Embassy Office Park REIT’s net operating income grew 9 per cent year-on-year to ₹677.3 crore with an operating margin of 82 per cent for the quarter ended in June. The company has declared a distribution of ₹5.33 per unit to unitholders for Q1 FY-2023.

The record date for distribution has been fixed as July 29, and the distribution will be paid on or before August 5.

Strong leasing biz

During the first quarter, it leased 1.8 million sq ft across 25 deals, including 5.5 lakh sq ft pre-commitment from JP Morgan at Embassy TechVillage (ETV). It achieved 16 per cent positive leasing spreads on 1.3 million sq ft and 15 per cent rent escalations on 1.9 million sq ft.

“We are delighted that the first quarter of FY2023 is off to a solid start with a record 1.8 million sq ft 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,” said Vikaash Khdloya, Chief Executive Officer of Embassy REIT.

It added 15 new high-growth occupiers in sectors such as cloud, cybersecurity, renewables, and healthcare tech and increased its customer base of blue-chip occupiers to 214.

Project development

The investment trust reported development activity on 4.6-million-sq-ft ongoing office projects, including 1.9 million sq ft at ETV and ramped-up construction of 518 key Hilton Hotels at ETV. It is also evaluating the Right of First Offer (ROFO) invitation for the 5-million-sq-ft Embassy Splendid TechZone, Chennai, from Embassy Sponsor.

“Our conservative balance sheet, with a significant portion of debt locked in at fixed rates, positions us well to finance future growth,” Khdloya said.