Embassy REIT Q2 revenue from operation up 4% to Rs 889 crore

Embassy Office Parks REIT on Thursday reported 4 per cent annual growth in revenue from operations at Rs 889 crore for the second quarter of this fiscal year and declared distribution of Rs 524 crore to unitholders.

Revenue from operations stood at Rs 857.12 crore in the year-ago period, according to a regulatory filing.

The board of Embassy Office Parks Management Services Pvt Ltd, Manager to Embassy REIT, declared distribution of Rs 524 crore or Rs 5.53 per unit for the second quarter (July-September) of this fiscal year.

Aravind Maiya, Chief Executive Officer of Embassy REIT, said, the company reported a record quarter of leasing of 2 million square feet.

"For the first half of FY2024, we have successfully leased 3.1 million square feet, and the outlook for the full year looks promising, bolstered by a record leasing pipeline of 2.5 million square feet," he said.

Maiya said the company has revised leasing guidance of 6.5 million square feet this fiscal year from the earlier announced 6 million square feet.

During July-September period of this fiscal, Embassy REIT leased record 2 million square feet across 25 deals including 1.2 million square feet of new leases. It signed 7 new deals over one lakh square feet, reflecting a return of large deal closures.

"Significant demand from Global Captive Centres (GCCs) accounting for over 70 per cent of total leasing activity," Embassy REIT said.

The company's consolidated net profit increased to Rs 216.67 crore in the second quarter of this fiscal year from Rs 128.46 crore in the year-ago period.

Total income rose to Rs 939.33 crore from Rs 895.90 crore in the year-ago period.