NEW DELHI: Embassy Office Parks REIT reported a dip of 8 per cent in its consolidated net profit during the first quarter of the financial year 2020-21. Its profit after tax (PAT) stood at Rs 2,042.39 million in Q1 FY21, as against Rs 2,220.37 million it registered in the corresponding quarter previous fiscal, the company said in a BSE filing.

Its total consolidated income stood at Rs 5,492.32 million in Q1 FY21, a nominal dip of 1 per cent from Rs 5,541.35 million it recorded in the similar quarter last year.

The board of directors declared distribution of Rs 4,498,81 million for the quarter ended June 30, 2020. This comprises Rs 1,651.36 million in the form of interest, taxes, Rs 277.80 million in the form of dividend and Rs 2,569.65 million in the form of proceeds of amortization of SPV level debt, the company said in a regulatory filing.

Ramesh Periasamy resigned from the post of company secretary and compliance officer and Deepika Srivasatava was appointed in his place

S.R. Batliboi & Associates LLP in its review report submitted with BSE drew attention to two pending cases, as regards property tax dues aggregating to Rs 3,313.08 million as at June 30, 2020 payable by Manyata Promoters (MPPL), a subsidiary of Embassy Office Parks REIT.

The company in a media release said that its rental collections from office occupiers remained robust at 98.9%, with office rental collections at 99.2% for April 2020, 99.3% for May 2020 and 98.2% for June 2020. Portfolio occupancy remained healthy at 92.2% on 26.2 million sq ft operating office portfolio, with same-store occupancy of 94.1%.

Leases signed for the quarter stood at 5,26,000 sq ft, including 2,01,000 sq ft of new leases at market rents, and 3,25,000 sq ft of renewals at 20% spreads to existing rentals. GlobalLogic leased 37,000 sq ft, Rockwell Automation rented 36,000 sq ft, Philips leased 27,000 sq ft and Volkswagen rented 23,000 sq ft space in Q1 FY21.

It has resumed construction activity on 2.7 million sq ft of ongoing on-campus development in June 2020 post lifting of lockdown restrictions.

Embassy 5,26,000 sq ft of leases signed during the quarter, with advanced lease discussions/LOIs totaling 1,50,000 sq ft. This includes 2,01,000 sq ft of new lease-up at market rentals and 3,25,000 sq ft of renewals at 20% month-to-month (MTM) spread.

It achieved 14% rental escalations on 1.8 million sq ft across 22 office leases and collected 98.9% of Q1 rents from office occupiers. No waiver was granted to office occupiers and is it in discussions to collect balance 0.8% outstanding rents for Q1. Rs 291 million rebate was granted to food court, ancillary retail and small business tenants which represents 1.4% of annual rents.

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