Embassy Office Parks REIT said it achieved its annual leasing target of 6.5 million square foot (msf) in just 9 months with leasing of 3.5 million square foot (msf) across 22 deals in the December quarter. There is an over 90% occupancy level across 50% of Embassy REIT’s properties, it said, adding that Global Captive Centres (GCCs) in primarily BFSI, retail and tech sectors accounted for over 78% of total leasing.
The company’s revenue from operations grew by 8% YoY to Rs 936 crore in the third quarter ended December 31, 2023, it said.
Aravind Maiya, chief executive officer of Embassy REIT, said, “As our 2.2 msf of pre-leasing to three renowned global companies demonstrates, India continues to be a thriving business hub for GCCs. As more and more multinationals set up their centres in India, their need for premium office spaces to house their talent will grow exponentially in the coming years. Our refinance of Rs 2,600 crore through a combination of instruments provides us increased flexibility in managing our debt portfolio. Lastly, the strength of our business is reflected by the excellent response of equity investors to the recent sponsor stake sale, which has resulted in an increase of our public float to 92% and a truly diversified blue-chip unitholder base.”
Embassy REIT, is India’s first publicly listed real estate investment trust, owns and operates a 45.4 msf portfolio of nine infrastructure like office parks and four city‑centre office buildings in India’s best-performing office markets of Bangalore, Mumbai, Pune and the National Capital Region.
The board of directors of Embassy Office Parks Management Services Private Limited, manager to Embassy REIT, declared a distribution of Rs 493 crore or Rs 5.2 per unit for Q3 FY2024. The record date for the Q3 FY2024 distribution is February 12, 2024, and the distribution will be paid on or before February 17, 2024.
Operational and development highlights
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Development pipeline of 6.9 msf of which 90% is in Bangalore at highly attractive yields of over 20%
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Hotel portfolio continued to perform strongly with 55% occupancy, 19% YoY ADR growth and an EBITDA of Rs 50 crores.
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Included in the 2023 Dow Jones Sustainability Indices, making Embassy REIT the first Indian REIT to be recognised for its sustainability initiatives by this leading global benchmark.
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