Mindspace REIT stock poised for upside in light of strong portfolio performance

On Thursday, an analyst at Jefferies adjusted the price target for Mindspace Business Parks REIT (MINDSPCE:IN), increasing it to INR407.00, up from the previous INR401.00. The firm continues to endorse a Buy rating for the stock.

This revision comes in the wake of Mindspace REIT’s first-quarter results, which showcased a significant year-over-year distribution per unit (DPU) growth of 5%, the highest since the company’s listing.

The analyst noted that the conversion of net operating income (NOI) to DPU growth is expected to quicken, potentially reaching high single-digit figures by the end of the year. This forecast is supported by an overall enhancement in the portfolio’s performance, which has been attributed to an improving office market. The locations of Mindspace’s properties have been particularly appealing to both Global Capability Centers (GCC) and domestic companies, contributing to the positive outlook.

Jefferies’ stance on Mindspace REIT remains positive, citing the robust quarterly result as a key factor in the decision to maintain the Buy rating and to raise the price target. The analyst’s comments highlight the expectation of continued growth for Mindspace REIT, underpinned by the strong performance of its portfolio and favorable market conditions.

The updated price target of INR407.00 reflects the analyst’s optimism regarding the future financial performance of Mindspace REIT, as the company capitalizes on the positive dynamics within the office real estate sector.

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