Mindspace Business Parks REIT Publishes FY26 ESG Report — 33.4% Emissions Reduction, 50.4% Renewable Energy Share, ₹1,200 Crore Raised via Sustainability-Linked Bonds
Mindspace REIT Publishes FY26 ESG Report: Major Progress on Decarbonization and Sustainable Finance
Mindspace Business Parks REIT has released its Environment, Social and Governance (ESG) report for the financial year 2025-26, detailing significant progress in its decarbonization strategy and sustainability performance. The organization achieved a 33.4% reduction in operational Scope 1 and Scope 2 emissions compared to the FY 2019-20 base year, alongside a 20.9% reduction in energy intensity.
Renewable Energy and Resource Efficiency
This performance was driven by a strategic increase in renewable energy adoption, which accounted for 50.4% of the total energy consumption during the reporting period. Beyond emissions, the REIT treated 15,89,333 KL of wastewater and achieved 100% waste diversion from landfills. Energy intensity decreased 20.9% year-on-year, while water intensity improved from 0.12 KL/sq. ft. in FY 2024-25 to 0.09 KL/sq. ft. in FY 2025-26.
Sustainability-Linked Financing Framework
Financially, it recorded a turnover of INR 32,342 Mn and raised INR 1,200 Cr via sustainable finance instruments. Mindspace Business Parks REIT successfully raised an additional ₹550 crore through Sustainability Linked Bonds (SLBs) from the International Finance Corporation (IFC), bringing the cumulative issuance to ₹1,200 crore, including the initial ₹650 crore raised in June 2024.
The Mindspace REIT Sustainability Linked Bonds issuance marks a significant milestone for India's real estate sector, as it represents the first Sustainability Linked Bonds by an Indian REIT under the new SEBI ESG framework for debt securities, introduced on June 5, 2025. The bonds are directly tied to measurable environmental and social performance goals, embedding sustainability at the core of the REIT's business strategy.
Operational Strength and Portfolio Expansion
Key FY26 highlights include NOI of ₹ 26,636 Mn (+29.2% YoY), Revenue from Operations of ₹ 32,342 Mn (+26.2% YoY), NAV per unit of ₹ 527.0, distribution per unit of ₹ 24.09 (+9.7% YoY), and gross leasing of 7.1 MSF. Committed occupancy reached 95.7%, the highest since listing, showcasing effective leasing strategies.
The total leasable area stands at 39.3 million square feet (msf), with a committed occupancy rate of 95.7%. The REIT's portfolio spans four key office markets of India, namely Mumbai Region, Pune, Hyderabad, and Chennai.
ESG Recognition and Global Backing
Mindspace Business Parks REIT ranks number three globally in GRESB for environmental performance, highlighting its strong ESG credentials. The Sustainability-Linked Bonds framework aligns with global best practices such as the ICMA Sustainability Linked Bond Principles (SLBP) and the Loan Market Association's Sustainability Linked Loan Principles (SLLP), with Bureau Veritas confirming that the framework's KPIs are ambitious, relevant, and aligned with SEBI's ESG guidelines.
Most of the buildings in the portfolio are either Gold or Platinum Green Building Certified (IGBC/LEED).
K Raheja Corp's Role
K Raheja Corp Investment Managers Private Limited, acting as the manager to Mindspace Business Parks REIT, submitted the compliance certificate to BSE Limited. K Raheja Corp group owns majority stake in Mindspace REIT. The group itself operates a leasable portfolio across various businesses of approximately 50 msf of commercial real estate, as of December 31, 2023.
Capital Adequacy and Debt Management
The REIT maintained a conservative Net Debt to Value ratio of approximately 24.3% as of March 31, 2026. In June 2026, the redemption was executed on maturity on June 30, 2026. A total of 50,000 NCDs were redeemed, amounting to Rs. 500 crore. Following this redemption, the outstanding principal amount for this series stands at Nil.