Embassy Office Parks REIT (Embassy REIT) has announced a significant increase in its consolidated net profit after tax, reporting Rs 2,834.14 million for the quarter ending March 31, 2024. This marks a substantial growth from the Rs 354.46 million profit after tax recorded in the same quarter of the previous fiscal year, according to a BSE filing.
The company’s net consolidated total income also saw a notable rise, reaching Rs 9,922.26 million, up by 10.18% from Rs 9,005.90 million in the corresponding quarter last year.
Aravind Maiya, CEO of Embassy REIT, expressed satisfaction with the company’s performance, highlighting achievements such as leasing a record 8.1 million sq ft to leading corporates, predominantly Global Capability Centers (GCCs), and delivering 2.2 million sq ft of new office development. Looking ahead, the company has provided guidance for FY25, including a target of 5.4 million sq ft of total leasing and distributions guidance ranging from Rs 22.40 to Rs 23.10 per unit.
Revenue from operations and net operating income grew by 8% year-on-year to Rs 3,685 crore and Rs 2,982 crore, respectively. The board of directors of Embassy Office Parks Management (EOPMSPL), managers of Embassy REIT, declared distributions of Rs 4,948.01 million/Rs 5.22 per unit for the quarter ended March 31, 2024. This distribution includes Rs 1,279.66 million/Rs 1.35 per unit in the form of interest, less applicable taxes, Rs 985.81 million/Rs 1.04 per unit as dividends, and Rs 2,682.54 million/Rs 2.83 per unit as repayment of SPV level debt.
For the financial year ended March 31, 2024, the total distributions amount to Rs 20,218.58 million/Rs 21.33 per unit. The net asset value of Embassy REIT stood at Rs 401.59 per unit as of March 31, 2024.
Additionally, the board approved the appointment of Arvind Kathpalia as a non-independent, non-executive director on the board of directors of EOPMSPL. Kathpalia was nominated by Kotak Performing RE Credit Strategy Fund I and APAC Company XXIII, who collectively held 12.41% of the outstanding units of Embassy REIT as of March 31, 2024.
Embassy REIT refinanced Rs 4,100 crore of maturing debentures at an average rate of 8.2% through a combination of listed debentures, first-time commercial paper, and bank loans. The company also announced the proposed acquisition of Embassy Splendid TechZone in Chennai for an enterprise value of up to Rs 1,269 crore and an institutional placement of up to Rs 3,000 crore.
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