Embassy REIT declared a record quarterly payout of Rs 670 cr (Rs 7.07/unit) driven by Q2 revenue and income growth.

The money goes to unitholders, the people who own units in the trust.

The board of the REIT’s manager approved it on 28 October, with 31 October as the record date and payment due on or before 6 November.

It is 9% above the payout a year earlier. Earnings behind it grew too.

Revenue rose 16% to Rs 1,303 crore, and net operating income, which is what the buildings earn after running costs, climbed 15% to Rs 1,069 crore. Leasing carried the quarter.

Embassy REIT signed up 1.5 million sq ft of office space, and global capability centres, the in-house support hubs that multinational firms run in India, made up 85% of that demand.

New leases of 0.9 million sq ft came in at an average 9% above market rents. One deal stood out.

A global engineering company pre-leased an entire 0.5 million sq ft building at Embassy TechVillage in Bengaluru, at a 15% premium to current market rents.

Pune added 0.2 million sq ft across three assets, about 25% of new leasing, and lifted occupancy there by three percentage points.

On funding, the trust raised Rs 2,050 crore of debt at a blended interest rate of 7.14%. Rs 1,000 crore of that came from a bank, the first such loan to an Indian REIT at the trust level under the Reserve Bank of India’s new lending framework.

The portfolio’s gross value grew 16% to about Rs 74,000 crore, and net asset value per unit climbed 18% to Rs 524.74.

It also delivered a 0.6 million sq ft office block in Chennai, fully committed to a US capability centre, and bought 8,048 sq ft of leased retail space at FIFC in Mumbai’s BKC.

A quarter earlier, the REIT reported 17% growth in both revenue and net operating income, declared a payout of Rs 598 crore, or Rs 6.31 per unit, and leased 1.3 million sq ft.

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