Embassy Office Parks REIT’s profit dips 8% in Q1 FY21 – ET RealEstate

NEW DELHI: Embassy Office Parks REIT reported a dip of 8 per cent in its consolidated net profit during the first quarter of the financial year 2020-21. Its profit after tax (PAT) stood at Rs 2,042.39 million in Q1 FY21, as against Rs 2,220.37 million it registered in the corresponding quarter previous fiscal, the company said in a BSE filing.

Its total consolidated income stood at Rs 5,492.32 million in Q1 FY21, a nominal dip of 1 per cent from Rs 5,541.35 million it recorded in the similar quarter last year.

The board of directors declared distribution of Rs 4,498,81 million for the quarter ended June 30, 2020. This comprises Rs 1,651.36 million in the form of interest, taxes, Rs 277.80 million in the form of dividend and Rs 2,569.65 million in the form of proceeds of amortization of SPV level debt, the company said in a regulatory filing.

Ramesh Periasamy resigned from the post of company secretary and compliance officer and Deepika Srivasatava was appointed in his place

S.R. Batliboi & Associates LLP in its review report submitted with BSE drew attention to two pending cases, as regards property tax dues aggregating to Rs 3,313.08 million as at June 30, 2020 payable by Manyata Promoters (MPPL), a subsidiary of Embassy Office Parks REIT.

The company in a media release said that its rental collections from office occupiers remained robust at 98.9%, with office rental collections at 99.2% for April 2020, 99.3% for May 2020 and 98.2% for June 2020. Portfolio occupancy remained healthy at 92.2% on 26.2 million sq ft operating office portfolio, with same-store occupancy of 94.1%.

Leases signed for the quarter stood at 5,26,000 sq ft, including 2,01,000 sq ft of new leases at market rents, and 3,25,000 sq ft of renewals at 20% spreads to existing rentals. GlobalLogic leased 37,000 sq ft, Rockwell Automation rented 36,000 sq ft, Philips leased 27,000 sq ft and Volkswagen rented 23,000 sq ft space in Q1 FY21.

It has resumed construction activity on 2.7 million sq ft of ongoing on-campus development in June 2020 post lifting of lockdown restrictions.

Embassy 5,26,000 sq ft of leases signed during the quarter, with advanced lease discussions/LOIs totaling 1,50,000 sq ft. This includes 2,01,000 sq ft of new lease-up at market rentals and 3,25,000 sq ft of renewals at 20% month-to-month (MTM) spread.

It achieved 14% rental escalations on 1.8 million sq ft across 22 office leases and collected 98.9% of Q1 rents from office occupiers. No waiver was granted to office occupiers and is it in discussions to collect balance 0.8% outstanding rents for Q1. Rs 291 million rebate was granted to food court, ancillary retail and small business tenants which represents 1.4% of annual rents.



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Embassy Office Parks REIT reports rental collections of 97% in Q1 FY21 – ET RealEstate

BENGALURU: Embassy Office Parks, India’s first listed real estate investment trust (REIT) and the largest in Asia by area, said on Monday its rental collections for the first quarter (April to June) from office occupiers remained robust at 97 per cent.

The office rental collections were 98 per cent in April and May, and 95 per cent in June, it said in an operational update for Q1 FY21. There were rental increases of 14 per cent on 1.8 million square feet across 22 office leases.

The company said its priority remains delivering a safe workplace and business ecosystem for occupiers and their employees. A daily average of 13,000 employees operated in June from its properties across India.

The properties remained open in full compliance with all government regulations to support the business continuity of occupiers. Over 90 per cent of 160-plus corporate occupiers continued to operate their core business functions in June.

Embassy REIT‘s robust rental collections for the quarter ended June 30 speaks to the trust we have built with our occupiers over many years, their appreciation of our Covid-19 operating response, and their dependence on the highest safety and quality standards which our total business ecosystem delivers,” said Chief Executive Officer Mike Holland.

The company said it has a strong liquidity position with existing cash and undrawn committed facilities totalling Rs 1,260 crore as of June 30.

Embassy Office Parks operates 33.3 million square feet portfolio of seven infrastructure-like office parks and four city-centre office buildings in best performing office markets of Bengaluru, Mumbai, Pune, and the National Capital Region (NCR).

Its portfolio also comprises strategic amenities including two operational business hotels (including the Four Seasons hotel at Embassy One), two under-construction hotels and a 100-megawatt solar park supplying renewable energy to park occupiers.



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ANSR leases three lakh sq ft space from Embassy Office Parks in Bengaluru – ET RealEstate

MUMBAI | BENGALURU: In the first major office leasing transaction since the Covid-19 outbreak, global consulting firm ANSR’s India arm has leased 300,000 sq ft space across eight floors in Embassy NXT in Bengaluru.

The Dallas-headquartered company has leased the area from Embassy Office Parks’ commercial project for a tenure of 10 years to expand operations in India.

The rentals for the lease have been set at Rs 120 per sq ft a month, with the agreement carrying a rental reset clause every three years, according to people privy to the details.

ANSR has leased this space in addition to its existing 350,000 sq ft with Embassy Office Parks, taking its cumulative area to 650,000 sq ft.

The new office will be operational from October.

The long-term deal assumes significance in the backdrop of ongoing buzz around the possibility of a work-from-home model disrupting transactions in commercial real estate.

“There is no getting away from the fact that India is the epicentre of the global technology sector, which is performing well even during the pandemic. Companies will offer flexibility to its employees, but office demand will continue to be robust in the medium to long term,” said Mike Holland, CEO, Embassy REIT.

Holland confirmed the deal but declined to comment on the commercial terms.

ANSR has leased the office in the new office tower in Embassy Manyata Business Park, the flagship asset owned by Embassy Office Parks REIT.

“We are looking to hire over 10,000 new employees in the next six months in India and the new office will accommodate around 2,200 of those from October. We already have 67,000 employees in India serving 52 global companies,” said Lalit Ahuja, CEO, ANSR. “Based on our interaction with clients, there’s a lot of interest among global companies to come to India.”

ANSR specialises in research and advisory services, set-up and operation of global capability centres, and execution of development and innovation programmes.

Sponsored by the US-based private equity and alternative asset management major Blackstone Group and Bengaluru-based Embassy Group, Embassy REIT owns 33 million sq ft office space across India.

More than 80% of Embassy REITs’ tenants, by area leased, are global corporate entities such as JPMorgan, IBM, Facebook and Google.

In the last major office space transaction that was recorded in March prior to lockdown, the US-based Cognizant Technology Solutions’ India arm had leased a 350,000 sq ft office space on a nine-year lease in DLF’s information technology park at Kolkata’s Rajarhat locality.



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