Embassy REIT Leases 1.9 Million Square Feet in Q1 FY2025, up 70% YoY, and Grows Distributions by 4% YoY
25 July 2024 - 1:43PM
Business Wire
- Leases 1.9 msf across 22 deals with 70% of leasing by area
driven by Global Capability Centres
- Redeveloping 0.9 msf at Embassy Manyata in Bengaluru;
leasable area expands 3x with potential 20% yield on cost
- Actively developing 8.6 msf; ~70% of next 2 years’
deliveries pre-leased to leading multinationals; potential increase
in NOI by ~Rs 1,000 crores on stabilized basis
- Three office parks at 100% occupancy; Bengaluru, Mumbai,
Chennai properties at ~90%, 99% and 95% occupancy, respectively;
all three markets cumulatively represent 86% by value
- Distributes Rs 531 crores or Rs 5.6 per unit, up 4% YoY and
7% QoQ
Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602)
(‘Embassy REIT’), India’s first listed REIT and the largest
office REIT in Asia by area, reported results today for the first
quarter ended June 30, 2024.
Aravind Maiya, Chief Executive Officer of Embassy REIT,
said:
“We are delighted to report another excellent quarter of strong
leasing across our portfolio. We leased 1.9 msf this quarter,
marking a 70% YoY increase, and we have a strong pipeline across
Bangalore, Noida, and Chennai. We are excited to strengthen our
partnership with one of our largest occupiers through a new
redevelopment project at Embassy Manyata, a testament to our
best-in-class office solutions. Our distributions have grown 4%
YoY, and we crossed the 100k unitholder mark this quarter, a 25x
increase since our listing. We’re seeing a lot of tailwinds in our
business, and we are focused on sustaining this momentum and
delivering value to all our stakeholders.”
The Board of Directors of Embassy Office Parks Management
Services Private Limited (‘EOPMSPL’), Manager to Embassy
REIT, at its Board Meeting held earlier today, declared a
distribution of Rs 531 crores or Rs 5.60 per unit for Q1 FY2025.
The record date for the Q1 FY2025 distribution is August 02, 2024,
and the distribution will be paid on or before August 09, 2024.
Business Highlights
- Leased 1.9 msf across 22 deals at 11% leasing spreads
- Global Capability Centres (GCCs) remain the primary drivers of
demand and contributed 70% of the quarter’s leasing activity
- Bengaluru Occupancy at ~90%, Mumbai at 99% and Chennai at 95%.
3 properties at 100% occupancy – Embassy GolfLinks in Bengaluru,
Embassy 247 and FIFC in Mumbai. Embassy Galaxy in Noida at
99%.
Financial Highlights
- Grew Revenue from Operations and Net Operating Income (NOI) for
commercial office segment by 4% YoY; on track to meet FY25 NOI
guidance
- Distributed Rs 531 crores or Rs 5.60 per unit, up 4% YoY and 7%
QoQ
- Raised debt of Rs 1,450 crores at an average rate of 8.06%; Rs
18,000 crore debt book remains highly competitive at 7.8% average
cost
Operational & Growth Highlights
- Completed acquisition of Embassy Splendid TechZone, a ~5 msf
premium business park in Chennai
- Launched 0.9 msf office block redevelopment at Embassy Manyata
in Bengaluru with 3x increase in leasable area, at potential 20%
yield on cost
- Strong development pipeline of 8.6 msf with total capital
investment of Rs 4,600 crores; expected to add approximately Rs
1,000 crores to NOI upon stabilization
- SEZ strategy on-track: 3.4 msf denotified since April’23, 0.8
msf demarcated to non-processing areas, with 65% already
leased
Investor Materials and Quarterly Investor Call
Details
Embassy REIT has released a package of information on the
quarterly results and performance, that includes (i) condensed
standalone and condensed consolidated financial statements for the
quarter ended June 30, 2024 (ii) an earnings presentation covering
Q1 FY2025 results, and (iii) supplemental operating and financial
data book that is in-line with leading reporting practices across
global REITs. All these materials are available in the Investors
section of our website at www.embassyofficeparks.com.
Embassy REIT will host a conference call on July 25, 2024 at
18:00 hours Indian Standard Time to discuss the Q1 FY2025 results.
A replay of the call will be available in the Investors section of
our website at www.embassyofficeparks.com.
About Embassy REIT
Embassy REIT is India’s first publicly listed Real Estate
Investment Trust and the largest office REIT in Asia, by area.
Embassy REIT owns and operates a 51 msf portfolio of 14 office
parks in India’s best-performing office markets of Bengaluru,
Mumbai, Pune, the National Capital Region (‘NCR’) and Chennai.
Embassy REIT’s portfolio comprises 37.7 msf completed operating
area and is home to 258 of the world’s leading companies. The
portfolio also comprises strategic amenities, including four
operational business hotels, two under‑construction hotels, and a
100 MW solar park supplying renewable energy to tenants. Embassy
REIT’s industry leading ESG program has received multiple accolades
from renowned global institutions and was awarded a 5-star rating
both from the British Safety Council and GRESB. Embassy REIT was
included in the 2023 Dow Jones Sustainability Indices, making it
the first REIT in India to be recognised for its sustainability
initiatives by a leading global benchmark. For more information,
please visit www.embassyofficeparks.com.
Disclaimer
This press release is prepared for general information purposes
only. The information contained herein is based on management
information and estimates. It is only current as of its date, has
not been independently verified and may be subject to change
without notice. Embassy Office Parks Management Services Private
Limited (“the Manager”) in its capacity as the Manager of Embassy
REIT, and Embassy REIT make no representation or warranty, express
or implied, as to, and do not accept any responsibility or
liability with respect to, the fairness and completeness of the
content hereof. Each recipient will be solely responsible for its
own investigation, assessment and analysis of the market and the
market position of Embassy REIT. Embassy REIT does not provide any
guarantee or assurance with respect to any distribution or the
trading price of its units.
This press release contains forward-looking statements based on
the currently held beliefs, opinions and assumptions of the
Manager. Forward-looking statements involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results, financial condition, performance, or achievements of
Embassy REIT or industry results, to differ materially from the
results, financial condition, performance or achievements expressed
or implied by such forward-looking statements. Given these risks,
recipients of this press release are cautioned not to place undue
reliance on these forward-looking statements. The Manager disclaims
any obligation to update these forward-looking statements to
reflect future events or developments or the impact of events which
cannot currently be ascertained. In addition to statements which
are forward looking by reason of context, the words ‘may’, ‘will’,
‘should’, ‘expects’, ‘plans’, ‘intends’, ‘anticipates’, ‘believes’,
‘estimates’, ‘predicts’, ‘potential’ or ‘continue’ and similar
expressions identify forward-looking statements.
This press release also contains certain financial measures
(including guidance and proforma information) which are not
measures determined based on GAAP, Ind-AS or any other
internationally accepted accounting principles, and the recipient
should not consider such items as an alternative to the historical
financial results or other indicators of Embassy REIT's cash flow
based on Ind-AS or IFRS. These non-GAAP financial measures, as
defined by the Manager, may not be comparable to similarly titled
measures as presented by other REITs due to differences in the way
non-GAAP financial measures are calculated. Even though the
non-GAAP financial measures are used by management to assess
Embassy REIT's financial position, financial results and liquidity
and these types of measures are commonly used by investors, they
have important limitations as analytical tools, and the recipient
should not consider them in isolation or as substitutes for
analysis of Embassy REIT's financial position or results of
operations as reported under Ind-AS or IFRS. Certain figures in
this press release have been subject to rounding off adjustments.
Actual legal entity name of occupiers may differ.
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Shwetha Reddy Head - Marketing and Communications Email:
shwetha.r@embassyofficeparks.com Phone: +91 8867845915
Sakshi Garg Head - Investor Relations Email:
ir@embassyofficeparks.com Phone: +91 80 6935 4864