Embassy REIT announces FY2022 Results

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 fourth quarter and full year ended March 31, 2022.

Michael Holland, Chief Executive Officer of Embassy REIT, said, "We are delighted to report on another successful year, the third year since our listing. We delivered on our business and our enhanced financial guidance and are set on a clear growth path for the future. The office leasing momentum continues to grow backed by very encouraging return to workplace trajectory, coupled with robust hiring by technology and global captive players and record tech investments. We remain focused on delivering growth to our Unitholders and scaling up our industry-leading portfolio."

Business Highlights

- Leased 2.2 msf at 18% spreads across 47 deals, achieved 14% rent escalations on 7.7 msf across 89 deals

- Added 18 new high growth occupiers, increased customer base to over 200 marquee occupiers

- Integrated ₹9,782 crores Embassy TechVillage acquisition, delivered better than underwriting on a number of metrics

- Announced 2040 net zero carbon operations target and launched 20 MW solar rooftop project, one of Asia's largest

Financial Highlights

- Grew Net Operating Income by 23% to ₹2,491 crores, 5% higher than initial guidance, with operating margin of 84%

- Raised ₹4,600 crores at 6.5% to refinance legacy zero-coupon bond, c.300 bps or ₹130 crores proforma annual savings

- Locked-in two-thirds of debt at attractive fixed interest rates, secured ₹2,170 crores green loans

- Maintained strong balance sheet with low leverage of 24% and over ₹12,000 crores debt headroom to finance growth

Growth Highlights

- Delivered 1.1 msf state-of-the-art JP Morgan campus, ramped-up new growth cycle with 4.6 msf office development

- Launched one of India's largest mixed-use hotel complex with 619 keys dual-branded Hilton hotels and 60k sf convention center at Embassy Manyata, already signed over 110 corporate contracts

- Completed ₹932 crores add-on acquisition at Embassy GolfLinks ('EGL') through REIT's 50%-owned investment entity, comprising additional 0.4 msf area and property management business of the entire EGL campus

- Received Right of First Offer ('ROFO') invitation for 5 msf Embassy Splendid TechZone, Chennai from Embassy Sponsor, currently under evaluation

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 ₹499 crores or ₹5.26 per unit for Q4 FY2022. With this, the cumulative distribution for FY2022 totals ₹2,063 crores or ₹21.76 per unit, 1% higher than the initial guidance, of which 82% is tax-free for Unitholders. The record date for the Q4 FY2022 distribution is May 09, 2022 and the distribution will be paid on or before May 13, 2022.

Shares of Embassy Office Parks REIT was last trading in BSE at Rs. 388.65 as compared to the previous close of Rs. 384.74. The total number of shares traded during the day was 8885 in over 481 trades.

The stock hit an intraday high of Rs. 391.50 and intraday low of 381.52. The net turnover during the day was Rs. 3426389.00.

Source : Equity Bulls

Keywords

EmbassyOfficeParksREIT Q4FY22 FY2022 ResultUpdate EmbassyREIT