Embassy Office Parks REIT on Friday reported 30 per cent increase in net operating income at Rs 621.3 crore and will distribute Rs 493 crore to unitholders for the quarter ended December 2021.
Its net operating income (NOI) and distribution to unitholders stood at Rs 478 crore and Rs 431.3 crore, respectively in the year-ago period.
Embassy REIT also informed that it received an offer on Friday from sponsor Embassy group for acquisition of 5 million sq ft project in Chennai and the company will evaluate the same.
Commenting on the financial result, Embassy REIT CEO Michael Holland said the company's performance was good despite COVID disruptions.
This underscores the resilience and growth potential of Embassy REIT, he added.
"We continue to see multiple positive indicators for our business – the uptick in new leasing, our delivery of the 1.1 million square feet (MSF) JP Morgan campus, our 4.6 MSF of development pipeline, and a 5 MSF potential acquisition opportunity in Chennai," Holland said.
Embassy REIT said it leased 4,28,000 square feet across 15 deals and also achieved 14 per cent rent increase on 1.8 MSF area.
When contacted, Embassy REIT Deputy CEO and COO Vikaash Khdloya said the company has revised its FY22 guidance for the NOI, distribution to unitholders and leasing number.
He said the company expects the NOI at around Rs 2,450 crore, distribution to unitholders at around Rs 2,050 crore and the leasing area at 1 MSF for the full financial year.
Khdloya said the company's rental collection is almost 100 per cent while the vacancy is around 13 per cent.
The deputy CEO informed that the company has received 'Right of First Offer' (ROFO) from realty firm Embassy group for acquisition of 5 MSF Embassy Splendid TechZone in Chennai.
"We will evaluate this 5 MSF portfolio in Chennai for acquisition," Khdloya said, adding that around 1.5 MSF in the Chennai IT park has already been completed.
Asked about the likely deal value, he said it is too early to estimate.
Khdloya said the demand for premium office space remains strong.
Embassy REIT is India's first publicly listed Real Estate Investment Trust.
It owns and operates a 42.6 MSF portfolio of eight infrastructure-like office parks and four city-centre office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region.
