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Leased 6 lakh square feet in Q1, says Embassy Office Parks REIT's Mike Holland

Updated : August 13, 2019 07:16 PM IST

Country's first REIT, Embassy Office Parks REIT on Tuesday said it has leased close to 6 lakh square feet after the company reported a 19 percent increase in revenue from operations for the quarter ended June 30.

In an interview to CNBC-TV18's Manisha Natarajan, Mike Holland, chief executive officer, said, "EBITDA was up 11 percent and we have declared a dividend of Rs 417 crore, which is Rs 5.4 per unit. We are ahead of schedule with a couple of our near term projects by two quarters. So, all in all, the business is tracking well and we continue to guide as per the offer document back in March."

He further added, "We are absolutely on track with mark to market. Over the last four years, we have demonstrated that we are able to deliver. We are looking at 31 percent over the year. In Q1, we achieved over 50 percent on the new leases that were renewed. So, mark to market is the difference between the average rental in our portfolio and the outside market rental, is something that we achieve consistently. We are comfortable with the original 30 percent plus mark to market numbers."

The REIT, which was listed on April 1 of this year, had reported a revenue of Rs 535.1 crore in June quarter driven by continued leasing momentum across the portfolio.

The company reported a revenue of Rs 449.4 crore in the corresponding period last fiscal. Its net operating income for the quarter increased 19 percent to Rs 452.8 crore as compared to Rs 381.8 crore for the quarter ended June 30, 2018, with a margin for the quarter at 85 per cent. The REIT declared a quarterly distribution of Rs 416.7 crore or Rs 5.4 per unit.
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