Embassy Office Parks REIT India’s first listed REIT and the largest office REIT in Asia by area, reported results for the third quarter ended December 31, 2022. The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, at its board meeting held earlier, declared a distribution of Rs 5,033 million or Rs 5.31 per unit for Q3 FY2023. The record date for the Q3 FY2023 distribution is 03 February, 2023, and the distribution will be paid on or before 09 February, 2023.
Vikaash Khdloya, Chief Executive Officer of Embassy REIT, said, “Amidst a highly volatile global macro environment, Embassy REIT delivered yet another strong quarter of business performance. Our 4.4 msf year-to-date leasing remains robust, we’ve accelerated our highly accretive 6.6 msf development growth, and we’re on track to achieve our annual guidance, even as global earnings forecasts soften. The Indian office market continues to benefit from the offshoring megatrend and has outshined global office markets. Embassy REIT is ideally positioned to deliver value to unitholders given our scale, world-class properties, embedded growth potential and our fortress balance sheet.”
The business highlights are it leased 1 msf across 19 deals in Q3 at 13% leasing spreads, with YTD total leasing of 4.4 msf across 71 deals. Increased same-store occupancy to 88% and expanded occupier base to 230. Recognized as the world’s largest ‘USGBC LEED platinum certified office portfolio’.
The financial highlights are the net operating income grew by 13% YoY to Rs 7,049 million, with healthy operating margin of 81%. It announced distributions of Rs 5,033 million or Rs 5.31 per unit, marking 15th consecutive quarter of 100% payouts. It maintained strong balance sheet with low 27% leverage, attractive 7.2% debt cost, and a AAA/Stable credit rating.
The growth highlights are it accelerated development on 6.6 msf active growth pipeline, Rs 30 bn capital investment expected to add ?8 billion to Net Operating Income upon stabilization. It launched 0.4 msf new office block at Embassy TechVillage, Bangalore at highly accretive 24% yield. It continued to evaluate the non-binding acquisition offers for 7.1 msf across Chennai and Bangalore.
