Embassy Office Parks REIT (EMBASSY) Q2 24/25 earnings summary

Executive summary

• Achieved record H1 leasing of 4 million sq ft, with Q2 leasing at 2.1 million sq ft, raising full-year leasing guidance to 6.5 million sq ft and driving occupancy to 90% by value and 87% by area.

• Distributed ₹553 crores (₹5.83/unit) in Q2, up 5% YoY, with cumulative H1 distribution of ₹10,834.42 million.

• Expanded occupier base to 260 blue chip clients, delivered a fully pre-leased office tower in Bangalore, and completed the ESNP acquisition.

• Leadership changes announced, with new COO and Head of All India Leasing, and key promotions in leasing and operations.

• Standalone profit for H1 FY25 was ₹2,260.66 million, with a Q2 loss due to impairment charges.

Financial highlights

• Revenue from operations and NOI both increased 12% year-over-year to INR 997 crores and INR 805 crores, respectively.

• EBITDA for Q2 rose 15% YoY to ₹8,461 mn, with margin stable at 81%.

• Distributions declared at INR 553 crores or INR 5.83 per unit, up 5% year-over-year.

• Gross asset value rose 12% year-over-year to INR 59,104 crores; net asset value up 4% to INR 415.84 per unit.

• Net distributable cash flows for H1 were ₹10,845.22 million, supporting a distribution of ₹11.43 per unit.

Outlook and guidance

• FY2025 leasing guidance raised to 6.5 million sq ft, with 4.0 million sq ft already achieved in H1.

• NOI guidance for FY2025 at ₹32,800 mn (+10% YoY); DPU guidance at ₹22.75 (+7% YoY).

• Year-end occupancy expected at 88% by area and 92% by value, with 6.5 million sq ft total lease-up.

• Management anticipates stable distributions, supported by strong operating cash flows and a low leverage ratio of 31%.

• Guidance subject to risks from global macroeconomic conditions and market volatility.