Discussions are also underway about renting 5 lakh sq ft.Discussions are also underway about renting 5 lakh sq ft.

The Embassy Office Parks REIT on Friday reported 30% year-on-year growth in net operating income (NOI) of Rs 624 crore during the July-September quarter. Revenue grew by 36% YoY to Rs.735 crore during the same period.

The company announced a distribution of Rs 537 crore or Rs 5.66 per unit for the second quarter of FY22. Of which Rs 4.52 per unit or 80% of the distributions are tax free to unit holders. The standard date for distribution is November 10, 2021 and the distribution will be paid on or before November 13.

Bengaluru-based Ebitda grew 28% YoY to Rs 605 crore, while Ebitda’s margin narrowed to 85% from 88% a year ago. It collected over 99% of the rent across 32.3 million square feet (MSF) of the office portfolio. It achieved a stable occupancy rate in the portfolio of 89% with rental increases of 15% on 1.4 million square feet across 22 leases.

“We have delivered our strongest rental activity since the start of the pandemic, have successfully completed a significant debt increase of Rs 4,600 crore at a staggering 6.5% interest rate and received global recognition for our continued commitment to sustainability,” Embassy REIT CEO Michael Holland said.

“We have reaffirmed our full-year guidance as we see several tailwinds for our business – Covid stabilization in India, resurgent office rental market especially in our core Bengaluru market, expansion of occupiers business driven by massive global technology trends. These positive trends of expanding investor base are evident. We have which has tripled in the last 12 months.

During the September quarter, Embassy REIT signed 7.13 thousand square feet of gross leaseholding across 7 deals and generated 20% rental margins. This includes 1.69 thousand square feet of new leaseholding at 13% leaseback and 5.44 lakh square feet of renovations at a 21% renewal difference. Discussions are also underway about renting 5 lakh sq ft.

The company achieved 15% rent increases on MSF 1.4 across 22 leases in Q2 FY22, which is 100% of the scheduled escalation. On track to increase rents by 14% due at 4.1 MSF across 35 leases in FY22. Construction is in full swing for 5.7 MSF of company development projects, and 1.1 MSF JP Morgan campus at ETV is on track for delivery by the end of general

Regarding demand trends, the company said rental momentum is likely to rebound in 2022 with Bengaluru leading the pan-India office recovery. The technology sector and global captive centers will lead to an office recovery. Big occupants begin expansion/merger plans and next year could see a strong recovery.

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