Embassy Office Parks REIT on Wednesday reported a 36 per cent rise in net operating income to Rs 621.3 crore during the first quarter of this fiscal ended June 30, and also declared distribution, including dividend, of Rs 534.61 crore to unitholders for the quarter ended June.
The net operating income (NOI) had stood at Rs 456.9 crore in the year-ago period.
The company also said it collected over 99 per cent of office rents on 32.3 million square feet operating portfolio. "Declared distribution of Rs 5,346.12 million/ Rs 5.64 per unit for the quarter ended June 30, 2021," Embassy REIT said in a regulatory filing.
The distribution comprises Rs 2,379.21 million/ Rs 2.51 per unit in the form of dividend; Rs 1,895.79 million/ Rs 2 per unit in the form of the proceeds of amortisation of SPV (special purpose vehicle) level debt; and Rs 1,071.12 million/ Rs 1.13 per unit in the form of interest, less applicable taxes, if any.
Out of the total distribution, Rs 4.51 per unit or 80 per cent of distributions is tax-free for unitholders. The record date for the Q1 FY2022 distribution is August 5 and the distribution will be paid on or before August 12.
The board also approved fundraising by way of issuance of rupee-denominated, listed, rated, secured/unsecured, redeemable, transferable non-convertible debentures aggregating up to Rs 4,600 crore in one or more tranches.
The fund will be "utilised towards refinancing of Series I non-convertible debentures and for general purposes".
Commenting on the Q1 performance, Embassy REIT CEO Michael Holland said, "Having delivered to guidance in FY21, Embassy REIT continued its strong performance through Q1 despite the challenges of the recent lockdown." "Notwithstanding that, the global mega trends towards technology growth will benefit us as we see record hiring and investments in technology and captives housed in India," he added.
With effective vaccine rollouts and a clear desire from business leaders to get their employees back to high quality workplaces, Holland said the company is optimistic for the future.
On business highlights, Embassy REIT said it achieved stable portfolio occupancy of 89 per cent with successful rent increases of 13 per cent on 2.2 million square feet leases.
"Ongoing construction on 5.7 million square feet development projects, with 1.1 million square feet JPMorgan campus targeted for handover by year-end," it added.
Regarding financial highlights, the net operating income grew year-on-year by 36 per cent, with operating margins of 84 per cent.
The company raised Rs 1,200 crore debt at 7.4 per cent interest cost, refinanced Rs 520 crore leading to savings of 80 basis points.
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