ICICI Securities: Embassy Office Parks REIT Delivers Resilient Q1 Performance In Tough Times 
Buildings under construction. (Photographer: Dhiraj Singh/Bloomberg)

ICICI Securities: Embassy Office Parks REIT Delivers Resilient Q1 Performance In Tough Times 

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ICICI Securities Report

The Embassy Office Parks REIT delivered a resilient Q1 FY21 performance with 99% collection efficiency in office rentals resulting in net distributable cash flows distribution of Rs 4.5 billion, which was up 8% YoY.

Leases signed for the quarter stood at 0.53 million square feet and the Embassy Office Parks achieved rental increases of 14% on 1.8 million square feet across 22 office leases in the portfolio.

The only dampener was negligible income from the two hotels and a Rs 291 million rebate given for FY21 to food courts and ancillary services (1.4% of annual rent). At a portfolio level, Embassy Office Parks maintained an overall occupancy of 92.2% with same-store occupancy of 94.1%.

While Covid-19 related concerns may impact incremental leasing in FY21E, we believe that the Embassy Office Parks low leverage (net debt to equity ratio of 0.2 times), marquee tenant profile and de-densification of offices making up for increased work from home by occupiers stands the Embassy Office Parks’ portfolio in good stead over the medium term.

Click on the attachment to read the full report:

ICICI Securities REIT Q1FY21 Results Update.pdf

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