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

Executive summary

• Achieved record H1 leasing of 4 million sq ft (2.1 million sq ft in Q2), raising occupancy to 87% by area and 90% by value, and expanded the occupier base to 260 blue chip clients.

• Raised FY2025 leasing guidance from 5.6 million sq ft to 6.5 million sq ft, reflecting strong demand and robust pipeline.

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

• Delivered 0.6 million sq ft office tower in Bangalore, 100% pre-leased to ANZ.

• Strengthened leadership team with key promotions in leasing and operations.

Financial highlights

• Revenue from operations and NOI both grew 12% year-over-year to ₹997 crores and ₹805 crores, respectively, with EBITDA margin stable at 81%.

• Distributions for Q2 at ₹5,526 mn (₹5.83/unit), up 5% YoY and 4% sequentially.

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

• Net debt book at over ₹18,000 crores, with a 31% leverage ratio and 7.82%–7.99% in-place cost.

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

Outlook and guidance

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

• Year-end portfolio occupancy projected at 88% by area and 92% by value.

• Leasing guidance revised to 6.5 million sq ft, including 4 million new, 1 million renewals, and 1.5 million pre-commitments.

• Management anticipates refinancing upcoming debt maturities using undrawn borrowing facilities.