Embassy REIT Distributions Up 13% YoY, Posts Highest Quarterly Revenue

New Delhi, January 29, 2025: Embassy Office Parks REIT on Wednesday reported results today for the third quarter ended December 31, 2024. Chief Executive Officer of Embassy REIT Ritwik Bhattacharjee said: “We are delighted to report another strong quarter, with a robust 13 per cent increase in distributions, record quarterly NOI and revenue, amidst very strong demand for office space in our gateway markets. Embassy REIT’s portfolio remains the first port of call for GCCs and other leading companies in arguably the world’s most dynamic market for talent and innovation. CY2024 was a record year of absorption in India, and we are perfectly poised to capitalize on these leasing tailwinds in CY2025.”

The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, at its Board Meeting held earlier declared a distribution of INR 559 crore or INR 5.90 per unit for Q3 FY2025. The record date for the Q3 FY2025 distribution is February 01, 2025, and the distribution will be paid on or before February 07, 2025.

Business Highlights

• Leased 1.1 msf across 21 deals including 0.7 msf of new leases and 0.4 msf of renewals
• Global Capability Centers (GCCs) from technology, financial services, engineering, and manufacturing sectors accounted for ~70% of leasing
• Portfolio occupancy at 90% by value*, with key markets Bengaluru, Mumbai, and Chennai achieving occupancy levels of over 90%

Financial Highlights

• Grew Revenue from Operations and Net Operating Income (NOI) by 9% YoY to INR 1,022 crore and INR 829 crore, respectively
• Distributed INR 559 crore or INR 5.90 per unit, up 13% YoY; 9-month distributions stand at record INR 1,643 crore
• Raised INR 1,000 crore of debt at ~7.73%, and secured c.70 basis points savings in interest cost

Operational & Growth Highlights

• Delivered 0.6 msf office block to global banking major at Embassy TechVillage in Bengaluru
• Development pipeline of 7.4 msf in Bengaluru and Chennai with an expected 19% yield on cost
• Hotel portfolio continues to perform strongly with 20% YoY EBITDA growth and occupancy rising to 59%, up from 55% last year