- 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

Logo: https://mma.prnewswire.com/media/959202/Embassy_Office_Parks_Logo.jpg 

Source: Embassy Office Parks REIT