Significant increase in transaction activity with a total lease of 713,000 square feet, offering rental spreads of 20%
Increases net operating income by 30% year-on-year, to distribute Rs 537 crore to unitholders with 80% tax exemption
Increase the debt from Rs 4,600 crore to 6.5% to refinance the existing zero coupon bond, interest savings of around 300 basis points
BANGALORE, India, October 29, 2021– (COMMERCIAL THREAD) – Embassy Office Parks REIT (NSE: AMBASSY / BSE: 542602) (‘FPI Embassy‘), India’s # 1 listed REIT and Asia’s largest office REIT by region, today released results for the three and six months ended September 30, 2021.
Michael Holland, CEO of Embassy REIT, noted,
“We are delighted to report another strong quarter of strong and continuing business performance. We have had our strongest rental activity since the start of the pandemic, we have successfully completed a major Rs The 4,600 crore debt is growing at an impressive 6.5% interest rate and we have received worldwide recognition for our continued commitment to sustainability. We reconfirmed our guidance for the full year as we see multiple positive winds for our business – the stabilization of the Covid situation in India, a booming office rental market, particularly in our core market of Bangalore, and the expansion of occupant activities driven by global mega-trends in technology. These positive trends are clear to our expanding investor base which has tripled in the past twelve months. “
The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL‘), The Director of Embassy REIT, at his board meeting earlier today, said a distribution of Rs 537 crore or Rs 5.66 per unit for the second quarter of the fiscal year 2022. Of this amount, Rs 4.52 per unit or 80% of distributions are tax free for unitholders. The registration date for the distribution for the second quarter of fiscal 2022 is November 10, 2021 and the distribution will be paid no later than November 13, 2021.
Total lease of 713,000 square feet across 7 transactions, with 20% lease spreads
Stable portfolio occupancy of 89% achieved, with rent increases of 15% on 1.4 million square feet (“msf”) on 22 leases
Construction in full swing on 5.7 msf projects, with a 1.1 msf JP Morgan campus on track for delivery by year end
Second Quarter Net Operating Income (“NOI”) increased 30% year-on-year to Rs 624 crore, with NOI margin of 85%
Raising the debt from Rs 4,600 crore to 6.5% to refinance the existing zero coupon bond, resulting in significant interest savings of around 300bp
Fortress balance sheet maintained with low leverage of 24% and debt margin of Rs 12,000 crore to finance growth
Highlights of operations
Collection of more than 99% of office rents on an operating portfolio of 32.3 msf
Increase in the number of employees operating in our parks (21,000 as of September 21); labor force on construction sites now at its peak
Rated 4 stars and Green Star by GRESB, the global ESG benchmark
Investor documents and details of the quarterly investor call
Embassy REIT has released a set of quarterly earnings and performance information, which includes (i) reviewed condensed consolidated financial statements for the quarter and six-month period ended September 30, 2021, (ii) a presentation of results covering the results the second quarter of fiscal 2022, and (iii) a collection of additional operational and financial data in line with leading global REIT reporting practices. All of these documents are available in the Investors section of our website at www.embassyofficeparks.com.
Embassy REIT will host a conference call on October 29, 2021 at 5:30 p.m. Indian Standard Time to discuss the second quarter of Fiscal 2022 results. A replay of the call will be available in the Investors section of our site. Web at www.embassyofficeparks.com.
This press release is prepared for general information purposes only. The information contained in this document is based on information and estimates from management. It is only up to date as of its date, has not been independently verified and may be subject to change without notice. Embassy Office Parks Management Services Private Limited (“the Manager”) in its capacity as manager of Embassy REIT, and Embassy REIT makes no representations or warranties, express or implied, as to, and accepts no liability with respect to of, the fairness and completeness of the content hereof. Each beneficiary will be solely responsible for its own investigation, assessment and analysis of the market and of Embassy REIT’s market position. Embassy REIT does not provide any guarantee or assurance regarding any distribution or the trading price of its units.
This press release contains forward-looking statements based on the beliefs, opinions and assumptions currently held by the manager. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause Embassy REIT’s actual results, financial condition, performance or achievements or industry results to differ materially. results, financial situation, performances or achievements expressed. or implied by these forward-looking statements. In view of these risks, uncertainties and other factors, including the impact of COVID-19 on us, our occupants and the Indian and global economies, the recipients of this press release are cautioned not to place undue reliance on these statements. prospective. The manager disclaims any obligation to update these forward-looking statements to reflect future events or developments or the impact of events that cannot currently be determined, such as COVID-19. In addition to forward-looking statements due to context, the words “may”, “will”, “should”, “expects”, “plans”, “intends”, “anticipates”, “believes” , “Estimate”, “predict”, “potential” or “continue” and similar expressions identify forward-looking statements.
This press release also contains certain financial measures which are not measures determined on the basis of GAAP, Ind-AS or any other internationally recognized accounting principle, and the recipient should not consider these elements as an alternative to historical financial results or other indicators of Embassy REIT. cash flow based on Ind-AS or IFRS. These non-GAAP financial measures, as defined by the Manager, may not be comparable to measures of the same name as presented by other REITs due to differences in the way non-GAAP financial measures are calculated. Although non-GAAP financial measures are used by management to assess the financial condition, financial results and liquidity of Embassy REIT and these types of measures are commonly used by investors, they have significant limitations as analytical tools, and the beneficiary should not view them in isolation or as a substitute for the analysis of Embassy REIT’s financial position or operating results, as presented under Ind-AS or IFRS. Some figures in this press release have been rounded.
About Embassy REIT
Embassy REIT is India’s premier publicly traded real estate investment trust. Embassy REIT owns and operates a 42.4 million square foot (“msf”) portfolio of eight infrastructure-style office parks and four downtown office buildings in India’s top-performing office markets, namely Bangalore, Mumbai, Pune and the National Capital Region (“NCR”). Embassy REIT’s portfolio includes a completed operating area of 32.3 msf and is home to more than 190 of the world’s largest companies. The portfolio also includes strategic facilities, including two operational business hotels, four hotels under construction and a 100 MW solar farm providing renewable energy to tenants.
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