Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) ('Embassy REIT'), India's first listed REIT and the largest in Asia by area, reported results today for the second quarter and half year ended September 30, 2020.
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 ₹4,244 million or ₹5.50 per unit. The record date for the distribution is November 10, 2020 and will be paid on or before November 17, 2020.
Michael Holland, Chief Executive Officer, said, "Embassy REIT continues to deliver amidst challenging conditions caused by the global pandemic. We have been successful in collecting rents, keeping expenses low, and maintaining a healthy balance sheet. Most notably, we are distributing cash flows to our Unitholders that compares to the payouts of the top yield-paying Indian corporates. Our multinational technology occupiers and global captive tenants continue to see strong demand for their services as global businesses bring forward spend on digital transformation, cloud solutions and cybersecurity. We also remain focused on growth through multiple channels including accretive acquisitions."
Financial Highlights
- Net Operating Income ('NOI') for 2Q FY2021 grew year-on-year by 10% to ₹4,814 million and cumulatively by 5% to ₹9,383 for 1H FY2021, with operating margin of 89% for both periods
- Distributed ₹4,244 million or ₹5.50 per unit (Distribution Per Unit, 'DPU') for the quarter and cumulatively ₹8,743 million or ₹11.33 per unit for 1H FY2021, representing a 100% payout ratio for both the periods
- Balance sheet remains strong, with ample liquidity and low leverage of 16% Net Debt to TEV; existing cash and undrawn commitments total ₹12.2 billion, and less than 1% of total debt maturing prior to FY2022
- Successfully raised listed debentures of ₹15 billion at an average 6.98 % quarterly coupon; utilized towards financing recent acquisition of Embassy Manyata and Embassy TechZone property maintenance, refinancing existing debt, construction development and for general corporate purposes
Business Highlights
- Rental collections for 2Q FY2021 from office occupiers remained strong at 99.5%, in-line with office rental collections of 99.7% for 1Q FY2021 (as of October 30, 2020)
- Portfolio occupancy at 91.7% on our 26.2 msf operating portfolio, with same-store occupancy of 93.4%
- New leases and renewals signed for 2Q FY2021 stood at 210k sf, including 124k sf of new leases at 10% above market rents; YTD new leases and renewals stand at 735k sf, including 410k sf of renewals at 17% spread to existing rents
- Achieved rental increases of 11% on 1.9 msf in 2Q FY2021 across 18 office leases, with YTD rental increases of 12% on 3.7 msf across 40 office leases |
