Embassy Office Parks REIT's net profit dips 19% in Q4 FY21

Embassy Office Parks REIT’s net profit dips 19% in Q4 FY21

NEW DELHI: Embassy Office Parks REIT reported a dip of 19% in its net consolidated profit during January-March 2021. Its profit after tax (PAT) stood at Rs 46.70 crore in Q4 FY21 as against Rs 57.80 crore it recorded in the similar quarter last year, the company said in a BSE filing.

The company’s net consolidated income stood at Rs 770.20 crore in Q4 FY21, a growth of 32% from Rs 583.50 crore it registered in the corresponding quarter previous fiscal.

The board of directors of Embassy Office Parks Management Services (EOPMSPL), manager to Embassy REIT declared a distribution of Rs 530.80 crore or Rs 5.6 per unit for 4Q FY2021. The distribution comprises Rs 117.50 crore/Rs. 1.24 per unit in the form of interest, less applicable taxes, if any, Rs 209.40 crore/Rs. 2.21 per unit in the form of dividend and Rs 203.70 crore/Rs 2.15 per unit in the form of proceeds of amortization of SPV level debt.

The cumulative distribution for FY21 totals Rs 1,836.40 crore or Rs 21.48 per unit, which is on target with the guidance issued earlier by management.

The company said that it simplified the holding structure of Embassy Manyata, thereby increasing the tax-free component of distributions to 78% for Q4 FY21.

It also raised Rs 52 billion debt at 6.9% coupon and refinanced Rs 32.8 billion leading to 336 bps interest savings.

The company said its occupancy was at 88.9% with rent collections at 99.8% on 32.3 million sq ft operating portfolio. It claims to have seen rent increase of 13% on 8.4 million sq ft across 90+ leases.

It declared net asset value of Rs 387.54 per unit for Embassy REIT as at March 31, 2021.