AsiaNet 84085

BENGALURU, India, May 19, 2020 /PRNewswire=KYODO JBN/ --

    - Distributes Rupees 18,821 million in first full year since listing

Embassy Office Parks REIT (NSE: EMBASSY) (BSE: 542602) ('Embassy REIT'),

India's first listed REIT and the largest in Asia by area, reported results

today for the fourth quarter and full year ended March 31, 2020.

The Board of Directors of Embassy Office Parks Management Services Private

Limited ('EOPMSPL'), Manager to Embassy REIT, at its Board Meeting held earlier

today, declared a distribution of Rupees 5,317 million or Rupees 6.89 per unit

for 4Q FY2020. The cumulative distribution for FY2020 totals Rupees 18,821

million or Rupees 24.39 per unit. The record date for the 4Q FY2020

distribution is May 28, 2020 and the distribution will be paid on or before

June 3, 2020.

Michael Holland, Chief Executive Officer said, "We are very pleased with our

strong business performance in fiscal 2019-20. Since Embassy REIT listed in

April 2019, we have delivered a total return of c.25%. Our fourth quarter

income and distribution payout once again illustrate the stability and

resilience of Embassy REIT delivering cash flows that are backed by the

covenants of our 160+ largely multinational occupier base.

While the COVID-19 pandemic has resulted in an uncertain near-term outlook for

many businesses worldwide, we are uniquely positioned to weather this

pandemic-induced storm with our best-in-class office portfolio and strong

balance sheet. While demand is likely to moderate considerably through 2020, we

believe that in this environment, Grade-A supply will reduce considerably over

the medium term, consolidation in the office market will continue and

high-quality institutional landlords, such as Embassy REIT, will gain market

share."

Financial Highlights for the Fourth Quarter and Fiscal Year

Revenue from Operations for 4Q FY2020 grew year-on-year by c.8% to Rupees 5,434

million and cumulatively grew year-on-year by c.14% for FY2020

Net Operating Income for 4Q FY2020 grew year-on-year by c.10% to Rupees 4,618

million and cumulatively grew year-on-year by c.15% for FY2020

Distribution for 4Q FY2020 of Rupees 5,317 million or Rupees 6.89 per unit,

representing c.100% payout ratio and full year cumulative distribution totals

Rupees 18,821 million or Rupees 24.39 per unit representing c.99.8% payout

ratio

Strong balance sheet with ample liquidity and low leverage of c.15% Net Debt to

TEV as of March 31, 2020, existing cash and undrawn committed facilities totals

Rupees 13.5 billion and only c.1.3% of total debt matures in the next two years

Business Highlights for the Fourth Quarter and Fiscal Year

Achieved overall occupancy of c.92.8% on c.26.2 msf operating office portfolio,

with same-store occupancy of c.94.5% considering March 2019 as base year

Leased c.389k sf new area during the fourth quarter, with full year lease-up of

c.2.4 msf being the highest absorption in previous 5 years

Re-leased c.1.1 msf during the year at c.53% releasing spread, renewed an

additional c.600k sf at c.19% renewal spread, illustrating the embedded growth

in our portfolio

Delivered c.1.4 msf new office buildings within existing campuses during the

year, c.62% of these new completions already committed

COVID-19 Update

Activated our business continuity plan on March 4, 2020, and our centralized

taskforce focused on ensuring safe workspaces, on-premise health screenings,

and business continuity for occupiers

Our properties remained open to support core business functions of our

occupiers throughout the national lockdown within the parameters laid out by

the government

Rent collections from office occupiers remained strong at c.92% for the month

of April 2020

Halted all construction activity and hotel operations to comply with government

directives during the lockdown. We will resume these activities once the

government eases lockdown restrictions

Vikaash Khdloya, Deputy CEO and COO said, "Our fourth quarter operating

performance was resilient, led by business continuity support for our occupiers

and employee wellness support. We would like to thank all our employees, the

civic authorities, and healthcare professionals who continue to work tirelessly

during this challenging period. Our immediate focus remains ensuring the health

and safety of all our stakeholders as they return to work in our parks."

Investor Materials and Quarterly Investor Call Details

Embassy REIT has released a package of information on the fourth quarter and

annual results and performance, that includes (i) audited condensed standalone

and audited condensed consolidated financial statements for the quarter and

financial year ended March 31, 2020, (ii) an earnings presentation covering 4Q

FY2020 and full year FY2020 results, and (iii) supplemental operating and

financial data book that is in line with leading reporting practices across

global REITs. All these materials are available in the Investor Relations

section of the REIT's website at ir.embassyofficeparks.com

[http://ir.embassyofficeparks.com/investors/investor-overview/default.aspx]

Embassy REIT will host a conference call on May 19, 2020 at 18:30 hours Indian

Standard Time to discuss the 4Q FY2020 results. A replay of the call will be

available till June 2, 2020 on the Investor Relations section of the REIT's

website at ir.embassyofficeparks.com

[http://ir.embassyofficeparks.com/investors/investor-overview/default.aspx]

Disclaimer

This press release is prepared for general information purposes only. The

information contained herein is based on management information and estimates.

It is only current as of its date, has not been independently verified and may

be subject to change without notice. Embassy Office Parks Management Services

Private Limited ("the Manager") in its capacity as the Manager of the Embassy

Office Parks REIT ("Embassy REIT"), and Embassy REIT make no representation or

warranty, express or implied, as to, and do not accept any responsibility or

liability with respect to, the fairness and completeness of the content hereof.

Each recipient will be solely responsible for its own assessment of the market

and the market position of Embassy REIT.

This press release contains forward-looking statements based on the currently

held beliefs, opinions and assumptions of the Manager. Forward-looking

statements involve known and unknown risks, uncertainties and other factors,

which may cause the actual results, financial condition, performance, or

achievements of Embassy REIT or industry results, to differ materially from the

results, financial condition, performance or achievements expressed or implied

by such forward-looking statements. Given these risks, uncertainties and other

factors, including the impact of COVID-19 on us, our occupiers and the Indian

and global economies, recipients of this press release are cautioned not to

place undue reliance on these forward-looking statements. The Manager disclaims

any obligation to update these forward-looking statements to reflect future

events or developments or the impact of events which cannot currently be

ascertained, such as COVID-19. In addition to statements which are forward

looking by reason of context, the words 'may', 'will', 'should', 'expects',

'plans', 'intends', 'anticipates', 'believes', 'estimates', 'predicts',

'potential' or 'continue' and similar expressions identify forward-looking

statements.

This press release also contains certain financial measures which are not

measures determined based on GAAP, Ind-AS or any other internationally accepted

accounting principles, and the recipient should not consider such items as an

alternative to the historical financial results or other indicators of the

Embassy REIT's cash flow based on Ind-AS or IFRS. These non-GAAP financial

measures, as defined by the Manager, may not be comparable to similarly titled

measures as presented by other REITs due to differences in the way non-GAAP

financial measures are calculated. Even though the non-GAAP financial measures

are used by management to assess the Embassy REIT's financial position,

financial results and liquidity and these types of measures are commonly used

by investors, they have important limitations as analytical tools, and you

should not consider them in isolation or as substitutes for analysis of the

Embassy REIT's financial position or results of operations as reported under

Ind-AS.

Investors should also take note that Embassy REIT was listed on April 1, 2019

and the Embassy REIT assets were acquired between March 22, 2019 to March 25,

2019. Accordingly, the comparative quarterly and financial year financial

information has been prepared by comparing unaudited combined financial

statements for the quarter ended March 31 2019 and audited combined financial

statements for the financial year ended March 31, 2019 (assuming that the

Embassy REIT held the REIT assets in its present form as of April 1, 2018) as

against audited condensed consolidated financial statements for the quarter and

financial year ended March 31, 2020.

About Embassy REIT

Embassy Office Parks is India's first and only listed REIT. Embassy REIT

comprises c.26.2 msf of completed and operational commercial properties across

India. With approximately 7.1 msf of on-campus development in the pipeline, the

total portfolio spans c.33.3 msf across seven Grade A office parks and four

city-center office buildings in India's best performing office markets of

Bengaluru, Mumbai, Pune and the National Capital Region (NCR). The portfolio is

home to over 160 blue chip corporate occupiers, and comprises 78 buildings with

strategic amenities, including two completed hotels, two under-construction

hotels, and a 100MW(AC) solar park that supplies renewable energy to park

occupiers.

For more information please contact:

Ritwik Bhattacharjee

Head of Investor Relations

Email: ir@embassyofficeparks.com

Phone: +91-80-3322-2222

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Source: Embassy Office Parks REIT