Embassy Office Parks REIT Net Profit Grows 12% in FY21

Bengaluru: Embassy Office Parks REIT announced a 12% increase in its net operating income for the fiscal year ended March 2021 to Rs 2032 crore compared to the previous fiscal year.

India’s first listed Real Estate Investment Trust (REIT) and the largest in Asia also reported a 10% increase in revenue to Rs 2,360 crore for fiscal 2021 from Rs 2,144 crore over the past year. ’19-20 fiscal year, the company said.

“Despite the significant challenges caused by the Covid-19 pandemic, Embassy REIT again performed well and met its financial forecast. Despite the headwinds of Wave 2, our global occupants continue to post strong earnings and hiring growth which we believe will translate into demand for quality office space on time. Said Michael Holland, CEO of Embassy REIT.

The board of directors of Embassy Office Parks Management Services Private Limited (“EOPMSPL”), director of Embassy REIT, said at its board meeting a distribution of Rs 530 crore or Rs 5.6 per unit for the fourth quarter of fiscal 2021.

The cumulative distribution for fiscal year 2021 amounts to Rs 1,836.4 crore or? 21.48 per unit, which is in line with expectations issued earlier by management.

The registration date for the distribution for the fourth quarter of fiscal 2021 is May 7, 2021 and the distribution will be paid no later than May 14, 2021.

The company said its balance sheet remains strong with low leverage of 22% net debt over the total value of the business, liquidity of Rs 1,550 crore and an additional debt margin of Rs 12,600 crore.

The company has signed rental contracts of 1.2 msf signed since the start of the year.

It also recorded rent increases of 15% for the re-letting of office space for the full year compared to the same period last year.

The company achieved a stable occupancy rate of 88.9% with strong rent collections of 99.8% on an operating portfolio of 32.3 m².

During the year, the company raised debt of Rs 5,200 crore at an attractive 6.9% coupon and refinanced a loan of Rs 3,280 crore, which enabled the company to achieve interest savings of 336 basis points.