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Embassy REIT Q2 net operating income sees 30% rise

Embassy Office Parks Real Estate Investment Trust (REIT), India’s first listed REIT which claims to be the largest office REIT in Asia by area, reported results today for the quarter and said that its net operating income rose by 30 per cent to ₹624 crore.

In regulatory filings to the exchanges, Embassy REIT said, of its net income it would distribute ₹537 crores or ₹5.66 per unit for Q2FY22t. The company also said that it had raised ₹4,600 crore debt at 6.5 per cent.

Investor base triples

Michael Holland, Chief Executive Officer of Embassy REIT, said in a release, “We are delighted to announce yet another strong quarter of continued robust business performance. We delivered our strongest leasing activity since the start of the pandemic; we successfully completed a significant ₹4,600 crore debt raise at 6.5 per cent interest rate. We have reconfirmed our full-year guidance as we see multiple tailwinds for our business — India’s stabilizing Covid situation; a reviving office leasing market, especially in our core Bangalore market; and occupiers’ business expansion driven by global tech mega-trends. These positive trends are clear to our expanding investor base which has tripled in the last twelve months.”

Embassy REIT said that it had achieved stable portfolio occupancy of 89 per cent with 15 per cent rent increases on 1.4 million square feet (msf) across 22 leases. It said that construction was on in full swing on 5.7 msf projects.

Also see: Embassy REIT raises ₹4,600 crore fresh debt to repay existing borrowings

The ₹4,600 crore debt raised at 6.5 per cent was to refinance the existing zero-coupon bond, delivering significant interest savings. The company also said that it had collected over 99 per cent of office rents on the 32.3 msf operating portfolio

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