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- Leased 4.4 msf YTD FY2023 across 71 deals including 19 deals totaling 1 msf in Q3; Achieved around 90% of annual guidance
- Grew Net Operating Income by 13% YoY and distributed 100% of payouts for the 15th consecutive quarter
- Accelerated development on 6.6 msf of active growth pipeline, Rs 30bn capital investment, expected to add Rs 8bn to NOI and generate attractive 24% yield
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 third quarter ended December 31, 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 5,033 million or Rs 5.31 per unit for Q3 FY2023. The record date for the Q3 FY2023 distribution is 03 February, 2023, and the distribution will be paid on or before 09 February, 2023.
Vikaash Khdloya, Chief Executive Officer of Embassy REIT, said,
“Amidst a highly volatile global macro environment, Embassy REIT delivered yet another strong quarter of business performance. Our 4.4 msf year-to-date leasing remains robust, we’ve accelerated our highly accretive 6.6 msf development growth, and we’re on track to achieve our annual guidance, even as global earnings forecasts soften. The Indian office market continues to benefit from the offshoring megatrend and has outshined global office markets. Embassy REIT is ideally positioned to deliver value to unitholders given our scale, world-class properties, embedded growth potential and our fortress balance sheet.”
Business Highlights
- Leased 1 msf across 19 deals in Q3 at 13% leasing spreads, with YTD total leasing of 4.4 msf across 71 deals
- Increased same-store occupancy to 88% and expanded occupier base to 230
- Recognized as the world’s largest ‘USGBC LEED platinum certified office portfolio’ (1)
Financial Highlights
- Grew Net Operating Income by 13% YoY to Rs 7,049 million, with healthy operating margin of 81%
- Announced distributions of Rs 5,033 million or Rs 5.31 per unit, marking 15th consecutive quarter of 100% payouts
- Maintained strong balance sheet with low 27% leverage, attractive 7.2% debt cost, and a AAA/Stable credit rating
Growth Highlights
- Accelerated development on 6.6 msf active growth pipeline, Rs 30 bn capital investment expected to add Rs 8 billion to Net Operating Income upon stabilization
- Launched 0.4 msf new office block at Embassy TechVillage, Bangalore at highly accretive 24% yield
- Continued to evaluate the non-binding acquisition offers for 7.1 msf across Chennai and Bangalore
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 nine months ended December 31, 2022 (ii) an earnings presentation covering Q3 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 25 January, 2023 at 18:30 hours Indian Standard Time to discuss the Q3 FY2023 results. A replay of the call will be available in the Investors section of our website at www.embassyofficeparks.com.
(1) Certified by Green Business Certification Inc.under v4.1 O+M category for operational portfoli
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