Embassy REIT Q1 results: Net operating income up 3% to Rs 757.5 cr

Embassy Office Parks REIT on Thursday reported a 3 per cent increase in its net operating income to Rs 757.5 crore in the June 2024 quarter and announced distribution of Rs 530.8 crore to unitholders.

The net operating income (NOI) stood at Rs 737.6 crore in the year-ago period.

The board of directors of Embassy Office Parks Management Services Pvt Ltd, Manager to Embassy REIT, at its board meeting, declared a distribution of Rs 531 crore or Rs 5.60 per unit for the first quarter of 2024-25.

"We are delighted to report another excellent quarter of strong leasing across our portfolio. We leased 1.9 million square feet this quarter, marking a 70 per cent YoY (year-on-year) increase, and we have a strong pipeline across Bengaluru, Noida and Chennai," Aravind Maiya, Chief Executive Officer of Embassy REIT, said.

The company has strengthened its partnership with one of its largest occupiers through a new redevelopment project at Embassy Manyata in Bengaluru, he said.

"Our distributions have grown 4 per cent YoY, and we crossed the 1,00,000 unitholder mark this quarter, a 25x increase since our listing. 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," Maiya 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 Rs 3,210-3,350 crore and distributions guidance of Rs 22.4 per unit to Rs 23.1 per unit, implying a 10 per cent NOI growth and 7 per cent DPU (distribution per unit) growth year-on-year at the mid-point of the guidance range.

Embassy REIT, the county's first publicly listed Real Estate Investment Trust, owns and operates a 51 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai.

Its portfolio comprises 37.7 million square feet of completed operating area and is home to 258 leading companies in the world.

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.