Embassy Office Parks REIT (‘Embassy REIT’), India’s first listed REIT and the largest office REIT in Asia by area, reported results for the third quarter ended December 31, 2023.
Aravind Maiya, Chief Executive Officer of Embassy REIT, said, “It’s been a remarkable quarter for Embassy REIT. We’re pleased to announce that we’ve achieved our annual leasing guidance in just 9 months. As our 2.2 msf of pre-leasing to three renowned global companies demonstrates, India continues to be a thriving business hub for GCCs. As more and more multinationals set up their centres in India, their need for premium office spaces to house their talent will grow exponentially in the coming years. Our refinance of Rs 2,600 crores through a combination of instruments provides us increased flexibility in managing our debt portfolio. Lastly, the strength of our business is reflected by the excellent response of equity investors to the recent sponsor stake sale, which has resulted in an increase of our public float to 92% and a truly diversified blue-chip unitholder base.”
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 493 crores or Rs 5.2 per unit for Q3 FY2024. The record date for the Q3 FY2024 distribution is February 12, 2024, and the distribution will be paid on or before February 17, 2024.
Record leasing of 3.5 msf across 22 deals, including 1.1 msf of new leases and three large pre-lease deals of 2.2 msf in Bengaluru with leading multinationals. Global Captive Centres (GCCs) in primarily BFSI, retail, and tech sectors accounted for over 78% of total leasing. 90%+ occupancy levels across 50% of Embassy REIT’s properties.
Revenue from Operations grew by 8% YoY to Rs 936 crores. Delivered distributions of Rs 493 crores or Rs 5.2 per unit. Refinanced Rs 2,600 crores at an average rate of 8.25% including first-time commercial paper issuance of Rs 1,000 crores; strong balance sheet with an industry-leading in-place debt cost at 7.8% and dual AAA/Stable credit ratings.
Development pipeline of 6.9 msf of which 90% is in Bengaluru at highly attractive yields of over 20%. Hotel portfolio continued to perform strongly with 55% occupancy, 19% YoY ADR growth and an EBITDA of Rs 50 crores.
Included in the 2023 Dow Jones Sustainability Indices making Embassy REIT the first Indian REIT to be recognized for its sustainability initiatives by this leading global benchmark
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 and nine months ended December 31, 2023 (ii) an earnings presentation covering Q3 FY2024 results, and (iii) supplemental operating and financial data book that is in-line with leading reporting practices across global REITs.
