Embassy Office Parks REIT (‘Embassy REIT’), India’s first listed REIT and the largest office REIT in Asia by area, reported results 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.
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%.
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%, Rs18,000 crore debt book remains highly competitive at 7.8% average cost.
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.
