Embassy Office Parks REIT net profit rises 12% in FY21

The India’s first listed Real Estate Investment Trust (REIT) and the largest in Asia also reported an 10 per cent increase in revenues at Rs 2,360 crore for FY2021 compared to Rs 2144 crore in FY19-20, the company said.

“Despite the significant challenges caused by the Covid-19 pandemic, Embassy REIT has again performed strongly and delivered on its financial guidance. Despite second wave headwinds, our global occupiers continue to report strong earnings and hiring growth which we believe will translate into demand for quality offices in due course.” said Michael Holland, Chief Executive Officer of Embassy REIT.

The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, at its board meeting declared a distribution of Rs 530 crore or Rs 5.6 per unit for 4Q FY2021.

The cumulative distribution for FY2021 totals Rs 1836.4 crore or ?21.48 per unit, which is on target with the guidance issued earlier by the management.

The record date for the 4Q FY2021 distribution is May 7, 2021 and the distribution will be paid on or before May 14, 2021.

The firm said that its balance sheet sheet remains strong with low leverage of 22% net debt to total enterprise value, liquidity of Rs 1550 crore and additional debt headroom of Rs 12,600 crore.

The company signed 1.2 msf lease deals signed year to date.

It also achieved rental increases of 15% for re-leasing of office space for the full year as compared to the same period last year.

The company attained a stable occupancy of 88.9% with strong rental collections at 99.8% on 32.3 msf operating portfolio.

During the year the firm raised Rs 5200 crore debt at an attractive 6.9% coupon and refinanced Rs 3280 crore of loan leading to 336 bps interest savings for the firm.