Embassy Office Parks REIT (EMBASSY) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly revenues and NOI, with revenue at ₹1,022 crores and NOI at ₹829 crores, both up 9% year-over-year, driven by robust leasing to GCCs and flex operators, especially in Bangalore.

• Declared a distribution of ₹5.90 per unit for the quarter, totaling ₹5,592.57 million, with cumulative nine-month distributions at ₹16,426.99 million.

• Leased 1.1 million sq ft in Q3 at 11% rental spreads, with 70% to GCCs and 16% to co-working operators; portfolio occupancy at 87% by area and 90% by value.

• Delivered 0.6 million sq ft office block to a global bank in Bengaluru; development pipeline stands at 7.4 million sq ft with 19% expected yield on cost.

• Completed acquisition of ESNP Property Builders and Developers Private Limited in June 2024, expanding the asset base.

Financial highlights

• Revenue from operations and NOI grew 9% year-over-year to ₹1,022 crores and ₹829 crores, respectively; EBITDA margin at 81%.

• Standalone profit for the quarter was ₹2,819.49 million, up from a loss in the previous quarter; consolidated profit for the quarter was ₹1,581.98 million.

• Distributions for Q3 reached ₹559 crores (₹5.90 per unit), up 13% year-over-year.

• Net distributable cash flows for the quarter were ₹5,602.83 million; net debt to gross asset value at 32%.

• Working capital benefited from timing of property tax payments and increased security deposits.

Outlook and guidance

• FY2025 NOI guidance: ₹3,215–3,345 crores; distributions: ₹22.4–23.1 per unit, implying 10% NOI and 7% DPU growth at midpoint.

• On track to achieve 6.5 million sq ft total lease-up for FY2025, with 68% of new lease-up achieved in 9M FY25.

• Confident of delivering stronger performance in FY2026, with continued multi-year growth cycle.

• Distributions for the quarter to be paid on or before February 7, 2025, with a record date of February 1, 2025.

• Hotel NOI expected to grow 10% YoY; solar NOI to decrease 20% YoY due to revised tariffs.