Embassy Office Parks REIT Announces Second Quarter FY 2019-20 Results; Reports Another Strong Quarter of Leasing and a Quarterly Distribution of Rs. 4,630 Million

/ -- Embassy Office Parks REIT (NSE: EMBASSY) (BSE: 542602) ('Embassy REIT'), India's first listed Real Estate Investment Trust (REIT) and the largest in Asia by area, reported results today for the second quarter ended September 30, 2019.

Commenting on the results, Michael Holland, Chief Executive Officer of Embassy REIT, said, "We are pleased to report another strong quarter of performance and distributions to our Unitholders through our underlying commitment to provide world class space solutions to global occupiers. Companies all around the world continue to look for highly educated, highly skilled, technologically oriented employees at a reasonable cost and this continues to drive the consistent demand for Indian office and for our portfolio. We now turn our focus to continue this solid performance in the second half of the financial year."
Distribution
Financial Highlights
Revenue from Operations for 2Q FY2020 grew year-on-year by 15% to Rs. 5,206 million and cumulatively grew year-on-year by 17% for 1H FY2020
Net Operating Income for 2Q FY2020 grew year-on-year by 16% to Rs. 4,384 million and cumulatively grew year-on-year by 18% for 1H FY2020
Net Operating Income margin for 2Q FY2020 and 1H FY2020 stood at 84%
Conservative balance sheet with Net Debt to TEV at 11% as at September 30, 2019
Business Highlights
Portfolio occupancy increased to 94.7% as on September 30, 2019; an increase of 100 bps year-on-year
New leasing during 2Q FY2020 was 595k sf with a strong pipeline of over c.500k sf
Cumulative new leasing for 1H FY2020 stood at c.1.2 msf with a 67% mark-to-market spread on c.0.9msf
re-leases YTD
Near-term office development projects totaling 1.4 msf are tracking two quarters ahead of targeted delivery with 23% already pre-let and additional c.400k sf pipeline
Vikaash Khdloya, Deputy Chief Executive Officer and Chief Operating Officer of Embassy REIT, said, "Our robust leasing activity reflects the scale and quality of our business and the continued strong market fundamentals. Our development program is progressing ahead of schedule and we are well capitalized to fund future inorganic growth opportunities."
Investor Materials and Quarterly Investor Call Details
Embassy REIT has released a package of information on the quarterly results and performance, that includes (i) condensed standalone and consolidated financial statements for the Quarter and Half-year ended September 30, 2019, (ii) an investor presentation covering 2Q FY2020 results, and (iii) a supplemental operating and financial data book that is in line with leading reporting practices across global REITs. All these materials are available in the Investor Relations section of the REIT's website at ir.embassyofficeparks.com
Embassy REIT will host a conference call on November 11, 2019 at 18:30 hours Indian Standard Time to discuss the 2Q FY2020 results. A replay of the call will be available till November 26, 2019 on the Investor Relations section of the REIT's website at ir.embassyofficeparks.com
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