Home / Companies / News /  Embassy REIT Q2 profit flat at 232 crore, revenue up 4% to 540 cr

NEW DELHI : Embassy Office Parks REIT on Monday reported a flat consolidated net profit at 232.56 crore for the quarter ended September and a 4% rise in revenue from operation at 540.1 crore, and said it is looking to acquire large office parks for inorganic growth.

Its net profit stood 232.23 crore and revenue at 520.6 crore in the year-ago period, the Bengaluru-based firm said in a regulatory filing.

The company's net operating income rose 10% to 481.4 crore in the second quarter of this financial year, from 438.4 crore in the corresponding period of the previous year.

However, the distribution of income to unit holders dropped 8% to 424.4 crore during July-September period of 2020-21, from 463 crore a year ago.

The board of directors of Embassy Office Parks Management Services Pvt Ltd, which is manager to Embassy REIT, at its board meeting declared a distribution of  424.4 crore or  5.50 per unit, the company said in a statement.

The record date for the distribution is November 10 and will be paid on or before November 17.

The distribution or pay-outs to unit holders as dividend and other income stood at 874.3 crore in the first half of this financial year as against 879.7 crore in the year ago period.

Embassy REIT Chief Executive Officer Mike Holland said, "Embassy REIT continues to deliver amid challenging conditions caused by the global pandemic. We have been successful in collecting rents, keeping expenses low, and maintaining a healthy balance sheet."

The company is distributing cash flows to unit holders that compares to the pay-outs of the top yield-paying Indian corporates, he said. Holland added that it is distributing dividend quarterly even as the regulations allow for pay-outs half-yearly.

"Our multinational technology occupiers and global captive tenants continue to see strong demand for their services as global businesses bring forward spend on digital transformation, cloud solutions and cybersecurity," Holland said.

He said the company remains focused on growth through multiple channels including accretive acquisitions.

In a video conference, he added that the occupancy level in its commercial portfolio stood at 91.7% and rental collections at 99.5% during the September 2020 quarter.

New leases and renewals signed for the second quarter of 2020-21 stood at 2,10,000 sq ft, including 1,24,000 sq ft of new leases at 10% above market rents.

The pay-out in the September quarter was because of some change in accounting method and lower payout in a joint venture.

Embassy REIT Deputy CEO and Chief Operating Officer Vikaash Khdloya said the company is looking to acquire large office parks ranging from 2 million sq ft to 10 million sq ft.

Embassy Office Parks is India's first publicly listed real estate investment trust (REIT).

Listed in April 2019, Embassy REIT owns and operates 33.3 million square feet portfolio of seven infrastructure-like office parks and four city-centre office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region (NCR).

Embassy REIT's portfolio comprises 26.2 million sq ft completed operating area. The portfolio also comprises strategic amenities, including two operational business hotels, two under-construction hotels, and a 100-MW solar park supplying renewable energy to park occupiers.

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