Country for PR: United Kingdom
Contributor: PR Newswire Europe
Friday, February 14 2020 - 22:16
Embassy Office Parks REIT Announces Third Quarter FY 2019-20 Results and Quarterly Distributions of Rs. 4,707 Million
BENGALURU, India, Feb. 14, 2020 /PRNewswire-AsiaNet/ --

    - Quarter marked by strong leasing, delivery of under-construction blocks 
ahead of schedule and completion of first acquisition since listing    
    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 fiscal third quarter ended December 31, 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 distribution of Rs. 4,707 million or Rs. 6.1 per unit for 3Q 
FY2020. The cumulative distribution for YTD FY2020 totals Rs.13,504 million or 
Rs.17.5 per unit. The record date for the 3Q FY2020 distribution is February 
24, 2020 and the distribution will be paid on or before February 29, 2020.

    Commenting on the quarterly results, Michael Holland, Chief Executive 
Officer of Embassy REIT said, "Our office portfolio continues to deliver. In 
2019, leasing across the Indian markets crossed a record 60 million square feet 
("msf"), again underlining the strength of India's office sector as the leading 
office absorption market globally. We continue to capitalize on this occupier 
demand, driven by international corporations, through consistent leasing, early 
delivery of our accretive development pipeline, commencement of additional 
on-campus office developments and the acquisition of additional area to support 
further growth at our largest business park."

    Financial Highlights

- Revenue from Operations for 3Q FY2020 grew year-on-year by 14% to Rs. 5,459 
million and cumulatively grew year-on-year by 16% for YTD FY2020 
- Net Operating Income for 3Q FY2020 grew year-on-year by 16% to Rs. 4,639 
million and cumulatively grew year-on-year by 17% for YTD FY2020 
- Net Operating Income margin for 3Q FY2020 and YTD FY2020 was 85% reflecting 
scale efficiencies and low manager fees 
- Raised Rs.16,400 million debt at 9.03%; balance sheet continues to be 
conservatively levered with Net Debt to TEV (Total Enterprise Value) at 12% as 
of December 31, 2019

    Business Highlights

- Portfolio occupancy increased to 95.1% as on December 31, 2019, an increase 
of 220 bps year-on-year and 40 bps quarter-on-quarter 
- New leasing for 3Q FY2020 was c.527k sf with a strong forward pipeline of 
c.500k sf 
- Cumulative new leasing for YTD FY2020 stood at record c.1.7 msf delivering on 
embedded growth with a 56% mark-to-market spread on c.1.1 msf of re-leasing

    Growth Initiatives

- Delivered c.1.4 msf of office space ahead of schedule with 44% pre-committed 
to occupiers 
- Launched next phase of growth with an additional c.2.6 msf of on-campus 
- Acquired 0.6 msf leasable area within the overall Embassy Manyata business 
park in Bengaluru, at 9.25% initial yield on development completion in 4Q 
Investor Materials and Quarterly Investor Call Details

    Embassy REIT has released a package of information on the quarterly results 
and performance, that includes (i) unaudited condensed standalone and condensed 
consolidated financial statements for the quarter and nine months ended 
December 31, 2019, (ii) an investor presentation covering 3Q FY2020 results, 
and (iii) supplemental operating and financial data book that is in line with 
leading reporting practices across 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 February 14, 2020 at 18:30 
hours Indian Standard Time to discuss the 3Q FY2020 results. A replay of the 
call will be available till February 29, 2020 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 and 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.

This press release contains certain financial measures which are not measures 
determined based on GAAP, Ind-AS or any other internationally accepted 
accounting principles, and the recipient should not consider such items as an 
alternative to the historical financial results or other indicators of the 
Embassy REIT's cash flow based on Ind-AS or IFRS. These non-GAAP financial 
measures, as defined by the Manager, may not be comparable to similarly titled 
measures as presented by other REITs due to differences in the way non-GAAP 
financial measures are calculated. Even though the non-GAAP financial measures 
are used by management to assess the Embassy REIT's financial position, 
financial results and liquidity and these types of measures are commonly used 
by investors, they have important limitations as analytical tools, and you 
should not consider them in isolation or as substitutes for analysis of the 
Embassy REIT's financial position or results of operations as reported under 

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 unaudited combined financial statements for the quarter 
ended December 31, 2018 and audited combined financial statements for the nine 
months ended December 31, 2018 (assuming that the Embassy REIT held the REIT 
assets in its present form during quarter and nine months ended December 31, 
2018) as against unaudited condensed consolidated financial statements for the 
quarter and nine months ended December 31, 2019.

    About Embassy REIT

Embassy Office Parks is India's first and only listed REIT. Embassy REIT 
comprises 24.8 msf of completed and operational commercial properties across 
India. With approximately 8.5 msf of on-campus development in the pipeline, the 
total portfolio spans 33.3 msf 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(AC) solar park that supplies renewable energy to park 

    For more information please contact: 

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


Source: Embassy Office Parks REIT