Embassy Office Parks REIT, the first listed real estate investment trust (REIT) in India and the largest office REIT in Asia by area, has revised its leasing guidance from 5.6 million sq ft to 6.5 million sq ft for FY2025. This revision is attributed to robust demand from corporate occupiers, including global captive centers.
In Q2 ending on September 30, 2024, the company leased 2.1 million sq ft across 24 deals and a total of 4.0 million sq ft in the first half of FY2025, setting a new H1 performance record. Global Capability Centers (GCCs) drove approximately 50% of the leasing activity this quarter, with Bengaluru being the top contributor, accounting for 77% of the total quarterly leasing activity.
“We are delighted to report one of our best quarters across the business, reflecting the strength and momentum in our portfolio. We have seen our occupancy grow to 90% (by value) this quarter, and with a very healthy 12% growth in both revenue and NOI. We continue to solidify our position as the home for leading corporates that prefer large, integrated office ecosystems.”
For the Q2 of FY2025, revenue from operations and net operating income (NOI) by 12% y-o-y to Rs 997 crore and Rs 805 crore, respectively. Embassy REIT raised Rs 2000 crore debt at 7.95%, to refinance upcoming NCDs maturity, which saw strong participation from mutual funds and banks during the quarter.
Additionally, the REIT’s portfolio occupancy continues on an upward trend, reaching 90% by value and 87% by area. Bengaluru, Mumbai, and Chennai each boast over 90% occupancy. The firm reported over 95% occupancy across half of the REIT's properties.
During the second quarter of the current fiscal, Embassy REIT delivered 0.6 million sq ft of office block at Embassy Manyata in Bengaluru, 100% pre-leased to global banking major, ANZ. The company has a development pipeline of 8 million sq ft with an expected yield on cost of 19%, across Bengaluru and Chennai.
The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, at its Board Meeting declared a distribution of Rs 553 crores or Rs 5.83 per unit for Q2 FY2025. The record date for the Q2 FY2025 distribution is October 29, 2024, and the distribution will be paid on or before November 06, 2024.
Based on independent valuation as of September 2024, the REIT’s Gross Asset Value increased by 12% y-o-y to Rs 59, 104 crore, and net asset value by 4.3% to Rs 415.84 per unit, it said.
Embassy REIT owns and operates a 51.1 million sq ft portfolio of 14 office parks in India’s across Bengaluru, Mumbai, Pune, the National Capital Region (‘NCR’) and Chennai. The portfolio comprises 38.4 million sq ft completed operating area and is home to 260 of the world’s leading companies. The portfolio also comprises strategic amenities, including four operational business hotels, two under-construction hotels, and a 100 MW solar park supplying renewable energy to tenants.
In Q2 ending on September 30, 2024, the company leased 2.1 million sq ft across 24 deals and a total of 4.0 million sq ft in the first half of FY2025, setting a new H1 performance record. Global Capability Centers (GCCs) drove approximately 50% of the leasing activity this quarter, with Bengaluru being the top contributor, accounting for 77% of the total quarterly leasing activity.
“We are delighted to report one of our best quarters across the business, reflecting the strength and momentum in our portfolio. We have seen our occupancy grow to 90% (by value) this quarter, and with a very healthy 12% growth in both revenue and NOI. We continue to solidify our position as the home for leading corporates that prefer large, integrated office ecosystems.”
For the Q2 of FY2025, revenue from operations and net operating income (NOI) by 12% y-o-y to Rs 997 crore and Rs 805 crore, respectively. Embassy REIT raised Rs 2000 crore debt at 7.95%, to refinance upcoming NCDs maturity, which saw strong participation from mutual funds and banks during the quarter.
Additionally, the REIT’s portfolio occupancy continues on an upward trend, reaching 90% by value and 87% by area. Bengaluru, Mumbai, and Chennai each boast over 90% occupancy. The firm reported over 95% occupancy across half of the REIT's properties.
During the second quarter of the current fiscal, Embassy REIT delivered 0.6 million sq ft of office block at Embassy Manyata in Bengaluru, 100% pre-leased to global banking major, ANZ. The company has a development pipeline of 8 million sq ft with an expected yield on cost of 19%, across Bengaluru and Chennai.
The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, at its Board Meeting declared a distribution of Rs 553 crores or Rs 5.83 per unit for Q2 FY2025. The record date for the Q2 FY2025 distribution is October 29, 2024, and the distribution will be paid on or before November 06, 2024.
Based on independent valuation as of September 2024, the REIT’s Gross Asset Value increased by 12% y-o-y to Rs 59, 104 crore, and net asset value by 4.3% to Rs 415.84 per unit, it said.
Embassy REIT owns and operates a 51.1 million sq ft portfolio of 14 office parks in India’s across Bengaluru, Mumbai, Pune, the National Capital Region (‘NCR’) and Chennai. The portfolio comprises 38.4 million sq ft completed operating area and is home to 260 of the world’s leading companies. The portfolio also comprises strategic amenities, including four operational business hotels, two under-construction hotels, and a 100 MW solar park supplying renewable energy to tenants.
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