Embassy REIT Leases Record 5.1 msf And Delivers On ₹2,058 crores Distributions Guidance For FY2023

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, 2023.

Vikaash Khdloya, Chief Executive Officer of Embassy REIT, said, "Despite global macro volatility, we're very pleased to achieve our highest ever leasing of 5.1 msf across a record 100 deals. India remains the world's preferred offshoring destination and continues to attract global businesses looking for skilled talent and low costs, and we're well positioned to benefit from this secular trend. Backed by our clear strategy to create long-term value for our investors and our fortress balance sheet, we continue to make significant growth investments to our now 45 msf world-class portfolio."

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 ₹532 crores or ₹5.61 per unit for Q4 FY2023. With this, the cumulative distribution for FY2023 totals ₹2,058 crores or ₹21.71 per unit. The record date for the Q4 FY2023 distribution is 6 May, 2023, and the distribution will be paid on or before 12 May, 2023.

Business Highlights

- Leased 5.1 msf across 100 deals at 16% spreads, surpassing annual leasing guidance
- Added 44 new occupiers across sectors like insurance, healthcare, retail, and cybersecurity; increased occupier base to 230 marquee corporates
- Awarded global recognition by leading ESG institutions - GRESB, USGBC LEED, British Safety Council and WELL / IWBI(1)

Financial Highlights

- Grew Net Operating Income (NOI) by 11% YoY to ₹2,766 crores
- Delivered distributions of ₹2,058 crores or ₹21.71 per unit, marking the 16th consecutive quarter of 100% payout
- Refinanced ₹5,340 crores debt at 101 bps positive spreads, maintained best-in-class balance sheet with low 28% leverage, attractive 7.2% debt cost and AAA/Stable credit ratings

Growth Highlights

- Launched 2.3 msf new development in Bengaluru at attractive 23% yields, including first-of-its-kind 1.2 msf redevelopment project at Embassy Manyata

- Acquired 1.4 msf Embassy Business Hub in North Bengaluru for ₹335 crores, NOI and NAV accretive tuck-in acquisition financed with attractive 8.1% debt

- Accelerated active development to 7.9 msf at committed capital investment of ₹4,000 crores, expected to add ₹900 crores to NOI upon stabilization

Shares of Embassy Office Parks REIT was last trading in BSE at Rs. 322.33 as compared to the previous close of Rs. 317.02. The total number of shares traded during the day was 8889 in over 368 trades.

The stock hit an intraday high of Rs. 323.42 and intraday low of 315.02. The net turnover during the day was Rs. 2851368.00.

Source : Equity Bulls

Keywords

EmbassyOfficeParksREIT Q4FY23 FY2203 ResultUpdate