Embassy REIT reports 12% rise in net operating income

By: |
April 30, 2021 2:15 AM

The investment trust simplified the holding structure of Embassy Manyata, thereby increasing the tax-free component of distributions to 78%. The company distributed Rs 1,836.4 crore during the quarter. It raised Rs 5,200 crore debt at 6.9% coupon and refinanced Rs 3,280 crore, leading to interest savings of 336 basis points.

It continued construction on additional 4.6 million sq ft new build, with targeted completion in two to three years.

Embassy Office Parks REIT has reported an increase of 12% year-on-year in net operating income, with operating margins of 86% for the fourth quarter of FY21.

The investment trust simplified the holding structure of Embassy Manyata, thereby increasing the tax-free component of distributions to 78%. The company distributed Rs 1,836.4 crore during the quarter. It raised Rs 5,200 crore debt at 6.9% coupon and refinanced Rs 3,280 crore, leading to interest savings of 336 basis points.

The company had a balance sheet with liquidity of Rs 1,550 crore and low leverage of 22%, ample headroom to finance on-campus development and new acquisitions.

Michael 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. 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.

With our leading presence in India’s highest absorption markets, our low leverage levels and our access to capital markets, we are well positioned to capitalise on the fundamental global demand for Indian office space that will long outlast this pandemic.”

The investment trust recorded stable occupancy of 88.9%, with strong rent collections at 99.8% on 32.3 million square feet operating portfolio. The company achieved rent increases of 13% on 8.4 million sq ft across 90-plus leases. It leased 1.2 million sq ft across over 40 deals and achieved 15% re-leasing/ renewal spread.

It achieved top-out of 1.1 million sq ft JP Morgan campus in March 2021, on track for September 2021 delivery. It continued construction on additional 4.6 million sq ft new build, with targeted completion in two to three years.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Reliance Jio joins global consortium to build undersea cable network centred on India
2WhatsApp privacy policy not conforming to Indian IT laws: Centre informs Delhi High Court
3Mother Dairy offers VRS for Patparganj plant staff; maximum benefit Rs 20 lakh