Embassy REIT’s net profit increases by 68.67% in Q2 FY24, ET RealEstate
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NEW DELHI: Embassy Office Parks REIT (Embassy REIT) has reported a growth of 68.67 per cent in its net consolidated profit during the quarter ended September 30, 2023. It’s profit after tax stood at Rs 216.67 crore in Q2 FY24 as against Rs 128.46 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s net consolidated total income stood at Rs 939.33 crore in Q2 FY24, a growth of 4.85 per cent from Rs 895.90 crore it recorded in the similar quarter last year.
The board of directors of Embassy Office Parks Management Services, manager to Embassy REIT, declared distributions of Rs 524.18 crore / Rs 5.53 per unit for the quarter ended September 30, 2023. The distribution comprises Rs 114.69 crore / Rs 1.21 per unit in the form of interest, less applicable taxes, if any, Rs 218.01 crore / Rs 2.30 per unit in the form of dividend and Rs 191.475 crore / Rs 2.02 per unit in the form of repayment of SPV level debt.
The board also declared net asset value of Rs 398.86 per unit for Embassy REIT as at September 30, 2023. It approved and recommended borrowings from Axis Bank of amounts up to 33% of the total consolidated borrowings of Embassy REIT, its SPVs and Holding Company.
Aravind Maiya, chief executive officer of the company said, “For the first half of FY24, we have successfully leased 3.1 million sq ft, and the outlook for the full year looks promising, bolstered by a record leasing pipeline of 2.5 million sq ft.”
The company leased 2 million sq ft across 25 deals including 1.2 million sq ft of new leases and signed seven new deals over 100,000 sq ft reflecting a return of large deal closures. It delivered 1 million sq ft new office tower in Bengaluru; 7.1 million sq ft total development portfolio of which ~90% is in Bengaluru, expected to yield around 20% return on cost spends.
Embassy REIT’s net total debt was at September 30, 2023 is Rs 14,815.57 crore while gross asset value was at September 30, 2023 is Rs 52,651.39 crore. Loan to value ratio as at September 30, 2023 was 28.14%.