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

Executive summary

• Achieved record quarterly revenue of ₹1,022 crores and NOI of ₹829 crores, both up 9% year-over-year for Q3 FY2025, driven by robust leasing, especially from GCCs and strong demand in Bangalore.

• Gross distributions reached ₹559 crores (₹5.90 per unit), a 13% YoY increase, with 9-month distributions at a record ₹1,643 crores.

• Board approved unaudited standalone and consolidated financials for the quarter and nine months ended December 31, 2024, and declared a distribution of ₹5,592.57 million (₹5.90 per unit) for the quarter.

• Leased 1.1 msf in Q3 (70% to GCCs), with portfolio occupancy at 90% by value and over 90% in key markets.

• Delivered 0.6 msf office block to a global banking major in Bengaluru; development pipeline stands at 7.4 msf with 19% expected yield on cost.

Financial highlights

• Revenue from operations and NOI both increased 9% YoY in Q3 FY2025; EBITDA margin remained strong at 81%.

• 9M FY2025 revenue and NOI up 8% YoY; total distributions for 9M FY2025 up 8% YoY to ₹16,427 mn.

• Hotel segment NOI increased 16% YoY, with occupancy up 400 bps to 59% and ADR up 13%.

• Standalone profit for the quarter was ₹2,819.49 million, up from a loss of ₹120.05 million in the previous quarter.

• Net distributable cash flows (NDCF) at the trust level for the quarter were ₹5,602.83 million; nine-month NDCF was ₹16,448.04 million.

Outlook and guidance

• Reaffirmed FY2025 guidance: 10% NOI growth and 7% DPU growth YoY at mid-point, with strong development and leasing pipeline.

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

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

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

• No deviation in the use of proceeds from recent NCD issuances; funds were used for debt repayment and refinancing.