. This quarter, we've done 40%.

That's moving our pace of in-place rent growth also higher.

Sure. Preeti, just on this year, we've done nearly 10% DPU growth.

If you could give some comments, I understand you don't give a guidance, but if you could give some comments around what kind of DPU growth trajectory should we broadly expect for FY27? Should it be similar, better, because obviously the NOI will see a lot of jump because of the acquisitions and all, but how do you see that translating into deep and this is also considering that your interest cost you're expecting to be stable, right?

How do you think about the DPU next year?

Right. You partly answered my question that we don't give guidance.

I won't be able to give you the exact number, but I can tell you NOI growth, as Ramesh has already said, there are multiple factors which are going to drive NOI growth for next year. NOI growth is going to remain healthy.

Interest costs, as I said, will remain stable at these levels. Given that, all I can say is that you should continue to see a healthy growth in DPU.

I will stop at that.

Okay. Okay.

I tried. Thanks a lot.

That's all from my end.

Thank you.

Yeah.

See, one of the things which some of the analysts used to ask us was slow distribution growth. Over the last four quarters, we've given 18%, 16%, 20%, 10% growth.

I think all double digits. That used to be a concern.

Now, not too many people ask us about distribution growth.

No, I'm done. Thank you.

Thank you.

Hello?

Congratulations for a great set of numbers. Two questions from my side.

Apart from the recently acquired assets in Chennai, we largely have a space left only maybe in Airoli East and the Financial District. How do we see leasing in these two assets?

Let's say, a year down the line, what kind of occupancy can we have in these assets? That's the first question.

Second, in terms of GCC contribution to our leasing, for FY26, fair to say roughly half of our space would have been leased to GCC?

That's the number now. The overall number is at 52.

For this quarter, GCC breakup is 54%. We have maintained that percentage.

Parvez, on Chennai leasing, we have between both the parks, we have 14 lakh square feet of completed space with occupancy certificate. The focus over the next 12 months will be to lease this 14 lakh square feet.

Airoli focus continues. We hear that there's not too much of competing supply also in Airoli.

What I think we have around 9 lakh square feet in 8 to 9 lakh square feet in Airoli East now. The objective will be to kind of bring it down at least to a 5 lakh square feet kind of a number.

Hopefully, we should be able to take this 95.7% occupancy which we have to maybe early 97 to mid 97 by end of this year. That's going to be the focus.

Like I mentioned in my speech, when we started the year, we had 20 lakh square feet; today, we have 13 lakh square feet of vacant space.

Also a related question, overall Madhapur as a market doesn't really have that much space either for you or for others. Your thoughts on the Financial District market and the asset that we have there?

Definitely. We've been seeing a lot of demand for Financial District just because there's no space available, and many companies are also cost conscious.

That's why our rentals in Financial District when we picked up was around 55 56, and today already we are doing deals at around 62, which will only go up. We have some alternate usage ideas also within the Q City park which we acquired, and over the next few months, you'd be able to hear some good deals in that park at better rentals.

Thank you, and all the best for future.

Thank you, Parvez.

Good evening, team. Thank you for taking my questions.

Having expanded your presence in Chennai significantly, please shed some light on the opportunity you see in the city, more specifically, how do you expect in-place rents to trend over, say, the next 2, 3 years? What is the growth that you expect?

Yashas, our strategy was very simple. We saw that the market with the lowest vacancy in India, India vacancy numbers are 15%, Chennai was 7%.

When we looked at institutional supply on PTR Road, there was hardly any institutional supply. We looked at OMR 1, which is a better market, higher rentals, absolutely no institutional supply coming for the next 2 years.

These were the reasons why we picked up the Chennai assets where we can control supply. Now we own the supply in the two best micromarkets.

If you combine OMR 1 and PTR, between these two markets, we kind of control the supply. The strategy itself was Chennai domination.

It will be nice if you could check out some of the pictures of this asset. This is truly institutional kind of a trophy, kind of a IT park asset in the country.

Has the best low carbon which anybody has ever built, and it's a new asset. Has the advantages of OMR, PTR, and GST Road, all three.

Widest road in Chennai, metro is coming up over the next 1 and 1/2 2 2 years. Our nearest competing supply, like DLF, today I heard from the IPCs, they're quoting 150.

Sattva has a great project, again I hear from the IPCs, they're quoting 130. We have started already doing deals at 85, I'm sure that'll go up.

Multiple advantages: airport hotels close to the airport, residential catchments, a nice mall, Phoenix is not very far off, good senior executive housing, scalability potential. Now that we have two parks, clients can scale up.

We're already getting an inquiry from someone who said that, "I'll take in this park, but give me scalability in the next park." Large floor plates, the best-sized floor plates in the city.

And 98% of CapitaLand is actually multinational clients, all GCCs. Low-rise, given that it's airport zone, it's still low-rise, over-specced asset.

These kind of assets have eventual potential to become front office. Today, you ask the IPCs which is the CBD in Hyderabad, they would say Madhapur, which has already become a front office destination.

This is a kind of asset which has potential for a front office. Chennai market approximately 6 million square feet net absorption market, and we should be able to get some share.

Like I said, the focus is 14 lakh square feet of vacant space which we need to lease in both these buildings, which we hope to lease in the next 12 months.

Understood. I understand that you expect a marginal increase in your cost of debt over the coming year.

As you refinance expiring debt over the next few years, do you expect to lock in a bigger portion of your outstanding debt at fixed rates? Or I'm just trying to understand what the strategy is to ensure a stable cost of debt.

As you see over the last couple of years, we've actually been moving a lot of our variable cost debt, which is essentially at the SPV level, to fixed cost at the REIT level. We've already touched about close to 70% in form of fixed.

I think 70 75 is where we'll want to be on the fixed side. We would want to continue with some LRDs at the SPV level also.

I would say since almost 75% is going to be fixed, then to that extent it provides a lot of stability. I had also mentioned in the last earnings call that we are now trying to do some long-term bonds so that we can have better I would say stability on the interest rates also.

Of course, these last 2 months have not been the right time, but as we move ahead, we would like to actually lock ourselves for long-term debt so that the interest rates stability is much better than what it is today.

Got it. Thank you very much.