Embassy REIT delivers in Q4, Vikaash Khdloya appointed new CEO

Embassy real estate investment trust (REIT) reported its fourth-quarter earnings on Thursday, posting a growth of 23 per cent year-on-year (YoY) in net operating income at Rs 2,491 crore.

It declared a distribution of Rs 499 crore for Q4 FY2022 with a cumulative distribution for FY2022 totalling at Rs 2,063 crore, 1 per cent higher than the initial guidance. Embassy leased 2.2 million square feet (msf) across 47 deals and also achieved 14 per cent rent escalations on 7.7 msf across 89 deals.

It also elevated Vikaash Khdloya to the position of Chief Executive Officer, who presently serves as the Deputy Chief Executive Officer and COO. Khdloya will assume the role of CEO from July 1, 2022. Michael Holland will be relocating back to Europe.

Bengaluru continues to be the top-performing city as the economy reopens and business activity increases. The city contributed about 31 per cent of the total deals in the fourth quarter and contributed about 60 per cent of requests for proposals.

Speaking to DH, Vikaash doubled the firm’s guidance at 5 msf for the next year and expects a 9 per cent increase in net operating income.

Michael Holland, Chief Executive Officer of Embassy REIT, said that the company delivered on our business and our enhanced financial guidance. “The office leasing momentum continues to grow backed by a very encouraging return to workplace trajectory, coupled with robust hiring by technology and global captive players and record tech investments.”

Embassy REIT is India’s first publicly listed Real Estate Investment Trust. It owns and operates a 42.8 msf portfolio of eight infrastructure-like office parks and four city‑centre office buildings in Bangalore, Mumbai, Pune, and the National Capital Region (‘NCR’). Embassy REIT’s portfolio comprises 33.8 msf completed operating area and is home to over 200 of the world’s leading companies.

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