Embassy Off.REIT

NSE: EMBASSY · Realty

Snapshot

Unlock Embassy Off.REIT's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Embassy Office Parks REIT is a real estate investment trust that owns and operates a portfolio of high-quality office parks and city-centre commercial properties across India. The company focuses on leasing and managing premium office spaces for corporate tenants.

Geography mix

  • NaN%

Business Model

The company generates revenue primarily through the leasing of commercial office spaces to a diverse base of multinational and domestic tenants. It operates as a REIT, distributing the majority of its net distributable cash flows to unitholders.

Growth Outlook

Growth is driven by the expansion of the existing office portfolio, rental escalations, and the acquisition of new commercial assets. Increased demand for high-quality, sustainable office spaces in major Indian metropolitan hubs supports long-term growth.

Key Risks

  • Occupancy Risk. A decline in demand for physical office space due to hybrid work models could lead to lower occupancy rates and reduced rental income.
  • Interest Rate Sensitivity. As a REIT, the company is sensitive to interest rate fluctuations, which can impact borrowing costs and the attractiveness of REIT units compared to other fixed-income investments.
  • Concentration Risk. The portfolio's performance is heavily dependent on the economic health of the technology and professional services sectors, which comprise a significant portion of the tenant base.
  • Regulatory Risk. Changes in real estate regulations, tax laws, or REIT-specific frameworks in India could adversely affect the company's operational structure and profitability.

Price

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Key Metrics

REVENUE

₹2,963 Cr

TTM · consolidated

+25.5%YoY

NET PROFIT

₹888 Cr

TTM · consolidated

+27.2%YoY

EPS

₹9.38

TTM · consolidated

+5.7%YoY

RETURN ON EQUITY

3.3%

TTM · consolidated

+0.3 ppYoY

RETURN ON CAPITAL EMPLOYED

3.8%

TTM · consolidated

-0.2 ppYoY

EV/EBITDA

22.3x

Q4 FY22 · consolidated

22.3 vs 36.2x5Y avg

EBITDA MARGIN

81.9%

TTM · consolidated

-1.5 ppYoY

NET PROFIT MARGIN

37.3%

Q4 FY22 · consolidated

+31.0 ppYoY

DEBT TO EQUITY

0.5x

Q2 FY23 · consolidated

+0.04xYoY

Peers · Realty

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Embassy Off.REITEMBASSY
39,48522.2625.5%81.9%3.3%3.8%
Oberoi Realty Ltd.OBEROIRLTY
52,50923.1116.5132.4%60.9%18.0%20.7%+2.5%
Prestige Estates Projects Ltd.PRESTIGE
51,99159.1419.9472.6%33.3%8.3%13.9%-4.5%
Knowledge Realty TrustKRT
49,89181.0%
Godrej Properties Ltd.GODREJPROP
46,60834.0326.804.2%55.8%10.4%12.7%-8.7%
Mindspace BusineMINDSPACE
36,15720.2876.0%2.8%4.4%

As of Q4 FY22

Financials