Embassy Office Parks REIT (EMBASSY) Q1 24/25 earnings summary

Executive summary

• Leased 1.9 million sq ft in Q1 FY2025, a 70% YoY increase, with 70% of leasing driven by Global Capability Centres.

• Completed major 5 million sq ft acquisition in Chennai, expanding presence in a top growth market.

• Declared Q1 distribution of INR 5.6 per unit (INR 5,308.20 million), up 7% quarter-on-quarter and 4% year-over-year.

• Investor base surpassed 100,000, a 25x increase since listing; regulatory changes reduced REIT holding period for long-term capital gains to 12 months.

• Standalone net profit for Q1 FY25 was INR 2,380.71 million, with EPS at INR 2.51, reflecting a year-over-year decline.

Financial highlights

• Q1 revenue from operations: INR 934 crore (INR 9,342 million), up 2% year-over-year; NOI: INR 758 crore (INR 7,575 million), up 3% year-over-year.

• Commercial office segment revenue and NOI up 4% year-over-year; hotel segment NOI up 16% due to higher occupancy and ADR.

• Solar segment NOI dropped 34% year-over-year due to seasonal and tariff factors.

• EBITDA increased 2% YoY to INR 7,697 million; EBITDA margin stable at 80%.

• Q1 distributions: INR 5,308 million or INR 5.6 per unit, up 4% year-over-year and 7% quarter-on-quarter.

Outlook and guidance

• FY2025 NOI guidance: INR 3,215–3,345 crore (INR 32.1–33.5 billion); DPU guidance: INR 22.4–23.1 per unit, implying 10% NOI and 7% DPU growth year-over-year at midpoint.

• Updated annual leasing guidance to 5.6 million sq ft, factoring in early renewals.

• March 2025 occupancy guidance: 88% by area, 91% by value.

• Interest costs expected to rise 18%-20% for the full year.

• Management expects to refinance upcoming debt maturities, supported by undrawn borrowing facilities and a low leverage ratio (32% net debt to gross asset value).