NEW DELHI: Embassy Office Parks REIT (Embassy REIT) has reported a decline of 31.19 per cent in its net consolidated profit during the quarter ended December 31, 2024. Its profit after tax stood at Rs 158.19 crore in Q3 FY25 as against Rs 229.90 crore it recorded in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s net operating income (NOI) by nine per cent year-on-year to Rs 829 crore. It raised Rs 1,000 crore of debt at ~7.73%, and secured c.70 basis points savings in interest cost during the said quarter.
The board of directors of Embassy Office Parks Management Services (EOPMSPL), manager to Embassy Office Parks REIT (Embassy REIT), declared distributions of Rs 5,592.57 million/Rs 5.90 per unit for the quarter ended December 31, 2024. The distribution comprises Rs 492.90 million / Rs 0.52 per unit in the form of interest, less applicable taxes, if any, Rs 2,246.51 million / Rs 2.37, per unit in the form of dividend and Rs 2,853.16 million / Rs 3.01 per unit in the form of repayment of SPV level debt.
Ritwik Bhattacharjee, interim chief executive officer of the company said, “We are delighted to report another strong quarter, with a robust 13% increase in distributions, record quarterly NOI and revenue, amidst very strong demand for office space in our gateway markets. CY2024 was a record year of absorption in India, and we are perfectly poised to capitalize on these leasing tailwinds in CY2025.”
The company’s net consolidated total income stood at Rs 1,046.03 crore in Q3 FY25, a growth of 5.76 per cent from Rs 989.09 crore it recorded in the similar quarter last year.
It has leased 1.1 million sq ft across 21 deals including 0.7 million sq ft of new leases and 0.4 million sq ft of renewals in Q3 FY25. Overall it has leased five million sq ft year-to-date in FY25 and said that it is on track to achieve FY25 guidance.
Global capability centers accounted for 70 per cent of the leasing activity. Portfolio occupancy was at 90% by value with key markets Bengaluru, Mumbai, and Chennai achieving occupancy levels of over 90%.
The company delivered 0.6 million sq ft office block to global banking major at Embassy TechVillage in Bengaluru in Q3 FY25. It has a development pipeline of 7.4 million sq ft in Bengaluru and Chennai with an expected 19% yield on cost. Hotel portfolio witnessed 20% year-on-year EBITDA growth and occupancy rising to 59%, up from 55% last year.
