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Embassy REIT Announces First Quarter FY2022 Results, Gears up for Demand Rebound

Business Wire India
Leases 545k sf across 9 deals, achieves 13% leasing spreads
Grows Net Operating Income by 36% YoY, to distribute Rs 5,346 million with 80% being tax-free
Sees new growth opportunities given global technology mega trends, REIT’s ‘total business ecosystem’ to cater to tech occupier demand

​Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed REIT and the largest in Asia by area, reported results today for the first quarter ended June 30, 2021.

Michael Holland, Chief Executive Officer of Embassy REIT said,
“Having delivered to guidance in FY21, Embassy REIT continued its strong performance through Q1 despite the challenges of the recent lockdown. Notwithstanding that, the global mega trends towards technology growth will benefit us as we see record hiring and investments in technology and captives housed in India. With effective vaccine rollouts and a clear desire from business leaders to get their employees back to our high quality workplaces, we are optimistic for the future. Our strong balance sheet allows us to pursue growth opportunities for our unitholders.”
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 5,346 million or Rs 5.64 per unit for 1Q FY2022. Of this, Rs 4.51 per unit or 80% of distributions is tax-free for Unitholders. The record date for the 1Q FY2022 distribution is August 5, 2021 and the distribution will be paid on or before August 12, 2021.
Business Highlights

Total lease-up of 545k sf across 9 deals, achieved 13% leasing spreads
Achieved stable portfolio occupancy of 89% with successful rent increases of 13% on 2.2 msf leases
Ongoing construction on 5.7 msf development projects, with 1.1 msf JP Morgan campus targeted for handover by year-end

Financial Highlights

Net Operating Income grew year-on-year by 36%, with operating margins of 84%
Raised Rs 12 billion debt at 7.4% interest cost, refinanced Rs 5.2 billion leading to 80 bps savings
Maintained fortress balance sheet with liquidity of Rs 15 billion and low leverage of 23%; Rs 121 billion debt headroom to finance growth opportunities

Operations Highlights

Collected over 99% of office rents on 32.3 msf operating portfolio
23% increase in employees operating from our parks in Jul’21 (vs. Jun’21), labour at construction sites now back to full strength
Vaccinated over 10,000 frontline workers and set-up 49 fully fitted ICU beds in collaboration with civic agencies and occupiers

Investor Materials and Quarterly Investor Call Details

Embassy REIT has released a package of information on the quarterly results and performance, that includes (i) reviewed condensed consolidated financial statements for the quarter ended June 30, 2021, (ii) an earnings presentation covering 1Q FY2022 results, and (iii) supplemental operating and financial data book that is in-line with leading reporting practices across global REITs. All these materials are available on our website at www.embassyofficeparks.com under the “Investors” section.

Embassy REIT will host a conference call on July 28, 2021 at 18:30 hours Indian Standard Time to discuss the 1Q FY2022 results. A replay of the call will be available till August 11, 2021 on our website at www.embassyofficeparks.com under the “Investors” section.

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