Embassy REIT Announces Q1 FY2023 Results, Delivers Record 1.8 Million Square Feet of Total Leases

Bangalore, Karnataka, India–

•  Achieves highest quarterly deal activity since April 2019 listing; signs 25 deals totaling 1.8 msf

•  Secures 550k sf pre-commitment from JP Morgan at Embassy TechVillage in Bengaluru

•  Grows NOI by 9% YoY; ₹27 bn capex investment on development pipeline to drive growth

Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed REIT and the largest office REIT in Asia by area, reported results today for the first quarter ended June 30, 2022.

Vikaash Khdloya, Chief Executive Officer of Embassy REIT, said,
“We are delighted that the first quarter of FY2023 is off to a solid start with a record 1.8 msf of total leasing. We are witnessing expansion across tech occupiers and global captives in India, with Bangalore continuing to lead India’s office demand revival. We continue to invest for growth and the 550k sf pre-commitment at Embassy TechVillage underscores our strategy of accelerating development of our 4.6 msf ongoing projects. Our conservative balance sheet, with a significant portion of debt locked-in at fixed rates, positions us well to finance future growth.”

Business Highlights

•  Leased 1.8 million square feet (‘msf’) across 25 deals, including 550k sf pre-commitment from JP Morgan at Embassy TechVillage (‘ETV’)

•  Added 15 new high-growth occupiers in sectors like cloud, cybersecurity, renewables, and healthcare tech; increased customer base to 214 blue-chip occupiers

•  Achieved 16% positive leasing spreads on 1.3  msf and 15% rent escalations on 1.9 msf 

Financial Highlights

•  Grew Net Operating Income by 9% YoY to ₹6,773 million, with operating margin of 82%

•  Maintained strong balance sheet with low leverage of 27%, over ₹108 billion debt headroom to finance future growth

•  Locked-in additional 19% debt at fixed interest rate for FY2023, 64% of debt already at fixed interest rate for 3 years

Growth Highlights

•  Accelerated development activity on 4.6  msf ongoing office projects, including 1.9 msf at ETV

•  Ramped-up construction of 518 key Hilton Hotels at ETV, on the back of successful launch of 619 key Hilton Hotels at Embassy Manyata

•  Evaluating Right of First Offer (‘ROFO’) invitation for 5 msf Embassy Splendid TechZone, Chennai from Embassy Sponsor; of this 1.4 msf is completed, and 1.6 msf is currently under development 

The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, at its Board Meeting held earlier today, declared a distribution of ₹5,052 million or ₹5.33 per unit for Q1 FY2023. The record date for the Q1 FY2023 distribution is July 29, 2022 and the distribution will be paid on or before August 5, 2022.
 
Investor Materials and Quarterly Investor Call Details
 
Embassy REIT has released a package of information on the quarterly results and performance, that includes (i) reviewed condensed consolidated and reviewed condensed standalone financial statements for the quarter ended June 30, 2022, (ii) an earnings presentation covering Q1 FY2023 results, and (iii) supplemental operating and financial data book that is in-line with leading reporting practices across global REITs. All these materials are available in the Investors section of our website at www.embassyofficeparks.com.

Embassy REIT will host a conference call on July 21, 2022, at 17:30 hours Indian Standard Time to discuss the Q1 FY2023 results. A replay of the call will be available in the Investors section of our website at www.embassyofficeparks.com.
 
Disclaimer
 
This press release is prepared for general information purposes only. The information contained herein is based on management information and estimates. It is only current as of its date, has not been independently verified and may be subject to change without notice. Embassy Office Parks Management Services Private Limited (“the Manager”) in its capacity as the Manager of Embassy REIT, and Embassy REIT make no representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to, the fairness and completeness of the content hereof. Each recipient will be solely responsible for its own investigation, assessment and analysis of the market and the market position of Embassy REIT. Embassy REIT does not provide any guarantee or assurance with respect to any distribution or the trading price of its units.
 
This press release contains forward-looking statements based on the currently held beliefs, opinions and assumptions of the Manager. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of Embassy REIT or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, including the impact of COVID-19 on us, our occupiers and the Indian and global economies, recipients of this press release are cautioned not to place undue reliance on these forward-looking statements. The Manager disclaims any obligation to update these forward-looking statements to reflect future events or developments or the impact of events which cannot currently be ascertained, such as COVID-19. In addition to statements which are forward looking by reason of context, the words ‘may’, ‘will’, ‘should’, ‘expects’, ‘plans’, ‘intends’, ‘anticipates’, ‘believes’, ‘estimates’, ‘predicts’, ‘potential’ or ‘continue’ and similar expressions identify forward-looking statements.
 
This press release also contains certain financial measures which are not measures determined based on GAAP, Ind-AS or any other internationally accepted accounting principles, and the recipient should not consider such items as an alternative to the historical financial results or other indicators of Embassy REIT's cash flow based on Ind-AS or IFRS. These non-GAAP financial measures, as defined by the Manager, may not be comparable to similarly titled measures as presented by other REITs due to differences in the way non-GAAP financial measures are calculated. Even though the non-GAAP financial measures are used by management to assess Embassy REIT's financial position, financial results and liquidity and these types of measures are commonly used by investors, they have important limitations as analytical tools, and the recipient should not consider them in isolation or as substitutes for analysis of Embassy REIT's financial position or results of operations as reported under Ind-AS or IFRS. Certain figures in this press release have been subject to rounding off adjustments. Actual legal entity name of occupiers may differ. There can be no assurance that Embassy REIT will enter into any definitive arrangements for the acquisition of Embassy Splendid TechZone, Chennai from Embassy Sponsor. 

About Embassy REIT

Embassy REIT is India’s first publicly listed Real Estate Investment Trust. Embassy REIT owns and operates a 42.8 msf portfolio of eight infrastructure-like office parks and four city‑centre office buildings in India’s best-performing office markets of Bangalore, Mumbai, Pune, and the National Capital Region (‘NCR’). Embassy REIT’s portfolio comprises 33.8 msf completed operating area and is home to over 200 of the world’s leading companies. The portfolio also comprises strategic amenities, including four operational business hotels, two under‑construction hotels, and a 100 MW solar park supplying renewable energy to tenants. For more information, please visit www.embassyofficeparks.com. 

Spread Over the Flourishing Realty Hub of Noida-Greater Noida, Ace Group Projects Offer Irresistible Choices to Discerning Property Buyers

As property buyers are spoilt for choice so Ace Group offers a wide array of residential and commercial properties in Noida-Greater Noida

New Delhi, Delhi, India

Driven by the strong pent-up demand for luxury and affordable luxury properties in the region, Ace Group is all set to launch ‘Ace Aquacasa’ in India’s smartest city ‘Greater Noida West’, Sector-16. An icon of comprehensive and exotic fine living, Aquacasa is an amalgamation of aesthetically designed exclusive 2, 3 & 4 BHK homes. Ace Group has already launched a sublime residential project ‘Ace Starlit’ at Sector 152, Noida. A luxurious offering at competitive pricing, the project boasts of all the world-class features and amenities including best-in-class clubhouse and a mega retail hub, among others. 

The twin city of Noida and Greater Noida has over the years emerged as a preferred choice for the real estate buyers due to its state-of-the-art infrastructure, fast-track connectivity through metro, expressways, flyovers and the upcoming Noida international airport at Jewar. The real estate market in this region has flourished on the back of high demand for residential and commercial properties in luxury and affordable luxury segments, besides its proximity to the key business centres in Delhi-NCR. 

Noida-Greater Noida has also witnessed massive influx of multinational companies in IT/ITes, research, consulting and manufacturing segment, which makes it an industrial and service sector hub. Especially the region bodes well for the homebuyers looking for spacious homes supported by world-class facilities, luxurious amenities, ample greenery and social infrastructure. Consequently, almost all the leading real estate developers have their projects in Noida-Greater Noida. Among them, Ace Group leads the pack and it has earned a reputation for presenting quality projects and delivering them on time. 

Mr. Ajay Chaudhary, Chief Managing Director, Ace Group said, “Our strong brand equity and an established track record of timely delivery with transparency, has made us favourite with homebuyers while they scout for their choicest homes in Noida-Greater Noida, the dream location for real estate purchasers. All Ace Group projects offer state-of-art designs, facilities, and amenities. Innovative construction technologies and best quality materials used by us give property buyers complete peace of mind and satisfaction in terms of international quality living standards.” 

While Ace Group provides futuristic residential spaces to homebuyers, each and every project of the company is constructed with the highest-level of expertise and professionalism. Fulfilling the dreams and aspirations of homebuyers, Ace Group has its premium residential project Ace Divino located at Sector-1, Greater Noida West, which has an in-ground commercial complex, kids play zone and a luxury club house offering the best-in-class amenities. Ace Divino offers unique features such as the Zen garden, the grand entrance lobby apart from intelligently done landscaping. The project is enjoying high demand from homebuyers and Ace Group is all set to deliver it before Diwali this year. Concurrently, Ace Group has announced that it will also deliver Ace Palm Floors in Sector 89-90, Gurgaon, besides Ace Medley Avenue and Ace Parkway located in Noida Sector 150 too before Diwali. 

Mr. Chaudhary added, “Apart from affordability, presence of vast open spaces, well-laid out infrastructure and availability of ample job opportunities in multi-national and Fortune 500 companies have raised the profile of Noida-Greater Noida as the much sought after housing destination for homebuyers. Its close connectivity to national capital and the upcoming international airport apart from Yamuna Expressway, Noida Expressway and metro network have altogether created strong market demand and high future growth possibilities of investment in these projects.” 

Ace Group has already launched Ace Starlit at Sector 152, Noida Expressway. Encompassing a total 492 units of 2-3 BHK luxury residences, every apartment at ‘Ace Starlit’ offers beautiful views inside out from its distinctive glass framework. Further, Ace Group is all set to unveil its new project Ace Aquacasa, presenting an iconic living amidst aquatic indulgences. Loaded with an incredible array of facilities and amenities located in Greater Noida West, Sector 16, Aquacasa is an icon of comprehensive and exotic fine living. It’s an amalgamation of aesthetically designed exclusive 2, 3 & 4 BHK homes offering experiential architecture, creativity and comfort. Aquacasa is closer to significant landmarks, educational institutes, health centres, world-class shopping centres and corporate hubs. 

For more than a decade, Ace Group has delivered projects covering an area of 8.5 million sq. ft. while another 22 million sq. ft. area is under various stages of construction under the umbrella of Ace and its joint ventures. Ace Group is an undisputed market leader in terms of its wide-spectrum of projects and their construction quality, state-of-the-art designs and adherence to delivery timelines. 

IISER New Campus built by renowned infrastructure developers - NKG Infrastructure Ltd.

Permanent campus of Indian institute of Science and Education Research (IISER), Berhampur (Odisha) will soon have its 1st batch of students residing in campus as Honourable Education Minister Shri Dharmendra Pradhan Ji, Inaugurated the Boys hostel building on 10th July 2022.

The Indian Institute of Science Education and Research Berhampur, established by the Ministry of Human Resource Development, Government of India is a Centre of Excellence dedicated to teaching and research in basic sciences. IISER Berhampur aims to be a University of the highest calibre devoted to both high quality teaching and state-of-the-art research. IISER plans to develop advanced teaching and research laboratories where students will have the opportunity to perform experiments as well as pursue advanced research under the mentorship of world-class faculty.

The campus has an Academic building, Auditorium, Residential quarters for teaching and non teaching staff, Hostel for students, sport facilities, commercial centre etc. The buildings are constructed to withstand high cyclonic wind speeds as the campus is in a cyclone prone area.

Central Public Works Department (CPWD) awarded the 694 Crore construction work (under Central Education ministry) to NKG Infrastructure Ltd.

NKG Infrastructure Limited, a New Delhi Based firm which has over 33 Years’ Experience in Constructions of Roads, Airport Buildings, Hospital Buildings, Educational/University Campuses, Electrification works, Flyovers, Underpasses, Sewage Treatment parks etc. 

By developing one of the larger IISER campuses in the country NKG further consolidates its position as Contributor to the country's infrastructure sector.  

https://nkginfra.com/