Embassy Office Parks REIT on July 25 reported a modest 3% increase in its net operating income that grew to ₹757.5 crore in the June 2024 quarter and announced distribution of ₹530.8 crore to unitholders.
The net operating income (NOI) stood at ₹737.6 crore in the year-ago period, the company said in a regulatory filing.
The board of directors of Embassy Office Parks Management Services Pvt Ltd, Manager to Embassy REIT, at its board meeting, declared a distribution of ₹531 crore or ₹5.60 per unit for the first quarter of 2024-25, the company said in a regulatory filing.
The total lease-up during the three-month period was recorded at 1.9 million square feet across 22 deals, with global capability centers accounting for 70% of the demand, the company said.
Also Read: Govt brings parity between listed equity & units of REITs, InvITs to calculate LTCG
Embassy REIT has also revised its leasing guidance for financial year 2024-25 to 5.6 million square feet. It had earlier guided for 5.4 million square feet of gross leasing in FY25, after clocking 8.1 mn sq ft of leasing across 99 deals in FY24.
“We’re seeing a lot of tailwinds in our business, and we are focused on sustaining this momentum and delivering value to all our stakeholders,” said Aravind Maiya, Chief Executive Officer of Embassy REIT.
“We are excited to strengthen our partnership with one of our largest occupiers through a new redevelopment project at Embassy Manyata…and we crossed the 100k unitholder mark this quarter, a 25x increase since our listing,” Maiya added.
Also Read: Small and medium REITs: Fractional ownership platforms start the process of registering under Sebi’s new SM REIT rules
Embassy REIT currently has a development pipeline of 8.6 mn sq ft with total capital investment of ₹4,600 crore, the exchange filing showed. This is expected to add approximately ₹1,000 crore to the net operating income upon stabilization, the company said.
The company said that Global Capability Centres (GCCs) remained the primary drivers of demand and contributed 70 per cent of the quarter’s leasing activity.
For 2024-25, Embassy REIT reaffirmed NOI guidance of ₹3,210-3,350 crore and distributions guidance of ₹22.4 per unit to ₹23.1 per unit, implying a 10% NOI growth and 7% DPU (distribution per unit) growth year-on-year at the mid-point of the guidance range.
Also Read: Commercial real estate market has the potential to increase REIT market size over 6 times: ICRA
Embassy REIT is the country’s first publicly listed Real Estate Investment Trust and owns and operates a 51 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai.
