Realty firm Embassy REIT's net profit up fivefold at Rs 280 cr in Q4

Office space company Embassy REIT said on Thursday its net profit rise increased fivefold to Rs 280 crore in the quarter ended March, compared to the year-ago period. Consolidated revenue from operations increased 2 per cent to Rs 783 crore in the same period.

The realty major said that it leased 2.2 million square feet at 18 per cent positive spreads and achieved a rent escalation of 14 per cent on 7.7 msf across 89 deals in the March quarter (Q4).

Embassy’s net operating income grew to Rs 2,491 crore, 5 per cent higher than initial guidance, with an operating margin of 84 per cent in Q4. It raised Rs 4,600 crore at 6.5 per cent interest rate to refinance a legacy zero-coupon bond, which will translate to a 300 basis point or Rs 130 crore of proforma annual savings.

The company also locked-in two-thirds of its debt at attractive fixed interest rates and secured Rs 2,170 crore of green loans, maintaining a strong balance sheet with a low leverage of 24 per cent and over Rs 12,000 crore of debt headroom to finance growth in the future.

Embassy REIT said that it added 18 new high growth occupiers, increased customer base to over 200 marquee occupiers and integrated the Rs 9,782 crore Embassy TechVillage acquisition during the March quarter.

“We are delighted to report on another successful year, the third year since our listing. We delivered on our business and our enhanced financial guidance and are set on a clear growth path for the future,” said Michael Holland, Chief Executive Officer of Embassy REIT.

The company declared a distribution of Rs 499 crore or Rs 5.26 per unit for Q4 of FY22. With this, the cumulative distribution for FY22 totals Rs 2,063 crores or Rs 21.76 per unit, 1 per cent higher than the initial guidance, of which 82 per cent is tax-free for unitholders. The record date for the Q4 FY2022 distribution is May 09 and the distribution will be paid on or before May 13.

Embassy REIT also announced the appointment of Vikaash Khdloya, currently Deputy Chief Executive Officer and COO as Chief Executive Officer of the Manager to Embassy REIT.