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Embassy REIT Q3 Results |Net operating income rises 30% at Rs 621 crore; announces distribution of Rs 493 crore to unitholders

Michael Holland, Chief Executive Officer of Embassy REIT, said, the company's performance was good despite COVID-19 disruptions.

Embassy Office Parks REIT on January 28 reported 30 per cent increase in net operating income to Rs 621 crore for the quarter ended December 2021 and announced distribution of Rs 493 crore to unitholders.

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 ₹493 crores or ₹5.20 per unit for Q3 FY2022.

Of this, ₹4.32 per unit or 83% of distributions are tax-free for Unitholders. The record date for the Q3 FY2022 distribution is February 07, 2022 and the distribution will be paid on or before February 12, 2022, the company said in a statement.

Michael Holland, Chief Executive Officer of Embassy REIT, said, the company's performance was good despite COVID-19 disruptions.

“We are delighted to announce another great set of results despite Covid disruptions, once again underscoring the resilience and growth potential of Embassy REIT. We continue to see multiple positive indicators for our business – the uptick in new leasing, our delivery of the 1.1 million square feet (‘msf’) JP Morgan campus, our 4.6 msf of development pipeline, and a 5 msf potential acquisition opportunity in Chennai,” he said.

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Positive leasing momentum gives us the confidence to increase our guidance for the full year FY2022 as we look beyond the external challenges of the past two years. We are excited for the next phase of growth and value creation for our Unitholders through our focused investments in developing, enhancing, and expanding our world-class portfolio, he said.

Embassy REIT leased 4,28,000 square feet across 15 deals, and achieved 14 per cent rent increases on 1.8 MSF. "Grew Net Operating Income ('NOI') by 30 per cent to Rs 621 crore, with operating margin of 84 per cent," the company said.

It raised FY2022 full year guidance for new leasing from 400k sf to 1 msf, already achieved around 700k sf YTD. The company added eight new occupiers including from high-growth sectors such as SaaS, logistics and e-commerce; occupier roster now over 200, it said.

It also integrated ₹9,782 crores Embassy TechVillage (‘ETV’) property within a year of acquisition, delivered better than underwriting on a number of metrics, the company said in a statement.

The company delivered 1.1 msf JP Morgan campus at ETV within budget, commenced new growth cycle with 1.9 msf new office development. Construction in full swing on 4.6 msf on-campus development projects, it said.

The company has received the Received Right of First Offer (‘ROFO’) notice for 5 msf Embassy Splendid TechZone, Chennai from Embassy Sponsor and has launched one of Asia’s largest solar rooftop projects, with over 20 MW scale and over 30% projected IRR; committed to 75% renewable energy by FY2025, it said.

Embassy REIT is India's first publicly listed Real Estate Investment Trust. It owns and operates a 42.6 msf portfolio of eight infrastructure-like office parks and four city-centre office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region (NCR). It owns and operates a 42.6 MSF portfolio of eight infrastructure-like office parks and four city-centre office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region (NCR).



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Moneycontrol News
first published: Jan 28, 2022 07:16 pm
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