Embassy REIT delivers 2 Mn SqFt of Leases

Strengthens partnership with global tech occupier for 600k sf space at Bengaluru

Aravind Maiya, Chief Executive Officer of Embassy REIT

FinTech BizNews Service 

Mumbai, 26 October, 2023:  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 second quarter ended September 30, 2023.

Aravind Maiya, Chief Executive Officer of Embassy REIT, said, “We’re delighted to report a record quarter of leasing of 2 msf. For the first half of FY2024, we have successfully leased 3.1 msf, and the outlook for the full year looks promising, bolstered by a record leasing pipeline of 2.5 msf. We’re also very pleased to further strengthen our long-standing partnership with one of our largest clients at Embassy GolfLinks, a testament to our commitment to provide best-in-class workspaces to our occupiers. This coupled with the strong leasing momentum in the business, has resulted in a revised leasing guidance of 6.5 msf for FY2024 from the earlier announced 6 msf.” 

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 ?524 crores or ?5.53 per unit for Q2 FY2024. The record date for the Q2 FY2024 distribution is November 03, 2023, and the distribution will be paid on or before November 10, 2023.

Business Highlights 

•  Leased record 2 msf across 25 deals including 1.2 msf of new leases; Signed 7 new deals over 100k sf reflecting a return of large deal closures
•  Significant demand from Global Captive Centres (GCCs) accounting for over 70% of total leasing activity
•  Bengaluru and Mumbai led the demand, contributing 90% of the total leasing in the quarter; 90%+ occupancy levels across 50% of our properties with Embassy 247 in Mumbai 100% occupied

Financial Highlights

•  Revenue from Operations grew by 4% YoY to ?889 crores
•  Delivered distributions of ?524 crores or ?5.53 per unit, marking the 18th consecutive quarter of 100% payout
• Achieved lowest 121 bps spread over G-Sec and secured first-time participation from pension funds in the ?1,000 crores new NCD issuance; Strong balance sheet with lowest average cost of debt in the industry at 7.4% and dual AAA/Stable credit ratings

Operational & Development Highlights

•  Delivered 1 msf new office tower in Bengaluru; 7.1 msf total development portfolio of which ~90% is in Bengaluru, expected to yield around 20% return on cost spends
•  Hospitality business continued to perform strongly with 52% occupancy, 24% YoY ADR growth and an EBITDA of ?37 crores; Robust NOI margins of close to 50% at the 3 Hilton hotels 
•  Ranked number one in India by GRESB for public disclosures, and awarded a 5-star rating for the entire 45 million square feet office portfolio for the second consecutive year