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Embassy REIT’s net operating income increases by 12 pc


Embassy Office Parks REIT, India’s first listed REIT and the largest in Asia by area, reported results on April 29 for the fourth quarter and full year ended March 31, 2021, .

MichaelMichael Holland, Chief Executive Officer of Embassy REIT, said, “Despite the significant challenges caused by the COVID-19 pandemic, Embassy REIT has again performed strongly and delivered on its financial guidance. We continue to provide safe work environments for our occupiers and we are working with local authorities to support the response to the second wave of the pandemic, including initiating vaccination programmes at our parks. Despite second wave headwinds, our global occupiers continue to report strong earnings and hiring growth which we believe will translate into demand for quality offices in due course.”

The Board of Directors of Embassy Office Parks Management Services Private Limited, Manager to Embassy REIT, at its Board Meeting held earlier in the day, declared a distribution of Rs 5,308 million or Rs 5.6 per unit for 4QFY2021. The cumulative distribution for FY2021 totals Rs 18,364 million or Rs 21.48 per unit, which is on target with the guidance issued earlier by management.

The record date for the 4QFY2021 distribution is May 7 and the distribution will be paid on or before May 14. .

The following are the financial highlights for full year FY2021

  • Net Operating Income (‘NOI’) grew year-on-year by 12 pc, with operating margins of 86 per cent
  • Simplified the holding structure of Embassy Manyata, thereby increasing the tax-free component of distributions to 78% for 4Q FY2021
  • Raised ₹52 billion debt at attractive 6.9% coupon, refinanced ₹32.8 billion leading to 336 bps interest savings
  • Fortress balance sheet with liquidity of ₹15.5 billion and low leverage of 22%; ample headroom to finance on- campus development and new acquisitions

Business Highlights – Full Year FY2021

  • Stable occupancy of 88.9% with strong rent collections at 99.8% on 32.3 msf operating portfolio
  • Achieved rent increases of 13% on 8.4 msf across 90+ leases
  • Leased 1.2 msf across 40+ deals, achieved 15% re-leasing / renewal spread
  • Achieved top-out of 1.1 msf JP Morgan campus in Mar’21, on track for Sep’21 delivery

•  Continued construction on additional 4.6 msf new build, targeted completion in 2 to 3 years