Embassy REIT Q3 results: Operating income rises 3% to Rs 478 crore

Embassy REIT Q3 results: Operating income rises 3% to Rs 478 crore

Bengaluru: Embassy Office Parks REIT has reported 3% year-on-year rise in net operating income for the quarter ended December to Rs 478 crore.

The India’s first listed Real Estate Investment Trust (REIT) and the largest in Asia reported an increase in the third quarter revenue by 4% Rs 565 crore for the quarter ended December 2020 as against the same quarter last year, the company said in a release.

Michael Holland, Chief Executive Officer of Embassy REIT commented, “This quarter marked another resilient performance for Embassy REIT, as illustrated by our operating performance and distribution to Unitholders. As India’s outlook steadily improves with a continued downward trend in active COVID-19 cases and the encouraging progress on vaccine roll-out, we remain optimistic that Indian office leasing demand will continue to increase as occupiers accelerate their return-to-work programs. Additionally, our recent successful Rs 9780 crore acquisition of Embassy TechVillage in India’s best-performing office sub-market of ORR in Bengaluru cements our position as a landlord of choice for the world’s top companies.”

The Board of director of Embassy Office Parks Management Services, Manager to Embassy REIT, at its board meeting declared a distribution of Rs 431 crore for 3Q FY2021. This translates to a distribution per unit of Rs 4.55 for the third quarter on the expanded unit base of 947.89 million units, post the issuance of 176.23 million new units in December 2020 in connection with the acquisition of Embassy TechVillage.

The record date for the distribution is February 22, 2021 and the distribution will be paid on or before February 27, 2021.

The firm said that its balance sheet sheet remains strong with low leverage of 23% Net Debt to TEV, liquidity of Rs 940 crore and additional debt headroom of Rs 12000 crore.

Lease deals signed for 3Q FY2021 stood at over 3 lakh sf, with 1.0 msf lease deals signed YTD. It achieved rental increases of 15% on 1.5 msf in 3Q FY2021, with YTD rental increases of 13% on 5.3 msf. “Rent collections for 3Q FY2021 from office occupiers remained strong at 99.5%, in-line with office rent collections of 100% for 1Q FY2021 and 99.9% for 2Q FY2021 (as of February 11, 2021). Portfolio occupancy stood at 90.6% on our enlarged 32.3 msf operating portfolio, with same-store occupancy,” the company said.

During the quarter Embassy Reit completed Rs 9780 crore ETV acquisition in Bangalore and successfully raised Rs 3680 crore through an Institutional Placement to fund the acquisition.

Embassy REIT owns and operates a 42.4 mn sft portfolio of eight infrastructure-like office parks and four city-centre office buildings in office markets of Bengaluru, Mumbai, Pune, and the NCR. Embassy REIT’s portfolio comprises 32.3 mn sft and some strategic amenities, including two operational business hotels, four under-construction hotels, and a 100MW solar park.

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