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Embassy REIT Announces Q2 FY2023 Results, Delivers Another Strong Quarter With 1.6 Million Square Feet Total Leases
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 for the second quarter ended September 30, 2022. 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. 5,175 million or Rs. 5.46 per unit for Q2 FY2023.Business Wire India
- Leased 1.6 msf at 22% leasing spreads, including 0.6 msf new leases and 0.5 msf pre-commitment to ANZ(1)
- Launched 2.5 msf new and redevelopment projects, highest ever active development pipeline of 7.1 msf
- Grew net operating income by 13% YoY; strong balance sheet with 66% of total debt at fixed rates
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 for the second quarter ended September 30, 2022. 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. 5,175 million or Rs. 5.46 per unit for Q2 FY2023. The record date for the Q2 FY2023 distribution is November 1, 2022, and the distribution will be paid on or before November 4, 2022.
Vikaash Khdloya, Chief Executive Officer of Embassy REIT, said, “We are pleased to deliver another excellent quarter of 1.6 msf of total leasing and remain on track to meet our FY2023 guidance. Despite recessionary concerns globally, the world’s best companies continue to partner with institutional landlords like Embassy REIT to capitalize on India’s structural advantages as a scalable and cost-efficient tech talent hub. With 7.1 msf of best-in-class development, a fortress balance sheet with low leverage, and debt at attractive 7.1% cost with majority at fixed rates, we are well positioned to deliver the next phase of growth.”
Business Highlights
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 for the second quarter ended September 30, 2022. 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. 5,175 million or Rs. 5.46 per unit for Q2 FY2023. The record date for the Q2 FY2023 distribution is November 1, 2022, and the distribution will be paid on or before November 4, 2022.
Vikaash Khdloya, Chief Executive Officer of Embassy REIT, said, “We are pleased to deliver another excellent quarter of 1.6 msf of total leasing and remain on track to meet our FY2023 guidance. Despite recessionary concerns globally, the world’s best companies continue to partner with institutional landlords like Embassy REIT to capitalize on India’s structural advantages as a scalable and cost-efficient tech talent hub. With 7.1 msf of best-in-class development, a fortress balance sheet with low leverage, and debt at attractive 7.1% cost with majority at fixed rates, we are well positioned to deliver the next phase of growth.”
Business Highlights
- Leased 1.6 msf across 27 deals, including 0.6 msf of new leasing and 0.5 msf pre-commitment by ANZ (1) at Embassy Manyata
- Added 15 new high-growth occupiers; achieved 22% positive leasing spreads on 1.6 msf and 14% rent escalations on 2.7 msf
- Received 5-star ratings for entire portfolio from GRESB and the British Safety Council, both globally renowned ESG and wellness certifications
Financial Highlights
- Grew Net Operating Income by 13% YoY to Rs. 7,038 million with operating margin of 82%
- Grew Net Asset Value by 3% YoY to Rs. 400.71 per unit; announced distributions of Rs. 5,175 million or Rs. 5.46 per unit
- Maintained strong balance sheet with low leverage of 26% and Rs. 112 billion proforma debt headroom
- Refinanced Rs. 7.5 billion debt resulting in 7.1% interest cost for Rs. 136 billion debt book, with 66% at fixed rate for 2.3 years
Growth Highlights
- Launched 1.2 msf office block redevelopment at Embassy Manyata, Bangalore, at attractive 22% yield on cost
- Kickstarted 1.3 msf new office developments at Embassy Manyata, taking our active development pipeline to 7.1 msf with total capital investments of Rs. 32 billion and over 80% in Bangalore, India’s top-performing office market
- Signed non-binding offer letters for the potential acquisition of two high-quality office properties in Bangalore and Chennai from Embassy Sponsor and its affiliates; properties total 7.1 msf of leasable area, of which 3.7 msf is completed or nearing completion
Investor Materials and Quarterly Investor Call Details
Embassy REIT has released a package of information on the quarterly results and performance, that includes (i) reviewed condensed consolidated and reviewed condensed standalone financial statements for the quarter and half ended September 30, 2022, (ii) an earnings presentation covering Q2 FY2023 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 October 21, 2022, at 11:30 hours Indian Standard Time to discuss the Q2 FY2023 results. A replay of the call will be available in the Investors section of our website at www.embassyofficeparks.com.
Embassy REIT has released a package of information on the quarterly results and performance, that includes (i) reviewed condensed consolidated and reviewed condensed standalone financial statements for the quarter and half ended September 30, 2022, (ii) an earnings presentation covering Q2 FY2023 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 October 21, 2022, at 11:30 hours Indian Standard Time to discuss the Q2 FY2023 results. A replay of the call will be available in the Investors section of our website at www.embassyofficeparks.com.
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