Embassy REIT Reports 12% YoY Revenue Growth to Rs 997 Crore 

Mumbai / October 25, 2024: Embassy Office Parks Management Services Private Limited (EOPMSPL), manager of Embassy REIT, reported a 12% year-on-year growth in revenue from operations and net operating income (NOI), reaching Rs 997 crore and Rs 805 crore, respectively. The company distributed Rs 553 crore, or Rs 5.83 per unit, marking a 5% YoY increase and a 4% QoQ rise. To manage upcoming NCD maturities, Embassy REIT raised Rs 2,000 crore in debt at an approximate 7.95% rate, with significant participation from mutual funds and banks. An independent valuation as of September 2024 showed a 12% YoY increase in the REIT’s gross asset value, reaching Rs 59,104 crore, while its net asset value rose 4.3% to Rs 415.84 per unit, according to the company.

In its leasing update, Embassy REIT reported 2.1 million square feet leased across 24 deals this quarter, including 1.3 million square feet in new leases and 0.4 million square feet in renewals at a strong 71% rent reversion rate. Global Capability Centers (GCCs) accounted for nearly 50% of leasing activity, with Bengaluru leading demand, contributing 77% of total quarterly leasing. Portfolio occupancy reached 90% by value and 87% by area, with key markets such as Bengaluru, Mumbai, and Chennai showing occupancy levels above 90%.

Additionally, EOPMSPL announced a distribution of Rs 553 crore, or Rs 5.83 per unit, for Q2 FY2025, at its board meeting earlier on Friday. The record date for this distribution is set for October 29, 2024, with payments scheduled on or before November 6, 2024.

In leadership updates, the REIT strengthened its management team by promoting Amit Shetty, previously Head of Leasing, to Chief Operating Officer, and Rishad Pandole, previously co-Head of Commercial Leasing, to Head of Leasing.

Aravind Maiya, Chief Executive Officer of Embassy REIT, said, “We are delighted to report one of our best quarters across the business, reflecting the strength and momentum in our portfolio. With a record 4 msf of leasing in the first half of FY2025, and a robust pipeline for the rest of the year, we are pleased to revise our leasing guidance upwards to 6.5 msf. We’ve 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. Our focus on delivering world-class office spaces has cemented our market leadership in India’s commercial real estate sector, and we remain committed to delivering value to our stakeholders, with distributions continuing to grow.”