Embassy Office Parks REIT announces Q1FY23 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 first quarter ended June 30, 2022.

Vikaash Khdloya, Chief Executive Officer of Embassy REIT, said, "We are delighted that the first quarter of FY2023 is off to a solid start with a record 1.8 msf of total leasing. We are witnessing expansion across tech occupiers and global captives in India, with Bangalore continuing to lead India's office demand revival. We continue to invest for growth and the 550k sf pre-commitment at Embassy TechVillage underscores our strategy of accelerating development of our 4.6 msf ongoing projects. Our conservative balance sheet, with a significant portion of debt locked-in at fixed rates, positions us well to finance future growth."

Business Highlights

- Leased 1.8 million square feet ('msf') across 25 deals, including 550k sf pre-commitment from JP Morgan at Embassy TechVillage ('ETV')

- Added 15 new high-growth occupiers in sectors like cloud, cybersecurity, renewables, and healthcare tech; increased customer base to 214 blue-chip occupiers

- Achieved 16% positive leasing spreads on 1.3 msf and 15% rent escalations on 1.9 msf

Financial Highlights

- Grew Net Operating Income by 9% YoY to ₹6,773 million, with operating margin of 82%

- Maintained strong balance sheet with low leverage of 27%, over ₹108 billion debt headroom to finance future growth

- Locked-in additional 19% debt at fixed interest rate for FY2023, 64% of debt already at fixed interest rate for 3 years

Growth Highlights

- Accelerated development activity on 4.6 msf ongoing office projects, including 1.9 msf at ETV

- Ramped-up construction of 518 key Hilton Hotels at ETV, on the back of successful launch of 619 key Hilton Hotels at Embassy Manyata

- Evaluating Right of First Offer ('ROFO') invitation for 5 msf Embassy Splendid TechZone, Chennai from Embassy Sponsor; of this 1.4 msf is completed, and 1.6 msf is currently under development

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 ₹5,052 million or ₹5.33 per unit for Q1 FY2023. The record date for the Q1 FY2023 distribution is July 29, 2022 and the distribution will be paid on or before August 5, 2022.

Shares of Embassy Office Parks REIT was last trading in BSE at Rs. 368.23 as compared to the previous close of Rs. 368.61. The total number of shares traded during the day was 10273 in over 563 trades.

The stock hit an intraday high of Rs. 369.46 and intraday low of 367.80. The net turnover during the day was Rs. 3786747.00.

Source : Equity Bulls

Keywords

EmbassyOfficeParksREIT EmbassyREIT Q1FY23 ResultUpdate