Country for PR: United Kingdom
Contributor: PR Newswire Europe
Monday, August 12 2019 - 22:14
Embassy Office Parks REIT Announces First Quarter FY 2019-20 Results; Reports Quarterly Distribution of Rs 4,167 Million
BENGALURU, India Aug. 12, 2019 /PRNewswire-AsiaNet/--

Embassy Office Parks REIT (NSE: Embassy) (BSE: 542602) ('Embassy REIT'), 
India's first listed REIT and the largest in Asia by area, reported results 
today for the first quarter ended June 30, 2019.



The Board of Directors of Embassy Office Parks Management Services Private 
Limited ('EOPMSPL'), Manager to Embassy REIT, at its Board Meeting held earlier 
today, declared a quarterly distribution of Rs 4,167 million or Rs. 5.4 per 
Unit. The record date for the distribution is August 21, 2019 and the 
distribution will be paid on or before August 27, 2019.  

Michael Holland, Chief Executive Officer of Embassy REIT, said, "We are 
delighted to announce our first quarter results post listing on April 1, 2019 
and our first distributions as a publicly listed REIT. We had a strong start to 
FY2019-20 with both Revenue from Operations and Net Operating Income (NOI) up 
19% Year over Year (YoY). This was achieved through our underlying commitment 
to provide world class and customized office space solutions to corporate 
occupiers. Our performance also reflects the quality and scale of our 
portfolio, which continues to deliver impressive organic growth. We have a 
strong base of low-volatility assets with significant market-to-market 
potential, a de-risked development pipeline, and a prudent capital management 

Business Highlights

- New leasing during the quarter was 0.6 million square feet (msf) with 50.6% 
re-leasing spreads 
- Occupancy as at June 30, 2019 stood at 94.3% on the 24.8 msf completed office 
- Near-term office development projects at Embassy Manyata & Embassy Oxygen 
totaling 1.4 msf are both tracking two quarters ahead of targeted delivery 
- 246,000 sf (or 42% of leasable area) under-construction at Embassy Oxygen 
Tower 2 was recently pre-leased to a Fortune 50 insurance corporation 
- The new 230 key Four Seasons Hotel at Embassy One was launched in May 2019 
and the development of pipeline 619 key Hilton and Hilton Garden Inn hotels at 
Embassy Manyata is on track with target completion in 3Q FY2021-22 

Financial Highlights 

- Revenue from Operations for the quarter increased 19% to Rs. 5,351 million as 
compared to Rs. 4,494 million for the quarter ended June 30, 2018, driven by 
continued leasing momentum across the portfolio 
- Net Operating Income (NOI) for the quarter increased 19% to Rs. 4,528 million 
as compared to Rs. 3,818 million for quarter ended June 30, 2018 with NOI 
margin for the quarter at 85% 
- Successfully raised Rs. 30 billion in rupee-denominated, listed 
non-convertible debentures maturing in June 2022, with a yield to maturity of 
- The REIT continues to maintain a conservative balance sheet with Net Debt to 
TEV at c. 11% 

Vikaash Khdloya, Deputy Chief Executive Officer & Chief Operating Officer of 
Embassy REIT, said, "Business fundamentals continue to be strong with robust 
leasing momentum for institutional quality office properties. This was 
demonstrated by our leasing activity for the quarter as well as our healthy 
pipeline of c.0.5 msf for the quarter ahead. We remain focused on early 
delivery of our near-term development projects totaling c.1.4 msf in NCR and 
Bengaluru, on execution of our asset management initiatives and on achieving 
further operational efficiencies, all of which would drive portfolio value." 

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 ended June 30, 2019, (ii) an investor presentation 
covering the Q1 FY2019-20 results, and (iii) a supplemental operating and 
financial data book that is in line with the best reporting practices of global 
REITs. All these materials are available in the Investor Relations section of 
the REIT's website at  

Embassy REIT will host a conference call on August 12, 2019 at 18:30 hours 
Indian Standard Time to discuss the first quarter FY 2019-20 results. A replay 
of the call will be available till August 26, 2019 on the Investor Relations 
section of the REIT's website at


This press release is prepared for general information purposes only. The 
information contained herein is based on management information and estimates. 
It is only current as of its date, has not been independently verified and may 
be subject to change without notice. Embassy Office Parks Management Services 
Private Limited ("the Manager") and Embassy REIT make no representation or 
warranty, express or implied, as to, and do not accept any responsibility or 
liability with respect to, the fairness, accuracy or completeness of the 
content hereof. Each recipient will be solely responsible for its own 
assessment of the market and the market position of Embassy REIT.

This press release contains forward-looking statements. Forward-looking 
statements involve known and unknown risks, uncertainties and other factors, 
which may cause the actual results, financial condition, performance, or 
achievements or industry results, to differ materially from those expressed or 
implied by such forward-looking statements. Given these risks, uncertainties 
and other factors, recipients of this press release are cautioned not to place 
undue reliance on these forward-looking statements. The Manager assumes no 
responsibility to amend or update any forward-looking statements.

Investors should also take note that Embassy REIT was listed on April 1, 2019 
and the Embassy REIT assets were acquired between March 22, 2019 to March 25, 
2019. Accordingly, the comparative quarterly financial information has been 
prepared by comparing combined unaudited financial statements for first quarter 
of FY 2018-19 (assuming that the Embassy REIT held the REIT assets in its 
present form during first quarter of FY 2018-19) as against condensed 
consolidated financial statements for first quarter of FY 2019-20.

About Embassy REIT

Embassy Office Parks is India's first and only listed REIT. The REIT comprises 
25 million square feet (msf) of completed and operational commercial properties 
across India. With approximately 8 msf of on-campus development in the 
pipeline, the total portfolio spans 33 million square feet across seven Grade A 
office parks and four city-center office buildings in India's best performing 
office markets of Bengaluru, Mumbai, Pune and the National Capital Region 
(NCR). The portfolio is home to over 160 blue chip corporate occupiers, and 
comprises 75 buildings with strategic amenities, including two completed 
hotels, two under-construction hotels, and a 100MW solar park that supplies 
renewable energy to park tenants.

For more information, please contact: 

Ritwik Bhattacharjee
Head of Investor Relations
Phone: +91-80-3322-2222 

Source: Embassy Office Parks REIT