by THO
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Embassy Office Parks REIT, the first listed real estate investment trust (REIT) in India and the largest office REIT in Asia by area, on October 24 reported a 12% year-on-year increase in its net operating income during the July-September period of the ongoing financial year at ₹805 crore.
The company’s revenue from operations also grew 12% annually to ₹997 crore during the three-month period, per the company statement. The company also announced distribution of ₹553 crore to unit holders for the July-September period.
Also Read: Embassy REIT Q1 net operating income up 3%, touches ₹757.5 crore
Embassy REIT leased 2.1 million square feet across 24 deals during the said period, including 1.3 million square feet of new leases and 0.4 million square feet of renewals at 71% rent reversions.
According to the company statement, global capability centres accounted for around 50% of the leasing activity during the quarter, with Bengaluru leading the demand, contributing to 77% of the total quarterly leasing activity.
Total office leasing
For the half-yearly period, total leasing stood at 4 million square feet, setting a new record for H1 performance, the company said.
Based on independent valuation as of September 2024, the REIT’s Gross Asset Value increased by 12% year-on-year to ₹59,104 crore, and Net Asset Value by 4.3% to ₹415.84 per unit, the statement highlighted.
Also Read: Embassy REIT leases 8 lakh square feet to Commonwealth Bank of Australia in Bengaluru
“With a record 4 mn sq ft 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 mn sq ft. 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,” said Aravind Maiya, Chief Executive Officer of Embassy REIT.
The Board of Directors of Embassy Office Parks Management Services Private Limited, Manager to Embassy REIT, at its board meeting held earlier today, declared a distribution of ₹553 crore or ₹5.83 per unit for Q2 FY2025.
The company statement reported over 95% occupancy across 50% of the REIT’s properties during the September quarter with Bengaluru, Mumbai and Chennai properties at 91%, 99% and 95% occupancy, respectively.
Also Read: Commercial real estate market has the potential to increase REIT market size over 6 times: ICRA
The company also raised ₹2,000 crore debt at approximately 7.95% to refinance upcoming NCDs, during the quarter.
Embassy REIT currently has an active development pipeline of 8 million square feet with an expected yield on cost of 19%. All projects are located in Bengaluru and Chennai, the company statement said.
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