Business Wire India - Leases 1.1 msf across 22 deals; 407k sf of new leasing at 68% re-leasing spreads
- Portfolio optimization on track with SEZ denotification strategy activated and Embassy Manyata occupancy reaching 91%
- Delivers distributions of Rs 510 crores or Rs 5.38 per unit
- Provides guidance for FY2024 with a record 6.0 msf of total leasing and distributions in the range of Rs 20.50 to Rs 22.00 per unit
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 first quarter ended June 30, 2023.
Aravind Maiya, Chief Executive Officer of Embassy REIT, said,
“We are delighted to deliver another strong quarter across all our business and financial parameters. As India continues to be a favored global investment destination, Embassy REIT’s world-class portfolio continues to attract global multinationals seeking to capitalize on India’s skilled talent pool. Our ability to raise capital to fund our growth initiatives is demonstrated by our repeated debt raises at industry-leading rates. Given our strong leasing pipeline of 2 msf comprised mainly of GCCs, a clearer interest rate outlook, and our consistent focus on optimizing our operational and development portfolio, we are pleased to provide guidance for FY2024, which includes 6 msf of total leasing and distributions guidance in the range of Rs 20.50 to Rs 22.00 per unit.”
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 510 crores or Rs 5.38 per unit for Q1 FY2024. The record date for the Q1 FY2024 distribution is Aug 03, 2023, and the distribution will be paid on or before August 10, 2023.
Business Highlights - Leased 1.1 msf across 22 deals including 407k sf of new leases at 68% re-leasing spreads, pre-leasing of 448k sf at premium to market rents
- Strong trend of expansionary demand, with over 80% of the new/pre-leasing by existing occupiers and 71% by Global Captive Centres (GCCs) across various sectors
- Same-store occupancy remains stable at 87%
Financial Highlights - Grew Net Operating Income by 9% YoY to Rs 738 crores with commercial office segment margins at 85%
- Delivered distributions of Rs 510 crores or Rs 5.38 per unit, marking the 17th consecutive quarter of 100% payout
- Raised Non-Convertible Debentures (NCDs) totaling Rs 2,075 crores at an average rate of 7.8%; secured 146 bps proforma savings; c.Rs 15,350 crore debt book remains highly competitive at 7.28% average cost
Operational Highlights - Embassy Manyata repositioning paying dividends with 91% occupancy (up from 89% QoQ and 87% YoY)
- Completed refurbishment of two buildings totaling 0.6 msf and leased 52% at 212% leasing spreads
- Hospitality business performing strongly with 53% occupancy, 30% YoY ADR growth and 2.8x YoY EBITDA
- Unitholder register expanded to over 85k unitholders, up from 4K at IPO and up 80% from 47K YoY; marked increase in domestic institutional and retail participation, driven by extensive investor engagement and retail education initiatives
Investor Materials and Quarterly Investor Call Details 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 ended June 30, 2023 (ii) an earnings presentation covering Q1 FY2024 results, and (iii) supplemental operating and financial data book that is in-line with leading reporting practices across global REITs. All these materials are available in the Investors section of our website at
www.embassyofficeparks.com.
Embassy REIT will host a conference call on July 26, 2023 at 18:00 hours Indian Standard Time to discuss the Q1 FY2024 results. A replay of the call will be available in the Investors section of our website at
www.embassyofficeparks.com.
"Kalkine Media dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor
incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud
exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute
irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla
pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia
deserunt mollit anim id est laborum."
Section 1.10.32 of "de Finibus Bonorum et Malorum", written by Cicero
in 45 BC
"Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium
do Kalkine que laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore
veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim ipsam
voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur
magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est,
qui do Kalkine Media quia dolor sit amet, consectetur, adipisci velit, sed quia non
numquam eius modi tempora incidunt ut labore et dolore magnam aliquam quaerat
voluptatem. Ut enim ad minima veniam, quis nostrum exercitationem ullam corporis
suscipit laboriosam, nisi ut aliquid ex ea commodi consequatur? Quis autem vel eum
iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur,
vel illum qui do Kalkine eum fugiat quo voluptas nulla pariatur?"
1914 translation by H. Rackham
"But I must explain to you how all this mistaken idea of denouncing pleasure and
praising pain was born and I will give you a complete account of the system, and
expound the actual teachings of the great explorer of the truth, the master-builder
of human happiness. No one rejects, dislikes, or avoids pleasure itself, because it
is pleasure, but because those who do not know how to pursue pleasure rationally
encounter consequences that are extremely painful. Nor again is there anyone who
loves or pursues or desires to obtain pain of itself, because it is pain, but
because occasionally circumstances occur in which toil and pain can procure him some
great pleasure. To take a trivial example, which of us ever undertakes laborious
physical exercise, except to obtain some advantage from it? But who has any right to
find fault with a man who chooses to enjoy a pleasure that has no annoying
consequences, or one who avoids a pain that produces no resultant pleasure?"
1914 translation by H. Rackham
"But I must explain to you how all this mistaken idea of denouncing pleasure and
praising pain was born and I will give you a complete account of the system, and
expound the actual teachings of the great explorer of the truth, the master-builder
of human happiness. No one rejects, dislikes, or avoids pleasure itself, because it
is pleasure, but because those who do not know how to pursue pleasure rationally
encounter consequences that are extremely painful. Nor again is there anyone who
loves or pursues or desires to obtain pain of itself, because it is pain, but
because occasionally circumstances occur in which toil and pain can procure him some
great pleasure. To take a trivial example, which of us ever undertakes laborious
physical exercise, except to obtain some advantage from it? But who has any right to
find fault with a man who chooses to enjoy a pleasure that has no annoying
consequences, or one who avoids a pain that produces no resultant pleasure?"