Embassy REIT Announces FY2022 Results, Delivers on Enhanced Leasing and Distribution Guidance

Business Wire India
  • Leases 2.2 msf at 18% positive spreads, achieves 14% rent escalations on 7.7 msf deals across 89 deals
  • Grows Net Operating Income by 23% YoY, distributes Rs. 2,063 crores to Unitholders with 82% tax-free
  • Delivers 1.1 msf JP Morgan campus at Embassy TechVillage, ramps-up new growth cycle with 4.6 msf office development

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, 2022.

Michael Holland, Chief Executive Officer of Embassy REIT, said,
“We are delighted to report on another successful year, the third year since our listing. We delivered on our business and our enhanced financial guidance and are set on a clear growth path for the future. The office leasing momentum continues to grow backed by very encouraging return to workplace trajectory, coupled with robust hiring by technology and global captive players and record tech investments. We remain focused on delivering growth to our Unitholders and scaling up our industry-leading portfolio.”


Business Highlights
  • Leased 2.2 msf at 18% spreads across 47 deals, achieved 14% rent escalations on 7.7 msf across 89 deals
  • Added 18 new high growth occupiers, increased customer base to over 200 marquee occupiers
  • Integrated Rs. 9,782 crores Embassy TechVillage acquisition, delivered better than underwriting on a number of metrics
  • Announced 2040 net zero carbon operations target and launched 20 MW solar rooftop project, one of Asia’s largest

Financial Highlights
  • Grew Net Operating Income by 23% to Rs. 2,491 crores, 5% higher than initial guidance, with operating margin of 84%
  • Raised Rs. 4,600 crores at 6.5% to refinance legacy zero-coupon bond, c.300 bps or Rs. 130 crores proforma annual savings
  • Locked-in two-thirds of debt at attractive fixed interest rates, secured Rs. 2,170 crores green loans
  • Maintained strong balance sheet with low leverage of 24% and over Rs. 12,000 crores debt headroom to finance growth

Growth Highlights
  • Delivered 1.1 msf state-of-the-art JP Morgan campus, ramped-up new growth cycle with 4.6 msf office development
  • Launched one of India’s largest mixed-use hotel complex with 619 keys dual-branded Hilton hotels and 60k sf convention center at Embassy Manyata, already signed over 110 corporate contracts
  • Completed Rs. 932 crores add-on acquisition at Embassy GolfLinks (‘EGL’) through REIT’s 50%-owned investment entity, comprising additional 0.4 msf area and property management business of the entire EGL campus
  • Received Right of First Offer (‘ROFO’) invitation for 5 msf Embassy Splendid TechZone, Chennai from Embassy Sponsor, currently under evaluation

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 Rs. 499 crores or Rs. 5.26 per unit for Q4 FY2022. With this, the cumulative distribution for FY2022 totals Rs. 2,063 crores or Rs. 21.76 per unit, 1% higher than the initial guidance, of which 82% is tax-free for Unitholders. The record date for the Q4 FY2022 distribution is May 09, 2022 and the distribution will be paid on or before May 13, 2022.

Investor Materials and Quarterly Investor Call Details

Embassy REIT has released a package of information on the quarterly and full year results and performance, that includes (i) audited standalone and audited consolidated financial statements for the year ended March 31, 2022, (ii) audited condensed standalone and audited condensed consolidated financial statements for the quarter and year ended March 31, 2022, (iii) an earnings presentation covering 4Q FY2022 and FY2022 results, and (iv) supplemental operating and financial data book that is
in
line with leading reporting practices across global REITs. All these materials are available in the Investors section of our website at www.embassyofficeparks.com.

Embassy REIT will host a conference call on April 28, 2022 at 17:00 hours Indian Standard Time to discuss the Q4 FY2022 and full year FY2022 results. A replay of the call will be available in the Investors section of our website at www.embassyofficeparks.com.

Source: PRESS RELEASE
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