Embassy REIT Q2 Net Operating Income up 30% YoY

The company has raised INR 4,600 crore debt at 6.5 per cent to refinance existing zero-coupon bond, delivering significant 300 bps interest savings

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Embassy REIT on Friday  reported y-o-y growth in net operating income of 30 per cent to INR 624 crore during the quarter ended September 30, 2021.

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The company declared a distribution of INR 537 crore, or INR 5.66 per unit. Of this, INR 4.52 per unit, or 80 per cent, of distributions are tax-free for unitholders. 

The company has raised INR 4,600 crore debt at 6.5 per cent to refinance existing zero-coupon bonds, delivering significant 300 bps interest savings. It has recorded a total lease-up of 713,000 square feet across seven deals and has achieved 20 per cent leasing spreads.

Michael Holland, CEO of Embassy REIT, said, “We are delighted to announce yet another strong quarter of continued robust business performance. We delivered our strongest leasing activity since the start of the pandemic, we successfully completed a significant INR 4,600 crores debt raise at an impressive 6.5 per cent interest rate and we received global recognition for our continuing commitment to sustainability. We have reconfirmed our full year guidance as we see multiple tailwinds for our business – India’s stabilizing Covid situation, a reviving office leasing market especially in our core Bangalore market, and occupiers’ business-expansion driven by global tech mega-trends. These positive trends are clear to our expanding investor base which has tripled in the last twelve months.”

Embassy REIT is  India’s first listed REIT and has the largest REIT office  in Asia by area.