Embassy REIT to deliver record 4.4 million sq ft of leases in FY2023

January 25, 2023 0 Comments

Bangalore, India–(business telegram)–EMBASSY OFFICE PARK REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT‘), India’s first listed REIT and Asia’s largest office REIT by area, today reported results for the third quarter ended December 31, 2022. BOARD OF DIRECTORS OF EMBASSY OFFICE PARKS MANAGEMENT SERVICES PRIVATE LIMITED (‘EOPMSPL‘), the manager of Embassy REIT, announced a distribution of ₹5,033 million or ₹5.31 per unit for the third quarter of FY2023 in its board meeting held today. The record date for the Q3 FY2023 distribution is February 03, 2023, and the distribution will be paid on or before February 09, 2023.

Vikas Khadloya, CEO of Embassy REITTold,

“Amid a highly volatile global macro environment, Embassy REIT delivered another strong quarter of business performance. Our 4.4 msf year-to-date leasing remains strong, we accelerated our highly accretive 6.6 msf development growth, and We are on track to meet our annual guidance despite softening global earnings forecasts. The Indian office market continues to benefit from the offshoring megatrend and has outperformed global office markets. Embassy REIT Our Scale, World Given the tiered assets, embedded growth potential and our strong balance sheet, we are ideally positioned to deliver value to unitholders.

business highlights

  • Leased 1 MSF in 19 deals in Q3 at 13% leasing spread, YTD with total leasing of 4.4 MSF in 71 deals

  • Raised 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

  • Net Operating Income grew by 13% to ₹7,049 million with a healthy operating margin of 81%

  • Announcing distribution of ₹5,033 million or ₹5.31 per unit, marking 15th Consecutive quarter of 100% payout

  • Maintains strong balance sheet with low 27% leverage, attractive 7.2% debt cost and AAA/stable credit rating

Growth Highlights

  • Accelerated growth on 6.6 MSF active development pipeline, expected to add ₹8 billion in net operating income on ₹30 billion capital investment stabilization

  • New office block of 0.4 msf launched at Embassy Tech Village, Bangalore with whopping 24% yield.

  • Continued to evaluate non-binding takeover offers for 7.1 MSFs in Chennai and Bangalore

Investor Materials and Quarterly Investor Call Statement

Embassy REIT has released a package of information on quarterly results and performance, including (i) a review of the condensed consolidated and reviewed condensed standalone financial statements for the quarter and nine months ended December 31, 2022 (ii) fiscal year 2023 An earnings presentation incorporating the results for the third quarter is included. , and (iii) supplemental operating and financial data books that conform to leading reporting practices among global REITs. All these materials are available on our website www.embassyofficeparks.com in the Investors section.

Embassy REIT will host a conference call to discuss Q3 FY2023 results on January 25, 2023 at 18:30 IST. A replay of the call will be available on our website at www.embassyofficeparks.com in the Investors section.

About Embassy REIT

Embassy REIT is India’s first publicly listed real estate investment trust. Embassy REIT owns and operates a 43.6 msf portfolio of eight infrastructure projects such as office parks and four city-centre office buildings in India’s best performing office markets of Bangalore, Mumbai, Pune and the National Capital Region (‘NCR’) Is. Embassy REIT’s portfolio covers 34.3 msf of full operational area and is home to approximately 230 of the world’s leading companies. The portfolio also includes strategic facilities, including four operational business hotels, two hotels under construction and a 100 MW solar park supplying renewable energy to tenants. Embassy REIT’s industry-leading ESG program has received several accolades from renowned global institutions and has been awarded 5-Star ratings from both the British Security Council and GRESB. Embassy REIT was also recognized by Green Business Certification Inc. as having the world’s largest ‘USGBC LEED Platinum-Certified’ office portfolio (v4.1 O+M). For more information, please visit www.embassyofficeparks.com.


This press release has been prepared for general information purposes only. The information contained herein is based on management information and estimates. It is current as of its date only, has not been independently verified and may be subject to change without notice. Embassy Office Parks Management Services Private Limited (“Manager”) in its capacity as Manager of Embassy REIT, and Embassy REIT makes no representations or warranties, express or implied, and accepts no responsibility or liability in respect of . , objectivity and completeness of its contents. Each Recipient shall be solely responsible for its own investigation, evaluation and analysis of the market and the market position of Embassy REIT. Embassy REIT does not provide any guarantees or assurances with respect to the trading price of any distribution or units thereof.

This press release contains forward-looking statements based on the manager’s current beliefs, opinions and assumptions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results, financial condition, performance, or achievements of Embassy REIT or the industry results, financial condition, performance or results to be expressed or implied. Achievements may differ materially. or implied by such forward-looking statements. Given these risks, recipients of this press release are cautioned not to place undue reliance on these forward-looking statements. 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 ascertained, such as COVID-19. Except for statements which by reason of the context are forward-looking, the words ‘may’, ‘will’, ‘should’, ‘expect’, ‘plan’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’ , ‘forecast’, ‘potential’ or ‘continuing’ and similar expressions identify forward-looking statements.

This press release also includes certain financial measures that are not measures determined based on GAAP, Ind-AS or any other internationally accepted accounting principles, and recipients should consider such items as substitutes for historical financial results or other indicators of Embassy REIT. should not be regarded as Cash Flows based on Ind-AS or IFRS. These non-GAAP financial measures as defined by the manager may not be comparable to similarly titled measures presented by other REITs due to differences in the way non-GAAP financial measures are calculated. Even though non-GAAP financial measures are used by management to assess Embassy REIT’s financial position, financial results and liquidity, and these types of measures are commonly used by investors, they have the potential to serve as analytical tools. There are significant limitations, and the recipient should not consider them in isolation or as a substitute for analysis of the Embassy REIT’s financial position or results of operations reported under Ind-AS or IFRS. Some figures in this press release are subject to rounding off adjustments. The actual legal entity name of the occupiers may differ. The non-binding offer letters are subject to due diligence, entering into definitive agreements and obtaining approvals, including from third parties, unitholders and regulatory authorities to the extent applicable. There is no assurance that any transaction will be entered into in accordance with the offer letter or the terms and timing of any such transaction.

(1) Green Business Certification Inc. under the V4.1 O+M category for the operational portfolio. certified by

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